New Zealand First leader Winston Peters is giving the three main financial services industry associations three weeks to comment on his proposal for a compulsory adviser registration scheme.
He has written to the Financial Planners and Investment Advisers Association, the Investment Savings and Insurance Association and the Health Funds Association asking for their views on the idea.
Peters is confident the associations "will see a need" for a registration scheme, as the current regime of self-regulation is "a joke".
The registration idea stems from the behaviour of advisers who operate outside of professional associations.
"I'm concerned at the vacuum outside of these institutions," Peters says.
While he can understand industry associations "are not concerned with those non-members of their societies who fiddle the investments of private citizens, that's no good for Joe Bloggs investor".
" What we have to do is eliminate such a person from being in the market place and giving advice."
Details of a compulsory licensing scheme would be drawn up in conjunction with the three associations.
Peters says he doesn't want it to be too prescriptive, and he is not contemplating either a fidelity fund or advisers paying a bond.
However, there would be a cost and advisers would have to pay an annualised registration fee.
"There are some costs associated (with registration)," he says. "However, there's far greater costs in not engaging in investments, not saving (and) not getting into the sharemarket."
"What I want to do is give some protection to the consumer when he is approached by someone selling a product as a profession."
He says advisers' first responsibility is to their profession, then their client.
The NZ First initiative is being driven by former Insurance and Investment Association chief executive Roly Metge, who now works as a researcher in Parliament for the party.
New Zealand First leader Winston Peters is giving the three main financial services industry associations three weeks to comment on his proposal for a compulsory adviser registration scheme.