Comment
15. I am seeking in-principle Cabinet approval to the following general recommendations of the Task Force on the regulation of financial intermediaries to allow the Ministry to start design work on the details:
- that there should be a co-regulatory framework for the regulation of financial intermediaries consisting of industry-led approved professional bodies and a government regulator which would work together to regulate financial intermediaries;
- the statutory regulator be the Securities Commission;
- financial intermediaries would be subject to enhanced disclosure obligations when providing financial advice with obligations dependent upon the class of financial intermediary;
- legislation would set a number of conduct standards for financial intermediaries;
- financial intermediaries would be subject to dispute resolution and disciplinary procedures.
16. This design work would be done through consultation with potential approved professional bodies, the Securities Commission and consumer groups. As part of this design work, the Ministry would consider links with other reviews in the non bank financial sector including work on the Review of Financial Products and Providers, Domestic Institutional Arrangements and the Financial Action Task Force 40 Recommendations on Anti-Terrorism and Money Laundering.
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