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As part of the application process a prospective QFE should submit an Adviser Business Statement (ABS) to the FMA.
We will review the document and check it includes the expected information. We need to be satisfied that prospective QFEs have the capacity to, and will:
See section 66 of the Act.
In considering the ABS we may:
FMA will send written confirmation of its decision when the review of the ABS and other enquiries are complete.
This flowchart from the Financial Service Providers Register website shows how registration and grant of QFE status fit together.
A business applying for QFE status must prepare an ABS. The ABS consists of two parts:
The ABS needs be approved by the relevant governing body - usually the board of directors. Maintaining an up to date ABS will be part of the terms and conditions of QFE status, if granted.
Businesses that wish to be partner businesses in a QFE should prepare one joint ABS document to demonstrate that they jointly have capacity.
An ABS allows us to assess a business's capacity to ensure compliance by its financial advisers and maintain procedures for adequate consumer protection. It is:
Read our QFE Adviser Business Statement Guide on how to prepare your QFE ABS, how to submit it and the period of a QFE status. This version has introductory comments that refer to dates now passed, however, the rest remains relevant.
You can also read a summary of feedback that was prepared following the 2010/2011 QFE applications.
Email your ABS to firstname.lastname@example.org.
Your statement is for your internal use and for the FMA. You do not need to make it public unless you choose to. FMA will respect the confidential nature of information in an ABS or any other reports submitted to us.
Information held by FMA is subject to the Official Information Act 1982 and the Privacy Act 1993. These Acts provide for proper access to information held by public organisations and also protect information to the extent consistent with the public interest and preservation of personal privacy. Any request for information held by FMA would be considered in accordance with the requirements of these Acts.
There are grounds likely to provide good reason to withhold sensitive information submitted in an ABS, such as where its release would disclose a trade secret, prejudice the commercial position of the financial adviser business, or breach an obligation of confidence where release of the information would be likely to prejudice future supply of similar information, or information from the same source.
Applicants should tell us if they consider the information provided in an ABS is confidential
Typically this is between 3-5 years. Find out how the period is determined.
FMA may vary the period of QFE status before renewal, on application by the QFE or on the following grounds:
On 8 April 2019, the Government passed a new law changing the rules for how financial advice is provided to retail clients. As part of the transition rules, you do not need to renew your QFE status before the start of the new regime.
If your expiry date is approaching, we will contact you with further information.
To learn more about the changes, see our new financial advice regime webpages.
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