The long-awaited industry changes have today come into force.

Minister David Clark has welcomed the regulation update and said that the changes will only strengthen an industry doing good work for the financial wellbeing of the New Zealand public.

Clark said, “Financial advice plays an important role in helping New Zealanders achieve significant milestones in their life, such as saving for a first home or planning for retirement. And we know that those who get financial advice achieve better financial outcomes.

“The new regime will give consumers greater confidence to seek advice that will help with their financial goals, providing them with greater trust in the quality of that advice.”

Clark singled out the new Code of Professional Conduct, and the required licences granted by the FMA as key changes to the regime.

“The changes will increase transparency by requiring financial advisers to disclose any conflicts of interest, commissions they are paid, and limits on the companies or products they advise on.

“The same basic protections for consumers will apply regardless of how they choose to access financial advice – whether that be in person or online.”

This is part of the Government’s wider work, Clark said, to strengthen consumer confidence in the financial services sector. This includes changes to the broader conduct of financial institutions, which will complement the new financial advice regime.

“The changes to financial conduct will work alongside the improvements to financial advice to ensure consumers can have confidence in the financial services sector.

“Introducing a new financial advice regime has been a major undertaking.

“I want to thank the financial advice sector for their continued input into the development of an improved regime that will better serve the interests of people seeking financial advice, helping them navigate difficult financial decisions and plan for their future.”