Concerns growing over regulation start date

Concerns are continuing to fester around the industry’s ability to meet the deadline for regulation, with suggestions transitional provisions may end up being needed.

Tuesday, March 23rd 2010, 7:15AM

by Sonia Speedy

The Investment Savings and Insurance Association (ISI) recently carried out a survey of members to establish how prepared they are for the end of December deadline.

ISI chief executive Vance Arkinstall says the vast majority of the industry believes they will be ready in time.

The survey found most members saw no problem around the registration process or in becoming Qualifying Financial Entities (QFEs) on time. However, there were some concerns around the potential readiness of advisers.

Arkinstall says the survey showed the majority believed advisers should be ready. But they stated it is critical there be no delays in the Code Committee delivering its guidelines, nor in the passing of the Financial Service Providers (Pre-Implementation Adjustments) Bill.

Arkinstall says some companies hold fears about whether there will be enough assessors available to ensure advisers meet competency requirements in time and uncertainties exist around category one and two life insurance products.

He says the ISI has discussed the industry's readiness with the Ministry of Economic Development.

But Institute of Financial Advisers president Lyn McMorran believes a transition arrangement may be needed, particularly if a lack of adviser competency assessors does eventuate.

She says: "If the timetable is stuck to and everything is out and quite clear by July, that still doesn't give advisers very long to get their businesses all set up," she says.

Kiwibank general manager of wealth Tracey Berry says the whole industry is challenged by the timeframe.

"I think we've all expressed that some more time would be ideal and it doesn't mean that December isn't the date, but transition past December for embedding some of it," she says.

A spokesman for the Minister of Commerce Simon Power says the minister acknowledges the timeframe is tight.

But he says the Government is determined to have its part in order by the end of July and businesses need to do the same with the aim of making the December deadline.

« For sale: Aegis

Sovereign takes regulation bull by the horns »

Special Offers