The Financial Services Legislation Amendment Bill aims to improve access to high-quality financial advice for all New Zealanders, and is expected to be passed around the end of this year.
The Bill would repeal the Financial Advisers Act 2008 and create a new regime for regulating financial advice. This would remove the current classifications of advisers and advice firms (Authorised, Registered or QFE) and the distinction between ‘class advice’ and ‘personalised advice’, and between category 1 and 2 products.
Under the proposed regime, anyone giving financial advice to retail clients would need to be engaged by a Financial Advice Provider that is licensed by the Financial Markets Authority (or become licensed as a Financial Advice Provider themselves to give advice directly). The new regime would also introduce new conduct and competence requirements for anyone giving financial advice to a retail client.
If you’re a business or individual offering financial advice or investment planning services, these changes will affect you.
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The Companies Office (MBIE) is just one of the government bodies tasked with implementing the proposed changes. Others include the Financial Markets Authority (FMA) and the Financial Advice Code Working Group.
If you provide a financial adviser service today, find out more about the new regime, how it will work, and what you can do to make sure you’re ready, by checking out the resources available on the FMA website.
For updates on the Bill’s progress, and information about how to have your say on aspects of the new regime that are still under development, please check out MBIE’s website.