From Monday 15 March 2021, you must be engaged by a licensed financial advice provider (or authorised body) to provide regulated financial advice to retail clients.
- You can operate as either a financial adviser or a nominated representative – you cannot be both.
- Financial advisers must be engaged by a licensed financial advice provider (or authorised body) and registered on the Financial Service Providers Register.
- Nominated representatives* must be engaged by a licensed financial advice provider (or authorised body) but are not registered on the FSPR. Only certain registered firms can engage nominated representatives.
- If you are a financial adviser, you will then need to make sure that the financial advice provider (or authorised body) that has agreed to engage you, links to you on the FSPR.
- The financial advice provider (or authorised body) must link to you on the FSPR within three months of your registration. If this does not happen, you may be de-registered if you offer no other services.
- For more information, see what it means to be a Financial Adviser in the new regime
*Please note: Nominated representatives will have less discretion than financial advisers and can only provide advice if the provider has sufficient processes and controls in place. These processes and controls must:
- limit the nature and scope of the advice given
- allow the financial advice provider to regulate the type of advice given and when ensure nominated representatives have the correct competence, knowledge and skill needed for the advice being provided.
- From the start of the new regime on Monday 15 March 2021, financial advisers will be charged an FMA levy (payable to the Companies Office at FSPR annual confirmation). You will also be charged a fee of $86.25 (incl GST) at annual confirmation.
- MBIE have announced an increase in FMA levies, which will be phased in over three years. As an indication, the FMA levy for financial advisers payable for annual confirmations that fall between 1 July 2021 – 30 June 2022 will be $391 (incl GST).
- For full details, see the MBIE website.
- Nominated representatives do not need to register on the Financial Service Providers Register and do not personally have to pay a levy as this will be covered by the financial advice provider.*
*Inclusive of GST
For more information about fees and levies, see MBIE’s website.