THE FINANCIAL SERVICES LEGISLATION AMENDMENT ACT (FSLAA - formerly FSLAB)
> Anyone providing regulated financial advice must be engaged by a financial advice provider who is licensed by the FMA (by Q2 2020, estimated);
> Financial advice providers are liable for the advice, and financial advisers are liable to the Financial Advice Disciplinary Committee;
> All financial advice must meet duties provided in the Bill (from Q2 2020, estimated).
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NAVIGATING REGULATION FEBRUARY 2019 - MINISTER FAAFOI
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NAVIGATING REGULATION FEBRUARY 2019 UPDATE
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CODE OF CONDUCT
> The final Code of Professional Conduct for Financial Advice Services is available now;
> The final Code of Conduct has been approved by the Minister of Commerce;
> Standards of ethical behaviour, conduct and client care;
> General competence is Level 5 Certificate or AFA status, with safe harbour until Q2 2022 (estimated).
> The Ministry of Business, Innovation and Employment (MBIE) released draft disclosure regulations on 10 October 2019;
> The regulations require specified information to be disclosed:
> publicly, such as on your website;
> when you know the nature and scope of advice, such as in your scope of engagement document;
> when you give financial advice, such as in your statement of advice document; and
> when (if) you receive a complaint.
> Financial advice providers must obtain a transitional licence between Q4 2019 and Q2 2020 (estimated);
> Full licence applications expected to open Q2 2020 (estimated);
> We await details of licence criteria from the Financial Markets Authority.
FEES AND LEVIES
On the 19 June 2019, MBIE released the details on fees and levies for the FSLAA regime (excluding GST):
> Transitional licensing fees of $405+GST per financial advice provider (additional fees per authorised body, and for variations).
> Full licensing fee starts between $612+GST (sole adviser business) and $922+GST (financial advice provider with nominated representatives) plus fees for authorised bodies and hourly rates for complex cases.
> Annual levies of $225 per financial advice provider, $265 per financial adviser, $179 per nominated representative, $737 for advice directly from the financial advice provider, and $460 per authorised body in the licence.