Insurance Brokers Association of New Zealand CEO Gary Young is among 10 professionals appointed to develop competency standards for NZ financial advisers – even though brokers won’t have to abide by them.

The committee will develop a new code of conduct that will bind financial advisers to minimum standards of professionalism, ethics, qualifications and experience. It is expected to be in force from late next year.

Financial services professionals have previously faced few regulatory standards in NZ.

The NZ Securities Commission announced Mr Young’s appointment last week. He described it as “a little unexpected”, given insurance brokers won’t directly face the new code, but he hopes to provide useful input for the benefit of his members.
 
“The regulator is pushing a professional culture across the whole financial services industry, so our members still have to exercise care, diligence and skill as stated in the legislation,” he told insuranceNEWS.com.au.

He hopes to ensure a “pragmatic” code that will benefit consumers without unduly impeding advisers in their work.

The draft code is expected to be finalised by early next year.