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Legal and regulatory update for the life and health insurance sector

Get a transitional licence

If you already have a transitional licence or a signed contract with a company that has one, then this doesn't apply to you. If you haven't signed up - one way or another - It is time to get a transitional licence.

We know that the Financial Markets Authority strongly recommended that financial advice providers apply before Monday 14 December 2020 to ensure that their licence application can be processed before the start of the new financial advice regime on 15 March 2021.

That is now less than a month away.

If you are a financial advice provider and with a limited company and you do no not have an FSP number or have not indicated on the FSPR correctly that you intend to apply for a transitional licence, there can be delays. Do not let those trip you up - get on with it now. 

If you are relying on another financial advice provider to bring you in under their licence (as an FA, or an authorised body) and you have not agreed the terms of your contract then you should view the transitional licence as a small insurance policy. For $500 you protect your right to continue to receive renewals and give advice. If you don't buy it and you are let down or don't like the contract you could lose your whole business - including the right to receive renewals according to some agency agreements - for failure to simply get a transitional licence.

I believe in insurance and that is a low-cost piece of coverage worth having. 

If your financial advice business is just one company, and has an FSP number, the process to apply for a transitional licence may only take about 20 minutes.

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