Dean JacquiHon JACQUI DEAN (National—Waitaki): Thank you Madam Assistant Speaker. Just as the member Duncan Webb was taking his brief call—it was unfortunate because I was just reviewing my notes and might seek some guidance from members in the House because I didn't sit on the Economic Development Science and Innovation Committee. But as success has many fathers I was one of the progenitors of this bill in my time as commerce Minister. One of the things that really concerned me about this financial services legislation work was the code of conduct working group which was a group which was working continuously with the development of the legislation in my time. I have to say since I've moved on to other portfolios I don't know where that's gone but it's a very important part of the development of this bill. It probably is not contained within this bill but certainly a requirement to have a standard of conduct for financial advisers is an integral part certainly of the philosophy of the bill.That financial advice code of conduct working group was talking widely with the financial advice sector over how to bring the sector together. There were a number of disparate groups providing financial advice in New Zealand. Some were highly regulated; some were completely unregulated and we had an environment where financial advice was limited by the level of the label that you were given and the amount of training. For example there would be people walking into trading banks looking for a bit of advice perhaps on a term deposit or maybe something very simple like a KiwiSaver question and the person behind the counter at the bank was unable to give them advice because they weren't qualified or allowed to do so under the previous Act—the current Act which is about to be amended.That has several impacts on citizens. First of all they don't get the advice they're looking for. They might get the advice but it's very limited to the expertise of the person giving that advice. But if that person walks away from the financial institution—the trading bank for example—then that person will be somewhat disillusioned and confused about the advice that they may or may not have got because it certainly wasn't fit for purpose.I want to acknowledge the committee who have worked on this bill and also the Minister Kris Faafoi who has shepherded this piece of work into the House. I am pleased to see that this is again another piece of sensible legislation which is non-controversial because it makes sense and it's good for just a while to have a bit of collegiality across the House for it.So there will be a new regulatory regime for financial advice and for financial advisers in New Zealand. There will be a new regime and an amendment for registration on the Financial Service Providers Register to prevent its misuse. The bill is actually based on a review of the existing regulatory regime for financial advice and that was started and completed back in 2016. So there have been a number of ministerial hands on this bill.I also want to commend the officials from the Ministry of Business Innovation and Employment (MBIE) who in my time and no doubt in Paul Goldsmith's time and no doubt—I believe it's the same officials who have assisted the Minister in the Hon Kris Faafoi's time. I want to commend them. They are a good bunch of public servants who provided good robust advice where it was needed provided the expertise where it was needed and when they didn't have the expertise themselves were unafraid to go out and seek it and talk to people in the sector because there was a very strong view in MBIE supported by Ministers that this is an important piece of work for the financial advice services regime in New Zealand. So just a note to advisers: I think you've done a great job on this. Also the select committee because I believe that they have considered this bill very carefully and have come up with a number of enhancements to it.I want to say a few words about the provision of robo-advice. Even a year ago or 18 months ago when I was sitting in the commerce chair the talk of robo-advice was becoming louder and louder and financial institutions were evaluating how they could be part of providing robo-advice. I had conversations with the Commerce Commission at the time because of course it was not allowed under the current legislation and in fact the Commerce Commission issued an exception to the rules in advance of this bill so that robo-advice could be taken up. The concerns I had—it is exciting; let me just say. The provision of robo-advice is exciting for the financial services sector not just for them but for people like myself and all of us who from time to time want to get a little bit of financial advice which can be done by way of an algorithm but be certain about its security and the effectiveness of that advice. For someone like me it might be checking something to do with my KiwiSaver account something to do with some banking operation I wish to do—I don't know should I turn over a term deposit that sort of thing. Am I paying the right interest rate? The sky's the limit.Hon Member: Get a loan.Hon JACQUI DEAN: Yes get a mortgage get a loan. Robo-advice can extend across all areas of financial advice and I would wager that the scope of that financial advice which is able to be provided in the future is not even known yet.I was in Auckland at a Vodafone incubator programme a couple of weeks ago and there were young innovative business people going through a wonderful business incubator at Vodafone in—Melissa Lee: Christchurch.Hon JACQUI DEAN: —Christchurch sorry; Christchurch—and I spoke to someone after the presentations had been made and because he was an online IT specialist dealing in the financial world I asked him about robo-advice. I said Are you contemplating doing that in your small start-up business?" and he said "We're doing it. It's so exciting." This is what happens when you talk to young entrepreneurial business people—they get so excited about the opportunities that are being presented to them in innovating in the financial services sector. If this bill does nothing else it will support small business in that way in particular small businesses because it absolutely opens the door to be innovative and new in the provision of the services—whatever their services are—into the market. If we wish to remain competitive as a country in New Zealand if we wish to continue to support small business small to medium sized enterprises business in general in New Zealand there is one thing we have to do and that's be able to innovate. That means through our banking systems and that means through our financial services.Hon Stuart Nash: Well we're putting in an R & D tax credit which you guys never did. That's how you innovate.Hon JACQUI DEAN: Oh here we go—here we go. It's really disappointing isn't it that the Minister for Small Business chips in with a negative comment at this point. Oh dear! Oh dear! Bit all at sea over things aren't we because I'm just describing the excitement of innovation supporting small business—Hon Stuart Nash: You're just describing what you should've done—ASSISTANT SPEAKER (Poto Williams): Order!Hon Stuart Nash: —in the last nine years.ASSISTANT SPEAKER (Poto Williams): Order! Do not bring me into the debate.Hon JACQUI DEAN: —and here's the Minister for Small Business having a negative chip. Well that speaks volumes about this current Government's focus on supporting small business. Shame shame shame Minister. We didn't think that one through did we?The genesis of this legislation started a number of years ago. It has been well supported by the financial services sector as a whole the banking sector—Hon Stuart Nash: Nine long years and you did nothing.Hon JACQUI DEAN: —the insurance sector and now I am very pleased to see this next stage of this bill go through the House.Hon Stuart Nash: They should've put a businesswoman into the portfolio.Hon JACQUI DEAN: Members just note that the Minister for Small Business is still chirping away like some dissatisfied little canary because he's been caught out. He's been caught out in not supporting small business in New Zealand. So with those words I commend the bill."