Associations generally supportive of new taskforce
A slightly surprised ripple of applause from the financial services industry greeted Commerce Minister Margaret Wilson’s announcement yesterday that a task force is being set up to look at ways of regulating financial intermediaries.
Friday, August 27th 2004, 1:58AM
by Rob Hosking
The main industry bodies – the Financial Planners and Insurance Advisers Association, the Investment Savings and Insurance Association, the New Zealand Mortgage Brokers Association and the Trustee Corporations Association – have all been working on the issue for a while.Although Wilson’s move was not unexpected, the timing of it is quicker than many were anticipating.
“Some form of regulation is a good thing so long as it’s the right sort,” says FPIA chief executive Phillip Matthews. He says it’s important the profession is involved so a workable model is achieved.
Trustee Corporations executive director Bob Moffatt says the four bodies are on the verge of coming up with a model and he expects that work will form the base for the task force.
The common ground between the various sectors was confirmed also by NZ Mortgage Broker’s chairman Brian Berry. He says four issues are paramount.
“There needs to be transparency in dealings with the customer, so consumers know who they are dealing with, how that person operates and how they get paid.
“Customers also need to be able to determine the competency of the adviser they are dealing with.
”Thirdly, if things go wrong they need to be confident there are processes available to them which will allow redress.”
And finally, he says, any regime needs to be consistent with international protocols and practices but “not a compliance nightmare.”
A considerable part of the minister’s speech announcing the task force was aimed at allaying fears that the Australian model will be adopted here.
The government wants the task force to report back within six months and plans to have made decisions on the next move by the middle of 2005.
Minister's speech: Adviser regulation taskforce to be set up
News story: Taskforce set up
Rob Hosking is a Wellington-based freelance writer specialising in political, economic and IT related issues.
| « Govt sets up task force to look at adviser regulation | Sovereign takes regulation bull by the horns » |
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