Young Jonathan: Financial Service Providers (Pre-Implementation Adjustments) Bill — Second Reading In Committee 
Text is incorporated into the Bound Volume 
Young Jonathan: Financial Service Providers (Pre-Implementation Adjustments) Bill — Second Reading In Committee 
[Sitting date: 22 June 2010. Volume:664;Page:11970. Text is incorporated into the Bound Volume.] 
JONATHAN YOUNG (National—New Plymouth) 
: 
 I acknowledge a very good point the previous speaker just made—that this is a very important piece of legislation. I think that the next 12 to 18 months will be a very important time for New Zealand investors and savers and also for the financial advisory industry or sector. We will see not only people coming into compliance but also those who choose not to comply but perhaps leave this industry as well which will give great confidence I believe to investors and savers in New Zealand. I think that one of the most important aspects of that is not just the securing of people’s confidence but the fact that that releases capital into our economy. We know that that is incredibly important. I acknowledge what Melissa Lee said: not only is it releasing capital but also it is retaining interest savings and earnings in this country as well rather than losing those overseas. 
A cornerstone of the Financial Advisers Act is that the professionalism of financial advice is best encouraged by ensuring that it is delivered by competent and ethical individuals. I would say that by and large the majority of financial advisers are applauding this legislation. It ensures and testifies to their integrity their ethics and their competence for the public of New Zealand. We know that through the failure of finance companies over the last number of years many of these financial advisers—some who are my personal friends—have felt that their reputations have been tarnished. But I am sure those people who do their very best in all diligence will find that this sort of legislation will support their integrity. 
We know because I gave the quote in my earlier speech what Professor Mayes said—that New Zealanders are average when it comes to financial literacy which is a problem not just here in New Zealand but in many nations. But here in New Zealand a lot of financial companies collapsed prior to the global financial crisis that occurred which tells us that we had issues. We had had issues within our financial sector for some time and prior to the financial crisis they were obviously starting to affect and hurt many many investors. We know there was a period when the nation of New Zealand went into recession prior to the financial crisis as well so many aspects of our economy needed attention. 
It is very good that the hard work has been done on this bill. As Melissa Lee commented in her speech 93 submissions were received from different interested groups and individuals. We heard 42 of those and we had tremendous support from the officials. I give my congratulations on the work they did and I thank them for the long hours they put in. I think the legislation pushed everybody to the limits of their understanding and beyond that. We received tremendous support and comment from the industry as well. I thank all those who came and brought submissions and who had a part to play in the forming of this legislation which I believe will give a very secure future in going forward for the investment industry and for investors and savers in this country. I was very privileged to be part of the Commerce Committee and I acknowledge the hard work particularly of the chair and deputy chair as well as from Charles Chauvel and Katrina Shanks who in a sense formed the core working-group of people who had a larger level of expertise; members such as I appreciated so much what they were able to bring and that enabled us as a committee to work together very well. I am very happy to commend what we have here to the House. Thank you.