Financial adviser code changes 'need transition time'

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Financial advisers are concerned that there will not be enough time for them to comply with new legislation.

Advisers face a new code of conduct from the Securities Commission and a Financial Services Providers Bill, which is being passed through Parliament.

Both are measures to strengthen investor protection, requiring advisers to be, among other things, registered and to have certain qualifications.

However, the Institute of Financial Advisers says members are unclear as to when the bill and code will be passed, risking an overload situation as advisers rush to be accredited.

President Lyn McMorran is worried the timeframe to meet the requirements will be tight. "The current timetable gives organisations responsible for processing and assessing financial advisers only five months from the time the code is finalised and confirmed until the time advisers need to complete their qualifications and assessments to be registered."

She said the institute fully supported the changes, but was worried that hurried implementation would undermine them.

"There is a definite need for some transitional arrangements to ensure everybody can actually enrol and complete their courses once the requirements are finalised."

Commerce Minister Simon Power said he had made it clear that he was working towards a December deadline so the regime was ready to operate by the end of July.

"I recognise it is a challenging timetable. I will do all I can to ensure the Government delivers against it and businesses need to do the same."

The IFA is urging advisers to do a self-evaluation put out by industry trainer ETITO to give them an indication of any current knowledge or skill gaps they might have within the National Certificate in Financial Services.

- © Fairfax NZ News