[Weekly Wrap] Commissions and convictions

The government plans to take action on two important regulatory issues - eventually.  Meanwhile, the verdict is in on the Bridgecorp directors.

One of the regulatory changes the government is looking at is a ban on commissions.  The question appears to be what types of commissions will be banned, rather than whether there will be a ban or not; the IFA considers it likely New Zealand will follow Australia's lead.

However, it could be up to four years before such a ban is put in place, if indeed the government goes down that path.  The IFA has warned that if commissions are banned for insurance products it could worsen New Zealand's underinsurance problem.

Another issue that will be looked at when the government reviews the Financial Advisers Act, some time before 2016, is a loophole that allows advisers with overseas convictions to be registered without having to disclose their convictions.