by Benn Bathgate
That is the view of Financial Markets Authority (FMA) chief Sean Hughes.
"It's early days, but if it doesn't result in better quality financial advice then one questions was it worthwhile?"
Hughes said he didn't believe in regulation for regulations sake, and "if we can't see investors having greater confidence in their adviser and returning to the market and seeking a broad diversification of products, then I would be saddened by that."
"All the cost and compliance burden, it would be questionable as to whether it was worth it."
Hughes also explained the thinking behind the FMA's controversial ‘cowboy' advertising campaign - and questioned whether the message was received as intended.
"Many New Zealanders were not aware that financial advisers were not regulated before hand," he said.
He said that the point of the ‘cowboy' campaign was to raise awareness that a point of difference exisited between those who were authorised and registered and those who were not.
"What we were trying to say through that advertisement - whether in fact everyone got that message or not - take the trouble to find out and have greater confidence in those who have taken that trouble."
Benn Bathgate is a business reporter for ASSET and Good Returns, email story ideas to benn@goodreturns.co.nz
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