She says the industry will have to absorb the costs of running the schemes.
Also she reconfirmed that all financial advisers will have to join an Approved Professional Body.
She said there is likely to be a number of APBs and the government is neither setting minimum nor maximum numbers. However, she did say that it was “unlikely” that organisations, such as banks, would be able to set up their own APBs. Her view is that there would be too much potential for conflicts of interest.
Dalziel said APBs would join disputes bodies rather than individual advisers.
She also commented on the on-going stouch between existing adviser associations.
She described them as being “unhelpful” and was disappointed that associations were reacting to the changes in such a competitive fashion.
“I hope to see this matter sorted out in the next 12 months,” she told a media conference. The other significant changes announced relate to the non-bank finance sector. Trustees will continue to provide the front line regulation of the sector, however it will now come under the prudential supervision of the Reserve Bank. Also it will be mandatory for all non-bank deposit takers to have credit ratings.
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