Mixed reaction to adviser taskforce
There has been a mixed industry reaction to the government’s announcement yesterday of the Task Force on Regulation of financial intermediaries.
Tuesday, November 9th 2004, 12:24AM
by Rob Hosking
The Financial Planners and Insurance Advisers Association has welcomed the group: the Investment Savings and Insurance Association and the Mortgage Brokers Association are less enthused.
The concern is the make up of the group, which has taken the government much longer to name than it anticipated back when it was announced in August.
“We are underwhelmed and disappointed,” says ISI chief executive Vance Arkinstall.
“We’re particularly concerned in view of the importance of this matter to our industry that we are under-represented,” he says.
He also queried the appointment of former Securities Commission member Michael Webb as chairman.
“We are slightly surprised at that: we believed from the ministers comments that this would be a 'first principles' review for advisers.
The chairman having a recent history as a member of the Securities Commission is something we hadn’t expected.”
Mortgage Brokers Association chief executive Megan Salt has similar reservations.
“There seems to be a lot of industry people overall, which is good. Our only concern is that there isn’t anyone from the mortgage industry on the task force.
"Given that the biggest investment decision most people ever make is their mortgage, that seems to be an oversight.”
FPIA board member Stephen O’Connor says he hopes the task force won’t be too regulation minded.
“We hope they will look closely at the Australian model - at where its delivering and where it’s not. I think the task force needs to keep in mind what will benefit the consumer - its no good looking at a model that ties down financial intermediaries without benefiting the consumer. I think they can get some good leads from Australia on that.”
Members of the taskforce http://www.goodreturns.co.nz/article/976490030.html
Rob Hosking is a Wellington-based freelance writer specialising in political, economic and IT related issues.
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