New Zealand IFAs taking 'hairdresser' qualifications

A new qualification for IFAs in New Zealand has been compared to the certificate a hairdresser would receive.

Nigel Tate, president of the Institute of Financial Advisers, expressed his opinions on the Level 5 Certificate in Financial Services, which is required to reach Authorised Financial Adviser (AFA) status.

He told the New Zealand Herald the qualification, which advisers must attain by 30 June, is equivalent to "what a hairdresser is required to have".

"That's not being mean about hairdressers... but I couldn't really consider them to be in a profession," he added.

"The gap between that and what we consider to be excellence is quite large."

Tate also expressed concerns about the cost of implementing the new regulatory regime, on top of educations and new systems.

He pointed out small firms may be lumped with costs of up to $20,000 (£9,422), meaning many could be forced out of the business.

A new code of conduct was recently approved for financial advisers in New Zealand, focussing on many of the issues that have been addressed by the RDR in the UK.