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FMA offers assistance over FAP “areas of concern”

27 May, 8:37am by Eric Frykberg

The Financial Markets Authority (FMA) says it wants to help advisers overcome a pattern of inadequate record keeping in the past.

To do so, it has issued new guidance for financial advice providers (FAPs) about how to demonstrate compliance with record keeping obligations.

The rules apply to both transitional FAP licences and full FAP licences.

They state that people must create and maintain adequate records in relation to their services in a timely manner.

To help advisers do this, an information sheet has been provided.

It provides an overview of record keeping obligations and sets out areas for FAPs to consider when reviewing their record keeping practices.

The information sheet includes practical examples of how this should be done.

The move follows worries about the quality of record keeping in the past.

“Our monitoring of the previous financial advice regime consistently identified poor record keeping as an area of concern,” said the FMA's Director of Supervision, James Greig,

“This included insufficient records about the services provided to clients and incomplete information on whether key obligations had been fulfilled.”

Greig said good record keeping helped financial advice providers demonstrate that they were serving client interests.

He added many financial advice providers were adapting their processes to comply with the rules, and he was issuing this information sheet to help out.

The information sheet is here

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