Consultation paper: Proposed exemption to facilitate personalised digital advice

Updated 22 February 2018

Update 

22 February 2018

The finalised unsigned version of the exemption notice to enable personalised digital advice services, along with application information, has now been published (see above).

Please note that the exemption notice will be signed and come into effect once the first application has been approved.

We have also published a regulatory impact statement and response to submissions report (see above) that contains a summary of the key themes and includes copies of individual submissions from the second consultation.

We are now open for applications by providers for the exemption. See Apply for digital advice exemption for more information.

Update 

16 November 2017

We are seeking comments on how our decision to grant an exemption to enable the provision of personalised digital (robo) advice is reflected in the draft exemption notice and application documents.

The policy decision to proceed with the exemption is not open for review.

We want your feedback on:

• the draft exemption notice
• the draft information sheet- that explains the exemption notice, including providing guidance on the exemption conditions
• the draft application documents – an application form, ‘good character’ declaration form, and application guide. The application guide sets out; the minimum standards applicants will need to show they meet, all the questions in the application form, our comments about these.

Submissions close 5pm, Friday 15 December 2017.

Update 

18 October 2017

We have decided to grant an exemption to enable the provision of personalised robo-advice services.  This will allow personalised robo-advice to be provided under the current financial advice regime, promoting innovation and improving consumer access.  Providers will need to apply to the FMA to rely on the exemption.

We aim to finalise the exemption and be open for applications in early 2018.  The exemption will be revoked once the new financial advice regimecomes into effect in 2019. 

We aim to publish a second consultation in November that will seek feedback on the draft exemption notice and application details. The decision to proceed with the exemption will not be open for review. 

Please see our response to submissions report that contains a summary of the key themes and includes copies of individual submissions from the first consultation.

21 June 2017

We are considering using our exemption powers to facilitate the provision of personalised robo-advice services.  Our current preference is to do this through a class exemption, if practicable.  The current regulatory settings impede the development of personalised robo-advice models in the New Zealand market.  This situation is proposed to be addressed through changes to financial adviser laws; however, these law reforms are not likely to come into effect until 2019. 

If granted, the exemption will enable entities to provide personalised financial advice through a digital channel before the law reform, provided they comply with certain conditions which are outlined in this paper.  This will facilitate greater access to advice for consumers while providing consumer protection safeguards.

We welcome your feedback on the exemption proposal discussed in this paper. Please use the feedback form at the back for any comments.

Submissions closed on Wednesday 19 July 2017.

If you have questions, please contact us at [email protected]