Not all Taskforce recommendations to be adopted: MED

The Ministry of Economic Development (MED) says it has been working on details of the co-regulatory model for future regulation of financial advisers and expects a draft paper to be released in June.

Wednesday, April 19th 2006, 6:00AM

It says that it has taken the results of the Taskforce into account but not all recommendations will be implemented.

Currently it has been consulting with a wide range of players across the industry.

“This work has involved consultation with a range of self regulatory organisations, single business-based organisations, existing professional organisations and groups which represent businesses/product providers as well as the Securities Commission.”

MED is preparing a discussion document on the details of the co-regulatory model. MED is aiming to release this discussion document in June.

"MED has reviewed the Taskforce submissions (where most of the submitters agreed that change was required to this industry) and the Taskforce conclusions and is now at the stage of getting detailed comments on the proposed changes.

“We need to test out some of the details of the co-regulatory model, and also get feedback on some of the practical application (and benefits and costs) of some of the proposals.

“Not all the options presented in the discussion document will be implemented. Some issues which are likely to appear in the discussion document will be:

Suggested definitions of financial intermediaries, and how they will work in practice
“Single employer entities” and the co-regulatory model
Dispute resolution options

MED says the responses to the discussion paper will be considered as part of the Cabinet process in late 2006, which will set the content of the legislation to be introduced in 2007.

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