The New Zealand Financial Markets Authority (FMA) has canceled Filcare Services Limited’s financial advice permit upon its request.
Filcare has a full license to provide financial advice, providing financial advice to about 1,800 retail customers, many of whom were working immigrants from the Philippine community.
FMA’s survey found that Filcare advisers had violated license obligations, omitting:
- Keep adequate files in relation to the tips given to its customers,
- Make sure his clients understood the financial advice they received,
- Exercise care and skill when providing financial advice to its customers,
- provides adequate notifications about tips and
- Show that the recommendations made to customers were appropriate.
In cases of replacement tips, FMA noted minimal indications that the advisers had examined and reviewed:
- the existing product to determine if it continues to respond to the relevant customer circumstances,
- the new product recommended to the customer,
- the potential benefits that can be lost and
- Any other significant consequences of the switch for the customer.
At the time of the FMA research, Filcare hired two financial advisers, one of which is also the only director of Filcare. FMA also found that Filcare failed to take reasonable measures to ensure that consultants complied with their duties.
Filcare customers can complain about Limited Financial Ombudsmen Complaints – Financial Ombudsman Services, which is a dispute resolution service that is free for consumers.