Simon Power and the law of unintended consequences

Former third rate provincial conveyancing lawyer, Simon Power has completely changed the laws around Financial Advisors, and as may be expected from a third rate provincial conveyancing lawyer he didn’t actually take into account the law of unintended consequences.

It is now illegal to provide financial advise to anyone unless you are a registered financial advisor, and Simon Power’s people at the FMA will give you a good kick in the arse if you try. Unfortunately for Simon Power there has been a lot of unintended consequences of this new law that this blog wants to highlight. There was little point in highlighting them through the Select Committee process as everyone who tried got the bums rush from Simon Power who didn’t realise many of the submitters were people who will be deciding what jobs they should offer him after he retires to appease his missus.

One interesting scenario is if you happen to have a mate called Terry who owns a lot of property but has got himself in a bit of strife for not pay bills to annoyingly bureaucratic and persistent outfits like ACC and the IRD due to being caught with his pants down in the middle of a major property bust.

So you happen to be having a few ouzos with your mate Terry and he asks you for your opinion of whether he should spend $1.5m of his mothers money on a nice man in the middle east that promises to refinance his property portfolio.

Being full of ouzo and forgetting that Simon Power has introduced new rules saying who is allowed to say what to who about financial matters without being “regulated”, you break the law by mentioning to your mate Terry that you happened to see the same middle eastern gentleman in the Sydney Morning Herald getting accused of ripping off a bunch of Australians with similar problems to Terry with similarly annoyingly bureaucratic and persistent Australian outfits.

You are overheard giving this “financial” advice to your good ouzo drinking mate Terry by some members of Simon Power’s new bureaucracy. They decide Simon Power would be very pleased with such a trophy case, considering the PR effort they have gone to deflect attention from their poor performance thus far, and especially when it is easy to prove when Terry is not drinking ouzo he is a financial wizz kid and doesn’t need unregulated advice from someone who doesn’t have the new ticket Simon Power demands you have before offering financial advice.

This is blindingly obvious as a hypothetical situation that would never happen provided Simon Power‘s people act with common sense, but if they decide to follow the law closely they could actually prosecute this blogger for offering Terry financial advice via this video.

Other blindingly obvious hypothetical cases will appear on the blog in the next few weeks.

 


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  • titanuranus

    Kneejerk legislation, NZ politicians will never be able to break the habits of a lifetime ,but hey, its whats been making New Zealand a great place to live for 150+ years. ;- o

  • jimmie

    So whale what you are saying is: If one of my staff come to me moaning about not having $$$ until pay day and I tell them its your fault for booking up 10 hp’s and say that they would be better off paying their hp’s off so they have more spending money that I would be breaking the law unless I become registered?

    What if I had kids and I told them I wanted them to put some of their pocket money in a piggy bank for a rainy day? Or if one of my workers asks me how to save money for the future?

    Surely there are exceptions coz if there aren’t its plain dumb

    If so then what a load of twaddle.

    • johnqpublic

      No you’d be exempt if the person was your employee, and you’re not in the financial advice business. Similarly you’re exempt if the “financial advice” “given” is incidental to your normal operation. The example often used is the car dealer’s admin person signing up a punter to a loan agreement.

  • adolffiinkensein

    Whale, this is the most pathetic piece of horse shit and nonsense I think I have seen on your blog for a long time. Farrar has joined the pc pinko brigade and you have resorted to making shit up.

    • I suspect you’re looking too hard at Whale’s left hand where he wants you to look, and the right hand will appear later with the reveal.

  • cadwallader

    There ARE exemptions: Lawyers are completely free of this utter bullshit piece of legislation.

  • cadwallader

    PS Not to forget section 13 of the Act.

  • reid

    who didn’t realise many of the sub­mit­ters were peo­ple who will be decid­ing what jobs they should offer him after he retires to appease his missus.

    I heard he retired because it became too tiresome working with John, who apparently thinks John is pretty hot stuff.

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