Woolerton R Doug: Financial Advisers Bill — Second Reading In Committee Third Reading 
Text is incorporated into the Bound Volume 
Woolerton R Doug: Financial Advisers Bill — Second Reading In Committee Third Reading 
[Sitting date: 23 September 2008. Volume:650;Page:18969. Text is incorporated into the Bound Volume.] 
R DOUG WOOLERTON (NZ First) 
: 
 I will take just a short call to say New Zealand First supports the passage of the Financial Advisers Bill. As the Minister of Commerce and Mr Power have said this bill is long overdue. A few financial advisers and people who came before us in the Finance and Expenditure Committee thought there should be no more regulation around their activities. They believed that their business was a fast-moving one and that the people they were talking to could judge in their own best interests whether the advice they were given was good or bad. Obviously we disagreed with that and so did the majority of the people involved in the industry. It was heartening to see that with a few exceptions people had a responsible attitude to the proposed legislation and were keen to help.  
We have also heard from the two speakers earlier that a lot of changes have been made to the bill. In fact when we look at the bill we see there are many pages of ruled-out text with new text following that. That is the way it should be. It is not until we come face to face with the participants in the industry not just the ones chosen to help officials through the process of preparing the legislation—although that is a good process as well—but the ones who are actively involved day to day with their customers and until we hear about their problems the distinctions they have to make and the care with which they have to approach these issues that we can actually get a full handle on the situation. I also agree that refinements will be made to the legislation in years to come. It was admitted during the hearing of submissions that every time new regulation comes into force somebody out there will find a way around it that is not in the clients’ interests and that will need to be blocked off in the future.  
There were days years ago when the Government of the day believed that there was no need for any of this regulation and that both those who were seeking help with investments and those who were giving advice on investments could go about their business without any need for the Government to be involved in those transactions in any way whatsoever. We have come to rue the day when those thought processes were the rule rather than the exception and we are now seeing something rather nasty start to happen in this country of a similar nature to what has occurred elsewhere. In America we are seeing the Government has had to hop in and prop up institutions where the people involved were not in fact qualified to know what was going on and did not know what was going on but proceeded without any caution nevertheless.  
Just as with any other industry the public have a right to know whom they are talking to when they seek financial advice. They have a right to know the qualifications of that person the experience of that person and whether that person has been involved in any shonky dealings hitherto.  
Hon Darren Hughes 
: Like John Key. 
R DOUG WOOLERTON 
: I could not possibly comment. This legislation provides some of those assurances. I have to say just before I sit down on this part that it will not take away the risk to the public. It cannot do that and it is not professing to do that. But it will give the public an indication of whom they are dealing with and in another bill an avenue to redress the situation as well because this is part of a suite of bills.  
I say New Zealand First supports the Financial Advisers Bill and we will be supporting the other bills that surround this issue.