Financial Advisers Offered Self-Assessment Licensing Tools


Three new self-assessment tools to help financial advice providers (FAPs) prepare for full licensing have been released by the FMA.

John Botica, FMA Director of Market Engagement, says the tools are a response to market feedback and will help providers to address gaps in their compliance approach.

“We recognise that the requirements of full licensing can seem like a big step up, particularly for smaller advice businesses,” says Botica.

“These tools are designed to help them identify the aspects of their business where they’re already compliant, as well as those areas where they might need to do a bit more work in order to apply for a Class 1 or Class 2 full licence.”

The tools take the form of a checklist, which financial advice providers can use to assess their business practices. Used in conjunction with the full licence application kit, the tools aim to give transitional licence holders the confidence to apply for a Class 1 or Class 2 full licence.

FMA Director of Market Engagement John Botica says financial advisers not operating under a transitional Financial Advice Provider licence will need a full licence.
FMA Director of Market Engagement John Botica.

“Every advice firm is different, and the new regime recognises that,” says Botica. “We hope these tools will help encourage financial advice providers to assess their level of compliance and respond to the obligations and requirements in a way that suits their businesses – and customers – best.”

The first tools focus on three of the seven standard conditions that apply to FAP full licences and coverrecord keeping; cyber security and business continuity planning; and key outsourcing arrangements.

Botica says more self-assessment tools will be developed and added to the FMA website in plenty of time for FAPs preparing to submit their full licence applications by the target date of 30 September 2022.

The full set of self-assessment tools will be added to the FAP page of the FMA website as they become available.

Download the following FMA tools:

  1. Record keeping self-assessment tool
  2. Cyber security and BCP self-assessment tool
  3. Key outsourcing arrangements self-assessment tool