There are 67 authorised financial advisers (AFAs) in Hawke's Bay listed under the new financial markets regime implemented on July 1.
AFAs can offer investment products such as KiwiSaver, managed funds and investment management and planning services.
Other adviser types - people such as bank staff - are limited to simpler products,such as insurances, mortgages and term deposits, or to products provided by their own companies.
Financial Markets Authority chief executive Sean Hughes said making it much clearer that advisers offered different services was a key part of the new regime.
"First and foremost, this is about ensuring consumers are better protected and they have access to clear, easily accessible information that helps them make well-informed financial decisions," he said.
The purpose of the changes was to improve standards, and encourage public confidence in the professionalism and integrity of financial advisers and brokers, he said. The rules provided more consistency in terms of the information advisers must supply and how products have to be explained.
One change that affects all financial advisers is the need to be formally registered, either directly or via their company in the case of Qualifying Financial Entities staff, on the public Financial Service Providers Register at www.fspr.govt.nz.
Financial advisers dealing with retail clients have to:
Put client interests first - mandating care, diligence and skill in law gives customers greater legal redress in the event things go wrong.
Belong to a dispute resolution scheme.
Disclose certain information to clients before giving advice.
In addition, those who have become AFAs have to:
Follow a code of professional conduct that specifies minimum standards such as ethical behaviour, client care, competence, knowledge and skill and continuing professional training.
Disclose additional information including how they are paid.
The Financial Markets Authority offers further information and a searchable list of all AFAs on its website www.fma.govt.nz.
The authority was formed through the Financial Markets Authority Act 2011. It took over some roles of the Ministry of Economic Development, in particular the regulatory role of the Government Actuary and some of the roles of the Registrar of Companies.
