Govt starts work on Financial Advisers Act

Hon Lianne Dalziel
Minister of Commerce

2 November 2008 Media Statement

Govt starts work on Financial Advisers Act

Approval has now been given to bring into force parts of the Financial Advisers Act 2008, which allows officials to start work on its implementation, Commerce Minister Lianne Dalziel said today.

The approval sets in place administrative provisions that mean officials can start working towards the successful full implementation of the Financial Advisers Act.
Obligations for financial advisers to be authorised and registered and to make appropriate disclosure are expected to come into force in 2010.

“Over the next year officials will be consulting with the finance industry on the details of the Act’s implementation.

“The lead in time will give the Securities Commission and industry time to plan, and put in place processes and systems which will make the regime work when the Act is fully in force in 2010,” Lianne Dalziel said.

“It is important that work starts now so we are able to set up the regime efficiently. I am pleased that the Securities Commission has already started working on establishing the infrastructure necessary for its new role.”

An important part of the Act, that will be implemented shortly, allows for the appointment of the Commissioner for Financial Advisers. This in turn will mean the Commissioner can begin work on establishing a Code Committee for the development of the relevant rules for the code of professional conduct for financial advisers.

The Financial Advisers Act Commencement Order brings the following sections of the Act into force:
• sections 1 and 2 (Title and Commencement);
• sections 3 to 6 (Part 1 – purpose of the Act and definitions for interpretation)
• sections 7 to 13 (definitions of Financial Advice);
• sections 78 to 95 (provisions relating to the Commissioner for Financial Advisers and the Code Committee);
• sections 152 to 155 (regulation making powers); and
• sections 163(1) to 163(6) (amendments to the Securities Act 1978).

The Commencement Order takes effect from 5 December 2008.

ENDS

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