The laws governing financial advisers in New Zealand have changed. Are you on track to meet the new industry regulations for the Financial Advice Regime?
In 2021 the NZ government changed how financial advisers could practice in New Zealand, meaning anyone who gives regulated financial advice to retail clients must either hold or operate under a Financial Advice Provider (FAP) licence.
Licencing under the Financial Advice Regime was released in two phases: transitional and full licencing. Those who have an FAP licence don’t need to worry, but those on a transitional licence are set to expire on 15 March 2023. With only six months until the transition period ends, now’s the time to apply for an FAP licence if you haven’t already.
On 16 March 2023, all advisers must be granted a full licence to continue providing regulated advice on their own account to clients. The FMA is encouraging all advisers to embark on the full license application process now, so they don’t get caught out come March next year.
Licencing is for advisers who provide advice to their own clients. Advisers won't need a licence if they are a financial adviser or nominated representative who provides advice on behalf of another financial advice provider.
Fortunately, FMA data shows that 86% of financial advisers are now on the path to full licencing in time for the March deadline. We want to ensure all advisers we work with who require a FAP licence have it sorted before the deadline.
To make sure you’re on track, visit the FMA website. This FMA article has useful links and resources to get your head around the changes, as well as the steps needed to apply for a licence.