Parliament approved tougher rules for financial advisers on Wednesday.
The Financial Advisers Bill is designed to help shore up investor confidence, which has been battered by collapses in the finance firm sector and recent turmoil in financial markets.
The new rules will see a two tier approach to sanction financial advisers.
The first tier covers advisors on complex products such as securities and futures contracts, and have to be approved by the Securities Commision.
The second tier deals with those who give advice on simple products such as credit contracts and insurance products, and will be monitored through their organisation, such as banks.
Supervision will be carried out by the Securities Commission, which will set up a Commissioner of Financial Advisers.
The Commission will now consult with the industry as it prepares a code of conduct and terms and conditions for authorising financial advisers.
