Strong response to financial advice laws consultation paper

Commerce and Consumer Affairs Minister Paul Goldsmith today said there has been a strong response from New Zealanders on the review of financial advice legislation.

“In May the Government released an issues paper as a part of a review of the Financial Advisers Act and Financial Service Providers Act,” Mr Goldsmith says.

“We want to increase consumer confidence in financial advisers and the advice they give, so that people can make informed decisions about their money.

“I have been very pleased with the response we have received. I would like to extend my thanks to everyone who took the time to submit their views on how the legislation could be improved.

“We have had a strong response from the industry and consumers. There were 162 submissions from organisations and advisers and 249 people responded to the shorter consumer brochure published alongside the Issues Paper. Officials also held workshops and met with interested groups and individuals to gather feedback.

“Officials will now analyse the submissions and all the feedback received. Following this an options paper will be released later in the year, which people will again have the opportunity to comment on. I expect to receive final recommendations on any changes to the Acts next year.

“Laws like this are vitally important if we are to continue to grow our economy. These pieces of legislation are both integral to the effective functioning of New Zealand’s capital markets, one of the Government’s Business Growth Agenda goals,” Mr Goldsmith says.

Notes:

The Financial Advisors Act and Financial Service Providers Act came into force fully in 2011.

Both Acts carry statutory requirements to be reviewed by 1 July 2016 and August 2015, respectively.

As both Acts overlap significantly, they are being reviewed together.