Hon Simon Power, Minister of Commerce
23 March 2011
Cabinet has approved further regulations under the Financial Advisers Act 2008, Commerce Minister Simon Power announced today.
The regulations are designed to simplify implementation of the new financial adviser regime by providing greater certainty for industry as to the scope and obligations of the Financial Advisers Act, and will help minimise unnecessary compliance costs.
They provide technical detail in several areas. Specifically, they provide:
Mr Power said he is sympathetic to the effect that the 22 February earthquake in Christchurch has had on the ability of financial advisers in the Canterbury area to comply with registration and authorisation deadlines of the financial adviser regime.
"I can announce that a three-month extension of each deadline is being considered as the most appropriate means of granting temporary relief.
"An announcement on the final shape of any regulatory relief package is due to be announced before 31 March."
The Financial Advisers Act requires that all financial advisers be listed on a public register, and that those providing services to the public belong to an approved dispute resolution scheme. Authorised financial advisers will also be subject to a Code of Professional Conduct, which ensures they meet the minimum standards for ethical behaviour, client care, knowledge, skills and competence, and continuing professional development. Financial advisers have until 31 March to register and belong to an approved dispute resolution scheme.
The Act comes fully into force on 1 July, by which time all advisers seeking authorisation must have completed their training and have had their authorisation confirmed by the Securities Commission.
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