Improved access to advice for credit union members

Commerce Minister Craig Foss today announced the re-categorisation of low-risk credit union savings products, in a move to cut regulation and improve consumer access to financial advice.

“The current categorisation of certain low-risk credit union savings products imposes stricter regulation and unnecessary costs when providing personalised advice. These costs can restrict consumer access to advice on these products.

“The change in category will allow all financial advisers to give advice on certain credit union non-call savings products and term deposits, in line with their relatively low level of complexity and risk,” says Mr Foss.

The changes are expected to come into force in the first half of this year, through regulations made under the Financial Advisers Act 2008.

“These changes are part of a government focus on making sure that levels of regulation are appropriate and consistent.

“It will improve credit union members’ access to financial advice and encourage them to improve their levels of savings and investment,” says Mr Foss.