It was reported this month that no complaints had been received at that time about the group or its composition.

The group is developing the code of conduct that will apply to all advisers under the new regime, and is conducting a consultation period.

There have been claims that the code working group (CWG) has shown favour to big providers through its proposals, at the expense of small advice practices – and allegations that is due to the make-up of the group. There are no independent advisers among its number.

Advisers were surprised that Faafoi had at that point received no complaints. “Faafoi would have to have been unconscious not to notice the problems with the CWG,” Brent Sheather wrote.

Murray Weatherston wrote to Faafoi that same day, telling him there was a major problem with the composition of the group. 

“I don’t think many of the CWG have actual front-line financial advice experience.”

Graeme Lindsay also complained to the minister: “The members of the CWG clearly represent the vertically integrated organisations (VIO). There is no representation of the several thousand practitioners who daily advise New Zealanders about their financial affairs. The VIO representatives have a clear agenda that is contrary to the best interests of independent advisers and consumers!

“I have been a life insurance adviser (agent and broker) for 49 years. If the proposals currently under discussion are passed into law, I, amongst many others, will leave the adviser force. The result of the departures of a large number of mature advisers will be a significant reduction in availability of quality independent advice for the people of New Zealand."

Chris Hardcastle said he, too, had complained in writing to the minister.

Faafoi said he was considering the correspondence and what action might be required.

“More generally, I have openly stated my expectations both of the working group and of the sector: I would like to see us all contribute in order to achieve a workable and robust code because financial advice provided to consumers has a huge impact on their lives.”