Adviser Self-Licensing Preference Emerges


My most likely response at the moment to the new adviser licensing regime will be to:

  • Obtain my own licence and operate a small advice business (1-2 financial advisers) (67%)
  • Obtain a licence for my advice business and engage multiple advisers (>2) (14%)
  • Retire from the industry (11%)
  • Work for someone else’s business which holds a licence (8%)

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Advisers appear to have concluded they want to be responsible for their own licence when the new adviser licensing regime commences later this year.

Almost two thirds (63%) of advisers taking our poll so far have indicated they’re looking to obtain their own licence and operate a small business comprising 1-2 advisers, while almost another one in five (19%) are looking to secure their own licence and engage more than two advisers.

Only 9% of those taking our poll have indicated they’d prefer to join what will be a licensee firm and to operate their business under the umbrella of the licensee group, while the remaining 9% of advisers have said they will retire from the industry.

What’s unknown, however, is whether the theory …will become a reality

The large proportion looking to operate their own licence once the new regime is introduced will probably encourage the FMA, whose consistent message to advisers has been that the regulator will make it as easy and achievable as it can for advisers to secure and operate their advice business under their own licence.

What’s unknown, however, is whether the theory of the small advice business  maintaining its own compliance responsibilities while remaining profitable will become a reality.

We’ll continue to monitor the Financial Services Legislation Amendment Bill as it progresses through its Select Committee and further hearings before being introduced back into Parliament later this year. …And our poll remains open for another week as we encourage you to have your say and to make your voice heard…