You can apply for your transitional licence online. We encourage you to apply early to ensure you have your licence in time for the start of the new regime in early 2021.
Anyone you’re engaging to provide advice must be either a financial adviser or a nominated representative – they cannot be both.
Financial advisers and nominated representatives can both provide advice on behalf of a licensed financial advice provider. However, you can only use nominated representatives under a transitional licence if before 9 April 2019, you were a QFE, a member of a QFE group, or a firm registered on the Financial Service Providers Register that provides class advice through unregistered individuals. This is a statutory licence condition applicable to all transitional licences. Nominated representatives will have less discretion than financial advisers and can only provide advice if you have sufficient processes and controls in place. These processes and controls must:
limit the nature and scope of the advice given
allow you 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.
Please take care completing this step in your transitional licence application. If you indicate that you intend to engage nominated representatives and you do not already have the necessary permission, your application for a transitional FAP licence may be declined.
Only recommend financial products that comply with the FMC Act
Ensure you follow the new disclosure regulations and make sure your client understands the information they are given – we expect draft disclosure regulations to be released for consultation soon
Comply with any licence conditions we may include when granting your licence as well as those set in law
Make sure all financial advisers providing advice on your behalf comply with duties 1- 7
Have appropriate processes and controls in place to allow you to control the advice being given by any nominated representatives and the circumstances in which it is given. You must also ensure all nominated representatives comply with these processes
Tell the FMA if you materially contravene your obligations or make significant changes to your business
Transitional licence application fee (payable to the FMA)
Full licence application fee (payable to the FMA)
$1,060.30* for standard applications. For complex applications that take longer than four hours, we will notify you and charge $178.25* per hour for any additional time
Annual FMA levy (payable to the Companies Office at FSPR annual confirmation)
Note: FMA levies for the new financial advice regime are being developed and will be announced later in 2020 given the delay to the commencement of the new regime due to COVID-19 impacts and in light of Cabinet’s decision to increase the FMA’s funding. Please see the MBIE website for further information.
FSPR annual confirmation fee (payable to the Companies Office)
$86.25* for the financial advice provider. If you are a financial adviser, you will also need to pay $86.25* for yourself
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)