Category Two advisers can be authorised - now
Code Committee chairman Ross Butler says the draft Code is being developed on the basis that regulations to be promulgated under the Act will allow category 2 product advisers such as mortgage brokers and life insurance advisers to voluntarily opt into the authorisation regime.
Chair of the Select Committee Lianne Dalziel said yesterday at the second reading of the Bill in parliament that "inadvertently we had prevented them [category 2 advisers] from registering or becoming authorised financial providers because the Securities Commission would not have the power to grant them that status, because they are ineligible, not advising on a category 1 product."
Dalziel says she spoke to the Minister's office and it was realised that if better standards were to be encouraged within the industry as a whole, then it would not want that to be the case.
"I did not think it was intended to be restricted in that way, but I understand that the Supplementary Order Paper now addresses that issue."
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