FMA Releases New Tool and Details on Transitional Licensing Applications


The Financial Markets Authority has announced it will start accepting transitional licence applications from 4 November 2019, as part of the new regime for financial advice.

The regulator has released an online decision tool to help adviser businesses through the change, called ‘Explore your options’.

The tool is designed for advisers who are still considering the following:

  • How to operate in the new regime
  • Where they fit in
  • What their duties are
  • The costs involved
  • Next steps they need to take

FMA Director of Market Engagement, John Botica, says “We’ve spoken to hundreds of advisers over the past year and received an overwhelming request for straightforward, practical support on how to operate in the new regime.”

“Many advisers are still unsure what path they want to take in the new regime.”

“‘Explore your options’ has been developed as a guide to get advisers started. We tested it with some advisers and modified it based on their suggestions to ensure it best meets advisers’ needs,” he said.

The regulator stated the new tool should only be used as a general guide as it does not cover all possibilities, such as the more complex business arrangements or those that mostly apply to larger organisations.

Botica noted they will continue to update the information in the tool as more details are confirmed.

The FMA said the process to apply for a transitional licence would be straightforward and in most cases managed entirely online.

“Transitional licensing will give us a better sense of who is operating in the market – helping us anticipate the number of full licence applications and resources needed for ongoing monitoring and supervision,” said Botica.

The FMA has also published a guide to applying for a transitional licence, providing an outline of what applicants will be asked as part of the application process.

Click here to view the new tool and click here to read the guide.