The FMA is encouraging financial advisers to apply for their transitional licences by the end of the year, as the Government announces final details of the new financial advice regime.
The Government has released the disclosure requirements for financial advisers operating under the new regime and has set the start date for 15 March 2021 (read our story here).
John Botica, FMA Director of Market Engagement says the developments mark the final steps towards the implementation of the Financial Services Legislation Amendment act.
We encourage advisers who haven’t begun the transitional licensing journey to actively consider their options under the new regime…
“The disclosure requirements are an important component of the new regime as they will ensure consumers have clarity and transparency around the financial advice they’re receiving,” he said.
“We encourage advisers who haven’t begun the transitional licensing journey to actively consider their options under the new regime.
“We recommend advisers who intend to obtain a transitional licence file their application as soon as they are ready, ideally before the end of the year as a contingency.
“That way, you won’t be under pressure just before the regime begins and will have time to prepare for your new obligations.”
As of Monday, the FMA had granted 850 transitional licenses, representing an estimated 6,500 financial advisers.
Annual returns
Botica added that AFAs will not be required to submit their annual ‘information returns’ this year, providing regulatory relief ahead of the new regime.
All other obligations under the FA Act 2008 and current Code of Professional Conduct remain in force until the start date of the new regime, says Botica.
The Government’s announcement today follows the FMA last week beginning consultation on proposed licence classes and standard conditions for full licensing of Financial Advice Providers (read that story here). The FMA’s consultation closes on 7 August.