NZ financial advisers bill to deter poor practice
A report on an NZ bill aimed at beefing up regulation of financial advisers urges greater accountability of advisers and better avenues for consumer complaints.
The report by the parliamentary Finance and Expenditure Committee was released last week. It recommends new definitions of financial advice, tiered categories of financial adviser services and the development of a qualifying financial entity model.
It also gives central regulatory oversight to the NZ Securities Commission and establishes a new Commissioner of Financial Advisers.
Commerce Minister Lianne Dalziel says the report helps resolve difficulties that arose when the bill was first introduced.
“It was apparent after the bill was introduced that the co-regulatory model it proposed was not workable in practice, particularly in light of the number of complaints that arose out of the recent finance company collapses,” Ms Dalziel said.
The committee has also reported back to parliament on the Financial Service Providers (Registration and Dispute Resolution) Bill, requiring all providers to belong to a dispute resolution scheme.
Consumer Affairs Minister Judith Tizard says the bills will encourage public confidence in the “integrity and professionalism” of financial advisers and service providers, allow consumers to make a complaint easily, and “deter poor practices among financial providers”.
The report by the parliamentary Finance and Expenditure Committee was released last week. It recommends new definitions of financial advice, tiered categories of financial adviser services and the development of a qualifying financial entity model.
It also gives central regulatory oversight to the NZ Securities Commission and establishes a new Commissioner of Financial Advisers.
Commerce Minister Lianne Dalziel says the report helps resolve difficulties that arose when the bill was first introduced.
“It was apparent after the bill was introduced that the co-regulatory model it proposed was not workable in practice, particularly in light of the number of complaints that arose out of the recent finance company collapses,” Ms Dalziel said.
The committee has also reported back to parliament on the Financial Service Providers (Registration and Dispute Resolution) Bill, requiring all providers to belong to a dispute resolution scheme.
Consumer Affairs Minister Judith Tizard says the bills will encourage public confidence in the “integrity and professionalism” of financial advisers and service providers, allow consumers to make a complaint easily, and “deter poor practices among financial providers”.