The idea of compulsory adviser registration, as suggested by New Zealand First leader Winston Peters, has received a lukewarm to non-existent response from the two main industry associations.
The idea of compulsory adviser registration, as suggested by New Zealand First leader Winston Peters, has received a lukewarm to non-existent response from the two main industry associations.
Peters wrote to the Investment Savings and Insurance Association (ISI), the Financial Planners and Investment Advisers Association (FPIA) and the Health Funds Association (HFA) in April asking for their input on the idea.
In his letter he proposed strengthening the Investment Adviser disclosure act by requiring all advisers to be registered.
"Our inclination at this point is to introduce a registration process with maximum industry involvement," he said.
"We are taking this step because of continuing evidence that the so-called light-handed regulatory regime that currently applies is not working."
Peters asked the associations to respond to his letter by May 14 because of the "tight Parliamentary timetable".
The FPIA has yet to discuss the matter and make a submission to New Zealand First.
Co-president Denys Wright says it is likely to be discussed at this Friday's board meeting.
ISI chief executive Vance Arkinstall says the association doesn't see where the problem is.
He says the ISI is going to go back to Winston Peters and suggest he "identify what is the problem and the number of instances where things have gone wrong."
"As product providers and product managers we are not aware of any of this evidence.
"We can't see any compelling evidence the existing disclosure regime is not working," he says. "But we are not saying it is working."
Arkinstall says the ISI wants to consult the FPIA on the issue.
Meanwhile, the HFA will discuss the adviser registration at a board meeting on Wednesday.
The idea of compulsory adviser registration, as suggested by New Zealand First leader Winston Peters, has received a lukewarm to non-existent response from the two main industry associations.