The Ministry of Business, Innovation and Employment (MBIE) has announced there will be a delay in the release of the exposure drafts of the new Financial Advisers Act (FAA) and the Financial Service Providers (Registration and Dispute Resolution) Act (FSPA).
The delay is described as being due to a re-application of resources to develop emergency earthquake-response legislation.
MBIE expects the exposure drafts of the FAA and FSPA to be released for consultation in early 2017, but no specific timeframe has been provided. Following consultation on the exposure draft, a Bill will be introduced to Parliament after which the usual legislative process will follow.
Proposed changes to the FAA and FSPA regimes have been viewed as welcomed improvements on the existing model. They are likely to lead to broader licensing and application of the code of conduct, removal of category distinctions, changes to the applicable titles of financial advisers, opportunities to develop robo-advice by licensed operators and improved disclosure, amongst the potential improvements.
For more information about the MBIE recommendations on the proposed changes to the FAA and FSPA, and Chapman Tripp's comments on MBIE's Final Report on the Review of the operation of the FAA and FSPA, please see our latest Brief Counsel.