The code the group will develop will soon apply to all financial advisers – a population of more than 25,000 -  and will dictate things such as the qualifications they must have or the CPD requirements they have to meet. It is expected to have completed its initial work by next August.

It was revealed yesterday that the group will be chaired by Angus Dale-Jones, formerly of the Securities Commission and a PAA board member. John Berry, of Pathfinder, also features, and Shane Edmond, head of private client services at Shane Edmond, among others. 

The only adviser is Rebecca Vanderbom, an AFA who is head of financial advice delivery and service at Milford Asset Management.

Rod Severn, chief executive of the PAA, said it was disappointing that the group did not include a practising adviser. He said insurance was also under-served. 

Barry Read, of IDS, agreed it was surprising that there was not an adviser association represented on the board.  He said he would have expected an IFA investment expert or a PAA or IFA insurance expert to be appointed. It would mean advisers would have to engage in good consultation and lobbying.

“If they get it wrong it could have a big important.”

Read said it would be important the code was flexible and did not simply demand a six-step process and level five qualification for all advisers.

David Ireland, who is chair of the current code committee, has not been appointed to the working group but has been made a special adviser to the group.

He said the group had been appointed to develop the code, not to deliver financial advice.  “It’s now incumbent on financial advisers to engage with the process.”

He said the community of independent advisers would need to engage in the consultation process to have their voices heard and ensure that their experience was shared. “They’ll need to clearly communicate how the code could be structured to deliver optimum outcomes for consumers.”

Dale-Jones said there would be a big focus on engagement as the working group set about its work. It is yet to have its first meeting.

He acknowledged it was a challenging time for advisers, as the regulation changed.  But he said the group would want to “go beyond” consultation to have all stakeholders become part of its conversation. “I believe passionately in this part of the financial services world,. This is the touch point for financial services.”

Severn said the most important thing was that the group now get on with its work.

It has to fill in many of the gaps in the Financial Advisers Act review. Severn said it was important that the group developed the rules to provide advisers with clarity so that they knew what lay ahead.

“This has been going on for two years. These guys have to sort it out and I hope they do. They have a big job in front of them and I hope they get on to it.”

Ireland said it would be important that all stakeholders got behind the working group as it developed the new code.

“The quality of the outcome will be directly proportionate to the quality of the consultation process which relies on the quality of input. Hopefully people can leave their vested interests at the door.”

The Financial Services Legislation Amendment Bill, which delivers the new rules in which the code will work, is being submitted to the house next week.

Read said he hoped that eventually the industry would be able to engage in self-regulation.