Securities Commission chairman Euan Abernethy believes there is a real question to be asked over the role and competency of investment advisers in New Zealand.
He says the commission's recently released review of syndicated property investments has "certainly sparked" his interest in the role of advisers.
As a result of this the commission is now planning to look at the role of investment advisers and the quality of advice they provide the public.
While he does not favour compulsory registration of advisers, as promoted by New Zealand First leader Winston Peters, he is keen on a scheme which gives the commission the ability to stop advisers practicing.
Currently the commission can prohibit investment schemes it thinks are scams, however, it can't stop people promoting the scams.
Abernethy says the commission knows many of the people who are peddling scams, however it is powerless to stop them.
"There has to be some way in which an investment adviser, especially one who consistently gets involved in these things, can be taken off the market."
In other jurisdictions, such as Australia, the regulators, or industry watchdog bodies, have the ability to ban advisers from practicing.
The Financial Planners and Investment Advisers Association (FPIA) is also keen to see some sort of controls put on advisers. Like the commission it doesn't favour the government running a compulsory registration scheme.
FPIA president Andrew Charles says the association would like to see fund managers and life offices taking a greater lead in regulation.
For instance, a fund manager or life office should only distribute its products through an intermediary who is a member of an association such as the FPIA or the Life Brokers Association.
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