Reporting curbs 'threaten free speech'

Any legislation that defined journalists as financial intermediaries could have a "chilling effect" on coverage of financial issues, the Commonwealth Press Union said in a submission to the Government taskforce on the issue.

The union fears that media coverage of business news could be undermined if publishers become concerned about the threat of Government interference. The Task Force on the Regulation of Financial Intermediaries has been criticised by several bodies for its sweeping definition of just who should be included.

In submissions, representatives for lawyers, general insurers and journalists told the taskforce their members should not be included as financial intermediaries.

The Advertising Standards Authority (ASA) claimed that free speech was being threatened by the taskforce, which defines a financial intermediary as "a person who provides financial advice and/or promotes or markets financial products to another person".

Included as financial advice is the providing of information, analysis, advice or recommendation about financial products and investment or savings decisions.

Thus share brokers, fund managers, bank employees, mortgage brokers, financial planners, accountants, lawyers, life and general insurers and banks, real estate agents and journalists are considered financial intermediaries.

The New Zealand Law Society is baulking at the inclusion of lawyers, suggesting this would see lawyers subjected to double regulation. Lawyers are already regulated by the Law Practitioners Act.

The Insurance Council said general insurers and banks selling insurance should not be considered financial intermediaries as their products have a life span of no more than one year as opposed to much longer life insurance products.

The ASA said the taskforce's definitions meant coverage in newspapers, on the radio, TV and the internet would be included, as would correspondence and conversations.

"Such a state of affairs would be undue fetter on the right of free speech which is guaranteed by section 14 of the New Zealand Bill of Rights Act 1990," the ASA said.

The taskforce was launched last August following concern by the International Monetary Fund about the state of financial regulation in New Zealand.