Commerce and Consumer Affairs Minister Jacqui Dean has released an exposure draft of the Bill that will amend the regulation of financial advice in New Zealand.
“The current regulation of financial advice is seen to be overly complex and has imposed regulatory barriers that are preventing people from receiving the advice they need,’ Ms Dean says.
“Last July the Government announced the overarching design of an amended regulatory regime for the provision of financial advice. These changes aim to improve access to high quality financial advice, and lead to informed and confident participation in financial markets.
“We’re removing unnecessary complexity and regulatory barriers. All financial advice will be required to put the client first, and will be subject to competency standards. We’re also making it easier for people by removing confusing terminology and simplifying disclosure requirements,” Ms Dean says.
“Consultation on the exposure draft allows the public and the industry to consider the practical implications of the proposals and bring any issues to light before the Bill is introduced to the House.”
“Feedback is also sought on proposals for existing financial advisers transitioning to the new regime. It is important we strike the right balance between realising the benefits of the new regime and allowing time to meet the new requirements.
“Support from consumers and the industry is a vital element of building an effective regulatory regime. I hope that this productive engagement continues during consultation on the draft Bill,” says Ms Dean.
For more information and to read the draft Bill see www.mbie.govt.nz/faareview