Financial advice providers

New financial advice regime

If you’re a business or individual offering financial advice and investment planning services, these changes affect you. 

About the changes

• In April 2019, the Government passed a new law changing the rules for how financial advice is provided to retail clients. 
• As part of the changes, the Government is removing the three current adviser types – Registered Financial Adviser, Authorised Financial Adviser and QFE adviser – and all advisers will need to meet the same standards. 
• From the start of the new regime, you can only give advice to retail clients if you operate under a financial advice provider licence.
• You can hold your own licence, or you can work on behalf of someone else who holds a licence. 

The new regime changes can be summarised as:

When changes come into effect

• There will be two phases to the licensing process – transitional and full.
• You can apply for your transitional licence online from Monday 4 November 2019.
• For the latest dates, see the timeline from the Ministry of Business Innovation and Employment (MBIE). 

Getting prepared for licensing 

The changes to how we regulate financial advice in New Zealand mean you may now need a licence if you want to continue providing advice to retail clients. 

Already know how you wish to operate under the new regime?

There are 5 different ways to operate under the new regime. Obligations, reading material and costs are detailed out in each of the following:

1. Advisers providing advice on behalf of another financial advice provider
2. Single adviser business
3. Business or individual with financial advisers
4. Business with financial advisers and nominated representatives
5. Business with nominated representatives

Unsure how you wish to operate under the new regime? 

Explore your options

Explore your options

Please choose one:

Next

Understanding the jargon

The Financial Services Legislation Amendment Bill has introduced some technical terms to describe the changes to how we regulate financial advice in New Zealand. The list here explains some of the most common terms. 

Useful links

Keep up to date with the latest news on the changes by visiting the Ministry of Business, Innovation and Employment’s website.

Read the new Code of Professional Conduct for Financial Advice Services to find out what qualifications or skills you must meet to continue providing advice to retail clients.

For information about training options available to you, we recommend you contact The Skills Organisation on 09 525 2590 or at support@skills.org.nz.