Financial Advice New Zealand has welcomed the FMA’s idea of having three classes of licence for financial advice providers (see: FMA Consults On Full Licence Standard Conditions).
Katrina Shanks, CEO of Financial Advice NZ, says having three licence classes is a change for the sector but believes it will be widely supported.
She says: “Financial Advice NZ supports a system that offers licences that fit the scale, size and different financial advice that businesses provide, be they for a single-adviser business, a multiple adviser business, or something more complex, such as a licensed FAP engaging multiple advisers as well as having nominated representatives.
“This system will be beneficial to small businesses that do great work providing personalised financial advice to clients and who will have a system that’s fit for purpose.”
The regulator’s consultation document on the classes and standard conditions to be imposed on full licences was released ahead of a sold-out webinar hosted by Financial Advice NZ, where the FMA’s John Botica gave members the first look at the proposed conditions.
The full regime will come into effect two years after the Financial Services Legislation Amendment Act is enacted early next year.
Shanks welcomed the document and the long consultation period, which closes on 7 August.
It’s great the FMA has listened to what the sector has been saying…
Of the eight standards proposed by the FMA, she said Financial Advice NZ had particular interest around four of them.
“It’s great the FMA has listened to what the sector has been saying on the standard conditions for full licences, and we will be particularly interested to see how standards in relation to outsourcing, business continuity, technology systems, and professional indemnity evolve in this process.
“We are pleased, as John Botica said today, that businesses will be expected to apply only systems proportionate to the size of their business. That makes perfect sense.”
…businesses will be expected to apply only systems proportionate to size of their business…
Financial Advice NZ will be holding a webinar at 10am Friday 19 June to discuss the FMA’s announcement. It will also be delivering workshops around New Zealand during September, once the consultation period and any amendments have been finalised.