Who needs to comply
Qualifying financial entities (QFEs) are companies or organisations that are registered on the Financial Service Providers Register and have been granted QFE status. An organisation that employs a number of financial advisers may want to become a QFE. The benefits of becoming a QFE vary for each organisation depending on:
- the product category on which advice is given
- whether the product is provided by the QFE (or QFE group) or a third party, and
- whether advisers also provide an investment planning service.
QFE status enables an organisation to streamline the registration, disclosure, dispute resolution and supervision arrangements that will apply to its advisers under the financial adviser regime. In return, the QFE takes responsibility for its advisers' compliance. Further discussion on the benefits and obligations of QFE status is set out in the QFE Adviser Business Statement Guide.
