Leading the pack as this week’s most-read Riskinfo story is our report that hundreds of advisers were sidelined on 17 March…
While the vast majority of advisers carried on trading as normal on 17 March, hundreds were left at the starting gate, yet to obtain the required licence.
“There are still a number of FAPs who do not have their full FAP licence and this means they will need to cease providing financial advice until they have it,” says training firm Strategi.
There were more than 500 advisers still working through their Level 5 qualification on 16 March 2023, and most of these were providing financial advice, but will have had to stop, until they are qualified and become linked to a licensed FAP.
“It is likely the FMA will be closely watching these individuals and the FAPs that employ them,” notes Strategi.
“These individuals may struggle to adequately service new or existing clients as it will be difficult to move from providing financial advice to a new role of providing information only.
“For FAPs with unqualified advisers, processes will need to be in place to handle clients of these individuals.”
Strategy says this is potentially a high risk area, so sound advice should be sought on how to handle this situation.