The Commission for Financial Advisers David Mayhew has approved the draft code of conduct for financial advisers, after initially sending it back for re-working.

Mr Mayhew recently rejected the draft code, writing to the code committee expressing concerns about three parts of the code he said were inconsistent with the Financial Advisers Act 2008.

Today he sent the draft code to Commerce Minister Simon Power for approval.

The Code of Professional Conduct for Authorised Financial Advisers is a key part of the Financial Advisers Act.

It includes provisions for minimum standards for professional conduct covering ethical behaviour, client care, competence, knowledge and skills and continuing professional development.

Mr Mayhew said the draft code should go a long way towards restoring investor confidence.

“The code will be the tool for imprinting professionalism on those financial advisers in New Zealand who provide personalised advisory services to retail investment clients,” he said.

“It also forms the benchmark for adequate consumer protection standards for such services provided through corporate entities such as retail banks.”

Mr Power now has 90 days to review the code.