Financial Services Legislation Amendment Bill – Second Reading – Video 9
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Financial Services Legislation Amendment Bill – Second Reading – Video 9


I’m pleased to support it Kyoto : ah ah ho here Melissa Lee tena koutou katoa menacing speaker it’s it’s great opportunity thank you for the opportunity to take a call on the financial services legislation amendment bill sometimes call F slab and I think sometimes it was actually called slab and you know in Parliament we often actually come across some acronyms and I I think I was actually picked up on one of the newspapers suggesting that I don’t actually know what the legislation was because I didn’t know what it’s flap was versus F slab I’m going what was that and I just want to say I do actually know what financial services legislation amendment bill is all about then you know as earlier speakers have actually said there were at least 20 71 different organizations and individuals who actually submitted to this legislation to this build through the Select Committee and we heard from 34 of them and I like to take this opportunity to thank the chair and the members and there are some new members to the economic development Science and Innovation Select Committee and I’d like to welcome them I would also like to acknowledge Minister Honorable Chris pfaff way this is the first chance I’ve actually had to in this chamber to thank him for the support of his officials and commend him on being named as the new broadcasting communications and digital media particularly digital media minister in addition to his role as Commerce and Consumer Affairs Minister I’m sure that he has a lot of work already he has a big workload and I hope that he is up to the task of the massive issues that is the digital sector is actually facing if I could actually go back to one of the things that Jonathan Young has actually mentioned this bill seeks to in terms of what this bill is actually about this bill actually seeks to establish a new regulatory regime for financial advice and financial advisers in New Zealand and to amend requirements for registration on the financial services providers register to prevent its misuse the bill is actually based on a statutory review of the existing regulatory regime which was completed in 2016 and many members have actually mentioned the particular point in terms of removing the requirement that only a natural person meaning you know human beings to be able to give financial advice to in fact allow for provisions on online advice pour over advice and I want to get to that particularly some members have actually sort of talked about the telephone call that people make to let’s say a bank and a sheep I’m saying press one for this that this thing press two for this thing and recently as I’ve had an opportunity to meet with and actually visit some of the New Zealand’s very innovative country are companies such as face me and ambit and and to actually show what their business is actually capable on and what they’re actually innovating in in the space of digital technology and one of the things that I actually came across was an avatar this particular company had developed an avatar it’s a face as a computerised face which was a meld of Modi Asian and Pacific faces and actually looked like one of my goddaughters who happens to be someone Dutch in Chinese and this avatar was able to provide financial advice for example I think this particular one was actually developed for the ASB bank and what this avatar and the Robo advice can actually do is that with the axis of the person’s identification card or the bank card number or a bank customer number they can get advice from this particular computerized robot to say for example I want to buy a new car and the robot can actually say you are able to borrow or have the capability to borrow certain dollars from your past history this is something that new technology is making happen in New Zealand and some of these New Zealand companies are leading the way in this new digital era and all that AI technology that people actually talk about actually puts us in a space where instead of having real people providing financial advice there are technical things that even robots can actually do and hopefully the regulatory regime that actually removes requiring the natural person to be the only ones who can actually do this will provide the banks to provide surance sometimes simple advice that robots and some more complex ones that robots can actually provide to the customers I think it is important to note that during the national-led government we improved a number of existing matters in the financial sector including tightening the market regime for those who provide a financial advice and also we strengthened the reputation new zealand being a holding the reputation as a good place to do business and I think that is really important and you know when we actually talked about some of the members have actually sort of talked about how in the 80s with the market you know stock market crashes and everything that has actually happened around the world people are very gun-shy in terms of what they will actually invest in and often we are dealing with you know mums and Parrs and people have actually said that and often they don’t actually have the expertise nor do they actually have the sophistication to think about what they can actually invest in and what kind of what kind of benefits that they will actually have and it’s very important to make sure that we have a trustworthy a very good regime that can actually protect the customers and and making sure that what little or how big it doesn’t really matter I think one of the members offers that actually said we need to protect both the people and the high end and the low end of the spectrum when it comes investment to protect the customers to make sure that they get very good advice and I agree and I’m glad that all of all of the members actually here actually agree on that one of the things that we also work with during the select committee our process we also heard in terms of because New Zealand has such a good reputation being transparent and a place to do business and you know it’s it’s good for business and we’ve actually had situations where overseas financial companies then don’t actually belong in New Zealand registering their companies here and never actually prove providing advice but they’re taking advantage of the fact that they happen to be registered in New Zealand and this is one of the things that we will actually protect New Zealand people as well as making sure that those businesses who actually establish here I infect New Zealand businesses that they do actually run business here and they’re not just taking advantage of the good name of New Zealand and not actually operating some shyster you know fake business or whatever just to actually take advantage of New Zealand’s good name the other thing that I actually wanted to talk about is the confidence that people actually have actually it reminded me about what mr. Gareth Hughes actually talked about and earlier I think mr. Britt Hopson talked about is is the issue of actually making sure that unintended advice for example I mean you know there are reporters column writers for newspapers or on blogs or whatever they’re not necessarily financial advice that they’re actually giving they give an opinion and some of them are experts some of them are not and lawyers providing in their everyday transactions where they are dealing with mortgages or discharging mortgages or giving some advice as to what they should actually do in terms of accountants when they’re dealing with their customers they’re not necessarily providing financial advice and if they’re going about in the everyday kind of work that they’re not actually sort of quote in the regime and also be punished for the everyday work that they actually do it like you know a member of parliament might actually say maybe you should talk to a financial advisor you know maybe maybe it’s a good idea to put put some money in a savings account or or or invest in something we’re not necessarily providing financial advice that you know are what most people would actually consider financial vice and I think you know as a migrant one of the things that I have noticed is that you know for just talking myself you know our parents have a different way of thinking about what savings this or what investment is because we come from a different different culture I come to New Zealand and the way that we actually view investment is actually very different and often migrants you know for my parents you know it was always about things that are tangible investing in things that were tangible so they would never invest in stocks but they would always put money into things like plant factories or our buildings and you know as we get more sophisticated that they will actually move on to other investment portfolios for example like stocks and having good robust financial advice is what people actually need and I think this particular piece of legislation provides that and protects New Zealand customers to get the best possible advice that they could have and I think the very fact that this bill has come to this house I think it’s a great thing and I commend the building of how time has expired I’m sorry but they may not speak up I understand this is a split call you have five minutes Greg O’Connor you’re a madam Speaker it does give me great pleasure to rise on this but

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