On 8 April 2019, the Financial Services Legislation Amendment Bill received Royal Assent.
This means that from the start of the new regime, you can only give advice to retail clients if you operate under a financial advice provider licence. You can hold your own licence, or you can work on behalf of someone else who holds a licence.
There will be two phases to the licensing process – transitional and full.
At this stage, the earliest we will start accepting transitional licence applications is three months after the Minister of Commerce and Consumer Affairs approves the new Code of Conduct for financial advice. We will keep you informed as dates become more certain. Keep an eye on this page for updates.
Below are the various steps that must happen to implement the changes. For indicative dates, see the timeline from the Ministry of Business Innovation and Employment (MBIE).
Financial Advice Code Working Group begins developing new Code of Conduct – (this started in August 2017).
Bill referred to the Economic Development, Science and Innovation Committee.
Submissions on the Bill closed.
Select Committee report due.
Parliament passed the Bill and it received Royal Assent.
New Code of Conduct is approved by the Minister of Commerce and Consumer Affairs. New regulations are developed, consulted on and finalised.
Transitional licensing opens. We will be accepting applications for approximately six months.
Full licensing opens six months after transitional licensing opens.
After two years, the transitional licence period ends, all remaining transitional licences expire and advice can no longer be provided under a transitional licence. If you’re a financial advice provider, you must have a full licence to continue providing financial advice. If you’re not applying for your own licence, you must be engaged by a licensed financial provider who covers you under their licence. The competency exemption also expires and you must meet the competency requirements under the Code of Conduct.
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