All Authorised Financial Advisers (AFAs) must abide by the Code of Professional Conduct. The Code says that before providing a financial adviser service an AFA must have the competence, knowledge and skills to provide that service. AFA applicants must also show that they meet the required levels of competence when they apply.
The National Certificate in Financial Services (Financial Advice) (Level 5) is prescribed in the Code as the minimum standard of competence for AFAs. This qualification is made up of unit standards grouped together into Standard Sets A, B, C, D and E:
These Unit Standard Sets are registered with NZQA on the National Qualifications Framework, providing a nationally recognised, measurable standard across the financial adviser sector.
See The Skills Organisation website.
The Financial Market Authority will check that advisers applying for authorisation meet the required competence standards.
To become an AFA a person must provide evidence that they have:
All advisers seeking authorisation must complete Standard Set B which demonstrates knowledge of the Code and other relevant law including the Financial Advisers Act 2008 and consumer protection law.
Advisers need to upload copies of qualification documents when they apply for authorisation online at Financial Service Providers Register.
For more information see the Code of Professional Conduct for Authorised Financial Advisers and the AFA Authorisation Guide.
The Skills Organisation, the national standards setting body for the financial services industry, makes sure there is sufficient, appropriate training available and manages the competence assessment process for the authorisation of financial advisers. See the The Skills Organisation website for information about training and assessment.
For other information about alternative qualifications, designations and lapsed designations and application requirements read the AFA Authorisation Guide.
The Code does not include any foreign qualifications in the list of alternative qualifications or designations. If your qualification or designation is not currently recognised in New Zealand then you should apply to The Skills Organisation to be assessed and examined against individual unit standards (within the National Certificate in Financial Services (Financial Advice) (Level 5). You can do this without undertaking any additional training; however, it would be wise to first check with The Skills Organisation whether assessment only options are appropriate for you.
FMA has limited powers to exempt any person, class of person or activities from complying with any section of the Financial Advisers Act, associated regulations or the Code. FMA will limit the use of its powers to cases that meet prescribed statutory criteria, and all exemptions will be based soundly on the policy of the law.
The Code Committee was appointed in July 2009 and developed the Code of Professional Conduct for Authorised Financial Advisers.