The FMA has published an information sheet for financial advice providers (FAPs) to help them demonstrate their compliance with record keeping obligations.
The regulator says Standard Condition 1 for both transitional FAP licences and full FAP licences states that FAPs “…must create in a timely manner and maintain adequate records in relation to your financial advice service”.
The information sheet – available here – provides an overview of obligations and sets out areas for FAPs to consider when reviewing their record keeping practises. It also includes examples to illustrate how FAPs can demonstrate compliance with the requirements.
James Greig, FMA Director of Supervision says: “Our monitoring of the previous financial advice regime consistently identified poor record keeping as an area of concern.
“This included insufficient records about the services provided to clients and incomplete information on whether key obligations had been fulfilled.”
Greig says good record keeping helps financial advice providers demonstrate that they are serving client interests.
“We know that many financial advice providers are adapting and evolving their processes to comply with this standard condition, so we are trying to help the industry with this practical information sheet,” he says.
See our story: Good Record Keeping is Good Business