by Rob Hosking
The broad proposals outlined by the Task Force on Financial Intermediaries earlier this year have been approved by Cabinet this week.
Those include allowing approved professional bodies (APBs) to look after educational standards, disclosure rules, disputes resolution and professional conduct standards.
The Securities Commsison will be the government body charged with over-arching responsibility for the new regime as statutory regulator, says Commerce Minister Lianne Dalziel.
Dalziel had earlier promised to get the matter to Cabinet before Christmas and she says officials can now get on with working out the detail of the co-regulation model with the various industry groups.
“They will report back in mid to late 2006 and legislation will follow early in 2007,” she told Good Returns.
The decisions put a lot more pressure on the industry to prepare for the new regime. An earlier brief from the ministry makes it clear officials want to consult “with potential approved professional bodies, the regulator and other stakeholders.”
The first stage is likely to be a discussion paper of proposals, which is likely to be, released in the first half of 2006 for feedback.
The government has cross-party support for its approach, so far. National is making noises about preferring a light handed approach and not wanting to see the imposition of an Australian type of regime here.
All the main financial sector groups have broadly supported the approach outlined by the Task Force.
Rob Hosking is a Wellington-based freelance writer specialising in political, economic and IT related issues.
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