More consultation on Minister's to-do list

The Ministry of Business, Innovation and Employment wants to see consultation papers on the regulation of financial advice issued within the first 100 days of this government's term.

Tuesday, December 19th 2017, 6:00AM

by Susan Edmunds

In its briefing to incoming Commerce and Consumer Affairs Minister Kris Faafoi, the ministry outlined what it thought should be his priorities - and an order of work that summarised areas of key focus.

Fourth on the list was a decision to release the consultation papers on regulations to support the new regime for financial advice and financial service providers.

While the Financial Services Legislation Amendment Bill has had its first reading and has been sent to select committee, the industry is still waiting for documents outlining how disclosure might be treated under the new rules.

All advisers will have to meet the same standards of disclosure - but it has not yet been revealed what they will be.

"We are currently considering proposals for the disclosure requirements that will apply in the new regime. We intend to consult on the proposals in the new year," a spokeswoman said.

The BIM noted that Cabinet approval would be required for the consultation.

The paper also suggested that high on Faafoi's to-do list should be a decision to approve the outcome of the mid-term KiwiSaver default provider fee review, jointly with the Minister of Finance. Only ministerial approval is required for this.

Further down the list was a decision on aligning New Zealand law with international requirements regarding derivatives contracts.

MBIE said, in terms of financial markets, it was focusing on FSLAB, improving New Zealanders' financial capability, fintech, and ensuring reforms operated effectively.

"The potential for new financial products and services to be delivered online raises new issues for consumers. Many of these services will improve the consumer experience. However, how well-informed are consumers when it comes to new products and services delivered over the internet (such as financial advice)? Are appropriate safeguards in place?

"A further question arises as more New Zealanders are saving for their retirement. Is there more that can be done to increase the financial capability of New Zealanders, so that they can make good choices about their savings, particularly savings for retirement?"

Tags: Disclosure financial advisers Financial Services Legislation Amendment Bill fintech KiwiSaver MoBIE regulation retirement technology