Apply for your Financial Advice Provider full licence.
Find more details about licensing here.
Summary of new regime:
Anyone providing advice to retail clients is subject to a new Code of Professional Conduct for financial advice services. This outlines the standards of conduct, client care, competence, knowledge, and skill you need to meet when providing financial advice in New Zealand. The Minister of Commerce and Consumer Affairs approved the Code of Conduct in May 2019.
You must disclose certain information to your clients to ensure they can make informed decisions.
You can view information about the disclosure requirements on MBIE’s website.
To address misuse of the Financial Service Providers Register (FSPR), you will only be able to register as a financial service provider if you are providing services to New Zealand clients. This is a new requirement, which aims to improve client confidence and protect New Zealand’s good business reputation both at home and abroad.
Financial advice provider licences are subject to conditions. From 15 March 2021, all licence-holders must comply with these conditions.
Transitional licences will be subject to two standard conditions, as well as conditions imposed by the FMC Act, the regulations, and any conditions imposed by FMA. See the Standard conditions for transitional licences.
Full licences will be subject to seven standard conditions, as well as conditions imposed by the FMC Act, the regulations, and any specific conditions imposed by the FMA. See the Standard conditions for full licences.
Why changes are happening
The Financial Services Legislation Amendment Act introduces changes to ensure the conduct and client-care obligations of financial service providers and the regulation of financial markets remain fit for purpose. It also addresses misuse of the financial service providers register by offshore entities. The changes are designed to:
Parliament is changing how we regulate financial advice in New Zealand. A number of government agencies are involved in this process. Below we outline which areas each of us is responsible for.