THE FINANCIAL SERVICES LEGISLATION AMENDMENT ACT (FSLAA)
> Anyone providing regulated financial advice must be engaged by a financial advice provider who is licensed by the FMA, by early 2021;
> 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 Act, from early 2021.
CODE OF CONDUCT
> The final Code of Professional Conduct for Financial Advice Services is available now;
> All financial advice must comply with the standards of ethical behaviour, conduct and client care from early 2021;
> General competence is Level 5 Certificate or AFA status, with safe harbour until early 2023.
> 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 you receive a complaint.
> Financial advice providers must obtain a transitional licence between 25 November 2019 and early 2021;
> Full licence applications will open in early 2021;
> We await details of licence criteria from the Financial Markets Authority.
FEES AND LEVIES
On 21 October 2019, fees and levies for the FSLAA regime were passed by Order in Council:
> 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+GST per financial advice provider, $265+GST per financial adviser, $179+GST per nominated representative, $737+GST for advice directly from the financial advice provider, and $460+GST per authorised body in the licence.