Man-handled advisers stand firm
Some New Zealand advisers are refusing to sign a new Man Investments Australia ‘intermediary agreement’ requiring them to supply information that the funds manager claims is required by the Anti-Money Laundering and Counter Terrorism Financing Act 2006 (AML/CTF).
The advisers have responded that the agreement, which is required to be returned signed to Man Investments by September 14, breaches New Zealand’s privacy laws and also attempts to turn them into agents of Man Investments’ products.
A covering letter from Man Investments managing director Gary Gerstle, as well as a follow-up letter to remind advisers to sign the agreement by the deadline, appears only to have hardened the resolve of the NZ advisers not to sign it.
Two advisers who are refusing to sign told Money Management last week they objected to what they allege is a threat to refuse to pay trail commissions to those refusing to sign by the deadline.
Responding to the claims, Gerstle said that Man Investments had “not decided of our own volition to send the agreement to our intermediaries in New Zealand and elsewhere”.
“On the contrary, the agreement has been sent to our intermediaries in New Zealand, as with all our intermediaries globally, to be able to comply with the requirements of the AML/CTF, which comes into force in Australia on December 12.
“The AML/CTF requires us to be able to identify all intermediaries representing our products, and to ensure that all intermediaries are themselves able to make appropriate identification of their clients.”
However, Robert Oddy, managing director of Auckland-based International Financial Planners, accused Man Investments of using the AML/CTF as an “excuse to put in place American-style agreements in New Zealand, which is objectionable”.
“There are several pages of legalese in the agreement that in effect amounts to a contract for the supply of product from Man Investments, and require an adviser to use their best endeavours to promote its investment product.”
Oddy also objects to the “rather arrogant imposition by Man Investments on New Zealand planners to forward identifying documents to another country and to someone over whom we have no control whatsoever”.
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