Changes to the financial advice regulatory regime
You should be aware that new legislation affecting financial advisers comes into effect in early 2021. As part of the changes, the Government is removing the three current adviser types – Registered Financial Adviser (RFA), Authorised Financial Adviser (AFA) and QFE adviser – and all advisers will need to meet the same standards.
The new legislation includes a new Code of Professional Conduct for Financial Advice Services which specifies new minimum competency requirements.
The new legislation also has a competency safe harbour for those who already hold or are undertaking the Level 5 qualification (for AFAs). This provision will help to ensure that qualification holders or current learners are not disadvantaged as a result of the new legislation.
Customised Training Programmes
Skills can work with your company to identify the qualifications and training organisations that meet your needs. Just give us a call and we’ll walk you through your options.
These programmes will enable you to meet the required competencies for Authorised Financial Advisers (AFAs), and the new designations of Nominated Representative and Financial Adviser, which replace all of the existing designations and come into effect from early 2021. Programmes are available through a variety of training organizations.
For those seeking an alternative pathway to meeting the competency requirements of the new regime
The new Code of Professional Conduct for Financial Advice Services which comes into effect from early 2021, includes references to using alternative qualifications and experience to demonstrate competency at the level required.
How it all works
Here are the most commonly asked questions on what makes up a training programme and how these programmes work.
How does training with Skills work?
We work with businesses like yours to map out where weaknesses in skill sets lie, and how training can be used strengthen them. Our account managers will then work with you to select the right training programmes (and if required, customise them) to suit your needs.
Once a programme is chosen our team helps you to set up and embed the training programmes in your organisation, so that they work seamlessly with the daily activities of your staff, and with minimal disruption.
Skills training programmes and course materials are developed in consultation with industry representatives to ensure they are relevant and can drive consistent performance and growth in your organisation.
What are alignments and how do they work?
If your company already has internal training that is of a really high standard, you could look into doing an alignment. An alignment involves making a few changes to the way your training is carried out, so that staff who do your internal training receive a nationally recognised certificate.
Skills account managers will map out your training and everyday work and compare it to the competencies needed to gain a national qualification. They will then recommend tweaks and inclusions you can make to your training so that staff can get the formal recognition they deserve.
How do staff get their certificates?
When your staff complete their training, Skills will submit the evidence of their competencies to NZQA so that they can be awarded their certificate.
This evidence of competencies can be gathered from assessments, observing normal day-to-day work and from verification by team leaders and managers.
How do assessments work?
Trainees are assessed towards the end of their training to make sure they’ve gained the key knowledge/competencies they need to meet the nationally recognised standards.
Assessments can be carried out in the workplace by trained and registered workplace assessors, or through accredited training providers. Skills can assist with sourcing registered assessors or in training up your internal staff so that they can carry out the assessments in-house.
What support is available once we’ve signed up?
The support from Skills doesn’t just stop once your company is setup with a training programme or aligned to a national standard. We offer a wide range of resources, tools and dedicated staff to advise and support you on a continuing basis.
What are the benefits of training staff to national standards?
Helping your staff to receive national recognition for the skills and training they do in their everyday work is something that pays for itself in no time at all. Here’s why:
- It ensures consistency in training, so that regardless of the trainer, your staff are learning the key information they need to succeed in their roles.
- It ensures consistency in performance as everyone receives the same level of training and ends up with a similar level of expert knowledge.
- It reduces error rates and re-work, which saves your business money and protects your brand name.
- It reduces staff turnover rates as staff feel more valued and are more engaged. Lower turnover rates protect organisational knowledge and reduce recruitment and training costs. It also helps to boost morale and improve company culture.