Insurance advisers versus Insurance brokers?

There is a misconception in the field that insurance advisers and mortgage people are brokers.

According to the Financial Advisers Act 2008, you cannot have insurance brokers and mortgage brokers because a “broker” is a financial services provider who holds or deals with client money or property on behalf of clients. Brokers can include stock brokers, providers of portfolio administration services and financial advisers who receive property or money from clients.

I am an Insurance Adviser and not an Insurance Broker.

I report to a Qualifying Financial Entity called Sovereign which is also an insurance product provider. The QFE takes responsibility for the financial services provided by its QFE advisers.

Because of Sovereign’s QFE status as a Qualifying Financial Entity, Sovereign’s QFE advisers do not have to be individually registered or authorized in order to provide the financial adviser services. Sovereign QFE is licensed and regulated by the Financial Markets Authority (FMA) for its financial adviser services

I am a Nominated Representative of the Sovereign QFE and appointed by the Sovereign QFE to provide financial services. Sovereign’s Nominated Representatives can provide financial advice in relation to the following categories of products:

Nominated Representatives can sell and provide advice in relation to products provided or distributed by the Sovereign QFE. Where products are provided by the Sovereign QFE, this means that the Sovereign QFE will take responsibility both for the advice and the products.

Sovereign’s Nominated Representatives can also provide advice on and sell third-party products that have been approved by Sovereign for this purpose. Clients’ interests are placed first.

The Sovereign QFE remunerates its Nominated Representatives by way of commission. The Sovereign QFE is remunerated by the premium and/or interest payments made by clients who purchase Sovereign products or third party products distributed by Sovereign. The Sovereign QFE does not receive any remuneration when its QFE advisers sell third party products that are not distributed by Sovereign.


In case of problems with service provided:

If the client has a concern or complaint in relation to any service provided, the client can choose to begin an internal complaints procedure by phone contact, email or post at the QFE’s address. If the issue is not resolved, the Insurance and Financial Services Ombudsman Scheme. The service is free of charge and helps resolve any disagreements.


The contact details are as follows:

Insurance and Financial Services Ombudsman Scheme

P.O. Box 10-845,

Wellington 6143

Tel: 04 499 7612 or Freephone 0800 888 202


Tony Gill – Qualified Insurance Adviser

For more information, contact us.

Related reads: Our Approach, Counting on your insurance policy when bad times hit

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