The Government is proposing to make changes to how financial advice is regulated in New Zealand. The aim is to improve access to high-quality financial advice for all New Zealanders.
If you’re a business or individual offering financial advice and investment planning services, these changes affect you.
If the proposed changes go ahead:
Below are the various steps that must happen to implement the proposed changes. For indicative dates, see MBIE’s timeline.
Financial Advice Code Working Group begins developing new Code of Conduct – (this started in August 2017).
Bill referred to the Economic Development, Science and Innovation Committee.
Submissions on the Bill closed.
Select Committee report due.
New Code of Conduct is approved by the Minister of Commerce and Consumer Affairs. New regulations are developed, consulted on and finalised.
Transitional licensing opens. We will be accepting applications for approximately six months.
Full licensing opens six months after transitional licensing opens.
After two years, the transitional licence period ends, all remaining transitional licences expire and advice can no longer be provided under a transitional licence. If you’re a financial advice provider, you must have a full licence to continue providing financial advice. If you’re not applying for your own licence, you must be engaged by a licensed financial provider who covers you under their licence. The competency exemption also expires and you must meet the competency requirements under the Code of Conduct.
- Consider what the changes mean for your medium - and long-term business plan.
- Identify and engage the best resources to help you with your decision-making – including your professional adviser association, product providers and legal adviser.
- Begin formalising business processes and procedures, and continue your learning and development.
You’ve been asking us lots of questions about the proposed changes. Here we provide answers to some of the most common questions we’ve been receiving at various conferences, forums and meetings. We plan to update these FAQs over time, so if you can’t find the answer you need, please email firstname.lastname@example.org.
Keep up to date with latest news on the proposed changes by visiting the Ministry of Business, Innovation and Employment’s website.
For details on how the Bill is progressing, visit the Parliament website.
To register on the Financial Service Providers Register visit the Companies Office website.
To ask us a question or give us feedback, email email@example.com or call us on 0800 434 567 (+64 3 962 2698 if calling from overseas).
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