Updated guide for financial entities

Monday 6 September 2010, 1:15PM
By Securities Commission

The Securities Commission today released an updated edition of its QFE Adviser Business Statement Guide reflecting changes to the Financial Advisers Act.

The guide explains how to prepare an Adviser Business Statement, which is a prerequisite for any business that chooses to apply for status as a Qualifying Financial Entity (QFE) in the new regulatory regime.

The guide has new content on QFE groups and covers partner entities, nominated representatives and associated entities. Other changes have been kept to a minimum.

The Adviser Business Statement describes the adviser business and details the governance and compliance arrangements in place to demonstrate that it can take responsibility for the professional conduct and competence of its financial advisers.

"To become a QFE a financial entity must satisfy the Commission that it has the capacity to take frontline compliance responsibility for its advisers and has policies and procedures in place to ensure adequate consumer protection for retail clients," Commissioner for Financial Advisers David Mayhew said. "The Adviser Business Statement is key to demonstrating that."

Prospective QFEs should submit their Adviser Business Statement to the Commission for review by 1 October 2010 to allow time for any queries to be addressed. The deadline is 1 December 2010.

The new guide is published at