The majority of financial advisers intend to join the new licensing regime, according to a survey conducted by Financial Advice New Zealand.
A survey of the association’s members showed that 80 percent of respondents said they had determined how they will give financial advice, when asked how they or their companies would operate under the new licensing regime.
Of those 80 percent:
- 48% said their own firm is becoming a licensed financial advice provider (FAP)
- 21% said they intend joining a large licensed FAP
- 12% said their employer was becoming licensed
Twelve percent said they had yet to make up their mind about what route to take, while seven percent said they hadn’t thought about it or didn’t understand enough yet.
Of total respondents, 90 percent indicated they have been part of the financial advice sector for more than a decade. Around 60 percent of those have been in the sector longer than 20 years.
Financial Advice NZ Chief Executive, Katrina Shanks, says she is encouraged by the survey results.
“These are great numbers because they show a lot of very experienced financial advisers have already decided what they’ll be doing come June next year. They know who their FAP is going to be,” she said.
“…the new regime is not scaring off advisers, particularly the most experienced ones.”
“That’s a good thing from both the sector’s and public’s point of view because it means the new regime is not scaring off advisers, particularly the most experienced ones.”
Shanks added that the retention of the sector’s most experienced advisers will help drive increasing levels of public trust.
She noted hopefully it will also encourage those who haven’t yet decided their route to look at the options available, as advisers who haven’t applied for a FAP transitional licence before June will have to either wait until they gain a full licence or provide advice under another FAP’s licence.
“The new regime, running as it will alongside the new Code of Conduct, is a positive move forward because it will enable those seeking advice to more easily understand a professional adviser’s expertise and to know they are in capable hands that are subject to good regulation,” said Shanks.
Financial Advice NZ encourages advisers who have still to decide about their future to check out the options on the FMA website, or call the Financial Advice NZ help desk.
A total 164 respondents took part in the Financial Advice NZ survey.