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7 July 2008 - At today's public hearings of the Finance and Expenditure Committee the Investment Savings and Insurance Association voiced strong support for proposals to improve adviser regulation.

"In order to generate public confidence and trust, ISI members support proposals for registration and regulation of investment advisers. We also agree with the need for a transparent disputes resolution scheme," said Vance Arkinstall, ISI chief executive.

In his comments to the Finance and Expenditure Committee Mr Arkinstall stated: "Effective regulation of advisers is a cornerstone of the delivery of quality financial services and products to consumers."

"With increased emphasis on the importance of saving and preparing for a secure retirement, coupled with the difficult market conditions we are currently experiencing, it is essential that consumers have access to investment advice that gives them confidence," said Mr Arkinstall.

"The industry supports Government proposals for a central regulator in the form of the Securities Commission, but stresses that the value of co-regulation should not be lost. The industry proposes the establishment of an independent statutory body made up of the Securities Commission and the industry to set standards and rules for investment advice. A strong precedent for this approach exists in the highly successful models of the Registered Architects Board and the Chartered Professional Engineers Council."

"In addition to voicing strong support for institutional accreditation as proposed by the Minister of Commerce to the FEC, ISI is calling for this to be widened to extend coverage to agents of financial institutions who meet rigorous qualifying criteria. This will have the added benefit of the accredited financial institution accepting responsibility for the acts of its agents and will provide greater security to investors if something should go wrong," said Mr Arkinstall.

"There are many advisers who do an excellent job advising consumers. However, raising the bar by the introduction of effective regulation is a timely step towards higher standards of investment advice that are overdue," said Vance Arkinstall.