Code Committee wants to align review with 5-yearly MED update

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The Code Committee has flagged it wants to align its review process with government officials. Chairman Ross Butler told advisers at a roadshow in Wellington that the committee wants the code to bed itself in before they consider reviewing and revising it. He sees alignment with the Ministry of Economic Development's five-year review of the regime as a good idea.

Monday, July 12th 2010, 9:13PM

by Paul McBeth

"We would want to align the review process with that, and we'll continue watching before then," he said.

The committee would move to alter the final code if there were any unforeseen problems with the final form, or if there were any legislative or environmental changes that needed a revision to the code.

Butler has previously flagged the implementation of the regime as a starting point, with tougher entry requirements likely in the future.

The committee hopes to put a code recommendation to Commissioner for Financial Advisers David Mayhew by the end of the month, which will in turn go to Commerce Minister Simon Power for sign-off.

Committee member David Ireland said there were several issues that needed regulation, such as letting insurance advisers and mortgage brokers to opt-in for voluntary authorisation, and that officials were working through the process.

"We've been encouraging the MED to get regulations out as soon as possible that would implement anyone providing insurance adviser or mortgage broking services the option of becoming an authorised financial adviser," Ireland said.

Other issues requiring regulatory attention, such as the exact nature of land-based investments that will be captured by the legislation, all need to be addressed as soon as they can, but officials can only work through things in an orderly way, Ireland said.

If advisers need some guidance, he said MED officials have been more than happy to help, and encouraged advisers to go to them direct.

Paul is a staff writer for Good Returns based in Wellington.

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