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FINANCIAL ADVICE

The standards under which financial advice is given in New Zealand are undergoing a major change. To date there has been no requirement for those people giving financial advice to have appropriate qualifications or to comply with guidelines on ethics, professionalism and integrity.

New law to regulate financial advisers, the Financial Advisers Act, was passed on 28 September 2008 making the Securities Commission the main regulator of advisers. The Commission is working with the financial advisor industry to implement this new law. The objective of the new law is to promote the sound and efficient delivery of financial advice, and to encourage public confidence in the professionalism and integrity of financial advisers. Financial advisers are those people receiving payment in some form for giving financial advice and those people who are remunerated in some way for selling financial products. The Financial Advisers Act will make those people more accountable for the advice they give.

Financial advisers will now have to meet standards of competence, professional conduct, and disclosure. They are also required to be registered and belong to a dispute resolution scheme.

Financial advisers, the financial sector and educators all have a role to play. The law is likely to be in force by late 2010.

Commissioner for Financial Advisers

On 18 May 2009 the Minister of Commerce, Simon Power, announced the appointment of Annabel Cotton as Commissioner for Financial Advisers for period of up to 12 months.

Code Committee

Membership of the code committee was announced on 21 July 2009. The code committee will prepare a code of professional conduct for authorised financial advisers.

Related information

3 July 2009

Financial Advisers Act 2008: Disclosure Regulations (PDF 196KB), Ministry of Economic Development

23 June 2009

Financial Service Providers Disputes Resolution Discussion papers, Ministry of Consumer Affairs

22 May 2009

Speech to branches of Institute of Financial Advisers, Hon Simon Power

See also

- For consumers
- For financial advisers
- For the financial sector
- For education institutions
- Consultation
- Frequently asked questions

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