Missing members: concerns raised over legality of code committee

The code committee set up as an independent body to draft and monitor standards of professional conduct for financial advisers is operating without a full complement of members, in apparent breach of the Financial Markets Conduct Act 2013.

According to the legislation, the committee must have no fewer than seven members, two of whom must be consumer affairs representatives or skilled in dispute resolution. The current committee has only six members, including only one consumer affairs/disputes person, meaning it would seem to be operating unlawfully.

The problem arose in July 2021 when three committee members came to the end of their terms. Eight months later, they have not been replaced.

Replacing them has now become urgent. Three of the current committee are due to finish their terms in July this year, meaning that from 1 August four new members will be required for the committee to operate legally.