Urgent need to sort out adviser regulation: Crossan

Speaking that Conferenz Super Summit in Wellington yesterday Crossan said that there was the current situation was unsatisfactory and that it was too easy for "bad eggs" to work as advisers.

"From my perspective the key challenge for the industry should be addressing the vexed issue of financial adviser regulation."

She ackbnowledged that the current disclosure based regime for advisers has a number of weaknesses

"I remain concerned that anyone can establish themselves as a financial adviser, that there are no industry-wide codes of conduct, disciplinary procedures and standards for advice, that advisers cannot be easily excluded from the industry and that there are no dispute resolution procedures for advisers outside the court system.

She says there is a window of opportunity for changes to be made in the upcoming review of the securities legislation.

"I would encourage the savings and finance industry to take the opportunity to develop proposals for robust self-regulatory regime for financial advisers.

"Robust self-regulation would make a significant contribution to the development of the much sought after savings culture."

She said that the Financial Planners and Insurance Advisers Association doesn't cover enough of the advisory industry at present.

Investment Savings and Insurance Association chief executive Vance Arkinstall also highlighted, in his presentation to the Super Summit, the need to sought out issues around advisers.

He says there group has "picked up the baton" in this area, partly because there is a risk that bad advice could damage "my members' products."

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