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FMA offer insights into new regime progress, and more daily news

During a Financial Advice NZ webinar FMA director of market engagement John Botica concluded that the industry responded well to the regime change. Botica highlighted that over 3,000 financial advice providers, 10,000 advisers, and 12,000 nominated representatives are now on board. It was highlighted that there is now a steady flow of full licences applications. Botica made a note to discuss the lack of linking between advisers and FAPs on the FSPR. HE warned that it is important to link as there is the possibility of being deregistered from the FSPR from July. The assumption that the obligations of FSLAA don’t apply to the two-year transitional licence period was debunked,  it was made clear that all obligations of the new regime have been effective since March 15, 2021. Adviser website not reflecting the new disclosure rules was another issue discussed during the webinar. We offer a website review service for advisers looking to ensure they are compliant and have websites that are user-friendly. 

“Just over a month on from the start of the new regime, the FMA has shared a report card on how the financial services industry has adapted to the changes brought about by FSLAA.

Speaking at the Financial Advice New Zealand “Bring in the Experts” webinar, FMA director of market engagement, John Botica, said “The numbers tell us that [the industry] responded well.

“To see over 3,000 financial advice providers, together with 10,000 advisers and 12,000 nominated representatives tells us that the industry stepped up to the mark.”

According to Botica other factors on the positive side of the report card are that traffic of advisers applying for their full licence is starting to pick up.

“We are starting to get a good flow of full licence applications, and we are starting to see those licence approvals [coming] through which is great to see.”

But the report card was far from straight A’s.

On the negative side, Botica noted that many could be better at linking the advisers to the FAP on the FSPR.

“It is really important not to forget to do this. You really don’t want to get to the end of June and be facing the very real possibility of being deregistered from the FSPR.”

Another concern of the FMA is the misconception that the two year transitional licence period is a timeframe where the obligations of FSLAA do not apply.

Botica says, “This is just wrong. All obligations under the new regime took place on March 15. The transition period is in respect to moving to a full licence and to your approach to competency.”

The other low grade on the report card is related to adviser websites not being updated to reflect the new disclosure rules.

“Where we see genuine mistakes we will be sympathetic.” Click here to read more

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