MoBIE recently released its final regulations on CoFI, and in particular, the sales incentives regulations.
Financial Advice New Zealand had significant concerns regarding the unintended consequences on the sector and how a FAP could remunerate its advisers.
We have worked hard with the officials on behalf of our advisers and have been successful in making significant changes to the final regulations. There has been clarification regarding the words ‘targets‘ and ‘thresholds’ for incentives. This has narrowed down the interpretation of ‘other threshold’ which has meant the widening of the ability to pay an incentive based on market share, profit or any other similar measure of financial performance.