Part One: Information for Submitters

Rory McLeod
Director
Competition, Trade, and Investment Branch
Ministry of Economic Development

Question One

1. Do you agree that the provision in the legislation that disclosure can be provided as soon as practicable after the service is performed allows sufficient flexibility to ensure disclosure is provided appropriately?
2. If not, please detail the instances where problems could occur and any potential solutions.

Question Two

1. Do you agree that some general content required to be disclosed by all financial advisers will aid consumers' understanding?
2. Do you agree that contact details, the status of the adviser, a guiding statement for the consumer dispute resolution arrangements and contact details for the Securities Commission should be contained in all financial adviser disclosure statements?
3. Should anything else be included?
4. Do you agree that no content should be permitted unless required by the regulations?

Question Three

1. Do you agree that financial advisers should be required to include a guiding statement in their disclosure document?
2. Do you believe that the wording of this statement should be mandated?

Questions Four

1. Do you agree that contact details for the Securities Commission be required to be included in all financial advisers disclosure document?
2. Do you agree that details on the role of the Securities Commission should be included in the disclosure statement?

Question Five

1. Do you agree that additional content for the disclosure documents should be prescribed in order to help disclosure to achieve its purpose?
2. Do you agree that mandated headings should form the basis of the disclosure document for authorised financial advisers?
3. Do you agree that the headings should be in the form of questions?
4. Do you agree that the order of the headings in the document should be mandated?

Question Six

1. Do you agree that authorised financial advisers should be required to disclose that they have been authorised by the Securities Commission in the mandated form discussed?
2. Do you agree that the class of authorisation should be disclosed (if applicable)?
3. Do you agree that the statement of being authorised is sufficient disclosure as to the status of the adviser?

Question Seven

1. Do you agree that authorised financial advisers be required to disclose what products and/or services they can offer?
2. Do you agree that any limitations as to the products and/or services the adviser can offer should be included?
3. Do you agree that the products and/or services the adviser can offer should be disclosed through the adviser indicating from a prescribed list the services they can offer? If you agree with this approach to service disclosure which categories of services should be included?

Question Eight

1. Which option for disclosure of fees, remuneration and other interests and relationships do you prefer?
2. If you do not agree with any of the options how do you believe fees and other remuneration should be disclosed?
3. Should any prescribed wording be included in the remuneration section to aid consumers' understanding of the differences in the types of remuneration an adviser receives and how this may influence the adviser's advice?
4. Do you agree that advisers that do not receive commission payments from issuers should be able to state in their disclosure document that they are "independent" or "unaligned" and that these terms should be restricted to advisers that meet this condition?

Question Nine

1. Do you agree that disclosure of any material interests, relationships and associations the adviser or associates may have should be required?
2. Do you consider that any prescribed wording should be included in the material interests, relationships and associations section to aid the consumer's understanding of other potential influences on the adviser and his/her advice?

Question Ten

1. Do you agree that an authorised financial adviser should only be required to disclose adverse disciplinary actions imposed on the adviser by the Code Committee?
2. Do you agree that proceedings within the previous 5 years is the appropriate time period?

Question Eleven

1. Do you agree that the items discussed do not need to be disclosed by an authorised financial adviser in their disclosure statement?
2. If not, which matters do you believe need to be disclosed?
3. Should these matters be included in additional information specified for the form?

Question Twelve

1. Do you agree that disclosure of criminal convictions and adverse findings by a Court or the Commission should not be required under the regulations but should be left to the discretion of the Securities Commission to require as a condition of authorisation?

Question Thirteen

1. Do you agree that indemnity insurance should not be required to be disclosed?
2. What are your reasons for agreeing or disagreeing that indemnity insurance should not be required to be disclosed?

Question Fourteen

1. Are there any classes of authorised financial adviser, financial adviser service, or client for which different disclosure requirements should be considered? If so please detail the circumstances and how you believe the disclosure requirements should differ.

Question Fifteen

1. How should individuals (who are not part of a QFE) who provide advice in regards to category 2 products, who are registered by not authorised, be required to disclose their status under the Financial Advisers Act 2008?

Question Sixteen

1. Do you think that, on balance, there would be a benefit to allowing advisers who provide service in relation to category 2 products to opt to provide disclosure at the level of authorised financial advisers?
2. If you have a view on optional disclosure, please describe the reasons for that view.

Question Seventeen

1. Do you have any comments on the proposed disclosure requirements for QFEs?

Question Eighteen

1. Do you agree that the means of communication for QFE disclosure need not be prescribed in the regulations?