Update from Code Committee Chairman
2 July 2010
The Code Committee today released the revised draft Code(external link), and sought further consumer and adviser input. The draft document reflects-
- Legislative changes passed by Parliament last week.
- Ministerial and other expectations around the timing and outcomes of regulatory change.
- In particular, the draft Code assumes that regulations will be promulgated under the Act allowing category 2 product advisers such as mortgage brokers and life insurance advisers to voluntarily opt into the authorisation regime.
- Our decisions on matters raised in submissions and other input - this feedback represents responses to the Committee's discussion papers and drafts released since August last year.
The Committee notes that-
- The basic principles, approach and style of the Code remain the same, as the feedback we have received has endorsed the Committee's direction.
- There is pressure and an expectation from a variety of sources to get the new adviser regime underway. Timetables for the implementation of the regime's components are well publicised. In fact, many advisers and organisations are well advanced in anticipation of advisers being able to be authorised from 1 December 2010.
- Advisers, consumers, training providers, and industry are seeking certainty as to what they need to do to ready themselves for the new regime.
- We have consulted extensively, and continue to appreciate and take account of the responses we receive.
- There has also been extensive consultation as part of the recent Select Committee review of the Act.
- The Code will be used as one of the benchmarks for entities and groups seeking to become Qualifying Financial Entities.
We are offering consumers, advisers and groups a final opportunity to comment on the Code before we recommend it to the Commissioner for Financial Advisers, to ensure that we have fairly addressed all substantive issues in light of the revised scope of the financial advisers' regime. In doing so, we are conscious of the huge effort that has already gone into making submissions to us, and we are not asking for issues previously raised to be relitigated.
To minimise any further burden being placed on those who have engaged with us in the past, we are happy to receive final feedback and submissions on a relatively informal basis, including by way of debate at public and other forums.
We invite individuals and groups to provide input on this basis, and to do so by 21 July. On Monday, we will advise details of venue and timing for several public meetings. This will include registration arrangements.
And finally, we will be meeting with various consumer groups, professional bodies, companies and industry groups, and training providers.
Early next week, the Code Committee proposes to release a paper outlining the substantive issues that have been raised with the Committee, and our responses to those matters. We will also make available on our website a summary of all submissions received to date.
Please email your input to firstname.lastname@example.org by 21 July, 2010.
Please contact email@example.com to seek an opportunity to meet with the Committee.
Thanks for taking the time to read this update.
Chairman, Code Committee for Financial Advisers