Improving access to quality financial advice

In December 2017 the Financial Services Legislation Amendment Bill had its first reading. This Bill gives effect to the new regulatory regime for financial advice and has been referred to the Economic Development, Science and Innovation Select Committee.

Read the amendment Bill.

In 2016 the Government agreed to amend the regulatory regime that oversees the provision of financial advice in New Zealand following a statutory review by MBIE.

These changes will improve access to high quality financial advice for New Zealanders and will establish a level playing field of regulation for all who provide financial advice.

Read the summary of the new regime and transitional arrangements [PDF 102KB].

Consultation

MBIE began a statutory review of the Financial Advisers Act 2008 and the Financial Service Providers (Registration and Dispute Resolution) Act 2008 in late-2014. During this review we undertook extensive consultation with industry and consumers. This included a formal consultation process on an Issues Paper and an Options Paper.

Read MBIE’s final report here [PDF 574KB]

Read MBIE’s report on the registration part of the Financial Service Providers (Registration and Dispute Resolution) Act 2008 here [PDF 546KB]

In March 2017 we consulted on an exposure draft of the amendment Bill, and also sought feedback on proposed transitional arrangements. Following this consultation a number of changes were made to the Bill.

Read the Key themes from submissions and resulting changes.

Read the Cabinet paper [PDF 119KB].

Next steps

The legislative process

The Bill had its first reading and was referred to the Economic Development, Science and Innovation Select Committee on 7 December 2017. The select committee stage provides a further opportunity for public submissions on the Bill. Visit the New Zealand Parliament website to keep up to date with timings and progress.

Regulations including disclosure requirements

Over the coming months MBIE will be engaging with consumers and industry to develop the draft regulations for the new regime, including regulations that set the new disclosure requirements. This will include what should be disclosed, to whom, how and when. More detail about how to engage in this process will be released in due course.

Code of Conduct

On 1 August 2017 a Code Working Group was established to develop the new Code of Conduct for financial advice. Learn more about the Code Working Group and engage in the development of the Code of Conduct.

Licensing

Over the next 18 months the FMA will work with the industry in order to help participants understand and get ready for the new financial advice regime and licensing. More information regarding these activities will be released on the Financial Markets Authority website in due course.

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 MBIE welcomes feedback at any time. If you would like to contact us, please email faareview@mbie.govt.nz.