New Rules For Finance Advisers A Work In Progress
May 4th, 2009
Following the collapse of the world financial markets, and many NZ finance companies, investors will be pleased financial advisers are to be reined in.
The Securities Commission is starting consultation to set up a minimum qualification for financial advisers. It has released a paper on financial adviser competence as the first step towards producing a code for the industry designed to standardise qualifications held by advisers and give greater confidence to consumers.
Moves to tighten rules for financial advisers were fast-tracked last year after the collapse of the finance company industry. But a commissioner of financial advisers, the person charged with setting up the code committee and approving the rules once they have been consulted on, has still not been found despite a six-month search.
Consultation has begun with the industry and as long as the code committee is set up by midway through this year the code can be completed early next year with advisers meeting competency requirements by the end of the year. Interested parties have until May 29 to get their submissions in.
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