Adviser regulation statement soon

New Commerce Minister Margaret Wilson will unveil her approach to regulation of financial advisers in about six weeks.

Friday, April 2nd 2004, 5:40AM

by Rob Hosking

"I expect to be in a position to announce how the Securities Act review will proceed in early May," she said in a statement released to Good Returns.

That review will look at regulation of financial advisers, as well as other securities law issues.

There have been fears that Wilson – whose reputation with business groups is not good following her stint as Minister of Labour – will take a heavy handed approach to financial services regulation.

However she appears at pains to ally those fears, stressing that she intends to continue the work of former Commerce Minister Lianne Dalziel, and also that she would take a "business as usual" approach to commerce matters.

Dalziel publicly mused about licensing of financial advisers – and has specifically asked the Ministry of Economic Development to look at the issue as part of the current review of the Securities Act.

Dalziel however continually stressed she had no fixed view on the subject, and that any changes had to be looked at within the New Zealand context of industry self regulation and the size and depth of the New Zealand market.

The review is looking at the regulatory changes as part of New Zealand’s relationship with Australia – which does have a licensing regime.

In announcing Wilson’s appointment to the commerce job last month, Prime Minister Helen Clark stressed the importance of trans-Tasman harmonisation of business regulation as part of the job.

Rob Hosking is a Wellington-based freelance writer specialising in political, economic and IT related issues.

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