by Daniel Smith
In a surprise move, MBIE has reopened industry consultation into “outstanding aspects of the upcoming regime governing conduct in the financial sector”, including the CoFI bill.
As the CoFI bill stands advisers would be bound by two separate sets of fair conduct principles the first being FSLAA which came into force on March 15.
Financial Advice New Zealand CEO, Katrina Shanks, says that advisers “appreciate the fact that the officials have listened to our concerns and have gone out for another round of consultation on this issue”.
Shanks and the team at Financial Advice New Zealand have been lobbying for advisers to be dropped from inclusion under the CoFI bill, and are pleased that MBIE has allowed an opportunity to make this a reality.
“CoFI was designed as fair conduct principles for financial services, financial advisers have been scooped up in this. The issue is that financial advisers have their own conduct and culture legislation under FSLAA.
“This increases costs and burden for financial advisers as well as blurring accountability between CoFI and FSLAA.”
Shanks says that “The best outcome for financial advisers is that they have their conduct and culture under FSLAA.
“The definitions of the CoFI bill should not be so wide as to mean that financial advisers have conduct and culture responsibilities under two separate bills.
“This consultation is about understanding what the balance is and getting it right.”
Interested parties can submit to the MBIE consultation HERE.
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