Taskforce heads to Australia

The taskforce looking at adviser regulation is soon due to cross the Tasman to see first hand how the year-old Australian regime is working.

Tuesday, March 22nd 2005, 6:37AM

While many advisers may see this as the taskforce in some way favouring the Australian regime, its chairman Michael Webb worked last week to put them at ease.

Speaking at the FundSource conference in Auckland on Friday, he said the taskforce had no set agenda and still did not know what sort of recommendations it would make.

He says this taskforce is different to most government’s put together. Often they are charged with addressing a certain problem or idea and finding an answer, or seeing how another regime may work in New Zealand.

This taskforce “started with a blank sheet”, Webb said. He said the trip to Australia will provide the taskforce with a good understanding of how that country’s regime works.

Webb said the taskforce is “acutely aware of compliance cost issues” and that regulations can create barriers to entry to the industry.

With regards to current progress the taskforce has been looking at the issue of what is financial advice.

Webb says the lines between financial advice and financial marketing are very blurred.

He says this gets into the disclosure regime, but the taskforce’s terms of reference doesn’t allow it to look at the investment statement and prospectus regime.

The taskforce has had about 55 submissions from the industry on its issues paper and more than 200 from the public. Webb says, that according to officials, this is a good strike rate for this type of policy work.

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