26 August 2004
Media Statement

Government looks at regulation of financial advisers

Commerce Minister Margaret Wilson today announced a significant government initiative to look into the regulation of financial intermediaries.

The Task Force on the Regulation of Financial Intermediaries will provide the government with options on the occupational regulation of the sector, which includes share brokers, mortgage brokers, insurance brokers and financial advisers.

The task force was announced in a speech to the Christchurch branch of the Financial Planners and Insurance Advisers Association this morning.

“Advisers play a key role in our biggest financial decisions, such as saving for retirement or obtaining a mortgage," Margaret Wilson said. "The government wants to raise the standard of financial services and examine regulation of financial advisers in order to enhance New Zealanders' financial security.

"The task force will examine the shape of the financial services industry, identify its users and look at problems facing the industry before designing solutions that also take account of the government's broader policy concerns.

"There is also a need to consider reforms in Australia, given the commitment of our governments to work towards a single economic market. Compatibility with the Australian regime is important but we need to see how Australian reforms work in practice and if they are appropriate in the smaller New Zealand market."

The six-member task force will be appointed in upcoming weeks and report back to the government within six months of establishment. Its Chair will be neutral and will include consumer and financial sector representation. Margaret Wilson said the government should be able to make decisions on progressing reform of the industry by mid-2005.

ENDS

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