Group to set rules for financial advisers

Ten people have been appointed by the Securities Commission to develop standards for financial advisers, part of an attempt to improve the quality of advice that New Zealand investors receive.

The independent committee will develop the code of conduct that financial advisers will be legally obliged to comply with from late 2010, Commissioner for Financial Advisers Annabel Cotton said.

"The code will commit the adviser industry to do business in a professional and ethical manner," she said.

"It will also determine the qualifications and level of experience they need to be authorised advisers."

Seven of the new appointments were for three-year terms, with the other three members serving one year.

The committee will meet at the end of the month to appoint a chair and begin work on developing the code, incorporating public feedback recently provided in response to a Securities Commission paper on adviser competence.

Appointments include lawyers, directors and industry members.

Three-year appointments included Sue Brown (partner at DLA Phillips Fox), Pip Dunphy (independent director), David Russell (consumer issues consultant) and Shane Edmond (manager of retail broking at Forsyth Barr).

- NZPA