Due to the COVID-19 pandemic, the Government has delayed the start date for the new financial advice regime from 29 June 2020 to early 2021. The transitional licensing application window remains open until then. MBIE will communicate the new start date well in advance. In the meantime, the current Financial Advisers Act 2008 continues to apply.
To use the term “financial adviser” from early 2021, you must be engaged by a licensed financial advice provider.
Only individuals can be financial advisers. You will NOT need to apply for a transitional licence.
If you are currently listed on the FSPR as an “authorised financial adviser” (AFA) or a “registered financial adviser” (RFA) you will be automatically reclassified as a “financial adviser” when the new regime begins in early 2021.
You will need to be engaged by a licensed financial advice provider in order to provide advice when the new regime begins (exact details on how to do this on the FSPR will be released in the coming months). If you are not engaged within the first three months of the new regime, you will be de-registered.
If you are not currently listed on the FSPR, you can still apply to be an AFA or RFA before the new regime begins. Find out about becoming an AFA, or an RFA.
What you can do now
Make sure that your information on the FSPR, including your contact details, is up to date.
Start a conversation with a licensed financial advice provider – this maybe your existing employer.
Once you’ve engaged with a financial advice provider, ask them to explain your duties and obligations under the law while working on their behalf.
Plan how to meet any skills or knowledge gaps, and understand how the competency safe harbour might apply to you – the financial advice provider you will be working for may be able to support you with this
If you’re currently listed on the FSPR as an AFA or an RFA you have nothing to pay. However, from early 2021, you will be charged an annual levy of $304.75*. You will also be charged $86.25* each year to stay registered.
Nominated representatives do not need to register on the Financial Service Providers Register and do not personally have to pay a levy as this will be covered by the financial advice provider.*