Change to Transitional Licensing Start Date

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The FMA has announced a revised start date to transitional licensing of 25 November 2019, following MBIE’s confirmation that a number of regulations relating to the new financial advice regime have been published.

MBIE stated that regulations are unable to come into force until at least 28 days have passed from the date they are notified in the New Zealand Gazette.

“Accordingly, the regulations needed for transitional licensing will come into force on 25 November 2019, while the remainder of the regulations will come into force on 29 June 2020,” said MBIE Manager Financial Markets, Sharon Corbett.

“The regulations relating to licensing fees and registration need to be in force before the FMA can start processing licence applications. Unfortunately this means the FMA will be unable to start accepting transitional licence applications before 25 November 2019,” she said.

The FMA stated in an update, “You will have more than six months to apply, but we recommend you apply early to ensure you have your licence in time for the start of the new financial advice regime on 29 June 2020,” it said.

MBIE said the regulations give effect to previous policy decisions announced in June this year, and:

  • Set 29 June 2020 as the commencement date of the new financial advice regime, from which point all of the remaining provisions of the Act come into force
  • Amend the FMA levies to recover the same amount of funding from the financial advice sector (as previously set out here)
  • Set the licensing fees that will apply in the new financial advice regime (as previously set out here)
  • Make minor changes to the registration regulations to facilitate transitional licensing