Advisers should be taking the time now to set up their business processes for success, ahead of looming licensing requirements, urges Kepa CEO, Brendon Neal, emphasising the opportunities this presents for advisers.
“Preparing your business to be robust from the point of view of applying for a licence with a regulator or applying to join a licensee is a really positive move and it could enhance the future proposition that you’ve got,” says Neal.
Kepa recently wrapped up its Fit4Licence roadshows held in major centres around the country, where guest speakers spoke to advisers about navigating the new financial advice regime, how to manage compliance and improve their business.
The roadshow asked advisers to think about whether operating under their own licence, under a Financial Advice Provider or exiting the industry is best for their business and how they can best prepare for it.
Advisers voted for what choice they expect to make on licensing requirements in a previous RiskinfoNZ poll, which resulted in the majority opting for obtaining their own licence (click here).
Meanwhile, the FMA recently released the first of a series of fact sheets on licensing which explains who needs a licence (click here).
As the regulator has confirmed applications will be opening for transitional licences from quarter four this year, Neal said the biggest danger for advisers is not taking action now as this is the time for preparations to be made.
“Getting yourself really prepared and organised is the best thing you can be doing for your business.”
“We’re worried about any sense of people not feeling properly informed or being apathetic, as it has happened in regulatory change environments in the past.”
He said advisers need to think about the potential advantages and disadvantages of applying for their own licence versus joining a FAP.
“Think about your model – it might be that you really want to focus on your clients and delivering great advice whilst letting other specialists help with compliance and assurance testing programmes. Then perhaps you should consider joining a FAP,” he explained.
“If you’re confident you have the right processes and a robust business then a licence in your own right might be suitable. We’re here to continue to support either model.”