New Zealand has introduced a new regulatory regime for financial advice which requires all advisers to obtain a licence and sign up to a code of professional conduct.
Under the regime, anyone who gives regulated financial advice to retail clients must either hold, or operate under, a Financial Advice Provider licence.
As part of the changes, the three adviser types – registered financial adviser (RFA), authorised financial adviser (AFA) and QFE adviser – have been removed.
All providers of financial advice are now subject to the same obligation to place the interests of their clients first and must adhere to a code of conduct.
Timings
The changes are being introduced in two phases: transitional and full.
Transitional licences are valid for up to two years from 15 March 2021.
Also, transitional licence-holders will need to apply for and be granted a full licence by 16 March 2023, if they want to continue provide a financial advice service under their own licence.
From 16 March 2021, anyone applying for a Financial Advice Provider licence must apply for a full licence.
John Botica, Financial Markets Authority director of market engagement, said: “More than 10,200 financial advisers have come into the new licensing system, with more than 1700 transitional licences approved and nearly 1000 authorised bodies.
“Anyone who is not operating under a transitional Financial Advice Provider licence will now need to apply for a full licence. The transitional period gives advisers two years to complete all the competence, knowledge and skill standards required under the code of conduct.”
