Kiwi planners welcome client best interest obligation
The New Zealand Parliament has passed legislation which requires financial advisers in that country to put client best interests first.
Passage of the legislation was welcomed by the New Zealand Financial Services Council (FSC), which said it welcomed the passing of the Financial Services Legislation Amendment Bill (FSLAB) through Parliament as a landmark moment for the New Zealand financial services industry.
NZFSC chief executive and former Association of Financial Advisers chief executive, Richard Klipin said the legislation had been a long time coming and that when it came into force would represent a sea change in New Zealand’s financial advice regime.
“The Bill will improve transparency and deliver a step forward in ensuring that consumers are getting good financial advice and that their interests are being put first,” he said. “The measures in the Bill are a key part of lifting standards across the industry and ultimately building public trust and confidence in the sector.”
“As an industry we understand that trust and confidence in the sector is critical which is why we have strongly supported the progression of FSLAB, the FMA & RBNZ Culture and Conduct review, along with other initiatives such as the FSC Code of Conduct,” Klipin said.
“Consumers are at the heart of our sector and we know that we need to evolve and mature to ensure we continue to deliver good outcomes as we help New Zealanders grow, manage, and protect their wealth. The measures in FSLAB will help us with this.”
“For Kiwis getting good advice is key to financial security and this Bill will deliver the strong legislative foundation needed to ensure a world class financial advice regime,” he said.
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