Task Force due to release options paper
The Task force on Financial Intermediaries is to release an options paper for the next phase of its regulatory round up.
Wednesday, May 4th 2005, 10:33PM
by Rob Hosking
Chairman Michael Webb told Good Returns the options paper should be out “in two or three weeks”.
It is not clear yet how much time people will have to respond but he says the task force still hopes to have its report to the government by the middle of the year.
The options paper will focus on the issues that came out of the first round of consultations and is likely to reflect both that and the panel’s recent excursion to Australia.
However Webb says the industry – which has looked askance at how the Australian regulatory tack taken since the HIH Insurance collapse – should not worry too much about the Australian connection.
“We had 22 meetings in three days with APRA, industry groups, consumer groups, and the Commonwealth Treasury…we had a lot of feedback on how the FSR regime is working, but there’s no pre-determination on this.
"We had to look at that because of the Australian relationship and also because of our terms of reference. But that is in no way our template.”
Webb says the first round of consultations produced a “fair amount of convergence” on what the issues are, although significant differences about what should be done about them. The main concerns appeared to be lack of barriers to entry and quality standards within the industry; how financial advisers are paid and the level of disclosure around that; conflicts of interest, both potential and actual; better disciplinary methods; and the financial literacy of consumers.
Rob Hosking is a Wellington-based freelance writer specialising in political, economic and IT related issues.
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