The Regulatory Framework Quiz Interpreting financial services compliance legislation, professionalism, the Code and good conduct Question: You are a financial adviser at Aotearoa Bank. You meet with Tania who was automatically enrolled into your banks default KiwiSaver Scheme. You agree the advice will be limited to whether her default scheme is suitable, or whether she should switch to another of your banks funds.

You establish her investor profile, recommend she switch to the Aotearoa KiwiSaver Growth Fund, and provide your assessment of both the default and Growth Fund.

Have you met your obligations under Standard 3 of the Code of Professional Conduct for Financial Advice Services regarding giving advice that is suitable?

• Yes, because a full analysis is not required when advising on KiwiSaver.
• No, you should have compared all the banks funds.
• No, you should have used a recognised research house for the assessment of the funds.
• Yes, your advice is suitable given the nature and scope of the advice.