The Financial Services Council has welcomed the passing of the Financial Services Legislation Amendment Bill through Parliament as a ‘landmark moment’ for the New Zealand financial services industry.
The Bill passed through Parliament last week (see: FSLAB Passed…).
“FSLAB has been a long time coming and when it comes into force will represent a sea change in New Zealand’s financial advice regime”, says FSC Chief Executive, Richard Klipin.
“The Bill will improve transparency and deliver a step forward in ensuring that consumers are getting good financial advice and that their interests are being put first.”
He added: “The measures in the Bill are a key part of lifting standards across the industry and ultimately building public trust and confidence in the sector.”
Commerce and Consumer Affairs Minister, Kris Faafoi, says the Bill is an important first step in the Government’s work to tackle the types of issues raised by recent reviews into the banking and insurance sectors in New Zealand and Australia.
“I’ll soon be considering changes that might be needed to the broader conduct of financial institutions, and will be consulting on options in May this year,” said Faafoi.
“These broader changes will work alongside the improvements made in this Bill to ensure consumers can have confidence in the financial services sector.”
Klipin noted that getting good advice is the key to financial security for Kiwis and that the Bill will deliver the legislative foundation necessary to ensure a world class financial advice regime.
The new regime for financial advice is expected to come into effect in the first half of 2020, with applications for transitional licences opening later this year.