You can apply for your transitional licence online.
The licence can be in your business name(if, for example, you run your business through a company and your company will hold the licence with you as the individual adviser) or your individual name, if you personally 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 (we will provide more information about this soon).
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
Tell the FMA if you materially contravene your obligations or make significant changes to your business
If you decide to engage others to provide advice on your behalf in future, you must make sure they comply with duties 1 to 7. If you engage nominated representatives, you must have appropriate processes and controls in place to allow you to control the advice being given and the circumstances in which it is given. You must also ensure all nominated representatives comply with these processes.
You can only use nominated representatives under a transitional licence if before applying for your 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 staff.
Transitional licence application fee (payable to the FMA)
Full licence application fee (payable to the FMA)
$703.80* for standard applications.
For complex applications that take longer than two 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)
$563.50* if your business is the financial advice provider and you are a financial adviser providing advice on your business’s behalf ($258.75* + $304.75*)
$1,106.30* if you’re a financial advice provider giving advice purely on your own account ($258.75* + $847.55*)
FSPR annual confirmation fee (payable to the Companies Office)
2 x $86.25* if your business is the financial advice provider and you are a financial adviser providing advice on your business’s behalf 1 x $86.25* if you’re a financial advice provider giving advice purely on your own account
Initial FSPR registration fee (payable to the Companies Office)
$345* If you’re a financial adviser who is currently operating as a sole adviser practice, you will need to establish a new registration for your company on the Financial Service Providers Register (FSPR) if you choose to operate in a similar way in the new regime. To provide some relief as you transition to the new regime, you won’t need to pay the initial $529.00* FMA levy to register your business as a provider of a financial advice service for the first time. This relief will only apply if you are currently relying on the single adviser practice exemption and choose to adopt a similar model in the new regime. This relief will apply for those registering their business on the FSPR from 25 November 2019 to 28 September 2020. For more details, visit the Companies Office website.