Young Jonathan: Financial Advisers Amendment Bill (No 2) Financial Service Providers (Registration and Dispute Resolution) Amendment Bill — Third Readings 
Text is incorporated into the Bound Volume 
Young Jonathan: Financial Advisers Amendment Bill (No 2) Financial Service Providers (Registration and Dispute Resolution) Amendment Bill — Third Readings 
[Sitting date: 22 June 2010. Volume:664;Page:11989. Text is incorporated into the Bound Volume.] 
JONATHAN YOUNG (National—New Plymouth) 
: 
 I am very pleased to stand to speak in the third readings of the bills arising from the Financial Service Providers (Pre-Implementation Adjustments) Bill. It is critical that we get our regulatory framework right and this has been quite a process. It is a very complex bill and we have appreciated the input from many quarters—particularly from the stakeholders who have been very much part of this whole process of developing the legislation. I think that today there will be people out there in the market place celebrating the passing of this bill. 
One of the balances we had to find was where to regulate and where not to. Whenever we create regulations to protect consumers the consequence is that we constrain providers. We have worked hard listening to consumers and financial service providers to get the balance right between consumer protection and professional efficiency. However it needs to be said that the confidence this legislation will bring to consumers is important. Many many submitters welcomed the compliance this legislation will bring because it will attest to and support their aspiration of professional soundness as an industry. 
In respect of finding this balance between flexibility and constraint we know that both the Financial Advisers Act and the Financial Service Providers (Registration and Dispute Resolution) Act have been made more flexible by adding a number of regulation-making powers. That sounds slightly oxymoronic does it not? The Securities Commission can now provide limited exemptions from financial adviser obligations. The commission is not expected to consider exemptions for every individual adviser who does not consider him or herself to be the true target of the regime. The commission is expected to focus on exemptions for classes of persons for whom the cost of compliance with certain obligations would be unreasonable or unjustified. Those mechanisms are important to ensure that the regime can adapt with the market and impose obligations that are proportionate to the risk created by different services. 
Mr Chauvel talked about the single economic market and as I close I say that a lot of work is being done by our Minister of Commerce Simon Power with his Australian counterparts to make progress on 27 regulatory outcomes identified by the two leaders Prime Minister John Key and Prime Minister Kevin Rudd in a joint statement in August last year. The Trans-Tasman Outcomes Implementation Group co-chaired by a senior official in the Australian Treasury and our Ministry of Economic Development has been working to advance the outcomes identified by the two Prime Ministers. 
I believe this is good watershed legislation which will make a difference to the financial adviser sector and a huge difference to confidence among investors and savers in our country. It is a pleasure to be able to support this bill. Thank you.