Retirement Commissioner Jane Wrightson welcomes regulatory changes aimed at increasing consumer confidence in the financial advice sector.
The changes came into effect on 15 March and bring the scope of financial advice under the Financial Markets Conduct Act.
“The new financial advice regime raises the bar for competence and accountability of those providing financial advice,” says Wrightson, who heads the Commission for Financial Capability. “We welcome measures to increase transparency and ensure advice is of high, consistent quality.”
Wrightson was particularly pleased to see the introduction of a new Code of Professional Conduct.
“These changes will help give New Zealanders faith in the financial advice sector to do right by them.”
Many households were dealing with disrupted finances due to the effects of COVID-19. At the same time, many New Zealanders’ KiwiSaver balances were getting bigger, requiring careful management once the funds became available when account holders turned 65.
“The financial advice sector is becoming more important in helping New Zealanders attain financial wellbeing,” says Wrightson. “A robust regulatory framework that puts the consumer first, with clear expectations of advisers, will benefit everyone.”