Financial Services Legislation Amendment Bill- First Reading – Video 9
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Financial Services Legislation Amendment Bill- First Reading – Video 9


happy to commend the bill to the house and its referral to the Select Committee this is mr. speaker this is a split call five minutes dr. dubrow Russell Thank You mr. speaker I’m delighted to be able to stand and speak to this excellent builders in front of the house and to commend it to the house you know we grew up in a simple world many of us a world where the people who gave financial advice we’re accountants and lawyers and no one else much and the sorts of things we invested and were fairly simple too might have been shares if you’re lucky might have been perhaps that you owned a house but that was about it these days things are a lot more complex and even something that we have done as a nation to make the world a better place to make New Zealand a better place bringing in KiwiSaver has created a whole lot more completely and people are quite understandably looking for financial advice now it turned out that often the sort of financial advice you could get was the sort of finite financial advice that was handed out over the Barbie you know I say I know what makes you giddy to some shares and that company down the road now this bill does not intend to capture people who offer that kind of financial advice it’s not the sort of the backyard conversation and in fact that specifically ruled out what it does intend to capture is people who give financial advice who hold themselves out as financial advice and are remunerated for doing so and by pulling together several sets of legislation it is creating a regulate regulated activity creating a regulated field of endeavor and saying that this is the way that people operating in this industry ought to conduct themselves and I think one of the major themes of this legislation is looking out for the little guys making sure that the small investors the people who have perhaps their QB saber saying a little bit of spare money to invest that when they seek financial advice they can rely on the advice that’s given to them and there’s one particular aspect of this bill mr. speaker which i think is really very important indeed and that is setting up a code of conduct for people operating in the financial advice industry you know codes of conduct professional codes of conduct are absolutely common in any professional endeavor doctors have them lawyers have them accountants have them politicians perhaps don’t and maybe we should think about that but it’s clear that we do need one in the field of financial advice because we know there has been some pretty unregulated activity taking place there now this particular bill doesn’t set up the code of conduct itself so in that sense it doesn’t have the substance of the code of conduct sitting there and that we might think is a problem but I don’t think it really is I think the real thing is it sets up a really robust process for setting up a code of conduct it’s got a process by which the minister must appoint people to set up a committee that will form write the code and it explicitly addresses what the code of conduct ought to look at it says that a code of conduct must specify the levels of competence and knowledge and skills that anyone who’s holding themselves out as a financial adviser must adhere to and that’s absolutely consistent with other professional groups too they set a standard that people must adhere to and it also sets out some that the this bill says that whatever code of conduct is devised it must set standards for ongoing education of people who are operating in this industry and again that’s exactly like other professional codes of conduct and it’s actually very important in this particular industry where new financial instruments are being developed all the time where new ways of doing business are being developed where more and more people will be seeking that financial advice just as more and more KiwiSaver funds mature so that ongoing Haitian component is very important but the important point about this Code of Conduct is that it sets a standard it’s aspirational and that’s really important since the people operating in this industry you must operate in an ethical fashion and here is the fash the standard which you must achieve and it’s asking the industry as well to regulate itself to have a think amongst its cells amongst its own members about what is acceptable conduct and what is not and to me there’s the essence of a profession people getting together and working out what works best for them and what works best for their clients the little guys and that’s who this bill looks after and mr. speaker vet is the reason why I commend this bill to the house mr. speaker I call Tom Vander Molen Thank You mr. speaker look it’s a

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