May UpdateTuesday 01 May 18
On Monday, we submitted our combined response to the Code Working Group on the Consultation Paper for the new Code.
This has been a combined effort from all three founding bodies over the past few weeks, and has included consultation, input and feedback from our MAC representatives, meetings with the Code Working Group, and discussions with members and stakeholders across the industry.
First, a comment about our approach
Before I touch on one of the key points we have raised in the submission, I want to share the Financial Advice New Zealand view and approach when working with regulators.
You may have noticed that we have not commented on the various issues that are currently being debated in some media.
It’s not that we don’t have an opinion.
Instead, we think a collaborative approach to addressing the most important issues facing the industry will achieve a much more constructive regulatory outcome for our members, and ensure access to quality advice for the New Zealand public. This approach demonstrates we are about finding solutions.
Our approach is drawn from the experience of other associations dealing with regulators around the world – many of whom have been dealing with regulation for much longer than us, and with success. Here are the key themes we have learned from that experience:
- The Regulator’s agenda is not your agenda
- The Regulator will let go of issues only when they trust you
- You cannot be a partner in the process unless you put the public benefit up front
- Be proactive and solutions based
- Don’t be critical (…all the time)
- Let go of old ideologies and outdated thinking
Submission to the CWG and New Advisory Group
We share a number of the concerns raised in the media about the CWG proposals, particularly around the question of competence, knowledge and skill. These concerns and our recommendations on how best to address those concerns are reflected in our submission, which you can find by clicking here.
As mentioned, we have had a number of discussions with the Code Working Group and we have been asked to assist in convening an Advisory Group to provide input into the development of the draft Code. This Advisory Group will comprise adviser representatives from all sectors; risk, lending, investment, financial planning and general insurance. We will be working with the Code Working Group to ensure our concerns are understood.
It goes without saying that we are very conscious of the impact of the proposed Code on your businesses.
We will continue to actively work to ensure that regulatory changes are consistent with the theme of good advice; the theme that underpins the consultation. It is our goal to ensure that your business is not overburdened by regulatory obligations, and that New Zealanders can continue to benefit from the financial advice services you provide, and which they need.
I will keep you updated on progress. In the meantime, feel free to get in touch if you have any comments, questions or ideas.
Chair, Financial Advice New Zealand