[Weekly Wrap] Prepare yourself for next bout of regulations

It's been quiet on the regulation front for a couple of weeks, but I suspect that will change soon. In many ways it's been a little unsettling how quiet it has been which may be a precursor to some major upheaval. My sources around the place tend to indicate that there may well be some major changes coming up.

Friday, June 4th 2010, 9:14PM

There is even talk the Draft Code may have to be revisited and could go out for consulation again. These comments aren't meant to scare advisers, although if they happen there will be mega-frustration. The issue is more around how this regulation process is being put together. The general feeling is that it's very messy, uncoordinated and ad hoc. Others may well disagree with this. But an example I was shown the other day was in the regulated world there would be something like eight government agencies involved in regulation.

Surely that doesn't fit with what the government told us about public servants before the election.

The main regulation news this week was the release of the draft, and let's highlight draft, booklet from the Securities Commission on how to put an ABS or Adviser Business Statement together.

On a much more positive and cheery note big ups to Peter Lee and his appointment as the new CEO of the Institute of Financial Advisers. Personally I think it is a fantastic appointment and Peter will do a great job. Well done Peter.

Also this week I attended (and was involved in) the Responsible Investment Briefing put together by Matt Mimms and The Investment Store. While RI has failed to fire in New Zealand, I have a feeling that its time has come. There are so many factors supporting the growth of this form of investing that you'd have to give it a chance of gaining a foothold. We are seeing more funds coming to market, there is a bit of research developing. Now we need advisers and public awareness. I have penned a Blog about the conference here and we are looking to develop a group for advisers wanting to learn more about RI. If you would like more info please email philip@goodreturns.co.nz. (Also featured on NZI Business on TV One this morning - see the video here)

Our other news theme is around how insurance companies are reacting to upcoming tax changes. The latest news is from ING Life (who are being different). Also we should have news from AXA soon. Last week's piece on Pinnacle Life has provoked reaction. It's great to see the company has responded to the comments made.

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The D-Day for Prudential's purchase of AIA is looming large, however there are noises being made overseas that the deal may not go ahead - or ate least in the form origianlly proposed. Read about that story here

Meanwhile National Australia Bank has been given more time to convince the regulators that it should be allowed to acquire AXA. Maybe the bank has done enough to get itself back into the game?

On a much smaller scale Devon has poached many of Brook's key staff. Brook and Macquarie aren't saying much but David Chaplin from ASSET has a view - Trouble Down at the Millionaires Factory.

In our People news we have changes at Fidelity and a number of jobs listed on the site (along with a diary of events). Check them all out here.

Have a great long weekend.

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