Licensing
- You will hold your own financial advice provider licence and will engage other financial advisers to work with you.
- You can apply for your transitional licence online from Monday 4 November 2019.
- The licence can be in your business name or your individual 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).
- Anyone you’re engaging to provide advice must be either a financial adviser or a nominated representative – they cannot be both.
- There will be two phases to the licensing process – transitional and full. See ‘Who will need a licence to provide financial advice’ to learn more.
For general information about business structures, visit business.govt.nz.
Duties and obligations
- Ensure your clients understand the nature and scope of the advice you’re providing
- Give priority to your client’s interests where there’s a conflict of interest
- Exercise care, diligence and skill at all times
- Comply with the new code of professional conduct for financial advice
- 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 to 7
- Tell the FMA if you materially contravene your obligations or make significant changes to your business
If you decide to engage nominated representatives in future, 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 you are:
- a QFE, or
- a firm registered on the Financial Service Providers Register that provides class advice through unregistered staff.
Cost
| Charge |
Amount |
|
Transitional licence application fee (payable to the FMA)
|
$405 (ex GST)
|
|
Full licence application fee (payable to the FMA)
|
$767 (ex GST) for standard applications
For complex applications that take longer than three hours, we will notify you and charge $155 per hour for any additional time
|
|
Annual FMA levy (payable to the Companies Office at FSPR annual confirmation)
|
$225 (ex GST) for the financial advice provider plus $265 for each financial adviser
Note if your business is the financial advice provider, don’t forget to include yourself as a financial adviser when working out the costs. For example, if you engage four financial advisers to work with you, the total cost will be $1,550 ($225 + ($265 x 5))
|
|
FSPR annual confirmation fee (payable to the Companies Office)
|
$75 (ex GST) for the financial advice provider plus $75 for each financial adviser
|
|
Initial FSPR registration fee (Payable to the Companies Office)
|
$300 (ex GST) plus $460 levy (ex GST) if registering a new entity on the Financial Service Providers Register
|
For more information on fees and levies, see MBIE’s website.
Next steps
