Everyone's talking about regulation

Financial planners aren't alone debating the issue of standards in their industry, and whether or not they should be regulated.

The topic has surfaced amongst mortgage brokers and across the Tasman.

The head of Mortgage Choice in New Zealand, Miranda Caird, told a workshop at the recent Financial Planners and Insurance Advisers conference that the mortgage broking industry was full of cowboys, and its association didn't have sufficiently high enough standards. She went on to say that the industry should be regulated.

Mortgage Broker Association (MBA) head Rob Tucker has sprung to the association's defence, claiming standards are high. He says the MBA is working to tidy up the industry which is accounting for a growing share of the home loan market.

Across the Tasman the issue of regulation is still hot too.

The Financial Planning Association (FPA) has called on the Federal Government to enshrine the terms "financial planner" and "financial adviser" in the Financial Services Reform Bill, which would give the terms the same status as "accountant", "stockbroker" and "insurance broker".

FPA senior manager of public policy, Con Hristodoulidis, says under the current version of the FSRB stockbrokers and life and general insurance agents are restricted terms, but there is no mention of financial planners and financial advisers.

He says the association would like to see the terms "financial planners" and "financial advisers" locked into the legislation.

He says that the restricted use of the terms would enhance consumer protection.

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