NZ regulator censures Go Financial Solutions for breaching its licence obligations
New Zealand’s Financial Markets Authority (FMA) has censured Go Financial Solutions Limited for failing to comply with several obligations under its financial advice provider (FAP) licence.
During a monitoring review earlier this year, the FMA found that Go Financial Solutions:
- Had inadequate record keeping in relation to advice given to its clients
- Failed to gather sufficient information about a client’s circumstances and was unable to demonstrate that recommendations made to clients were suitable
- Failed to ensure its clients understood the financial advice they received
- Failed to exercise care, diligence and skill when providing financial advice to its clients.
Go Financial Solutions had inadequate records in relation to financial advice given to retail clients. Of the client files reviewed, there were instances of Go Financial Solutions having incomplete details about the person to whom financial advice was given along with any information it received from its clients, as well as incomplete nature and scope disclosures. Dates in the file notes for clients were ambiguous and inconsistent making it difficult to pinpoint when alleged client interactions took place.
The FMA also found that Go Financial Solutions advisers failed to take reasonable steps to ensure clients understood the implications of the financial advice.
These failures were a breach of the obligations a licenced FAP must abide by under the Financial Markets Conduct Act 2013.
Go Financial Solutions is required to submit an action plan to the FMA outlining the steps it will take to remedy the breaches and to ensure it does not breach its licence obligations in the future. The FMA acknowledges Go Financial Solutions’ cooperation to date, and its efforts to remedy the breaches. The FMA will monitor Go Financial Solutions’ compliance and completion of the action plan.