A taskforce set up to investigate the role of New Zealand’s financial services intermediaries has nailed brokers’ hopes for a no-change decision on their present light-touch regulatory regime.

Michael Webb, Chairman of the Government-appointed Financial Intermediaries Task Force, says while the NZ industry is not in crisis, there definitely is a case for change.

“The issues we have identified do undermine the market’s ability to function effectively, and the confidence of consumers in that market.”

Mr Webb says the group’s report, which entailed wide consultation with consumers and industry representatives, focused on “enhancing the quality of financial information and advice provided to the public”.

The report notes a “high degree of convergence in views from within the industry, consumers and other interested parties as to the issues which should be addressed”, he said.

Among those issues were transparency of fees and commissions, consumer redress, disciplinary and complaints mechanisms and the regulatory framework overseeing financial intermediaries.

Mr Webb says the report found widespread support for a co-regulatory option.