New Zealand’s Financial Markets Authority (FMA) has welcomed a government review of financial advice legislation.

The Government has released terms of reference for the inquiry, which will deliver a final report by July next year.

The review will consider the role of financial advice, financial service provider registration and dispute resolution.

“The review will be comprehensive and focused on whether the benefits of the regime outweigh the costs,” Commerce and Consumer Affairs Minister Paul Goldsmith said.

“It is important we have the best regulatory system in place – one that provides access to quality financial advice and promotes confident and informed participation of businesses and consumers.”

FMA General Counsel Liam Mason says the review provides an opportunity to discover what is working, and identify areas that could be improved for consumers and advisers.

“This is a chance to examine whether the current regulation is delivering the right outcomes for New Zealanders,” he said. “We want to find ways of ensuring regulation in this area can adapt to the changing ways that consumers and investors access information and advice to help them make decisions about financial products.”

Consultation will start in May with the release of a discussion document.