Code Committee chairman Ross Butler says the draft Code is being developed on the basis that regulations to be promulgated under the Act will allow category 2 product advisers such as mortgage brokers and life insurance advisers to voluntarily opt into the authorisation regime.

Chair of the Select Committee Lianne Dalziel said yesterday at the second reading of the Bill in parliament that "inadvertently we had prevented them [category 2 advisers] from registering or becoming authorised financial providers because the Securities Commission would not have the power to grant them that status, because they are ineligible, not advising on a category 1 product."

Dalziel says she spoke to the Minister's office and it was realised that if better standards were to be encouraged within the industry as a whole, then it would not want that to be the case.

"I did not think it was intended to be restricted in that way, but I understand that the Supplementary Order Paper now addresses that issue."

Commerce Minister Simon Power says he has instructed officials to look at the issue of category 2 advisers seeking authorisation very closely in order for an announcement to be made within the next few weeks.

Butler says he also appreciates that the legislation outlines that the Code will be used as the benchmark for entities and groups seeking to become Qualifying Financial Entities.

Next week the Code Committee proposes to publicly release an updated version of the draft Code.

This document will take into account the latest legislative amendments, and will reflect the consultation input the Code Committee have received from many advisers and organisations.

The Committee will then initiate a final series of quick, targeted consultation opportunities, for consumers, advisers, and organisations to submit on any new or outstanding matters from 8 July to 16 July. This activity will include public forums, meetings with the Committee, and the opportunity to provide formal brief submissions.

Butler says the Code Committee's objective is to have a draft Code available before the end of July for formal presentation to the Commissioner for approval.

He acknowledges that there has been uncertainty around the Act, the Bill, the Supplementary Order and the Code.

"The release of our draft Code next week, the quick, final consultation process, and the formal presentation of the Code, will provide you with the ability to confidently plan and execute the role you will play in the new regime," he says.