News round-up

Developments on disclosure requirements for advisers
A bill that simplifies the implementation of the Financial Advisers Act and reduces costs of implementation was introduced into Parliament last week.

The Financial Services Providers (Pre-Implementation Adjustments) Bill makes technical amendments to the Financial Advisers Act (FAA).

The proposed amendments include:

• QFEs will be able to name representatives (contractors and agents) whose advice they will take responsibility for, rather than automatically being responsible.
• QFE  employees and named representatives will be able to provide financial advice or conduct investment transactions in relation to products for which the QFE is the promoter under the Securities Act. Currently, the FAA allows this only if the QFE is the issuer of the product.  
• The ability to provide financial advice or conduct investment transactions in relation to a QFE's Category One products (without being an authorised financial adviser) will be extended to the QFE's named representatives. This is currently only permitted in respect of the QFE's employees.
• Term life insurance policies, call debt securities, call building society shares and bonus bonds are now prescribed as Category Two products.