Disclosure regulations approved
Cabinet has approved regulations which set out the details of disclosure statements required under the Financial Advisers Act, but it has also decided to make more changes.
Thursday, October 28th 2010, 4:28PM
The regulations provide details on the form and content of disclosure statements which all financial advisers will have to provide to customers from July 1, when the act and the Financial Service Providers Act come into full force.
The acts require all financial service providers, including financial advisers, to be listed on a public register and, if they provide services to the public, be members of an approved dispute resolution scheme.
Financial advisers will also be subject to a Code of Professional Conduct which establishes 18 standards to ensure they meet the minimum standards for ethical behaviour, client care, knowledge, skills and competence, and continuing professional development.
Cabinet has also agreed that further regulations be drafted to set:
- Definitions of key products under the Financial Advisers Act
- Exemptions from the Financial Advisers Act and the Financial Service Providers Act
- Fees that the Securities Commission may charge for considering exemption requests.
“These regulations will minimise unnecessary compliance costs, give certainty to the market, and make it easier for the Securities Commission to consider exemptions efficiently,” Commerce Minister Simon Power says.
He also reminds financial service providers that they must be registered and belong to a dispute resolution scheme by December 1.
Meanwhile, financial advisers who are working under a qualifying financial entity or whose qualifying financial entity is still awaiting approval have until March 31 to register.
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