Financial Advice Code Working Group
The Minister of Commerce and Consumer Affairs has appointed a Financial Advice Code Working Group (Code Working Group) to develop the new code of conduct for financial advice.
In July 2016 the Government announced a package of changes to the regulation of financial advice, following a comprehensive review of the Financial Advisers Act 2008. These changes will improve access to high quality financial advice for New Zealanders by introducing a level playing field of regulation across industry. This includes a universal code of conduct that will apply to all financial advice to retail clients.
To expedite development of the new code of conduct, Government decided that a Ministerial working group be appointed to develop the code before the new regime comes into effect. This will provide industry with certainty about what the code requirements will be and allow the benefits of the new regime to be realised sooner.
The Government’s decisions around the new code will be reflected in the Financial Services Legislation Amendment Bill.
Members of the Code Working Group are appointed for a three year term. The Code Working Group will become the Code Committee under the new regime once the Bill is passed into law.
The new code of conduct will be wider in scope than the existing Code of Professional Conduct for Authorised Financial Advisers, as it will set standards of competence, conduct and client-care for the whole financial advice industry. To reflect this, the Code Working Group has been established as a new body, with a broader mandate than that of the Code Committee that operates under the current regime.
The Code Committee under the current regime will retain its mandate until the new financial advice regime comes into effect. The Chair of the current Code Committee, David Ireland, will also act in an advisory capacity to the Code Working Group.
The Code Working Group is expected to have produced a draft code of conduct by August 2018.