First cull of working group applicants

Interviews will happen over the coming weeks with applicants for positions on the working group that will develop the new code of conduct for financial advisers.

Monday, April 24th 2017, 6:00AM

by Susan Edmunds

Rod Severn

The Ministry of Business, Innovation and Employment said 54 applications had been received for the seven to 11 working group positions.

Those who have not made it to the interview stage have been notified.

Two of those chosen will have to have experience in consumer affairs or dispute resolution.

The rest will be people appointed for their relevant knowledge, skills and experience.

Members will get a three-year term, during which they will develop the new code and then become the code committee overseeing it.

Fred Dodds, chief executive of the IFA, said he was aware of a “handful” of his members who had applied. He said he would make no further comment until the final working group was revealed.

Rod Severn, at the PAA, said a number of members of that association had applied too but he was not aware of the outcome of their applications.

The terms of reference for the working group say the new code must include minimum standards of professional conduct for advisers, including competence, ethical behaviour and client care. It must also set out CPD requirements.

The structure of the code will be up to the group. But MBIE said it should recognise that there were many types of and means of providing financial advice.

"A one-size-fits-all approach may not be appropriate for a code which applies across the whole financial advice industry, and to a range of persons (including a legal person such as a firm)," the ministry said.

"The code must also recognise that the new financial advice legislation is technologically neutral. Recommended standards should therefore be applicable for different advice delivery methods. For example, given that financial advice may be given by the licensed ‘provider’ (e.g. via an online robo-advice platform), it is important that the code standards are relevant to a provider in this situation (rather than assuming the person giving advice will be a natural person)."

It is expected that the working group will start developing the code by August.

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Tags: Code Committee