In its Review of Securities Law discussion document, the government department asks for submissions on whether independent financial advisers should be granted an exemption on their recommendations, and would be "responsible for judging whether the information and assurances provided by the issuer are adequate."

Though the ministry accepts "this has not been a safe approach due to failings in the financial adviser industry," new regulations carving out "truly independent" advisers did not work for or receive commissions and would be in a position to provide advice "without regard to their own interests."

As well as reducing compliance costs, the exemption would open offers to investors that they would not normally have access to and could improve disclosure standards, as financial advisers would demand more relevant information.

MED said it could also encourage the development of professional independent advisers, and help stoke demand among investors to seek advice and make better decisions.

The proposal is part of sweeping changes proposed for the Securities Act that will streamline financial products into four categories, and reduces the required compliance from sophisticated investors.

The discussion document also proposes changes to disclosure requirements, with the ministry pushing for issuers to provide one document to investors at the point of sale, containing only information considered "crucial" to an investor's decision. The document would direct investors to any additional information would be made in other documents. The point-of-sale document would replace a prospectus.

MED also prefers staggered risk assessment in the disclosure documents according to the type of security on offer.