I wanted to provide you with an update on the process and next steps for the review of the Financial Advisers Act and Financial Service Providers Act.

I previously advised that we would release and consult on an exposure draft of the proposed legislation later this year. Unfortunately the Kaikoura earthquake on November 14 has necessitated the shifting of resources onto the development of emergency earthquake-response legislation.

As a result an exposure draft and associated consultation document is unable to be completed this year. We expect to be able to release and consult on the exposure draft in early 2017. Following consultation on the exposure draft, a Bill will be introduced to Parliament after which the usual legislative process will follow. Unfortunately I am not in a position to be more specific about timeframes at this stage, but will keep you updated as I know more. 

Alongside consultation on the exposure draft, we will announce the detail on the outstanding policy matters that were not included in Government’s July decisions (this includes transitional arrangements, complementary measures which could address misuse of the Financial Service Providers Register, the membership and proceedings of the Code Committee, and compliance and enforcement tools). We will also consult on the proposed transitional arrangements as we want to ensure they are fit for purpose and give industry the time and means to shift to the new regime whilst also realising the benefits of the new regime as soon as possible.

Thank you for your ongoing engagement throughout the review and for your understanding regarding the timing change in light of the earthquake response. I hope you have a great Christmas and well deserved break away from the review.