16th December, 2009

Financial advisers' independence needs regulation

Retail investors need warning labels on high risk products, simpler disclosure documents, and a deeper range of choices to put their money into, says the Capital Markets Development Taskforce, in its report released this morning by Commerce Minister Simon Power.

The taskforce, headed by investment banker Rob Cameron, also recommends regulation of the phrase "independent adviser" to allow its use "only by those who are paid solely on a fee-for-service basis by investors and do not receive commissions from product providers".

Full details here.