'No slow down' on financial adviser rules
Hon Lianne Dalziel
Minister of Commerce, Minister for Food Safety,
Associate Minister of Justice, MP for Christchurch East
27 August 2007 Media Statement
Dalziel says 'no slow down' on financial adviser rules
Framework regulation for financial advisers should be passed as soon as possible so that officials and the Securities Commission can get on with the job of consulting with industry on the nuts and bolts of how the regulation will work in practice, Commerce Minister Lianne Dalziel said today.
Lianne Dalziel has rejected calls from some industry representatives to slow down on the legislation following significant changes proposed by the Select Committee from a co-regulatory model to central supervision of financial advisers by the Securities Commission. Others in the industry have asked to have the regulation introduced as soon as possible.
"For every call for restraint from the sector there are dozens of investor voices clamouring for changes to be made – and the sooner the better," Lianne Dalziel told the 4th Annual Securities Law Update conference in Wellington today.
"Everything we do is too late for those who have already lost money, but the longer it takes the law to pass, the greater the timetable for implementation and the longer the wait for confidence to be restored to the sector," Lianne Dalziel said.
Until the Bill is passed, the Securities Commission has no legal mandate to start the detailed work on the form and structure of the new model. The Select Committee has issued a second interim report proposing the establishment of a Commissioner of Financial Advisers who would be a member of the Securities Commission and who would work with industry to develop a code of practice and establish a disciplinary body.
"I believe the Securities Commission must be mandated to start the process for developing the requirements for (financial adviser) authorisation, Lianne Dalziel said.
"That is why I think we should pass it before the election if we can. Officials can then make good use of the next few months to consult with industry on the practicalities and the all-important detail. I don't think we should waste up to six months if we can avoid it."