Here are four changes to the FSLAB that I would like to see - unashamedly not all my own work, but arise from discussions with others also engaged in the proposed law changes:
- Better individual accountability - nominated Representatives should be included on a publicly available register and be able to be held personally accountable for their actions, probably via the FADC. This also prevents a 'bad egg' from 'waka jumping'
- Better consumer clarity - by requiring organisations and individuals that restrict their services to true sales (execution or information only services) be brought into the regime, at the very least being obligated to disclose that no advice is being provided and, potentially at a higher level of capture, being subject to conduct conditions directly relevant to the limited nature of a true sales service.
- Better clarity in the exemptions - Advice given by lawyers & accountants, currently exempt, in addition to being an ancillary service should need it to be a “necessary incident” of carrying out the occupation in the relevant case to achieve exemption and, as a bare minimum, a condition of this relief should be that lawyers & accountants be required to comply with the duty to exercise care, diligence, and skill.
- Better regulatory accountability - The legislation should require the FMA complete a regulatory impact and/or risk analysis statement assessing the possible impact of its licensing provisions and conditions (as yet unknown) against the policy objectives of the legislation, similar to the proposed requirements for such a report from the Code Committee on proposed Code provisions.
In pleading the case for these changes none appears that complex to draft - except perhaps the second half of the second point.