This bill was formerly part of the Securities Disclosure and Financial Advisers Amendment Bill as reported from the Commerce Committee. The committee of the whole House has further amended the bill and has divided it into the following bills:

The Securities (Disclosure) Amendment Bill comprising Part 1
This bill comprising Part 2

Key to symbols used

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Hon Simon Power

Financial Advisers Amendment Bill

Government Bill

13—3B

The Parliament of New Zealand enacts as follows:

1 Title

This Act is the Financial Advisers Amendment Act 2009.

2 Commencement

This Act comes into force on the day after the date on which it receives the Royal assent.

·····

16 Principal Act amended

This Part amends the Financial Advisers Act 2008.

16A Meaning of financial advice clarified

Section 13(1) is amended by adding “; or” and also by adding the following paragraph:
- “(g) a disclosure statement for the purposes of the Retirement Villages Act 2003.”

16B Individual who is QFE employee or agent

Section 17(1) is amended by omitting “qualified financial entity (the QFE)” and substituting “QFE”.

16C Employer or principal of financial adviser must be registered

Section 18(1) is amended by inserting “or engages” after “employs”.

16D Disclosure by qualifying financial entity

Section 26 is amended by repealing subsection (1) and substituting the following subsections:
- “(1) This section applies—
  
  “(a) if a financial adviser (A)—
  
  “(i) is not an authorised financial adviser; and
  
  “(ii) is an employee or agent of a QFE; and
  
  “(iii) performs a financial adviser service in relation to a category 2 product in the course of the QFE's business; or
  
  “(b) if a financial adviser (A)—
  
  “(i) is not an authorised financial adviser; and
  
  “(ii) is an employee of a QFE; and
  
  “(iii) performs a financial adviser service in relation to a category 1 product of which the QFE is the issuer in the course of the QFE's business.
- “(1A) In this section, the financial adviser service means a financial adviser service referred to in—
  
  “(a) subsection (1)(a)(iii); or
  
  “(b) subsection (1)(b)(iii).”

16E New section 75 substituted

Section 75 is repealed and the following section substituted:
“75 Exemption from liability for employee or agent of QFE

“(1) This section applies to—

“(a) a financial adviser who—

“(i) is not an authorised financial adviser; and

“(ii) is an employee or agent of a QFE; and

“(iii) performs a financial adviser service in relation to a category 2 product in the course of the QFE's business; and

“(b) a financial adviser who—

“(i) is not an authorised financial adviser; and

“(ii) is an employee of a QFE; and

“(iii) performs a financial adviser service in relation to a category 1 product of which the QFE is the issuer in the course of the QFE's business.

“(2) A financial adviser to whom this section applies is exempt from liability under this Act for contravention of a financial adviser obligation.”

17 Commissioner's approval of draft code

Section 88(3) is amended by omitting “subsection” and substituting “section”.

17AA Investigation by Commission

Section 97(2) is amended by inserting “it” after “investigate a complaint if”.

17AAB Content of disciplinary committee's notice of complaint

Section 100 is amended by omitting “Commission's” and substituting “disciplinary committee's”.

17A Offence of performing financial adviser service without being registered

Section 114(1) is amended by omitting “performs a financial adviser service without being registered” and substituting “, without being registered, performs a financial adviser service that under this Act only a registered financial adviser may perform”.

18 Right of appeal

Section 138(1)(a)(ii) is amended by omitting “67(4): or” and substituting “67(4); or”.

19 Territorial scope

Section 157 is amended by omitting “by a person in New Zealand,”.

19A New section 161A inserted

The following section is inserted immediately before section 162:
“161A Financial Service Providers (Registration and Dispute Resolution) Act 2008 amended

“(1) This section amends the Financial Service Providers (Registration and Dispute Resolution) Act 2008.

“(2) Section 7(2)(m) is amended by adding ‘, except to the extent that an individual may be required to be registered in order to perform a financial adviser service under the Financial Advisers Act 2008’.”

20 Securities Markets Act 1988 amended

Section 164(6) is repealed.

Legislative history
21 July 2009	Divided from Securities Disclosure and Financial Advisers Amendment Bill (Bill 13–2) by committee of the whole House as Bill 13–3B

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Financial Advisers Amendment Bill