Improving access to quality financial advice

Financial Services Legislation Amendment Bill

In 2016 the Government announced changes to introduce a new regulatory regime for financial advice. These changes will be given effect by the Financial Services Legislation Amendment Bill. The Bill is awaiting the Committee of the Whole House stage and third reading before it becomes law.

The Financial Service Legislation Amendment Bill was developed following a review of the Financial Advisers Act 2008. The Bill will implement a package of changes to financial services legislation to give effect to a new regulatory regime for financial advice.

[image] What is the new regime for financial advice

Click on the image for a full screen version.

What is the new regime for financial advise? [PDF 160KB]

The Economic Development, Science and Innovation Select Committee made a number of changes to the Bill in response to concerns raised by submitters. These changes are summarised in the Committee’s commentary on the revised Bill.

Read the commentary and revised Bill.

Read the submissions and advice to the Committee.

Next steps

We have provided indicative time-frames for the new regime for financial advice. Once the Bill is passed, we will provide updated estimates of key dates for the implementation of the new financial advice regime. Regardless of when the Bill passes, there will be time built in for industry to prepare to meet the requirements of the new regime.

[image] What are the expected time frames

Click on the image for a full screen version.

What are the expected timeframes? [PDF 162KB]

[image] What is happening now

Click on the image for a full screen version.

What is happening now? [PDF 161KB]

Visit the New Zealand Parliament website to keep up to date with timings and progress.

Developing supporting regulations

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. Read more about the regulations to support the Financial Services Legislation Amendment Bill.

We will also be consulting on licensing fees and levies later this year.

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

The FMA will continue to 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.

Feedback welcomed

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

Background

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.

Read the Terms of Reference for the review [PDF 121KB]

Read the Cabinet paper for Terms of Reference [PDF 30KB]

During this review we undertook extensive consultation with industry and consumers.

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

Read the Colmar Brunton report - Understanding New Zealanders’ disclosure information needs [PDF 1.4MB]

The review 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]