The new version tries to tackle the problem of advisers being restrained in offering limited advice to clients who do not need a full financial plan.

Both the Ministry of Business, Innovation and Employment and the Code Committee, which administers advisers’ code, have acknowledged that some advisers have struggled with how to satisfy their requirement to prove the suitability of their advice in the context of the clients’ overall financial situation, when someone only wants guidance on a particular subject.

The committee has proposed replacing the "transactional advice" concept with a wider "limited advice" idea in the code, with relief from the need to assess suitability when advice is requested on a particular product, without a transactional element.

The client needs to initiate the identification of the financial product or products in question or already hold the product. They also must instruct the adviser or the adviser’s employer to provide limited advice.

That had prompted some advisers to express concern that clients would not know to ask for limited advice.

But Code Committee chairman David Ireland said clients would not need to ask for “limited advice” specifically.

“What is required to trigger the suitability relief proposed, under the exposure draft wording at least, is for a client to instruct an adviser to provide financial advice on a particular financial product without considering suitability of the financial products in light of the client’s overall financial position.

“No wording formula has been prescribed for this to occur. A client does not need to say ‘I would like limited advice please’ in order to bring the mechanism into play. The code standard expressly provides for AFAs drawing the client’s attention to the ability to opt out of a full suitability assessment. Client first means AFAs should be helping clients determine the level of advice that is most appropriate for their needs,” he said.

But Ireland said the committee was open to the prospect of tweaking the wording.

“We are aware of some concerns with the proposed wording, and accept that some finessing of the relief mechanism may be warranted to overcome legitimate concerns over its workability in practice. That’s why we released an exposure draft before finalising.”

Today is the last day for submissions on the exposure draft of the code changes. It will be submitted for approval by the Financial Markets Authority next month.