Notice of Information on public meetings to consult on draft Code

The draft Code of Conduct is now available for comments and feedback. 
Click here get a copy of the draft code.

Notice of Information on public meetings to consult on draft Code

The Code Committee proposes to issue a draft Code of Professional Conduct for Authorised Financial Advisers at the end of this month. It will be emailed to individuals and groups on our database, posted on our website, and sent to the media. We would imagine that many professional bodies and other groups would refer to the release of the draft, and place it on their sites.

The release of the draft Code will trigger a five week period of consultation. We will call for submissions on the draft Code, with submissions closing on Friday 7 May 2010. The draft Code release will be supported with a communication note, providing background to the consultation process to date, assumptions, and key decisions of the Code Committee. We will be encouraging parties to submit feedback on the draft Code.

We are appreciative of the submissions and feedback received so far on our three discussion papers and also for the opportunity to meet with consumers, advisers, professional bodies and groups, companies, government agencies, training and assessment providers, and other interested parties. The submissions and feedback have enabled us to develop a document that we believe is entirely consistent with the purposes of the Financial Advisers Act 2008 –

“…to promote the sound and efficient delivery of financial advice, and to encourage public confidence in the professionalism and integrity of financial advisers…”

Even though the Code will not be released until the end of March, we would like to give you an opportunity to plan ahead. We propose to hold a series of information meetings around New Zealand in early-mid April to provide you with the opportunity to meet with Code Committee members, ask questions, and provide initial feedback, which will hopefully assist you in the preparation of your submissions.

Our planned schedule for these Information Meetings is outlined below. The length of the meetings is up to attendees but we would imagine that they could run for up to two hours. Naturally, the final decision to go ahead with each meeting is dependent upon our getting sufficient demand. We will give details about the location and timing, and how to register your attendance, in a later note. We just want to give you the chance now to schedule your attendance.

We are also appreciative that many professional bodies, companies and other groups will be holding roadshows around New Zealand in April and May to inform their members and associates of the impending Code, and to assist them to get ready for the implementation of the Code and the Financial Advisers regime as a whole, planned for late 2010.

Planned meeting dates:

7 April8amTakapuna  
8 April8amWhangarei2pmEllerslie
9 April8amHamilton2pmTauranga
13 April2pmWellington  
14 April8amPalmerston North2pmNapier
15 April8amDunedin2pmInvercargill
16 April8amChristchurch2pmNelson

We also encourage you to familiarise yourself with

  • The Code Committee website: The library has the three earlier discussion documents, and will soon list all submissions received (except for those where the submitter sought confidentiality), together with our summary of those submissions.
  • ETITO’s website for financial advisers. This site includes the very useful self evaluation tool for advisers, providing valuable support to you in assessing your preparedness for the proposed competence requirements. Over 700 advisers have already used this evaluation tool, and we understand that many financial services companies are encouraging and supporting their advisers through the competence evaluation process over the next month.

It also contains practical information about the National Certificate in Financial Services (Financial Advice, Level 5), which we have indicated is the likely initial minimum standard of competence required under the Code.

Thanks for taking the time to read this update.

We look forward to seeing many of you at our information meetings in early April.


Ross Butler
Code Committee
16 March 2010 

Download this document as PDF.

Draft Code for consultation released

31 March 2010

The Code Committee has today released the draft Code of Professional Conduct for Authorised Financial Advisers for public consultation.

The draft Code outlines the minimum standards of professionalism that all Authorised Financial Advisers (AFAs) will be expected to meet under the new regulatory regime for financial advisers.

The Code Committee is an independent committee appointed by the Commissioner for Financial Advisers. The Code Committee has been developing the draft Code over the last eight months.

Code Committee chairman Ross Butler said the Committee had consulted widely in order to develop the draft Code.

“We appreciate the large number of submissions and feedback we have received. Through our work with consumers, advisers, professional bodies, companies, government agencies and training and assessment providers we have taken into account a great number of different views. We’re confident the result is a draft Code that is consistent with the purpose of the Financial Advisers Act – to promote sound and efficient delivery of financial advice and encourage public confidence in financial advisers,” Mr Butler said.

Mr Butler said a series of information meetings on the draft Code will be held around the country in early April and that interested parties were encouraged to submit their feedback.

The deadline for submissions is 5.00pm, 7 May 2010.

The Code Committee will consider all feedback, make any changes necessary to the draft Code and present it to the Commissioner for Financial Advisers for approval in June 2010. Following this, the Code will be submitted to the Minister of Commerce for final approval and gazetting.

The draft Code, more information about the meetings and how to make a submission can be found on the Code Committee website at


For more information, please contact: 
Ross Butler, Chairman, Code Committee, phone 021 359 899

Code Committee Releases Consultation Paper – Proposed Minimum Requirements of Continuing Professional Training

19 January 2010

The Code Committee today released the third in a series of consultation papers. The paper is available online (PDF 150KB).

The Financial Advisers Act 2008 requires the Code to provide for Continuing Professional Training (CPT) for Authorised Financial Advisers (AFA), and to specify minimum requirements that an AFA must meet for the purposes of CPT.

This latest discussion paper outlines the key objectives of our proposals, the proposed minimum CPT requirements, how the requirements might be recorded and monitored, and makes reference to CPT and CPD programmes provided by professional and other bodies.

The Code Committee welcomes submissions on the discussion paper, which includes a list of consultation questions. We encourage and value your feedback.

We also expect to hold three consultation meetings, which are likely to be on 8 and 10 February, in Auckland, Wellington and Christchurch. Having these meetings will depend upon the level of interest by advisers, their employers, industry and professional bodies, consumers, and other parties. Please let us know at if you would like to participate.

Submissions on this discussion paper must be received by 5pm Friday 12 February 2010 and should be sent to: or

posted to: Code Committee, c/o Securities Commission, PO Box 1179 Wellington 6011.

Ross Butler
Chairman, on behalf of the Code Committee.
Wellington, 19 January 2010.


Getting Ready for Authorisation – New online self-evaluation Tool

19 January 2010

ETITO has made available a tool that will provide advisers with an indication of any current knowledge and/or skill gaps they might have across the range of unit standards within the National Certificate in Financial Services( Financial Advice)(Level 5).

The online tool is available at

This site also enables advisers to subscribe to RSS feeds with competence updates on the latest news page.

There is a $28(+GST) fee, and advisers will need to complete the questionnaire which covers the unit standards contained within Standard Sets A, C, and D (including specialist questions for investment, insurance and residential property lending) that we have proposed. Advisers will receive a one-off profile report that will help them determine their next step(s) regarding training and assessment.

Completing the questionnaire does not count towards any assessment for the National Certificate.

Thanks to ETITO, Open Polytechnic, and the financial services industry people who designed this useful tool.


Code Committee releases consultation paper on proposed minimum standards of ethical behaviour and client care for authorised financial advisers

17 November 2009

The Financial Advisors Code Committee has released a consultation paper on proposed minimum standards of ethical behaviour and client care. The Code Committee seeks feedback and submissions on this consultation paper by 5pm 18 December 2009.

Chairman Ross Butler said that the Committee has proposed an over-arching ethical behaviour standard.

“The first principle is that any authorised financial adviser must place their client’s interests first and act with integrity,” he said.

The Committee is proposing that financial advice must be independent and objective, unless the adviser clearly communicates the lack of independence and/or objectivity to the client, and puts in place appropriate safeguards. This could include offering the client the opportunity to take independent advice.

Ross Butler said that the proposed Code also includes client care standards.

“Client care is critical to the delivery of good advice, and we are proposing that advisors must build seven client care principles into the way they work with their clients,” he said.

These standards are:

  • professionalism;
  • suitability;
  • capability and capacity;
  • effective communication;
  • effective dispute resolution;
  • compliance; and
  • custody.

The consultation paper may be downloaded from

For a hard copy phone 04 472 9830 or email


For further information please contact Ross Butler, Code Committee Chairman, ph 021 359 899