MR No. 2015 – 06
3 March 2015
The Financial Markets Authority (FMA) welcomes today’s announcement by the Minister of Commerce and Consumer Affairs, Paul Goldsmith, about the review of legislation governing financial advisers.
The Minister today released the terms of reference for the review of the Financial Advisers Act 2008 (FA Act) and the Financial Service Providers (Registration and Dispute Resolution) Act 2008 (FSP Act).
The release of the terms of reference signals the start of an eighteen-month review process.
The results of this review will provide recommendations on how these two pieces of legislation could be improved. The Minister has asked for the views of the finance industry, consumers and stakeholders to ensure the review includes feedback from the widest possible range of voices.
Mr Goldsmith said in a statement that: “it is important that we have the best regulatory system in place, one that facilitates quality financial advice and promotes confident and informed participation of businesses, investors, and consumers.”
The FA Act is subject to a statutory review within five years of its implementation - that means the findings of the review must be reported back to the Minister by July 2016.
The FMA is the regulator for financial advice and the sale of financial products, so the review of the laws in this area is of significant interest to the FMA’s strategic priorities.
Liam Mason, FMA’s General Counsel, said the review of the financial advice laws provides an opportunity to find out what is working well in practice and identify areas that could work better for consumers and advisers.
“This is a chance to examine whether the current regulation is delivering the right outcomes for New Zealanders. We want to find ways of ensuring that 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,” said Mr Mason.
The consultation process will start in May with the release of a discussion document.
For more information and to view the terms of reference visit: http://www.mbie.govt.nz/what-we-do/review-of-financial-advisers-act-2008
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