From the start of the new financial advice regime on Monday 15 March 2021, anyone who gives regulated financial advice to retail clients must either hold, or operate under, a Financial Advice Provider licence.
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 providing advice under their own licence. From 16 March 2021, anyone applying for a Financial Advice Provider licence must apply for a full licence.
Who needs a licence to provide financial advice?
What is a transitional licence?
A transitional Financial Advice Provider licence is valid for up to two years. Together with the competency safe harbour, it enables advisers to continue providing the advice they were legally able to provide before the new regime was introduced. This gives you time to meet any new competence, knowledge and skills standards needed.
If you did not get your transitional licence before the start of the new regime, you cannot provide advice to retail clients until you have a full licence – unless you provide advice under another financial advice provider’s licence.
Already know how to operate under the new regime?
We have provided information about 5 different ways you can operate under the new regime. These are the more straightforward ways you can operate going forward. They don’t cover all possible options – for example, more complex business arrangements (including authorised bodies) or those mostly applying to larger organisations are not included.