|
The government is close to setting in motion the final process of setting up a co-regulatory framework for financial intermediaries, Commerce Minister Lianne Dalziel said yesterday in a speech at the opening of the Institute of Financial Advisers Success Forum 2006 in Auckland.
Dalziel said she has now signed off the discussion paper prepared by the Ministry of Economic Development setting out the proposed framework and design detail of the regime.
“We have spoken to the Institute many times when preparing this discussion document, and I am aware of IFA’s views on whether businesses, which provide financial advice to members of the public, could also take on the role of an approved professional body, and also your views on costs. The government is very aware that cost is at the forefront of most intermediaries’ minds and will consider carefully how to meet the objectives without imposing any unnecessary costs,” she said.
“We’re looking at how to best use alternate means of regulation, in this case, co-regulation to achieve these goals. The government is adopting a co-regulatory model as we recognise that industry, especially bodies like the Institute and your members, have the experience to tell us what skills and practices a good adviser should have, and what a consumer should expect.
“I would like to take this opportunity to thank Ross Butler and George Elkington of IFA for their help and the time spent with Ministry officials, and also to all of you who contributed to the Taskforce and Ministry work.”
Institute chief executive Ross Butler said he and the board appreciate the Minister’s comments and her acknowledgement that in government circles, the Institute is seen as a leader in the industry. He also welcomed the Minister’s reiteration of the government’s commitment to co-regulation and working with the industry.
“The government wants to get the job done,” he said. “All the hard work we’ve done in terms of working with other adviser associations, the product providers and government agencies, and the leadership role we took on a year ago has paid dividends.”
© 2006 financialalert Limited | 
