Financial Services Legislation Amendment Bill- First Reading – Video 5
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Financial Services Legislation Amendment Bill- First Reading – Video 5


I call Jenny Markoff Tanakh where mr. speaker New Zealand first supports the financial services legislation amendment bill 2017 introduced by the Honorable Christopher Foy financial advice plays a very important role in the lives of all New Zealanders often for those known as mum and dad investors good advice high-quality advice is instrumental in improving the financial position of ordinary New Zealanders the financial world it’s not a very easy one to navigate it can be very complicated and somewhat confusing for consumers sound quality advice is crucial and successfully traversing the financial landscape we know that the purpose of this bill is to ensure that financial services are provided in a way that promotes the confident and informed participation of businesses investors and consumers the current regime which sets different rules for different classes of financial advisor financial product and advice type is hindering consumer access to quality financial advice the new regime will establish a much more level playing field of regulation for all who provide financial advice the bill requires all individual and Robo advice platforms giving financial advice to place the interests of the consumer first it also maintains disciplinary measures for some individuals financial advisors will be subject to the financial advisors disciplinary committee if a financial advisor is found to have contravened any obligation the disciplinary committee will be able to censure impose conditions and require the advisor to undergo training impose a fine of up to ten thousand dollars or direct the Registrar of financial service providers to deregister or suspend the registration of the financial advisor this bill the financial services legislation amendment bill 2017 ensures that consumers interests will come first and we know that up until now too many vulnerable people who are in need of financial advice that they can trust and that’s really important advice that they can trust have found themselves being unknowingly exploited and thus further lining the pockets of financial advisers who do not have their best interest at heart now to ensure consumers interests come first this bill makes legislative amendments to other acts to ensure that the conduct and client care obligations of financial service providers and the regulation of financial markets remain fit for purpose it also addresses the misuse of the financial service providers register Mr Speaker we endorse the contents of the bill that will lead to the improved quality of and access to financial advice while at the same time it will remove unnecessary red tape and barriers to innovation for businesses we also welcome the new regulatory regime for financial advice which requires more stringent requirements for entities wanting to register on the financial service providers register and we support this bill also addressing some technical issues that arose since the implementation of the financial markets conduct act 2013 the bill ultimately creates a new regulatory regime for the provision of financial advice the new regime has been designed in response to the findings of a statutorily required review of the operation of the financial advisors Act which regulates the provision of financial advice and the financial service providers registration and dispute resolution Act 2008 which sets dispute resolution and registration requirements for financial service providers of particular note the bill gives greater confidence to consumers because it provides minimum standards for financial advisors to adhere to if it requires anyone providing financial advice to retail clients to operate under a license under part six of the financial markets Conduct Act 2013 now to ensure this requirement does not impose undue costs on industry or government licenses will be able to be issued at the firm level the specific licensing requirements will be set in regulations and by the Financial Markets Authority the requirements will be flexible depending on factors such as the size and nature of a firm and the services it provides and whether a firm engages financial advisors or nominated representatives or as a sole trader mr. speaker this bill speaks to the values that are at the core of New Zealand first and why I am a member of this party we speak on behalf of the many New Zealanders who want progressive policies and legislation that is in the best interests of all New Zealanders we know that this bill will contribute to a better functioning financial advise market that is fair transparent and fit for purpose in conclusion mr. speaker the Financial Services legislation amendment bill will protect investors from low-quality and poor financial advice it will ensure that all financial advisors adhere to the same level of competency and compliance New Zealand first supports this bill Kyoto I call Lawrenceville mr. speaker

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