What you need to do to prepare for the new financial advice regime

What you need to do to prepare for the new regime depends on how you or your business wants to be structured.

Licensing as a financial advice provider

There will be different ways to be licensed as a financial advice provider.

  • You can be licensed as an individual (holding a licence in your own name)
  • You can be licensed as a business (holding a licence in the company’s name), or
  • A licence may also, if allowed in its conditions, authorise one or more named entities (as authorised bodies) to provide a financial advice service covered by the licence.

Any of these financial advice provider types can engage with financial advisers.

The Financial Markets Authority (FMA) have created an online tool that can help you navigate your options and provide straightforward examples of how you can move forward.

It is important to note that the tool does not cover all possibilities, and more complex business arrangements that may apply to larger organisations are not included.

Authorised financial advisers and registered financial advisers

If you are currently listed on the FSPR as an ‘authorised financial adviser’ or a ‘registered financial adviser’, you will be automatically re-classified as a ‘financial adviser’ when the new regime begins.

If you are intending to act as a financial adviser that is engaged by a financial advice provider, we recommend that you make sure that your information on the FSPR, including contact details, is up to date.

You will need to be engaged by a licensed financial advice provider through the FSPR when the new regime begins, in order to dispense advice (exact details on how to do this on the FSPR will be released in the coming months). If you are not engaged within the first three months of the new regime, you will be de-registered.

If you are interested in becoming a Financial Advice Provider

Registering and applying for a transitional licence

Transitional licence applications opened 25 November 2019. We strongly recommend that you apply as early as possible to ensure you are licensed in time.

If you are an existing adviser, you’ll need to log in to the FSPR and indicate that you are intending to become a licensed financial advice provider. You will need to amend your FSP registration and indicate you will be providing a Financial Advice Service as a financial advice provider (details on how to do this will be released in the coming months).

Next you will need to apply for a transitional licence with the FMA through their online portal. As part of the application process, the FMA will ask you to provide details about your business, such as the types of services you will provide, and who will be providing advice under your licence.

If you are not currently offering financial advice, but are thinking about providing financial advice in the new regime, you can learn about registering yourself or your business on the FSPR now.

How to apply for a transitional licence

Last updated 25 November 2019