Update from Code Committee Chairman

Update from Code Committee Chairman

The Code Committee notes that Parliament has agreed to the Select Committee recommendations and amendments with respect to the Financial Advisers Act.

Finalising the Act is an important milestone. It provides us with sufficient certainty to be able to formally proceed with completing our task of developing the draft Code of Professional Conduct for Authorised Advisers.

We are doing so on the basis that regulations to be promulgated under the Act will allow category 2 product advisers such as mortgage brokers and life insurance advisers to voluntarily opt into the authorisation regime.

We also appreciate that the legislation passed yesterday outlines that the Code will be used as the benchmark for entities and groups seeking to become Qualifying Financial Entities.

Next week we propose to publicly release an updated version of the draft Code. This document will take into account the latest legislative amendments, and will reflect the consultation input we have received from many advisers and organisations.

The Code Committee will then initiate a final series of quick, targeted consultation opportunities, for consumers, advisers, and organisations to submit on any new or outstanding matters. This activity will include public forums in mid-July, meetings with the Committee, and the opportunity to provide formal brief submissions.

Our objective is to have a draft Code available before the end of July for formal presentation to the Commissioner for approval.

We appreciate that many of you, and your organisations, have invested in the future of professional financial advice in New Zealand, and that others are poised to do likewise.

The release of our draft Code next week, the quick, final consultation process, and the formal presentation of the Code, will provide you with the ability to confidently plan and execute the role you will play in the new regime.

ENDS

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