More than 1,000 transitional licences have been issued by the FMA so far this year.
A spokesperson for the industry regulator says that 1,050 transitional licenses have been approved or are under assessment, representing an estimated 7,166 financial advisers and 8,893 nominated representatives.
The FMA has not declined any transitional licence applications, but says some advisers have withdrawn their application and reapplied having reconsidered their application, such as having applied for a licence under their individual name rather than their company.
“We have been encouraging advisers to plan ahead and take the next step they need to be ready for 15 March 2021,” says the spokesperson.
“That may be applying for a transitional licence well before the start of the regime, putting some time aside to read the new Code of Professional Conduct, or having a conversation with the Financial Advice Provider they hope to engage with.”
The new code, which has been signed-off but is not yet in force, includes a raft of ethical, conduct, competence, and knowledge standards financial advisers will need to meet when working with clients under the new regime.
The transitional licence process involves two steps:
- Registering and requesting the transitional service on the FSPR, and
- Applying to the FMA for a licence
The FMA says there are several advisers who have completed the first step but are yet to complete the second.
“We recommend advisers get licensed – or know whose licence they will be operating under – before the summer break, so they have peace of mind,” says the spokesperson.
Advisers with any questions should see either the FMA’s Financial Advice Provider page or its Financial Adviser page, or email the regulator your questions via questions@fma.govt.nz