New Zealand's RDR approved

A new code of conduct for financial advisers in New Zealand is a step closer to implementation after draft proposals were approved.

The country's Commission for Financial Advisers has signed off on the Professional Conduct for Authorised Financial Advisers and sent it for final approval to commerce minister Simon Power.

Areas covered by the code include qualifications, the use of the term ‘independent' and the relationship between advisers and clients.

It also provides guidelines on record retention and the complaints process, as well as the professional standards expected of individuals within the industry.

David Mayhew, spokesman for the commission, says: "The code will be the tool for imprinting professionalism on those financial advisers in New Zealand who provide personalised advisory services to retail investment clients.

"It also forms the benchmark for adequate consumer protection standards for such services provided through corporate entities such as retail banks."

A previous version of the code was rejected by Mayhew for not being completely consistent with the Financial Advisers Act.

See how the code compares with the RDR HERE.