Code Committee Members Reappointed

(Media releases from the Securities Commission)
29 July 2010

Commissioner for Financial Advisers David Mayhew has announced the reappointment of three members of the Code Committee. The Committee was established in July 2009 to draft a Code of Professional Conduct for Authorised Financial Advisers (AFAs).

Ross Butler, David Ireland and Gary Young have each agreed to extend their one-year terms for another 12 months. All other Committee members were appointed for three years.

"I'm keen for continuity on the Committee up to full implementation of the new regime in July 2011," said Mr Mayhew. "It will also have an ongoing role, periodically consulting advisers and consumers on Code updates, and informing the Commission on evolving standards for financial adviser conduct and competency."

The Committee was concluding its consultation process and would submit the draft Code to him by the end of this week. The next step would be approval of the Code by himself and the Minister of Commerce.

Mr Mayhew says he expects the approval process to finish in September, ahead of the Code coming into force on 1 December 2010.

"The Code will apply progressively as advisers become authorised. The final deadline for authorisation applications is 31 March 2011. All AFAs must pass an examination on the content of the Code and satisfy other licensing requirements before being authorised."

The legislation sets Committee membership at between seven and 11.

"Currently it has eight members. However Committee member Sue Brown, having taken up the position of Director Primary Markets with the Securities Commission, has indicated that she will step down once the Code has been approved," Mr Mayhew said.

Mr Mayhew says that later this year, following approval of the Code and agreement on the Committee's work plan for the next period, he intends seeking additional Committee members to ensure an appropriate mix of skills.

Code Committee members details can be found on the Committee's website at: http://www.financialadvisercode.govt.nz/

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Contact: Rebecca Barclay 04 471 7666