Consultation on Code of Professional Conduct now open

The Code Committee has commenced a formal consultation process for some changes we are thinking of making to the Code of Professional Conduct for Authorised Financial Advisers.  We are proposing to adjust aspects of the Code relating to minimum standards of competency, knowledge, and skills to reflect developments in the available qualifications. We are also proposing to make some further adjustments as a consequence of the Financial Markets Conduct Act coming into force.

In releasing the consultation at this time, the Committee is very mindful of the current review of the Financial Advisers Act. The changes we propose are therefore in the nature of ongoing maintenance to ensure the Code Standards remain fit for purpose.

Please see the consultation paper below; submissions close on Friday 20 November 2015.

View consultation paper [PDF, 876 KB]

Code of Professional Conduct for Authorised Financial Advisers

The Code lays down minimum standards of competence, knowledge and skill, ethical behaviour and client care, along with minimum requirements for continuing education and training.

The first version of the Code, which came into force on 1 December 2010, was reviewed by the Code Committee in 2013 in accordance with the requirements of the Financial Advisers Act 2008. As a consequence of that review, changes to the Code were recommended by the Code Committee and a revised version of the Code was approved by the Minister of Commerce on 13 March 2014. The current version of the Code came into force on 1 May 2014.

View the Code [PDF, 2.1 MB]

The 2013 Review of the Code

Following the Code Committee's review of the 2010 version of the Code, a draft version of the revised Code was submitted to FMA on 5 December 2013 for approval. A copy of this draft showing changes from the 2010 version can be viewed here [PDF, 833 KB]. The Code Committee’s response to submission points raised on the 2013 review of the Code can be viewed here [PDF, 1.7 MB], and its response to submission points raised on the exposure draft of the revised Code can be viewed here [PDF, 441 KB].

A summary of the key changes to the Code resulting from the Code Committee's review can be viewed here [PDF, 135 KB].

About the Code Committee

The Code Committee is established under the Financial Advisers Act 2008, and is responsible for reviewing the Code from time to time and recommending such changes as the Code Committee thinks fit.

Members of the Code Committee are appointed and discharged from time to time by FMA in accordance with the provisions of the Financial Adviser Act 2008.

For further information concerning financial advisers outside of the scope of the Code, visit www.fma.govt.nz (external link) .