Page last updated: 29 June 2021

Business or individual with financial advisers

From Monday 15 March 2021, you must hold a Financial Advice Provider licence to provide regulated financial advice to retail clients.

  • The licence can be in your entity name (if, for example, you run your business through a company and your company will hold the licence) or your individual name, if you personally will hold the licence in your own name.  
  • Holding a financial advice provider licence in your individual name means you cannot call yourself a financial adviser and you will be personally responsible for any liabilities incurred as a financial advice provider, including liabilities for breach of legal duties.
  • Applications for Financial Advice Provider full licences are now open. Apply now

 

Duties and obligations

As a provider of financial advice, you will be regulated under the Financial Markets Conduct Act 2013 (FMC Act), as amended by the Financial Services Legislation Amendment Act 2019 (FSLAA).  You will need to meet certain duties and obligations.

For a summary of the duties and obligations that apply to you, see what it means to be a Financial Advice Provider in the new regime.

 

Costs

Charge Amount

Full licence application fee (payable to the FMA)

$882.05* for standard applications

For complex applications that take longer than three hours, we will notify you and charge $178.25* per hour for any additional time

FMA levy (payable to the Companies Office at FSPR annual confirmation)

MBIE have announced an increase in FMA levies, which will be phased in over three years.

As an indication, the FMA levy payable for annual confirmations that fall between 1 July 2021 – 30 June 2022 will be:

  • $322* payable by the financial advice provider.
  • $391* payable by each financial adviser.
  • Note if your business is the financial advice provider, don’t forget to include yourself as a financial adviser when working out the costs. For example, if you engage four financial advisers to work with you, the total cost will be $2277* ($322+ ($391 x 5)).

For full details, including the increased levy amounts (exclusive of GST) that will apply from 1 July 2022 and outyears, see the FMA levy table on the MBIE website.

FSPR annual confirmation fee (payable to the Companies Office)

$86.25* for the financial advice provider plus $86.25* for each financial adviser 

Initial FSPR registration fee (Payable to the Companies Office)

$345* plus $529 levy if registering a new entity on the Financial Service Providers Register (FSPR)

* Inclusive of GST

For more information on fees and levies, see MBIE’s website.