Don't give professional bodies regulatory role: Committee
In a submission on the Ministry of Business, Innovation and Employment options paper on the Financial Advisers Act, the Code Committee said having a framework that allowed professional bodies to set their own rules, without an independent disciplinary process or regulatory overlay, risked undermining the regime’s objective of improving consumer confidence.
“Ill-informed or aggrieved sections of the public will view separate segments of the profession regulating their own with a high degree of scepticism, exposing the regime to the complaint of looking after its own. We believe the outcome would be negative for both financial advisers and consumers alike,” the submission said.
It said even allowing professional bodies to have input into the licensing process would be problematic.
“The Code Committee firmly supports the concept of professional industry bodies assisting members with compliance, CPD, and best practice, and acknowledges the positive work existing bodies have been doing in this space in recent years, but does not see a formal place for those bodies in the legislation to directly influence either the Code or the licensing process”
Click the button below to subscribe and will have free unlimited access for a limited time to full article and all other articles on the site.
You will also be able to comment on articles on Good Returns.
![[Weekly Wrap] Research shows KiwiSaver is a key issue in the election; GRTV Special looks at what's on offer.](https://goodreturns.publit.io/file/c_fill,w_300,h_200/36b7de93-7b53-4a06-855a-4a8f4009a280.webp)
