New Zealand Legislation: Bills

16 Financial adviser must disclose other interests and relationships

• (1) A financial adviser must disclose whether or not the adviser or an associated person has, or will or may have, any interest or relationship that a reasonable person would find reasonably likely to influence the adviser in performing the financial adviser service.

  (2) This includes an obligation to disclose—

  • (a) any relevant remuneration as defined in subsection (4); and

  • (b) whether the adviser is an associated person of, or has any other financial or other relationship with, any person connected with the financial product (if any) to which the financial adviser service relates; and

  • (c) a relationship with any other person (other than a professional body) who may reasonably be expected to influence the provision or content of the financial adviser service; and

  • (d) any other direct or indirect pecuniary or other interest in giving the financial advice.

  (3) A financial adviser must disclose the following information:

  • (a) the nature and extent of the interest or relationship; and

  • (b) in the case of remuneration, to the extent practicable, the amount or rate of the remuneration and the name of the person from whom the remuneration has been, or will or may be, received.

  (4) In this section,—

  relevant remuneration means any remuneration that the adviser or an associated person has received, or will or may receive, directly or indirectly, from a person other than the client in connection with the giving of the financial advice or a transaction resulting from the giving of the advice

  remuneration means a commission, fee, or other benefit or advantage, whether pecuniary or not, and whether direct or indirect; but does not include a salary or wages of a fixed amount.

  Compare: 1988 No 234 s 41E