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.
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
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 the next three years. As an indication, the FMA levy payable for annual confirmations that fall between 15 March 2021 – 30 June 2021 will be: $299* for the financial advice provider plus $253* for each nominated representative, payable by the financial advice provider. And $345* payable by each financial adviser. These amounts increase from 1 July 2021 to $322 for the financial advice provider plus $276 for each nominated representative and $391 for each financial adviser. Note if your business is the financial advice provider and you’re a financial adviser, don’t forget to include yourself when working out the costs. For example, if you engage two nominated representatives to work with you, the total cost will be $1,150* ($299* + $345* + ($253* x 2)), increasing to $1,265* from 1 July 2021. For full details, including the increased levy amounts (exclusive of GST) that will apply from 1 July 2021 and 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. 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)