Conduct bill will mean changes for advisers: MBIE

The Conduct of Financial Institutions bill is expected to have its first reading soon after Parliament reconvenes for the new year in a fortnight.

The bill introduces new conduct obligations for banks, insurers and non-bank deposit takers.

A regulatory impact statement said it was likely to mean a large increase in costs for the Financial Markets Authority through administration and monitoring work.

One of the potential unintended impacts of the bill was the possibility of less access to advice, the statement said, but that was seen as moderate to low because “the most intrusive regulatory options” had not been recommended, which meant there was less risk of wholesale changes to business models and cash flows, MBIE said.