Marcroft JennyJENNY MARCROFT (NZ First): Tēnā koe Mr Assistant Speaker. New Zealand First supports the Financial Services Legislation Amendment Bill 2017 introduced by the Hon Kris Faafoi. Financial advice plays a very important role in the lives of all New Zealanders. Often for those known as mum and dad investors good advice—high-quality advice—is instrumental in improving the financial position of ordinary New Zealanders. The financial world is not a very easy one to navigate. It can be very complicated and somewhat confusing for consumers. Sound quality advice is crucial in successfully traversing the financial landscape. We know that the purpose of this bill is to ensure that financial services are provided in a way that promotes the confident and informed participation of businesses investors and consumers. The current regime which sets different rules for different classes of financial adviser financial product and advice type is hindering consumer access to quality financial advice. The new regime will establish a much more level playing field of regulation for all who provide financial advice. The bill requires all individual and robo-advice platforms giving financial advice to place the interests of the consumer first. It also maintains disciplinary measures for some individuals. Financial advisers will be subject to the Financial Advisers Disciplinary Committee. If a financial adviser is found to have contravened any obligation the disciplinary committee will be able to censure impose conditions require the adviser to undergo training impose a fine of up to $10000 or direct the Financial Service Providers Register to deregister or suspend the registration of the financial adviser. This bill the Financial Services Legislation Amendment Bill ensures that consumers' interests will come first. We know that up until now too many vulnerable people in need of financial advice that they can trust—and that's really important; advice that they can trust—have found themselves being unknowingly exploited and thus further lining the pockets of financial advisers who do not have their best interests at heart. Now to ensure consumers' interests come first this bill makes legislative amendments to other Acts to ensure that the conduct and client care obligations of financial service providers and the regulation of financial markets remain fit for purpose. It also addresses the misuse of the Financial Service Providers Register. We endorse the contents of the bill which will lead to the improved quality of and access to financial advice while at the same time it will remove unnecessary red tape and barriers to innovation for businesses. We also welcome the new regulatory regime for financial advice which requires more stringent requirements for entities wanting to register on the Financial Service Providers Register and we support this bill also addressing some technical issues that have arisen since the implementation of the Financial Markets Conduct Act 2013. The bill ultimately creates a new regulatory regime for the provision of financial advice. The new regime has been designed in response to the findings of the statutorily required review of the operation of the Financial Advisers Act which regulates the provision of financial advice and the Financial Service Providers (Registration and Dispute Resolution) Act 2008 which sets dispute resolution and registration requirements for financial service providers. Of particular note the bill gives greater confidence to consumers because it provides minimum standards for financial advisers to adhere to. It requires anyone providing financial advice to retail clients to operate under a licence under Part 6 of the Financial Markets Conduct Act 2013. Now to ensure this requirement does not impose undue costs on industry or Government licences will be able to be issued at the firm level. The specific licensing requirements will be set in regulations by the Financial Markets Authority. The requirements will be flexible depending on factors such as the size and nature of a firm and the services it provides and on whether a firm engages financial advisers or nominated representatives or is a sole trader. This bill speaks to the values that are at the core of New Zealand First and those values are why I am a member of this party. We speak on behalf of the many New Zealanders who want progressive policies and legislation that is in the best interests of all New Zealanders. We know that this bill will contribute to a better-functioning financial advice market that is fair transparent and fit for purpose.In conclusion the Financial Services Legislation Amendment Bill will protect investors from low-quality and poor financial advice. It will ensure that all financial advisers adhere to the same level of competency and compliance. New Zealand First supports this bill. Kia ora koutou.