tmmonline.nz  |   landlords.co.nz        About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds

NZ's Financial Adviser News Centre

GR Logo
Last Article Uploaded: Monday, May 16th, 7:04PM

News

rss
Latest Headlines

Missing members: concerns raised over legality of code committee

The committee which sets professional standards for financial advisers appears to be in breach of its own laws.

Friday, April 1st 2022, 6:00AM 4 Comments

by Jenni McManus

The code committee set up as an independent body to draft and monitor standards of professional conduct for financial advisers is operating without a full complement of members, in apparent breach of the Financial Markets Conduct Act 2013.

According to the legislation, the committee must have no fewer than seven members, two of whom must be consumer affairs representatives or skilled in dispute resolution. The current committee has only six members, including only one consumer affairs/disputes person, meaning it would seem to be operating unlawfully.

The problem arose in July 2021 when three committee members came to the end of their terms. Eight months later, they have not been replaced.

Replacing them has now become urgent. Three of the current committee are due to finish their terms in July this year, meaning that from 1 August four new members will be required for the committee to operate legally.

Concerns are now being raised, with at least one market-watcher writing to Commerce and Consumer Affairs Minister David Clark, asking for an explanation.

Part 4, Schedule 5 of the Act puts the onus firmly on the minister to ensure the number of committee members doesn’t fall below seven – the statutory minimum. Section 26(1)b uses prescriptive language such as “must” to spell out the minister’s obligations.

Clark was contacted for comment on why the positions have not yet been filled, whether the committee was operating unlawfully with less than a full complement and whether the minister had concerns about the situation.

A week after we contacted Clark’s office, there has been no response.

Code committee chairman Angus Dale-Jones confirmed that committee appointments were a question for the minister.

He says he understands a process is in train to appoint new members but is unsure about when any appointments might be made. “It is going through the normal government recruitment process,” he said.

Dale-Jones said the issue would be more significant if the committee needed to consult or recommend changes to the code. Right now, that wasn’t the case. Instead, his focus was on FSLAA and bedding in the licensing regime for advisers which comes into full force in March next year.

The code committee was set up in 2017 with nine members and tasked with developing the code of professional conduct. This was approved by the minister in May 2019.

Tags: Angus Dale-Jones Code Committee David Clark

« Financial advice industry gets hard word on cyber securityFMA to host forums on COFI implementation »

Special Offers

Comments from our readers

On 1 April 2022 at 10:14 am w k said:
looks like some "expert" attempting a forward pass.
On 1 April 2022 at 2:34 pm Andy the adviser said:
How about getting someone from qualified and experienced from within the industry to step up.

Oh, that's right, that would be too sensible.

Silly me!
On 5 April 2022 at 6:59 pm Eyeinthesky said:
If we have Ministers breaching the law, what is going on?
No personal accountability?
Maybe nothing new for this government !
Some answers are required
On 12 April 2022 at 11:39 am Bikedude said:
Gee Andy. That seems silly. After all, why start talking to real FAs now???

Sign In to add your comment

 

print

Printable version  

print

Email to a friend
News Bites
Latest Comments
  • Brian Gaynor dies
    “RIP - a true icon and such a humble person who helped so many....”
    12 hours ago by p simone
  • Brian Gaynor dies
    “Very sad. Condolences to him family....”
    13 hours ago by sanet.drury@gmail.com
  • Brian Gaynor dies
    “Brian was someone you would always go and listen to if he was presenting at a seminar or conference, someone you would always...”
    14 hours ago by MikeBeuvink
  • Brian Gaynor dies
    “A true champion of the industry. My sincere condolences to family, colleagues and friends. ...”
    14 hours ago by Pragmatic
  • [GRTV] AIA rolls out direct life insurance plans
    “Thanks Lifeadviser1, and it is great to see you have been having a play in the system. You are right, in the original...”
    16 hours ago by Sam.Tremethick
Subscribe Now

Weekly Wrap

Previous News
Most Commented On
Mortgage Rates Table

Full Rates Table | Compare Rates

Lender Flt 1yr 2yr 3yr
AIA 5.35 4.49 5.25 5.55
ANZ 5.54 5.15 5.85 6.15
ANZ Blueprint to Build 2.78 - - -
ANZ Special - 4.55 5.25 5.55
ASB Bank 5.35 4.49 5.25 5.55
Avanti Finance 5.45 - - -
Basecorp Finance 6.45 - - -
Bluestone 5.29 7.49 7.59 -
BNZ - Classic - 4.55 5.25 5.45
BNZ - Mortgage One 5.55 - - -
BNZ - Rapid Repay 5.55 - - -
Lender Flt 1yr 2yr 3yr
BNZ - Std, FlyBuys 5.55 5.35 5.94 5.99
BNZ - TotalMoney 5.55 - - -
CFML Loans ▲6.45 - - -
China Construction Bank 5.50 5.40 6.14 6.40
China Construction Bank Special - 4.45 5.19 5.45
Credit Union Auckland 5.95 - - -
First Credit Union Special 5.85 4.70 5.20 -
Heartland Bank - Online 4.00 3.85 4.70 4.84
Heretaunga Building Society 5.95 4.80 5.50 -
HSBC Premier 5.49 4.39 5.15 5.39
HSBC Premier LVR > 80% - - - -
Lender Flt 1yr 2yr 3yr
HSBC Special - - - -
ICBC 5.25 ▲4.29 ▲5.09 ▲5.35
Kainga Ora ▲5.43 ▲4.57 ▲5.58 ▲5.85
Kainga Ora - First Home Buyer Special - 2.25 - -
Kiwibank 5.00 5.55 6.19 6.39
Kiwibank - Offset 5.00 - - -
Kiwibank Special 5.00 4.55 5.19 5.39
Liberty 4.84 - - -
Nelson Building Society 5.95 4.95 5.85 -
Pepper Essential 3.44 - - -
Resimac 4.59 5.60 6.16 6.29
Lender Flt 1yr 2yr 3yr
SBS Bank 5.29 4.69 5.35 5.49
SBS Bank Special - 4.19 4.85 4.99
Select Home Loans 4.09 4.29 4.86 5.09
The Co-operative Bank - First Home Special - ▲4.19 - -
The Co-operative Bank - Owner Occ 5.45 ▲4.29 5.19 5.45
The Co-operative Bank - Standard 5.45 ▲4.79 5.69 5.95
TSB Bank 5.59 ▼5.14 6.05 6.15
TSB Special 4.79 ▼4.34 5.25 5.35
Unity 5.65 ▲4.80 ▲5.50 -
Wairarapa Building Society 5.24 4.55 5.20 -
Westpac 5.54 5.09 5.79 6.09
Lender Flt 1yr 2yr 3yr
Westpac - Offset 5.54 - - -
Westpac Special - 4.49 5.19 5.49
Median 5.45 4.55 5.25 5.52

Last updated: 16 May 2022 9:03am

About Us  |  Advertise  |  Contact Us  |  Terms & Conditions  |  Privacy Policy  |  RSS Feeds  |  Letters  |  Archive  |  Toolbox  |  Disclaimer
 
Site by Web Developer and eyelovedesign.com