THE FINANCIAL SERVICES LEGISLATION AMENDMENT ACT (FSLAA - formally 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 2019 - MINISTER FAAFOI
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NAVIGATING REGULATION 2019 UPDATE
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CODE OF CONDUCT
> The draft Code of Conduct is available now;
> The final Code of Conduct must be 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) consulted about disclosure in May 2018;
> MBIE suggested the regulations would tell advisers what to disclose and when to disclose it, but not how to disclose it;
> We await draft regulations.
> 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
> Transitional licence $363 plus $39 per authorised body;
> Full licence $575-$885, plus $155 per authorised body and $155/hour for complex cases;
> Annual levy for financial advice providers $230, plus $267 per financial adviser, $179 per nominated representative, $1,106 for automated advice.