Industry players get together on adviser regulation
The increasing likelihood of changes to financial adviser regulation has finally got industry players working together.
Friday, June 25th 2004, 7:21AM
by Rob Hosking
The Financial Planners and Insurance Advisers Association, the Investment Savings and Insurance Association, Mortgage Brokers Association, and the Trustees Corporation are all involved in the push.
“We’ve met, we’ve already found significant common ground, and we hope to be able to develop some sort of potential regulatory framework which we can then start to sell to a wider audience, the market and maybe take to the government. FPIA chief executive Phillip Matthews told Good Returns.
The group has already had discussions with officials and ministers as well as amongst themselves.
Commerce Minister Margaret Wilson hinted at the need for a common industry approach in a response to questions at an FPIA lunch on Tuesday. Licensing of advisers has some attractions when the industry is so fragmented, she said, although she emphasised the government does not necessarily want to go down that track.
Matthews says licensing is “the easy way out”.
“I don’t’ believe this industry is all that fragmented,” he says.
The group meets with officials on Monday in the hop of getting some idea of where the government is heading in its policy development.
The initial issues involve identifying just what the problems are, and then working on possible solutions such as codes of ethics, disclosure processes and professional standards.
“The important thing is we’re on the front foot on this.”
Investment Savings and Insurance chief executive Vance Arkinstall says the feedback at official and ministerial level from the industry initiative has been very good.
“They’ve been pleased with the industry approach – they welcome the idea of us putting forward proposals. Clearly we’re in a very good position.
“Whatever gets put forward will have to be effective but without huge administrative and other costs.
“Those will inevitably be passed on to consumers. There’s no gain if you end up making advice more costly for mum and dad investors,” Arkinstall says.
Rob Hosking is a Wellington-based freelance writer specialising in political, economic and IT related issues.
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