Adviser licensing mooted

By PAUL PANCKHURST

The Government is pressing ahead with Securities Commission proposals to require more disclosure by investment advisers - and wants debate on the idea of licensing them.

Commerce Minister Lianne Dalziel said the Cabinet last month approved the main thrust of proposals to tighten the Investment Advisers (Disclosure) Act.

The go-ahead comes nine months after the securities regulator formally recommended the changes. A spokesman for the minister said it could be 2004 before the changes became law.

One of the key changes would replace the two-tier disclosure regime for advisers with a single mandatory disclosure statement.

Advisers' advertisements would have to refer to the availability of a disclosure statement.

The Government also favours boosting enforcement powers over advisers and making it an offence to recommend illegal offers of securities.