Proposals for regulating financial advisers

The Securities Commission has released a paper outlining proposals for the regulation of financial advisers, to take effect late next year.

The Staff Paper on Regulating and Supervising Financial Advisers, released in June, considers the practical implementation of the Financial Advisers Act 2008.

The paper covers the systems, procedures and capacity businesses will need to have in place to fulfil their obligations under the law, and divides financial advisers into the following three categories:

• advisers registered but not authorised;
• advisers registered and authorised; and
• entities/organisations that provide financial advice – qualifying financial entities (QFEs).

Legal obligations differ from one category to another.

Director of Supervision, Angus Dale-Jones, says: "These proposals are relevant to thousands of people working in the financial sector, affecting all businesses that give recommendations, opinions or advice about investments, insurance or credit products. The key objective is to promote high standards of professionalism and integrity for all financial advisers."

For a copy of the paper, go to www.seccom.govt.nz

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