In response to an Official Information Act request, the Ministry of Business, Innovation and Employment said the Code Working Group, tasked with delivering the code, had so far cost $506,946,94.
That included fees for those in the group, travel to meetings and roadshows, the webinar and associated services, room hire, and consulting fees for legal advice and a plain English drafter.
The group has conducted a focus group, consumer survey and two formal consultation rounds.
“The group was funded from MBIE’s baseline, therefore there was no formal budget identified for the development of the new code of conduct. However, in January 2017, prior to the appointment of the Group, officials at MBIE estimated a cost of $150,000 for member fees only,” said Sharon Corbett, manager of financial markets policy building, resources and markets.
“This was a very early estimate before the appointment process was completed and was based on there being fewer members [seven] taking less time [10 months] to deliver a draft code. As above, the initial estimate only covered members fees and not the other items detailed above.
“There has been considerable interest in the consultations the group ran and the group considered a significant volume of submissions which added to the time taken to develop the code.
“These processes often take longer than initially anticipated and it has been important to ensure the group had sufficient time to get the code right. The draft code of conduct is currently with the Minister of Commerce and Consumer Affairs who is considering it.”
It had been expected that the code would be finalised in the first quarter of this year but that has not yet happened. The proposed Code is with the Minister of Commerce Kris Faafoi, who has yet to approve it.
The code is being developed to sit alongside the new Financial Services Legislation Amendment Act.
It will apply to all advisers offering personalised advice. It includes requirements for qualifications as well as ethical and client-handling considerations.
