Cutting fine print from financial information: public and sector urged to have their say
Commerce and Consumer Affairs Minister Kris Faafoi is encouraging public feedback on proposed regulations that will make
it easier for consumers to understand the whole picture when receiving financial advice.
“I want consumers to make the best decisions they can during their financial planning so ensuring important information
is available and easy to understand is crucial. For example, information hidden in fine print isn’t helpful to consumers
– that might be information about commissions or incentives that the provider receives, and the fees that will be
charged.
“Consumers should have that information to assist them to decide, for example, whether to obtain advice from a
particular provider. I want to make sure that important information is presented in simple terms that consumers
understand. “
The proposed regulations support the Financial Services Legislation Amendment Bill, which introduces a new regulatory
regime for financial advice. The discussion paper seeks feedback from industry and consumers on what information should
be given to consumers in relation to financial advice, says Mr Faafoi.
“I am also seeking feedback on a discussion paper outlining proposed regulations to support measures in the Bill to
address the misuse of the Financial Service Providers Register.
“Some mainly offshore-controlled entities have been “free-riding” off New Zealand’s reputation for sound financial
markets regulation by using their registration to imply that they are actively regulated in New Zealand when that is not
the case. I want feedback on the proposals that aim to address this unscrupulous behaviour.
“I encourage consumers and people in the financial services industry to provide feedback on the proposed regulations.”
Further information
The discussion papers and related documents are available athttp://www.mbie.govt.nz/faareview-regulations