1 Aug 2010

Financial advisers get code of conduct

4:59 pm on 1 August 2010

A code of conduct has been drawn up for financial advisers.

The draft code requires advisers to place the interests of their clients first, be clear about their independence or lack thereof, and not to bring their industry into disrepute.

Strict rules, including the new code, were passed by parliament two years ago, following a series of finance company collapses.

The chairman of the drafting committee, Ross Butler, says there is no guarantee that rogues will be driven out of the industry.

But he says the new rules create powerful legal actions which can be used against them.

If approved by the Commerce Minister, the code could be in force by December.