The Financial Services Legislation Amendment Act 2019 will come into force on 15 March 2021, changing the way financial advice is regulated and delivered in New Zealand.
At the same time, we’ll be updating the Financial Service Providers Register (FSPR) to support the new regime.
If you’re in the business of offering financial advice, or planning to be, you should be aware of the changes, and how they’ll affect you.
Here’s a summary of what to expect, so you can be ready.
Regulatory changes for financial advice
There’ll be some fundamental changes for those providing a financial advice service in the way they are regulated, and required to operate.
- The categories of authorised financial advisers (AFAs), registered financial advisers (RFAs) and qualifying financial entities (QFEs), and QFE advisers have been replaced with the new designations of:
- financial adviser
- financial advice provider
- nominated representative
- Under the new regime, financial advice can only be provided by, or on behalf of, a financial advice provider licensed by the Financial Markets Authority (FMA).
- All financial advisers are required to be engaged by, or ‘linked to’ a licensed financial advice provider. Nominated representatives will not be required to be registered as FSPs.
- The legislation makes changes to some financial services. This may require some FSPs to update their details on the new register. Some financial services will be transferred to the new register automatically, so the FSP doesn’t need to do anything.
Find out more about how the new regime will work:
Changes to the register
The FSPR will have a new look and feel, and there’ll also be changes to some online services, and the way things are done.
A new dashboard tool
You will manage online tasks using a new ‘dashboard’ tool. This is a hub for all the things you need to do, and keep track of. Whether you’re registering a new FSP or updating an FSP’s details, most of the tasks you’ll need to perform will start at the dashboard.
Searching the register
Searching for FSPs on the register will initially be limited in terms of the range of information you can use to perform a search. You’ll only be able to search using details such as an FSP’s name (or part of it), their FSP number or New Zealand Business Number (NZBN). If you need to search for specific criteria, you’ll be able to request that data from us.
Want to know more?
For more information on the new regime and what you need to do to get yourself or your business ready, please refer to our website pages.
You may also wish to read the new legislation.