Industry engagement helping the regulatory process: Mayhew
The new Commissioner for Financial Advisers, David Mayhew, is pleased with the level of engagement by industry and he is confident the sector is embracing the move towards professionalising adviser roles.
Thursday, February 11th 2010, 7:21AM
by Paul McBeth
Mayhew said the larger members of industry are "already gearing up" to meet what will be the minimum standards for advisers, as are the adviser associations, and even if the December deadline gets pushed out, a lot of the legwork will have already been achieved.
"It's important not to lose sight of the fact that when you get to go-live date that's not the point of when the whole thing starts, because it's already started - even if that date slips, it doesn't really matter because people are already engaging," he said.
Though the goal of legislating to build confidence in the industry is achievable, it is part of the wider goal to boost investment in capital markets, and Mayhew warns that investors should not put "too much expectation on it" and not think about the products that they buy.
"I don't consider my role to be champion of financial advisers - industry can look after itself - but I will be working with them to ensure the goals of the legislation are maintained," he said.
His initial assessment of the regulatory process has been its complexity, and he acknowledges that the minimum standards that will come in later this year may get cranked up as the sector evolves.
Once these are in place, Mayhew expects his next areas of focus to be on his enforcement function and the disciplinary tribunal that he will chair, though he warns "there may not be enough recognition of the cost involved."
"The commissioner is looking at where the industry is going in terms of standards because ultimately, in a disciplinary function, you are applying those standards," he said.
Following that, he expects discussions to be had around commissions and the integration of New Zealand's market into a common market with Australia.
Paul is a staff writer for Good Returns based in Wellington.
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