Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

Adviser regulation ready to go live in December

Adviser regulation ready to ‘go-live’ on 1 December

The Commissioner for Financial Advisers has taken the last formal step required for the introduction of the new financial advisers regulatory regime, with publication in the Gazette that 1 December 2010 will be the date on which the Code of Professional Conduct for Authorised Financial Advisers (AFAs) comes into effect.

The Code of Conduct contains the minimum standards of competence, knowledge and skills, ethical behaviour and client care that AFAs will be expected to uphold.

Commissioner for Financial Advisers David Mayhew said it was an important milestone for the implementation of the new regime.

“This confirms that Authorised Financial Advisers will be a reality from 1 December 2010. From that date advisers giving personalised investment advice to retail clients will be able to operate within the new regime designed to promote the sound and efficient delivery of financial advice and to encourage public confidence in the professionalism and integrity of advisers,” he said.

He also noted that from 1 December all financial advisers will be subject to the statutory duties to exercise care, diligence and skill and not to engage in misleading or deceptive conduct.

At the same time, the Securities Commission has approved the standard conditions for incorporation in the authorisation of AFAs. Those conditions provide the framework for the regulatory relationship between the individual AFA and the Securities Commission, for example, in relation to reporting obligations.

Mr Mayhew said the Commission was grateful for the efforts of all those who made submissions on the proposed standard conditions and that responses to the consultation would be published on the Commission’s website shortly.

However, Mr Mayhew sounded a note of caution about the readiness of the majority of financial advisers to engage with the new regime. “While the Securities Commission will have in place a licensing process for advisers who want to be AFAs by 1 December, too few are currently getting on with the registration and assessment steps necessary for authorisation. There is a real risk that delay now will create a log jam next year,” he said.

The Commission has previously said that, provided advisers applied for authorisation by 31 March 2011, the Commission should be able to complete the process by the critical date of 1 July 2011.

“But that assumes significant numbers have already been processed before 31 March”, said Mr Mayhew. “The experience to date has been disappointing and, unless there is more engagement now, there may be insufficient capacity in the system to cope with the volume of applications to be processed in the last three months before the regime is fully in force.”

The Standard Conditions for AFAs are available at www.seccom.govt.nz.

The Code of Conduct will be available at www.legislation.govt.nz.

ENDS

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

9.3 Percent: Gender Pay Gap Unchanged Since 2017

“While it has remained flat since 2017, the gender pay gap has been trending down since the series began in 1998, when it was 16.2 percent,” labour market statistics manager Scott Ussher said. More>>

ALSO:

Ex-KPEX: Stuff Pulls Pin On Media Companies' Joint Ad-Buying Business

A four-way automated advertising collaboration between the country's largest media companies is being wound up after one of the four - Australian-owned Stuff - pulled the pin on its involvement as part of a strategic review of its operations ... More>>

Bus-iness: Transdev To Acquire More Auckland And Wellington Operations

Transdev Australasia today announced that it has agreed terms to acquire two bus operations in Auckland and Wellington, reaching agreement with Souter Investments to purchase Howick and Eastern Buses and Mana Coach Services. More>>

ALSO:

Māui And Hector’s Dolphins: WWF/Industry Counter Offer On Threat Management Plan

Forest & Bird says WWF-NZ's plan for protecting Māui dolphins is based on testing unproven methods on a species that is almost extinct, and is urging the Government to reject the proposal. More>>

ALSO: