[The Wrap] What secrets are in the Code?
You can feel things are starting to move, ever so slowly, with changes in the financial adviser space. This week the Code Committee delivered its proposed Code to Commerce Minister Kris Faafoi, however it's all secret squirrel at the moment and there is no clear timeline when it will be publicly released.
Friday, March 8th 2019, 5:41PM
My initial reaction was: Why keep it secret? And that hasn't changed much since then.
Considering the drafts and all the discussion, I am sure people are waiting with bated breath to see how the final version has changed. It could be significant as the second draft was quite different to the first one.
If there is anything to worry about it is the caveats, that the Code could change if MPs make changes to the Financial Services Legislation Amendment Bill when it gets its third reading.
Here's what Code Committee chairman Angus Dale-Jones said: "We have signalled to the Minister that the draft code might need to be revised before its approval if any late changes are made to the bill."
The view proffered previously was that FSLAB would be passed pretty much as it is. This was based on the observation is that National started the process, and during the second reading late last year all MPs who spoke were supportive.
The unknown is how spooked politicians have become after things like the Royal Commission in Australia and the FMA/RBNZ conduct reports into banking and life insurance.
Influential figures, like Reserve Bank governor Adrian Orr, have spoken out strongly for change; whether their calls have gained traction is an unknown.
Maybe we will get a better steer when Faafoi fronts up at the FSC Navigating Regulation Advice Summit in Wellington on Wednesday next week.
On the starting to move theme I'd add to the list the announcement that there will be a "success fee" for advisers completing Level Five papers. Strategi kicked it off with a $500 rebate and Professional IQ College has upped the stakes to $550.
Anything to help reluctant advisers get on with upskilling the better - even though we are paying for it through our taxes!!
Also there is some consolidation starting to happen in the mortgage advice space. You can read about what's happening on tmmonline.nz next week.
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