Financial Advisers Act – latest developments

Cabinet agrees to change financial adviser regime
Cabinet has agreed to policy changes in connection with the financial adviser regime, and has invited the Commerce Select Committee to consider them as part of its consideration of the Financial Service Providers (Pre-Implementation Adjustments) Bill.

Draft code of professional conduct released for public consultation
The code specifies the minimum standards of professionalism that investors can expect of authorised financial advisers, including competence, knowledge and skills, client care, ethical behaviour and continuing professional training.

Guidance on boundary between financial planning and advice
In order to help advisers prepare to meet the requirements of the Financial Advisers Act, the Securities Commission has issued guidance on the boundary between a financial planning service and financial advice.

Regulations under finance sector laws
Regulations are to be developed under the Financial Advisers Act and the Financial Service Providers (Registration and Dispute Resolution) Act.

Improvements to broking services under the new regime
The Government has announced that it will amend the Financial Advisers Act to enable it to be effectively implemented in relation to both firms and individuals providing broking services.

Exemption for advice that is 'incidental' to business
The Commerce Select Committee is proposing to adopt an exemption to cover the provision of financial advice that is incidental, as opposed to an integral part, of business operations.

Financial adviser compliance pathway announced
Financial advisers are being given extra time to comply fully with the new regime.

Ready for FSPR
All financial service providers, including financial advisers, must be registered by 1 December 2010.

Enquiries and information

For more information on any of the cases, articles and features in Financial Services Quarterly, please email Rachel Gowing or call on 64 9 916 8825.