Young Jonathan: Financial Service Providers (Pre-Implementation Adjustments) Bill — First Reading 
Young Jonathan: Financial Service Providers (Pre-Implementation Adjustments) Bill — First Reading 
[Volume:660;Page:8932] 
JONATHAN YOUNG (National—New Plymouth) 
: 
 The Financial Service Providers (Pre-Implementation Adjustments) Bill seeks to bring public confidence and industry efficiency into this particular area. The bill is based on the backdrop of a global credit crisis. This Government is rightfully encouraging New Zealanders to move from consumption to investment and from spending to saving which will bring great strength into our economy. It will enable us to build a stronger export base which needs investment and through savings to create a great pool of capital from which credit can be accessed and interest earnings retained within the New Zealand economy. We believe that that will be good for New Zealand. 
To make those changes we need to have strength within our financial markets and strength within the mechanisms that protect investors. We have had a real hit here in New Zealand as many countries have. Members have mentioned time and again tonight the mum and dad investors and the many ordinary Kiwis who have had a little set aside or a little available at the end of every week. Under this Government they will have more available at the end of every week to invest for their future. Much of this has happened through the advice of financial advisers. It was reported in the Commerce Committee last year that approximately $6 billion disappeared from our economy when investors lost money in a number of instances through the failure of financial companies. That $6 billion is not in the portfolios of New Zealand investors and is not working for New Zealand in credible companies. This bill will build efficiency and confidence within our financial market. 
It has been noted tonight that the  
Consumer 
 magazine has done some investigation and review of what we have on offer from financial advisers. It came to the clear understanding that there is a mixed report out there. Some are good some are bad some are helpful and some are useless. Who knows what to believe about financial advisers? We want this country to have confidence in those who undertake that profession. It is very important that we have appropriate levels of regulation and legislation. 
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. This is common sense is it not? Financial advisers ought to be competent and they ought to be ethical. These are the people who advise us what to do with the money that we are investing for our future. Of course we would like the adviser to be competent and ethical. It is critical that we have this regulatory framework right so that it fosters confidence in the sector and enables the sector to get on with the job. A lack of confidence means that good financial advisers in our country are viewed with a degree of scepticism. We want to remove that scepticism and to ensure that the advisers who comply and do a great job in terms of all of the regulations are indeed approved of. 
It is my delight to commend this bill to the House. Thank you. 
Bill read a first time.