Advisers ask for raincheck on regulation
Several organisations are asking the Minister of Commerce Lianne Dalziel to push back the deadline for submissions on adviser regulation proposals.
Thursday, August 17th 2006, 6:36AM
by Rob Hosking
The Institute of Financial Advisers says the two work streams are intertwined and they also cross over with the review of consumer protection law and the regulations currently being discussed as part of the Securities Legislation Bill.
The deadline for submissions on proposals for regulation of financial advisers is September 1.
The government indicated its proposals for the much wider review of financial products and providers will not be out until early or mid-September, instead of - as planned - about now.
“We would like to see a bit more detail from that review before we finalise our submissions,” says IFA acting chief executive Ross Butler. “We need to see the bigger picture.” Views about how financial advisers should be regulated will be affected by how the government decides to regulate financial products and providers, he says.
That second review is likely to see rule changes for the six areas it has focussed on: insurance, superannuation, finance companies, collective investment schemes, equity and debt, and disclosure.
Much of the work also is related to consumer protection. The Ministry of Consumer Affairs has carried out a review of the country’s overall approach to consumer protection, but the results of that are still under wraps.
Submitting on the adviser regulation discussion document is the equivalent of giving views on one part of a much bigger, but largely unknown, picture.
“This is perhaps our final big chance to have a say on what is going to be the model for a long time.”
The IFA has written to Dalziel asking for a delay until October 1.
It is being backed by the Investment Savings and insurance Association.
“We know from our involvement in the working parties that changes to aspects of the regulation of life, unit trusts, and superannuation being considered might have an impact on advisers,” says ISI chief executive Vance Arkinstall.
“It doesn’t make sense for us to be responding to adviser regulation when there may be changes which causes us to modify our position on those.”
“If we’re gong to do this we should be responding with the full knowledge of all the changes being contemplated.”
Rob Hosking is a Wellington-based freelance writer specialising in political, economic and IT related issues.
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