Power to tweak financial advisers and service providers acts
Commerce Minister Simon Power will make some "limited changes" to the Financial Advisers Act and Financial Service Providers Act to "improve the practical operation intended by the policy" which is due to come into effect at the end of next year.
Wednesday, August 26th 2009, 10:22AM
by Paul McBeth
Power told a conference in Wellington yesterday that he will move quickly "so as not to affect implementation timeframes" and more details will be forthcoming "shortly". He decided to make the changes after discussing the acts with participants in the financial sector.
He also outlined the main areas his shake-up of the 31-year-old Securities Act will focus on. The discussion document due later this year will clearly state the objectives and scope of the nation's securities law, and will ensure consistency in the requirements for managed funds in New Zealand.
It will also ensure all investor information is adequate and relevant, and avoids unnecessary disclosure that may go unread.
He touched on a proposal for greater tailoring of investment statements, which have become "meaningless," to help investors know "just what it is they are investing in," and floated a proposal to introduce so-called wealth warnings "which give investors an instant overview of matters such as risk, return and fees."
The final aspect that his review of the Securities Act will entail is a shake-up of the regulatory bodies in New Zealand their various powers.
Power expects to have the new legislation in place by 2011.
Paul is a staff writer for Good Returns based in Wellington.
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