Financial Services Legislation Amendment Bill – Second Reading – Video 13
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Financial Services Legislation Amendment Bill – Second Reading – Video 13


I mean this bill to the house Blenheim speaker I call the Honourable Jacky Dean thank you madam Speaker this is ameba was taking his brief call which is unfortunate because I was just reviewing my notes and and and mic-n might seek some guidance from members of the house because I had didn’t sit on the committee but as success has many fathers I was one of the progenitors of this bill and my time as commerce minister and and one of the things that really consumed me about about this financial services legislation work was the code of conduct working group which was a group which was working continuously with the development of the legislation in my time and I have to say since I’ve moved on to other portfolios I don’t know whether it’s gone but it’s a very important part of the developer development of this bill it probably has not contained with us in the in this bill but certainly requirements to have a standard of conduct or financial advisers as an integral part of certainly of the philosophy of the bill so that financial advice conduct working group was was talking widely with the final financial advice sector over how to bring the sector together there were a number of disparate groups providing financial advice and New Zealand some were highly regulated some were completely unregulated and we had an environment where financial advice was limited by the level of of the label that you were given and the amount of training and for example there would be people walking into trading banks looking for a bit of advice perhaps on on a term deposit or maybe you know something very simple like a KiwiSaver question and the person behind the counter Bank was unable to give them advice because they weren’t qualified or allowed to do so under the under the previous act of guarantee which is about to be amended and though that has several several impacts on on citizens as visible they don’t get the advice they’re looking for they might get the advice but it’s very limited to the expertise of the person giving that advice but if they get it that they if that person walks away from the financial institution the training Trading Bank for example then that person will be somewhat disillusioned and confused about the advice that they may or may not have got because it certainly wasn’t fit for purpose I also want to acknowledge I want to acknowledge the committee who have worked on this bill and also to the Minister Chris Barclay who who has shepherded this piece of work into the house it and and I am pleased to see that this is a again another piece of sensible legislation which is non-controversial because it makes sense and it’s good for just a while to have a bit of a collegiality of the house for it so there will be a new regulatory regime for financial advice and for financial advisors in New Zealand there will be a new regime and an amendment to for registration on the financial service providers register to prevent its misuse and the the bill is actually based on a a review of existing the existing regulatory regime for financial advice that was started and well and completed back in 2016 so they have been a number of ministerial hands on this bill I also want to commend the officials from MB who in my time and no doubt and Paul Goldsmith’s time and and no doubt I believe it’s the same officials who who have assisted the minister in in the in Christopher boy audible Chris before his time I want to commend them they are a good bunch of public servants who provided good robust advice where it’s needed provided the expertise where it was needed and when they didn’t have the expertise themselves were unafraid to go out and seek it and talk to people in the sector because there was a very strong view any and be supported by ministers that this is an important piece of work for the financial advice services regime in New Zealand so just a note to advisers I think you’ve done a great job on this also to the Select Committee because I believe that they have considered this bill very carefully and have come up with a number of enhancements to it I want to say a few things about few words about the provision of Robo advice even a year ago or 18 months ago when when I was sitting them in the Commerce chair and the talk of Robo advice was becoming louder and louder and financial institutions were evaluating how they could be part of providing Robo advice and I had conversations with the Commerce Commission at the time because of course it was not allowed under the under the current legislation and in fact the Commerce Commission issued an exception to the rules and advance of this film so that Robo advice could be taken up the Koon concerns I had it is exciting let me just say the provision of robo robo advice is exciting for financial services sector not just for them but for people like myself and all of us who from time to time want to get a little bit of financial advice which can be done by way of an algorithm and but be certain about its security and and and the effectiveness of that advice and it might be for someone like me it might be checking something to do with my KiwiSaver accounts something to do with some banking operation I wish to do you know I don’t know should I turn over a tomb deposit that sort of thing am i paying the right interest rate sky’s the limit Robo advice you get a mortgage get alone rogue advice can’t can extend across all areas of financial advice and I would wager that the scope of that financial advice which is able to be provided in the future is not even known yet I was that I was an Auckland at a Vodafone incubator program a couple of weeks ago and there were young innovative business people going through a wonderful business incubator at Vodafone and all question sorry Christchurch and I spoke to someone after the presentations had been made and I and I said because he was a an online IT specialist and I said and in dealing in the financial world nice time about robo-advisor City are you contemplating doing that in your small startup person as you see we’re doing it it’s so exciting and this is what happens when you talk to young entrepreneurial business people is they get so excited about the opportunities that are being presented to them in innovating and the financial services sector and if this bill does nothing else it will support small business in that way in particular small businesses because it absolutely opens the door to be innovative and and new in the provision of the services whatever these services are into the market and if we wish to remain competitive as a country in New Zealand if we wish to continue to support small business ICI means business in general in New Zealand there is one thing we have to do that’s be able to innovate that means through our banking systems and that means through our financial sue and and here we go here we go it’s really disappointing isn’t it that the small business minister chips and with a negative comment at this point oh dear oh dear but all let’s see over things aren’t we because I’m just describing the excitement of innovation supporting small business not many sentiment about having a negative chip well that sounds like that speaks volumes about this current government’s focus on supporting small business shame shame shame Minister didn’t think that one through did we because the genesis of this legislation started a number of years ago has been well supported by the financial services sector as a whole the banking sector the insurance sector and now I am very pleased to see this next stage of this bill goes through house and just members just note that the Small Business Administration dissatisfied little canary because he’s been caught out he’s been caught out in not supporting small business in New Zealand so with those words I commend the bill Cullen aho Kia Joel Oxton thank you medium cheer I just want to take a really quick

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