The FMA has reported that over seven thousand advisers are associated with transitional licenses and that two thousand advisers are yet to decide. The FMA has said that those advisers still considering options shouldn’t delay the decision process. Chris Revell, senior adviser for licensing, has warned that the usual processing time of 10 working days could increase as a result of last minute submissions.
“Over seven thousand advisers are now linked to a transitional license, though the FMA says that there are still approximately two thousand considering their options - and the regulator is warning those advisers not to delay things any further.
With the new regime beginning on March 15, 2021, and the FMA’s offices closed over the Christmas period, senior adviser for licensing Chris Revell says that advisers should not wait until the eleventh hour to hand in their applications. He says that although the current processing period is 10 working days, that can easily increase if the FMA gets a flurry of last-minute applications.”
The FMA has said that it is happy that over 1,000 additional transitional licenses have been issued. The regulator elaborated by saying that there are over 370 authorised bodies associated with the additional transitional licenses. Furthermore, 80% of licenses issued have been to smaller adviser businesses that have up to five advisers, with half being sole advisers.
““We’ve issued over 1,000 additional transitional licenses, and we’re very happy and pleased with the uptake in the industry so far,” Revell commented.
“Linked to those licenses are over 370 authorised bodies, and we’re continuing to see a steady stream of applications coming in daily. Processing times are on average around 10 working days, but of course that varies with the individual circumstances of each application.”
If we look a bit further into the figures, up to 80% of the licenses we’ve issued cover financial advice providers who have up to five advisers linked to them, and around half of those are single adviser businesses,” he added.
“That really covers the smaller end of the market, and we’re happy to see those figures coming through. However, the 9,500 AFAs and RFAs registered on the FSPR today give us an indication that there are a few thousand advisers out there still considering their options.””Click here to read more
The reported information indicates a slowing in the rate of licence applications and a reduction in capacity in the bank channel.
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