Wellington, Nov 3 NZPA - The Australian and New Zealand Institute of Insurance and Finance (ANZIIF) is merging with its European cousin, the Chartered Insurance Institute (CII).

They are combining to create a global professional body, the Chartered Institute of Financial Services (CIFS), dropping the focus on insurance in their branding.

It will be represented in 170 countries, with 1500 members in New Zealand, said a spokeswoman for ANZIIF. A special general meeting of the organisation will be held on January 28 and if approved by two thirds of voting members, the new organisation is expected to be operating from April.

The move comes as Britain's powerful Financial Services Authority carries out a major shake-up of financial advisers with a "retail distribution review" that will effectively mean all UK financial advisers require a minimum professional qualification, and there will be no ` `grandfathering" of experienced advisers without qualifications.

The minimum will be the equivalent of the Chartered Insurance Institute diploma, with additional qualifications for advisers focusing on specific areas of expertise.

In New Zealand, the recently enacted Financial Advisers Act 2008 will classify products according to complexity and risk. Complex securities and futures contracts will be "category 1" products requiring registered advisers authorised by the Securities Comission. Less complex things such as consumer credit contracts, bank term deposits, and some insurance products will be "category 2" items which can handled by people who are only registered, and not authorised.

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