Page last updated: 24 June 2021

New Financial Advice Regime

The laws governing financial advice in New Zealand have changed.

As part of the changes, the three adviser types – Registered Financial Adviser (RFA), Authorised Financial Adviser (AFA) and QFE adviser have been removed – and all advisers need to meet the same standards and are subject to a Code of Professional Conduct for Financial Advice Services.

To give financial advice to retail clients in the new financial advice regime, individuals must either hold a Financial Advice Provider (FAP) licence, or be engaged to operate under a Financial Advice Provider’s licence as a Financial Adviser, or Nominated Representative.

Parliament New Zealand

 

To give financial advice to retail clients in the new financial advice regime, individuals must either hold a Financial Advice Provider (FAP) licence, or be engaged to operate under a Financial Advice Provider’s licence as a Financial Adviser, or Nominated Representative.

  • Licensing is being introduced in two phases: transitional and full.
  • Transitional licences are valid for up to two years from 15 March 2021.
  • Transitional licence-holders will need to apply for and be granted a full licence by 16 March 2023 if they want to continue provide a financial advice service under their own licence. 
  • From 16 March 2021, anyone applying for a Financial Advice Provider licence must apply for a full licence.

Read more about the new financial advice regime

 

You will need a licence if you want to be a financial advice provider and provide advice on your own account to your own clients – for example, you run your own business. Read our Introductory guide to full licensing requirements to find out more about how to complete your online application and what we ask for.

You won’t need your own licence if you want to be a financial adviser or nominated representative who provides advice on behalf of another financial advice provider.

Read more about who needs a licence to operate in the new financial advice regime

There are two steps to applying for a Financial Advice Provider full licence:

  1. Login to the FSPR on the Companies Office website and register your intention to apply for a Financial Advice Provider full licence*. Make sure you register in the name of your company if it’s your company that will hold the licence. (* If you’re applying for a FAP full licence the relevant service on the register is “Financial advice provider – licensee – full licence”)
  2. Once your registration on the FSPR has updated apply on the FMA licensing portal:

apply now

Useful links and resources