Adviser regs back on the fast track

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In a move that will accelerate the introduction of new adviser regulations the Government has reversed an earlier decision to link the legislation with its review of financial products.

Friday, April 20th 2007, 5:00AM

by David Chaplin

The decision, announced by Lianne Dalziel, Minister of Economic Development, earlier this month could result in new adviser legislation being in place before the end of this year rather than late 2008, as most industry observers were expecting.

"We originally planned to proceed with both reviews as one Bill. But it would take a very large bill to address all the issues, so I have decided to propose a phased introduction, with the financial advisers and services registration legislative amendments to be introduced to Parliament as a priority," Dalziel said in a statement.

However, in December last year she told a Finsia conference that after consultation with the industry the Government had decided to link the adviser legislation with its review of financial products.

“... the very close links between the two reviews mean that one review cannot be fully implemented ahead of the other review, without creating uncertainty for the financial sector and running the risk of inconsistencies emerging when legislation is implemented,” Dalziel said in December.

Over the next three months the Government will consider the 140 plus submissions it received on its adviser legislation proposals as well as the 135 submissions on the financial product review.

Dalziel said one of the main concerns identified in the adviser regulation submissions was the creation of different classes of intermediaries.

"The key concerns here were that it would cause confusion and unnecessary compliance costs, so we need to look at that some more," she said.

Based on the new schedule the adviser legislation could enter Parliament as early as July.

A note from the Ministry of Economic Development has been sent to the parties involved in the formation of approved professional bodies (APB) to schedule meetings on “high level policy recommendations” as soon as possible.

« Advisers given reality check

Sovereign takes regulation bull by the horns »

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