MBIE has made a package of announcements, which includes a (minor) delay to the start of transition:
As you are aware, the Financial Services Legislation Amendment Act 2019 (Act) introduces a new regime for financial advice. I am pleased to confirm that a number of regulations relating to the new regime were published today. These regulations give effect to previous policy decisions announced in June this year, and:
- set 29 June 2020 as the commencement date of the new financial advice regime, from which point all of the remaining provisions of the Act come into force
- amend the FMA levies to recover the same amount of funding from the financial advice sector (as previously set out here)
- set the licensing fees that will apply in the new financial advice regime (as previously set out here)
- make minor changes to the registration regulations to facilitate transitional licensing.
Regulations are unable to come into force until at least 28 days have passed from the date they are notified in the New Zealand Gazette. Accordingly, the regulations needed for transitional licensing will come into force on 25 November 2019, while the remainder of the regulations will come into force on 29 June 2020.
The regulations relating to licensing fees and registration need to be in force before the FMA can start processing licence applications. Unfortunately this means the FMA will be unable to start accepting transitional licence applications before 25 November 2019. The FMA will provide an update on the new transitional licensing date later today. I apologise for any inconvenience that this might cause.
For more information regarding the new financial advice regime, please visit www.mbie.govt.nz/faareview or https://www.fma.govt.nz/compliance/role/fap-new-regime/.
The FAA Review Team