What is changing for financial advisers

Under the new regime, advice can only be provided by, or on behalf of, a financial advice provider licensed by the Financial Markets Authority (FMA).

The categories of authorised financial advisers (AFAs), registered financial advisers (RFAs) and qualifying financial entities (QFEs) will also be replaced with the new categories of:

  • financial advice providers
  • financial advisers, and
  • nominated representatives.

Financial advice providers

A financial advice provider is a business or individual providing advice to retail clients. All financial advice providers must be registered on the FSPR, and financial advice providers who provide financial advice to retail clients must also be licensed by the FMA.

A financial advice provider can provide advice directly, and/or through financial advisers and nominated representatives (see below).

Financial advisers

Financial advisers are individuals that give regulated financial advice to retail clients on behalf of a financial advice provider. They must be registered on the FSPR and ‘engaged’ by a licensed financial advice provider.

Those currently listed on the FSPR as an ‘authorised financial adviser’ or a ‘registered financial adviser’ will be automatically reclassified on the register as a ‘financial adviser’ when the new regime begins.

Nominated representatives

Nominated representatives are engaged by a licensed financial advice provider to give advice on their behalf. Nominated representatives do not need to be registered on the FSPR, but the licensed financial advice provider must limit the nature and scope of the advice its nominated representatives can give.

Last updated 2 August 2019