Financial Services Legislation Amendment Bill – Second Reading – Video 11
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Financial Services Legislation Amendment Bill – Second Reading – Video 11


and I look forward to this consensus continuing madam chair it’s madam Speaker my apologies tena koutou katoa it’s easy to forget while we here madam speaker and it is nice to hear the unanimity in this house for the support of this bill because what happened in New Zealand was a whole lot of unsuspecting Kiwis mum and dad investors as I refer to them mr. O’Connor they got ripped off and nine billion dollars was lost in the sector during the GFC so this side of the house when it was in government decided to do something about it and I congratulate the current government and the Honorable Christopher Foy will bringing this material back to the house for debate and consideration and there’s been a lot of very positive contributions this evening and I think it’s was also reflected in the Select Committee which I’m lucky enough to have joined recently where we have 74 submitters spoke to the Select Committee here Melissa Lee was absolutely accurate we got an in-depth picture of what had been done what was being recommended and actually for the main we’re we need up now we’ve got pretty much agreement across both sides of the Select Committee as to what needs to happen there are some new technologies out there which we need to protect New Zealanders from we shouldn’t be scared of them but Robo advice and things like that are going to happen more and more and I remind members of this house even today the pictures of life insurance health insurance contents insurance the amount of that that’s now done online without the intervention of a single human being is actually a thing for the future I believe so in those sort of industries and for through the financial advice we need to make sure there are appropriate rules and regulations in place I specifically come to clauses on the bill which I think are very important madam Speaker one is enclose 27 and new section 43 j IJ 2 which is talking about the duty to give priority to clients interests and we know how our advice has often operated in New Zealand with its financial advice or other financial products and I acknowledge what Michael Wood said previously about work that’s coming to the financial expenditure of select committee but there is a there is an area of risk in the space and that is we’re a financial advisor seeks uncommon gains in income from some financial products and not others and these seeks to use those products in the advice but this bill see is that actually the clients is the first interest and their best interest should be at heart and I think we as the Select Committee understood that and support their one that still has some work and I’ll be interested win this come back to this committee stage there’s around nominated representatives because what we need to be very careful of is as financial advisors come in and out of institutions where is the liability for their advice several years into the future and what we’re basically saying in what this bill says is that the there is an onus on the parent body of financial advisers and an organization to take overall responsibility for that and for the advice of people that are working within their institutional organization the intent of the bill is that financial advisers should be ultimately be responsible for the ekkada conduct and of the nominated representatives madam Speaker we also looked at this whole question of lawyers and accountants and there are lawyers and accountants in this house and we actually believed that it was if they were giving the advice as the ancillary to their core function they should not be regulated Menem speaker and I support that provision and I think we will get to that point I think though it does become clear and it will have to be worked on when we get to the committee stage how the regulations how the rules and when the minister is in front of this house how some of the more detail of this will will work out madam Speaker the misuse of financial products in the advice has cost a lot of New Zealanders a lot of money and in many other sectors has happened as well various things have gone wrong it is a role of this Parliament and the people that are sitting here tonight and for future readings to make sure that we protect those people and I’m happy communed this bill to the house of Nokia dr. Duncan we’ve secured a madam Speaker I really just want to talk about one thing today

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