Disclosure regulations next year

The Ministry of Business, Innovation and Employment says more details about disclosure requirements for financial advisers will be available in early 2019.

Tuesday, November 20th 2018, 6:00AM 5 Comments

It has consulted on what disclosure will be required of advisers under the new regime, including what they’ll have to tell clients at the start of any conversation, and before any products are agreed on.

A spokesman said work was continuing on the requirements.

“The next step is to seek government decisions on the regulations. At this stage, we expect to have more details available about the disclosure requirements in early-2019.”

Tags: Disclosure

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Comments from our readers

On 21 November 2018 at 10:58 am Murray Weatherston said:
Is anybody other than us worried or concerned about how long it is taking for these regulations to see the light of day?
If there have been any consultations happening over the last 6 months, it certainly hasn't involved us. Maybe there hasn't been anything happening, or maybe we are continuing to be treated like mushrooms.
If there has been ongoing consultation, who has it been with?
On 21 November 2018 at 11:54 am gavin austin adviser business compliance said:
Hi Murray - here's a simple tip - read the FMA updates that announce and remind us about Consultations. Failing that you can always keep track of this stuff by accessing the MBIE web site - link as follows https://www.mbie.govt.nz/info-services/business/business-law/financial-advisers/review-of-financial-advisers-act-2008/regulations-to-support-the-financial-services-legislation-amendment-bill/disclosure-requirements-consultation/?searchterm=disclosure%20consultation%2A
On 21 November 2018 at 11:43 pm Murray Weatherston said:
Hi Gavin
The subject matter of the story I commented on was not regulation generally but rather disclosure regulations specifically.
I am sure you know this subject matter is housed in the MBIE silo, not the FMA one.
If you could point me to any specific FMA update over the last 6 months that advances our knowledge on disclosure obligations, I would be very grateful.
On 22 November 2018 at 10:50 am gavin austin adviser business compliance said:
Apologies Murray I didn't read your comment correctly re the "last 6 mths" and the ref I was referring to was before that. I agree that there has been far too little progress since April 2018 and if public confidence and access to quality financial advice is "really" the desired outcome then the pointy heads at MBIE etc have let the public down. The review has been signalled way back when the first FA legislation arrived and from memory that was to start some time in 2015. Three years down the road is not giving the public a fair go let alone our advisers.
On 29 November 2018 at 7:39 am JPHale said:
Murray there was a consultation session with MBIE that was reasonably well attended, though probably getting on towards 6 months ago now, possibly longer.

MBIE had a presence at the MP meeting in Auckland which Angus and Beckie from CWG attended.

There's been little from MBIE on this in recent times and there's been even less from the FMA on licensing as well.

It's all well and good having the draft code, without the licensing and disclosure pieces it's still a crap shoot on what regulation is actually going to entail.

Other than moving between conservative and defensive in your KiwiSaver is going to trigger full financial planning advice and we need to be doing the right thing...

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