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Starting pistols for the new financial advisers regime

October 25, 2019

Contacts

Partners Andrew Harkness, Josh Cairns, Stuart Evans, James Hawes, Don Holborow
Senior Associates Joanna Lim, Laurette Barnard

The start date of the new financial advisers regime has been announced, Regulations made to implement the transition, and a new opening date set for transitional license applications.

The new regime

A new financial advisers regime will come into effect next year.[1]

The three current adviser types – Registered Financial Adviser, Authorised Financial Adviser and QFE adviser – will be removed. All advisers will need to meet the same core standards.

Only persons who operate under a financial advice provider licence will be able to give advice to retail clients. Advisers will be able to either hold their own licences, or to work on behalf of someone else who holds a licence.

There will be two phases to the licensing process. Transitional licenses will be issued to existing businesses in the run-up to the new regime coming into full effect, after which full licenses will be issued.

Start date of new regime

The date on which the new regime will come into effect has now been set. The start date is 29 June 2020.[2]

Regulations to implement new regime

Additionally, several Regulations to implement the transition to the new regime have been issued. They relate to registration,[3] licensing fees,[4] and levies.[5]

These Regulations generally also come into effect on 29 June 2020. However, to the extent that they need to be in place for the issue of transitional licenses they come into force on 25 November 2019.

Opening date for transitional license applications

The FMA initially intended to start accepting applications for transitional licenses on 4 November 2019. However, the opening date has been pushed out to 25 November 2019 to coincide with when the required Regulations will be in place.[6]

Assistance

If you would like to discuss whether you require a transitional licence, or how the new financial advisers regime will apply to you, please get in touch with one of our contacts.