The code of conduct that will govern the country's financial advisers cleared another hurdle today, being passed on to the commissioner for financial advisers for approval.David Mayhew will now review the draft code against requirements of the Financial A
The code of conduct that will govern the country’s financial advisers cleared another hurdle today, being passed on to the commissioner for financial advisers for approval.
David Mayhew will now review the draft code against requirements of the Financial Advisers Act 2008 and if approved – will hand it on to the Minister of Commerce Simon Power for his approval.
If Mr Power also approves the draft, it is intended the first financial advisers will be authorised from December 1, with the code setting minimum conduct requirements for how they advise the investing public.
Mr Mayhew said there would be no more consultation on the code as part of the review. It has already been through three discussion papers, a series of public meetings and three iterations and has been approved by the code committee.
“If the code committee has determined minimum standards of professional conduct which cover the specified matters and which are consistent with the purposes of the Act, and if it has complied with its consultation obligations, then there is likely to be little scope for me, as commissioner, to take issue with the precise point at which those standards are set,” he said.
“In these circumstances, this is not an opportunity for interested parties to seek to re-argue matters they have already put before the code committee,” Mr Mayhew said.
Although the act allows up to 90 days for Mr Mayhew’s review, he expected to have this completed by mid-August.
he Financial Advisers Act, which kicks off early next year, requires anyone providing a financial planning service to become an authorised financial adviser (AFA).
But if the advice is just on the provision of a narrow range of everyday “category two” financial products such as bank term deposits, credit card and most insurance products, advisers will need to be registered but not authorised.
Large organisations such as banks can take broad cover for staff by becoming a Qualifying Financial Entity (QFE), effectively taking responsibility for the advice of their employees while also looking after the training an regulatory requirements.
Financial service providers must be registered by December this year. Financial advisers, however, have an extension until March 31 next year.
