Part 1 Preliminary provisions

3 Purpose of Act

(1)

The purpose of this Act is to promote the sound and efficient delivery of financial adviser and broking services, and to encourage public confidence in the professionalism and integrity of financial advisers and brokers.

(a)
[Repealed]

(b)
[Repealed]

(c)
[Repealed]

(1A)

That purpose is additional to the purposes of the Financial Markets Conduct Act 2013 set out in sections 3 and 4 of that Act (and those purposes apply to this Act also).

(2)

To those ends, this Act (without limitation)—

(a)

requires financial advisers and brokers to take an appropriate degree of care in providing services to investors and consumers and prohibits certain conduct by financial advisers and brokers; and

(b)

in addition,—

(i)

requires disclosure by financial advisers and brokers to retail clients, so ensuring that clients can make informed decisions about whether to use the financial adviser or broker and, in the case of an adviser, whether to follow a financial adviser’s advice; and

(ii)

imposes competency requirements on certain financial advisers who deal with retail clients, so ensuring that there are available to retail clients financial advisers who have the experience, expertise, and integrity to match effectively a person to a financial product that best meets that person’s need and risk profile; and

(iia)

ensures that appropriate governance arrangements apply to services to allow for effective monitoring and reduce governance risks; and

(iii)

ensures that financial advisers are held accountable for the services that they give to retail clients and that there are incentives for financial advisers to manage conflicts of interest appropriately.

Section 3(1): amended, on 1 July 2010, by section 6(1)(a) of the Financial Advisers Amendment Act 2010 (2010 No 40).

Section 3(1): amended, on 1 July 2010, by section 6(1)(b) of the Financial Advisers Amendment Act 2010 (2010 No 40).

Section 3(1)(a): repealed, on 1 July 2010, by section 6(1)(c) of the Financial Advisers Amendment Act 2010 (2010 No 40).

Section 3(1)(b): repealed, on 1 July 2010, by section 6(1)(c) of the Financial Advisers Amendment Act 2010 (2010 No 40).

Section 3(1)(c): repealed, on 1 July 2010, by section 6(1)(c) of the Financial Advisers Amendment Act 2010 (2010 No 40).

Section 3(1A): inserted, on 1 April 2014, by section 11(1) of the Financial Markets (Repeals and Amendments) Act 2013 (2013 No 70).

Section 3(2): added, on 1 July 2010, by section 6(2) of the Financial Advisers Amendment Act 2010 (2010 No 40).

Section 3(2): amended, on 1 April 2014, by section 11(2) of the Financial Markets (Repeals and Amendments) Act 2013 (2013 No 70).

Section 3(2)(b)(iia): inserted, on 1 April 2014, by section 11(3) of the Financial Markets (Repeals and Amendments) Act 2013 (2013 No 70).