When changes come into effect

Financial Advice Code Working Group begins developing new Code of Conduct – (this started in August 2017).

Bill referred to the Economic Development, Science and Innovation Committee.

Submissions on the Bill closed.

Select Committee report due.

Parliament passed the Bill and it received Royal Assent.

The Minister of Commerce and Consumer Affairs approved the new Code of Conduct.

New regulations are developed, consulted on and finalised.

Transitional licensing opens.  We will be accepting applications for a transitional licence until the start of the new regime in early 2021. 

Full licensing opens at the start of the new regime in early 2021. 

• Transitional licences come into effect and all financial advice providers with retail customers must now hold a transitional licence. A transitional licence is valid for up to two years and enables financial advisers and nominated representatives to continue providing the advice they were legally able to provide before the new regime was introduced. This gives you time to meet any new competence, knowledge and skills standards needed.
• To continue providing advice, all financial advisers and nominated representatives must be engaged by a financial advice provider with a transitional licence.
• New regime and new Code of Conduct comes into effect.
• All new obligations and duties apply.
• Competency exemption comes into effect. You can continue providing the advice you were legally allowed to provide before the new regime came into effect while you work towards achieving the new competency standards.
• You can now apply for a full licence.
• Financial Advisers Act repealed.
• FMC Act and FSP Act amended to reflect new regime (to the extent not already done).

After two years, the transitional licence period ends, all remaining transitional licences expire and advice can no longer be provided under a transitional licence. If you’re a financial advice provider, you must have a full licence to continue providing financial advice. If you’re not applying for your own licence, you must be engaged by a licensed financial provider who covers you under their licence. The competency exemption also expires and you must meet the competency requirements under the Code of Conduct.