Improving access to quality financial advice

In 2016 the Government agreed to amend the regulatory regime that oversees the provision of financial advice in New Zealand.

These changes will improve access to high quality financial advice for New Zealanders and represent a shift away from the current regime which sought to professionalise a subset of advisers, towards a regime which establishes a level playing field of regulation for all who are providing advice.

This followed an extensive review of the Financial Advisers Act 2008 and the Financial Service Providers (Registration and Dispute Resolution) Act 2008 by MBIE.

Minister appoints Financial Advice Code Working Group

The Minister of Commerce and Consumer Affairs has appointed a Financial Advice Code Working Group commencing on 1 August 2017 to develop the new code of conduct for all financial advice.

The new code of conduct will outline the ethical and competency standards for all who give financial advice. In developing the code, the Financial Advice Code Working Group must consult with industry bodies, consumer groups and all interested parties.

The following individuals were appointed:

  • Angus Dale-Jones (Chair)
  • Barbara Benson (Consumer and/or Dispute Resolution Representative)
  • Brian McCulloch (Consumer and/or Dispute Resolution Representative)
  • Graeme Edwards
  • John Berry
  • Paul Mersi
  • Rebecca Vanderbom
  • Shane Edmond
  • Therese Singleton

 

Read the:

Consultation on the exposure draft of the Bill

On 17 February 2017 the Minister of Commerce and Consumer Affairs released an exposure draft of the amendment Bill and also sought feedback on proposed transitional arrangements.

The Consultation paper is divided into three sections and includes contextual information about the review, commentary on the draft Bill and details the proposed transitional arrangements.

Consultation on the draft Bill and transitional arrangements closed on 31 March 2017.

During the review MBIE has consulted extensively with industry and consumers. This included a formal consultation process on an Issues Paper and an Options Paper.

Report on the Review of the operation of the Financial Advisers Act 2008 and the Financial Service Providers (Registration and Dispute Resolution) Act 2008

In June 2016 MBIE reported to the Minister of Commerce and Consumer Affairs on the operation of the legislation that oversees the provision of financial advice in New Zealand. This was a five year review that was written into the Acts. In the report MBIE made a range of recommendations for improvements that could be made to the regime.

Read MBIE’s report here [PDF 574KB] 

Report on the Financial Services Providers Register (FSPR)

In August 2015 MBIE reported to the Minister of Commerce and Consumer Affairs on the operation of the registration part of the Financial Service Providers Act. This was a five year review written into the Act. Recognising the interdependence between the Financial Service Providers Act and Financial Advisers Act, the findings outlined in this report were fed into the wider review of those two Acts.

Read the report on the FSPR [PDF 546KB]

Next steps

MBIE will review the submissions and make any necessary changes to the drafting of the Bill.

Resources for the review

Consumer Focus Groups report by Colmar Brunton [PDF 901KB]

Terms of reference

Terms of Reference [PDF 121KB]

Cabinet paper for Terms of Reference [PDF 30KB]

Feedback welcomed

In addition to the formal engagement process the Ministry welcomes feedback at any time. If you would like to contact us, please email faareview@mbie.govt.nz

 

Consultation on exposure draft and transitional arrangements

In February 2017 the Minister of Commerce and Consumer Affairs released a consultation paper that sought feedback on an exposure draft of the Financial Services Legislation Amendment Bill, and proposed transitional arrangements.

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