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2. This is one of six papers that report on the outcomes of reviews of Financial Products and Providers and Financial Intermediaries.

3. It provides the Committee with an overview of the two reviews and seeks the Committee's agreement to:

1. A two step approach to introducing legislation to implement the findings of the reviews of Financial Products and Providers and Financial Intermediaries:
   1. Beginning with legislation to implement decisions contained in the accompanying papers necessary to achieve compliance with international obligations and to better protect consumers through:
      1. Registration of all financial service providers;
      2. Improved supervision of corporate trustees;
      3. Improved trustee-based prudential supervision of non-bank deposit takers overseen by a single prudential regulator, being the Reserve Bank of New Zealand;
      4. Regulation of Financial Advisers; and
      5. Provision for a comprehensive approach to consumer dispute resolution and redress.
   2. Followed by legislation to implement a second tranche of decisions to be taken by November 2007 on those parts of the review necessary to:
      1. Improve supervision by corporate trustees of collective investment schemes and debt issuers;
      2. Simplify and improve security offerings disclosure;
      3. Modernise insurer prudential and market conduct regulation;
      4. Consolidate regulation of mutuals' governance; and
      5. Regulate platforms and portfolio management services.
2. Consider the funding implications for the Ministry of Economic Development, the Securities Commissions and the Reserve Bank of New Zealand prior to the introduction of legislation;
3. Announcement of decisions; and
4. Deferral to 30 November 2007 of a report back to Cabinet on how the trans-Tasman Council for Banking Supervision can be expanded to include coordination on prudential supervision.

4. This paper should be read in conjunction with the following papers:

1. Registration of Financial Service Providers
2. Trustee Supervisory Model
3. Institutional Arrangements for Prudential Regulation
4. Regulation of Non-Bank Deposit Takers
5. Financial Advisers – A New regulatory Framework
6. Consumer Dispute Resolution and Redress