Are Kiwi advisers ready for their RDR deadline this week?

New regulations affecting financial advisers in New Zealand come into effect this Friday, with reports up to 300 financial advisers will be forced out of business as a result.

The Financial Advisers Act will make it an offence for unlicensed advisers to give advice on KiwiSaver, managed funds and other investment products without proper qualifications.

According to the Financial Markets Authority (FMA), 1,367 financial advisers have been authorised, with a further 150 applications due to be processed this week, NZ Herald News reports.

As in the UK, the aim off the reforms is to bolster confidence and substantially lessen the risks for investors, with advisers required to be listed on a public register and belong to an approved dispute resolution scheme.

However, unlike the UK and Australia, where similar reforms are also being pushed through, there will be no ban on commission in New Zealand.

Anthony Quirk, of Milford Asset Management, told TVNZ: "They have stopped short. They haven't banned commissions, which I think is unfortunate because that would have actually changed the nature of advice in a lot of cases."

Under the new requirements, advisers will also have to adhere to a new Code of Professional Conduct, ensuring they use the term 'independent' correctly and meet minimum standards for ethical behaviour, client care and continuing professional development.