MED prepares ground for commissioner

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The Ministry of Economic Development (MED) is awaiting the appointment of the Commissioner for Financial Advisers before finalising new regulations to govern the advisory industry.

Friday, January 23rd 2009, 5:18AM

by David Chaplin

An MED spokesperson told Good Returns that while a regulation working group – comprising MED and Securities Commission staff as well as industry representatives – has met twice, “the disclosure regulations need to be developed along side the Code of Professional Conduct, and the authorisation processes for financial advisers”.

The Code of Professional Conduct will be created by the yet-to-be-named Commissioner for Financial Advisers in conjunction with a Code Committee (who will be appointed by the Commissioner).

It is understood the MED has drawn up a short-list of candidates from the approximately 30 original applicants with an official appointment expected soon.

According to sources close to the process, the short-list is weighted towards legal and government professionals rather than financial advisory practitioners.

Speculation has been rife that Retirement Commissioner, Diana Crossan, was on the short-list for the role, however, Crossan told Good Returns she “hasn't gone near the job”.

The MED would only say “the process for the appointment of the Commissioner for Financial Advisers to the Securities Commission is underway”.

In the meantime the MED working group has been carrying out “preparatory work” for the Code Committee including consulting with the industry on competency standards and the “terms and conditions for authorising financial advisers”.

The MED spokesperson was not able to disclose who was on the advisory regulations working committee.

The regulations governing the Financial Advisers Act, passed in September last year, are scheduled to come into force in 2010.

“The disclosure regulations will be finalised well in advance of the final implementation of the regime; they are planned to be completed by the end of 2009,” the MED spokesperson said.

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