4 August 2005

Financial Intermediaries Taskforce report welcomed

Commerce Minister Pete Hodgson today welcomed the report of the Financial Intermediaries Task Force.

“The Task Force has done an excellent job. It has produced a very comprehensive report,” says Pete Hodgson. “I would like to thank its members for their thorough examination of the issues. They have made many sensible recommendations."

The government's goal is to develop a regime that is efficient, cost effective for the industry and which provides appropriate protection for investors. The Task Force recommends the development of a co-regulatory model and has acknowledged a good deal of detailed design work on that model has yet to be done. This will take time.

“It is clear from the Task Force’s work that there is a desire for change in the industry. The government wants to keep that momentum and consensus for change going."

Government will work closely with industry and consumers' representatives on the changes. It is anticipated that some policy options will be ready later this year, detailed work on the regulatory framework completed by the middle of 2006, with the normal legislative process to follow.

Due consideration will be given to the work programme of the Review of Financial Products and Providers whilst changes are developed for the regulation of financial intermediaries. The two work streams will run concurrently. One will not delay the other.

ENDS

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