The Securities Commission has issued a discussion paper on the regulation and supervision of financial advisers under the Financial Advisers Act 2008. Submissions are due by 5.30pm on Thursday, 30 July 2009.

There are some important proposals to consider, particularly as regards the operation of the Qualifying Financial Entity (QFE) regime. These include:

  • The extension of the 'agents' who can be covered by a QFE's designation, to include contractors, employees of related companies, franchises and their employers, and stand-alone product distributors covered. The rationale being that a QFE's designation would extend to (and be limited to) those for whom the QFE has accepted operational and financial responsibility.
  • The limitation of QFEs to those able to satisfy the Commission that they have both the operational capacity to ensure appropriate standards are met and maintained with sufficient resources to ensure the process is effective and the capacity to take financial responsibility for those operating under its QFE designation.
  • Streamlined authorisation and supervision for Authorised Financial Advisers who are employees or agents of a QFE.

We are keeping in touch with Commission representatives and would be happy to discuss the paper, our thoughts on the proposals and how they affect your business.

The Commission has emphasised its desire to receive practical industry feedback on these proposals. This is your opportunity to ensure your key issues are addressed and an opportunity to help shape the future in respect of the regulation and supervision of financial advisers. We look forward to assisting you with this.

To access the paper go to:

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