Govt finally finds a financial adviser boss - but only for 12 months

Annabel Cotton, new Commissioner for Financial Advisers. Photo/ Supplied

The good news? Government has found someone for the important new job of Commissioner for Financial Advisers. The bad news? She can only do the job for a year.

Commerce Minister Simon Power announced the appointment of Annabel Cotton to the position of Commissioner for Financial Advisers after a six month search.

She will serve as commissioner while the Ministry of Economic Development keeps looking for a commissioner to be appointed for the full term of five years.

Power said Cotton's appointment would enable work to start developing a code of professional conduct for financial advisers. One of her first tasks will be to select and appoint members of a "code committee".

This will draft a code setting minimum standards of competence, knowledge and skills, ethical behaviour, client care, and professional training requirements that authorised financial advisers must comply with.

Cotton advises New Zealand-based listed companies on their investor relations programmes and is a qualified investment analyst and accountant.

She has been a member of the Securities Commission for seven year and is a director of NZX-listed Kingfish Ltd, Barramundi Ltd, and Marlin Global Ltd, as well as Genesis Power and several private companies.

"Due to other commitments," said Power, "Ms Cotton is not available to be appointed for a five-year term. She has indicated she will be available to help manage the transition once a full-term appointment is made. The Ministry has engaged an executive search agency to look for candidates in New Zealand and overseas."

Cotton told the "financialalert" website that she was happy to do the job as "a transitionary role".

"I've got a number of personal investment interests. I have two children to look after. I live in the country just outside Hamilton. I'm trying to live a simple life."

Moves to tighten rules for financial advisers were fast-tracked last year after the collapse of the finance company industry.

The position of commissioner was advertised in November and 27 people applied but none were given the job. The commission was understood to be looking for someone with more legal competence than those who applied.

Securities Commission director of supervision Angus Dale-Jones said last month he was still confident of meeting the end of 2010 deadline for adviser competency. "It is quite feasible to have the code in place by 2010. I'm pretty relaxed about that," he said.

Dale-Jones said consultation had begun with the industry and education providers. He said as long as the code committee was set up by midway through this year the code could be completed early next year with advisers meeting competency requirements by the end of the year.

But advisory groups have previously said it could take years to authorise the 10,000 financial advisers estimated to be in New Zealand.

Financial new website Good Returns reported today that Cotton met with members of the Institute of Financial Advisers at its annual council meeting yesterday.

Institute president Lyn McMorran said the appointment had made the 2010 deadline for implementing regulation "realistic"

"She's a really positive person who's on the same wavelength" as industry, McMorran said.

McMorran isn't fazed by Cotton's interim appointment, as it will oversee the bulk of implementation of the regulation. She's been told the new commissioner will work closely with her successor to ensure a smooth transition during the handover next year.

"If they [the Ministry of Economic Development] weren't able to find a suitable candidate, this is the best solution," McMorran told Good Returns.