Commerce Minister Kris Faafoi has acknowledged some financial advisers feel the transition to the new legislative regime is taking some time to achieve.

In an update for Financial Advice New Zealand, Faafoi said it might feel as though it had been a long process to get the industry to where it was at the end of 2018.

The Financial Services Legislation Amendment Bill has passed its second reading in Parliament but was number 20 on the order paper when Parliament finished for the year.

Consultation has finished on draft proposals that will form the basis of the new code of conduct for financial advisers, but a final version is not expected to be presented for sign-off until early 2019.

The industry is still waiting for details from the Ministry of Business, Innovation and Employment about some of the regulations that will sit alongside the legislation.

Faafoi said he was conscious that the financial advice industry wanted certainty.

“A lot has happened in this past year. The Financial Services Legislation Amendment Bill has been through the select committee process and is currently awaiting its final stages in the parliamentary process. I am hopeful that it will be passed in early 2019. Other important details of the new regime are well under way, including supporting regulations and the new code of conduct. It is a priority of mine to get clarity and certainty on these details for you as soon as possible.”

He pointed to the discussion paper currently out for submission on the potential fees that will apply under FSLAB for FAP licenses.

“More detail on other important aspects of the new regime, including the disclosure and registration regulations, and the new code of conduct, will be available in early 2019. I look forward to being able to provide this information to you.”

 

 - Good Returns