Initially, the adviser regulations were intended to be drafted independent of the financial products task force because, Dalziel said, it was thought the earlier financial intermediaries taskforce had prepared the ground for new legislation.

However, Dalziel said after beginning work on the proposals and receving further feedback from the industry it became apparent the two reviews would have to be considered together.

“... the very close links between the two reviews mean that one review cannot be fully implemented ahead of the other review, without creating uncertainty for the financial sector and running the risk of inconsistencies emerging when legislation is implemented,” Dalziel said.

“To ensure those issues are managed consistently, the policy details of both reviews will be considered together by Cabinet in the first half of 2007. I am hoping to have legislation introduced before the end of 2007 and passed before the 2008 election.”

Originally, the regulations were expected to be in force this year.

David Hutton, newly-appointed CEO of the Institute of Financial Advisers (IFA), said under the new timelines the financial intermediary regulations would probably not come into force until 2009.

Hutton said the IFA would “continue to be involved with the policy detail”.

In her Finsia speech Dalziel also said the government had received over 150 submissions on its adviser regulation proposals.