Introduction

The table in this paper summarises a number of the major issues considered by the Committee in response to submissions made on the second draft of the Code of Professional Conduct for Authorised Financial Advisers (Code) released on 2 July 2010. The issues summarised reflect those where the Committee felt that some explanation may assist those considering the final version of the Code submitted to the Commissioner for Financial Advisers on 20 August 2010, and provide context to the changes made (and changes not made) since the second draft . A number of additional issues that arose in the course of reviewing the submissions were also considered, along with other feedback received in the course of the Code Committee's extensive consultation process.

The responses in this paper also address matters raised by the Commissioner for Financial Advisers (Commissioner) in his Direction dated 17 August 2010.

All issues raised with the Committee have been taken into account in finalising the Code. However, a specific explanation of the Committee's approach in relation to certain issues not mentioned in the table was not considered to be warranted. Public submissions received in response to the second draft of the Code, along with the Committee's summary of issues raised in the course of its final consultation process conducted in July 2010 and related feedback received separately, are available on the Code Committee's website www.financialadviser.govt.nz

The second draft of the Code proposed 17 Code Standards. Code Standard 8 of the second draft was separated into two separate Code Standards in response to submissions received. (Please see our coverage of Code Standard 8 for more detail.) For clarity of reference, this paper recognises the structure of the final form of the Code as submitted to the Commissioner on 20 August 2010 in the heading for each Code Standard.

This issues paper is intended to explain the reasons underlying the Code Committee's work in relation to the Code and does not reflect the views of any other party as to the interpretation of the CodeIntro