Aggregated News From Investment Management Regulators

FMA reports steady progress on financial advice transitional licensing


Please complete the required fields.

Media Release 

MR No. 2020 – 9

18 May 2020

The Financial Markets Authority (FMA) has said preparations for the new financial advice regime continue to progress despite the disruption caused by COVID-19.

The regulator has approved almost 800 transitional licence applications, representing around 5,500 financial advisers — well over half the estimated number of advisers in New Zealand.

New applications are still being received daily, and the FMA is approving these at a steady rate. The Government has delayed the start date for the new financial advice regime by more than eight months to no earlier than March 2021, to allow advisers to focus on helping clients, customers and families during COVID 19.

FMA Director of Market Engagement John Botica said the current Covid-19 situation shows how vital financial advisers are.

“It’s been encouraging to see a number of financial advisers demonstrating the value they bring to their clients. The extension of transitional licensing deadlines was provided for exactly this reason and we’ve spoken with a number of advisers to hear how they are focusing on their clients’ needs and following the principles of good conduct through these difficult times.”

It is expected that the Government will announce the new start date of the regime later this year, with plenty of advance notice. Advisers and providers can continue to plan for a start date in early 2021.

Financial advice providers that have successfully applied for a transitional licence don’t need to reapply. The transitional licence will take effect when the new regime starts and is valid for two years.

“In the meantime, we urge advisers who have not begun the transitional licensing process to continue to give careful thought as to how they will operate in the new regime,” Mr Botica said.

“Our options tool, website materials and resources from other Government agencies have helped thousands of advisers navigate their options under the new regime. Generally, the feedback we continue to receive is that the transitional licensing process is straightforward and efficient.”

Separately, in June the FMA will begin consultation on the standard conditions for full Financial Advice Provider licences and more information will follow.

Mr Botica said the full licence application process will be completely online and it will be an expanded version of the transitional licence process.



Media contact:

Campbell Gibson

Senior Adviser, Media Relations

[email protected]

021 945 323

Regulator Information

Regulator Name: Financial Markets Authority
Abbreviation: FMA
Jurisdiction: New Zealand

Recent Articles

Proposed amendments to permit reduced margin for swap position partial offsets held in inventory

Executive Summary IIROC is proposing amendments to the IIROC Rules (Proposed Amendments) that would permit margin reductions for Dealer Member (Dealer) inventory offsets of: non-equivalent...

FINRA Requests Comment on a Proposal to Shorten the Trade Reporting Timeframe for Transactions in Certain TRACE-Eligible Securities From 15 Minutes to One Minute

Summary FINRA is soliciting comment on a proposal to amend Rule 6730 to reduce the Trade Reporting and Compliance Engine (TRACE) trade reporting timeframe for transactions in all TRACE-Eligible Secur

FINRA Reminds Firms of Their Obligation to Supervise for Digital Signature Forgery and Falsification

Summary FINRA has received an increasing number of reports regarding registered representatives and associated persons (representatives) forging or falsifying customer signatures, and in some cases s

Notice of Annual Meeting of FINRA Firms and Election Proxy

Summary FINRA will conduct its Annual Meeting of firms on Friday, August 19, 2022, at 10:00 a.m. Eastern Time in the FINRA Visitors Center at 1735 K Street, NW, Washington, D.C.

Get the latest from Regulatory.News in your inbox!