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The New Zealand government is calling on the public for feedback on proposals that will make it easier for consumers to understand the whole picture when receiving financial advice.
“I want consumers to make the best decisions they can during their financial planning so ensuring important information is available and easy to understand is crucial,” Commerce and Consumer Affairs Minister Kriss Faafoi said.
The Minister said it is important for information, including those hidden in fine print and those that can assist consumers in making a decision – for example, whether to obtain advice from a particular provider – to be presented in simple terms that consumers understand.
The proposed regulations support the Financial Services Legislation Amendment Bill, which introduces a new regulatory regime for financial advice.
Moreover, the Minister also said he is seeking feedback on a discussion paper into the proposed regulations to address the misuse of the Financial Services Providers Register.
“Some mainly offshore-controlled entities have been “free-riding” off New Zealand’s reputation for sound financial markets regulation by using their registration to imply that they are actively regulated in New Zealand when that is not the case,” he explained. “I want feedback on the proposals that aim to address this unscrupulous behaviour.”
