As of 24 June there are 9,926 financial advisers registered on the FSPR. It is being reported that the number of advisers currently on the FSPR is likely to decrease. Since 15 June, 72 FSPs have been deregistered, with just 51% being voluntary. MBIE business registries national manager Rob Rendle has said that there hasn't been any deregistration because financial advisers failed to link with a FAP, although 550 linking failure notices were issued in June. Those that received the notice will have 20 days to update their registration. Rendle has noted that MBIE will only be able to update the registration figures after the 20 day period.
“Almost 10,000 financial service providers are now registered to provide financial advice in New Zealand according to the Companies Office, up by 748 from March 15 this year.
However, that number is expected to drop with about 550 financial service providers (FSPs) being sent letters from the Companies Office warning them of imminent deregistration.
Statistics (see below) provided to Good Returns by the Ministry of Business, Innovation & Employment state that as of June 24, 9926 FSPs were registered on the Financial Service Provider Register (FSPR), up from 9168 as of March 15.
Since June 15, 72 FSPs have been deregistered - 37 of those were voluntary deregistrations, 34 failed to provide annual confirmation and one was deregistered for failing to provide approved dispute resolution scheme details.
Ministry of Business, Innovation & Employment business registries national manager Rob Rendle says the Registrar has not deregistered any financial advisers for failure to link themselves to a financial advice provider (FAP) "...as he first has an obligation to give notice of intention to deregister".
"On 17 and 18 June we gave notice to those FPSs who had not engaged with a FAP by 15 June 2021. About 550 notices had been issued.
"Those FSPs have a 20 working day objection period within which to update their registration.
"Deregistration numbers won’t be known until the 20 working days has passed, and the Registrar has completed deregistration. FSPs will be sent a notice confirming deregistration once it’s completed," Rendle says.
FSPs on the FSPR:
- FSPs registered as financial advisers on the FSPR as at 15/03/20: 9316
- FSPs registered as financial advisers on the FSPR as at 15/03/21: 9178
- FSPs registered as financial advisers on the FSPR as at 24/06/21: 9926
Financial Adviser FSP removals since June 15, 2021:
- Failure to provide annual confirmation: 34
- Statutory Notification (failure to provide approved Dispute Resolution Scheme details): 1
18 June 2021 – NZX announced four appointments to the NZ Markets Disciplinary Tribunal for a three-year term, including John Dixon QC, Pip Dunphy, Dave Roberton and Rachael Newsome. https://www.nzx.com/announcements/374147
19 Apr 2021 – Dentons Kensington Swan advised that the international Financial Action Task Force (FATF) had consulted private sector stakeholders on an update to FATF guidance on the risk-based approach to virtual assets and virtual asset service providers, with consultation having opened on 19 March 2021 and with submissions closing on 20 April 2021.
1 Apr 2021 – MBIE published a discussion document seeking public input into problems and proposed options to address jurisdictional inconsistencies between approved dispute resolution scheme rules, with submissions closing on 6 May 2021. https://www.mbie.govt.nz/have-your-say/review-of-approved-financial-dispute-resolution-scheme-rules/ This review process does not include the option of merging the scheme (along the lines of the Australian approach). The review looks at limits, consistency, and jurisdictional issues that may affect claimants. It is well worth taking a look at the document - advisers that have had claims would be advised to take a look too, your feedback may be especially valuable.
AIA chief partnership insurance officer Sam Tremethick shared insights on AIA Vitality to mark the anniversary of the launch. Tremethick noted that AIA Vitality has been embraced by clients and the wider community. Although AIA has reported a high level of engagement, Tremethick has said that the insurer is looking to introduce enhancements next month. Tremethick described AIA Vitality as the cornerstone of what AIA does in terms of shared values.
““We’re over a year into Vitality being launched here in New Zealand, and the great thing is that the community and our clients have really taken to it,” Tremethick commented.
“We’re planning to release some further updates in March which will provide some further benefits to clients, and a further update will happen in June.”
“We’re continuing to evolve, but we’re already seeing some incredibly high levels of engagement,” he added.
“The release of the Apple Watch benefit last year also increased people’s interest in the programme, so we’re certainly continuing to come up with new ideas.”
Tremethick says that Vitality has been key to its mission of helping Kiwis improve their health and catch illnesses early, and he says the annual health check benefit and premium incentives have been very successful in promoting these goals.
MBIE has published a document covering adviser and FAP responsibilities under the new regime. The document first sets out the rules of engagement, stating that every adviser must be engaged or linked to a FAP. Advisers must ensure the FAP registers the engagement on the FSPR. But to link to FAPs, advisers must first provide the FAP with their name and FSP number.
From 15 March, advisers must have these things before linking to a FAP:
A RealMe® login
An online services account with the FSPR
Authority to update records on behalf of the financial advice provider
In order for advisers and FAPs to engage, FAPs must:
Log in to your online services account using your RealMe ID and password, and locate your registration in the ‘FSP Registrations’ tab of your dashboard.
On the ‘View FSP details’ screen, select the ‘Financial Services’ tab and click the ‘Maintain Financial Services’ button.
Scroll down to the ‘Financial advice service’ where you’ll see the FAs, if any, that you’re linked to.
Click the ‘Add Financial Adviser’ button and search for the FA you wish to engage, using their FSP number or name. Select the FA from the drop-down list, and indicate whether or not they will be covered by your dispute resolution scheme (DRS).
Repeat step 4 above for each new financial adviser you add. Please note, multiple advisers are displayed alphabetically. (Cont.)
When you’ve finished updating your registration, click on ‘Next Step: Declaration’. Review and confirm the declaration.
Click on ‘Next Step: Review’. Review the information you have entered and tick the check box to confirm the information is true and accurate
Click on the ‘Submit’ button at the bottom right of the screen.
Viewing the FAPs financial services, you’ll see that the FAs now appear on the ‘Financial Services’ tab.
To support the new regime being implemented, the FSPR will also be updated. The Companies Office will release guidelines and videos to help users closer to the date.