Consultation: Proposed regulatory returns for licensed Class 3 Financial Advice Providers (FAPs)

February 2023 

We have now published the final regulatory returns questions, along with a Regulatory Impact Statement that sets out our considerations in relation to the options we considered against the objectives of the regulatory reporting (see resulting documents above). We would like to thank all submitters for their feedback. 

September 2022 

This consultation may be relevant to financial advisers, nominated representatives and authorised bodies. The FMA welcomes feedback from other interested parties, such as industry associations, financial service law firms, training providers and compliance consultants.

Financial advice companies who hold a full financial advice providers (FAP) licence are required to comply with certain conditions. Conditions are imposed by the Financial Markets Authority (FMA) under section 403 of the Financial Markets Conduct Act 2013 (FMC Act), which includes the standard conditions for full FAP licences.

Regulatory returns requirements fall under Standard Condition 3 and apply in respect of any regulated financial advice provided to retail clients. Regulatory returns must be provided on a periodic basis to the FMA, so the information provided can be used to monitor licensees' ongoing capability to effectively perform licensed financial advice services.

This consultation outlines the questions we propose to ask in the regulatory returns for Class 3 FAP licensees; and invites feedback on the appropriateness and format of the information we intend to collect.