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

The Ministry of Business, Innovation and Employment has been reviewing the Financial Advisers Act 2008 and the Financial Service Providers (Registration and Dispute Resolution) Act 2008. 

During the review, MBIE has assessed the performance of these Acts and consulted extensively with industry and consumers to identify any problems with the regulatory regime and opportunities for improvements.

MBIE was required to report to the Minister of Commerce and Consumer Affairs with its recommendations for improvements to the regime by 1 July 2016.

Read MBIE’s report here [PDF 574KB] 

The Government has agreed to an amended regime which ensures consumers can access quality advice and which does not impose any undue compliance costs on industry or become a barrier to innovation.

Read the:

 

Next steps

The new financial advice regime is to be refined further through consultation on an exposure draft of the new legislation, and testing with consumers and industry.

Government decisions on the following aspects of the regime will be announced alongside the release of the exposure draft in early 2017:

  • Transitional arrangements
  • Complementary measures which could address misuse of the Financial Service Providers Register
  • The membership and proceedings of the Code Committee
  • The FMA’s enforcement, monitoring and oversight

Consultation

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.

In May 2015 the Minister of Commerce and Consumer Affairs released an Issues Paper that sought feedback on key issues and opportunities for change.

Read the Issues Paper 

In November 2015 the Minister of Commerce and Consumer Affairs released an Options Paper that sought feedback on potential options for changes to the regulatory regime.

Read the Options Paper

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 will feed into the wider review of those two Acts. Recommendations will be made to the Minister of Commerce and Consumer Affairs in July 2016.

Read the report on the FSPR [PDF 546KB]

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