Frequently Asked Questions

To provide financial advice after March 2021, you must operate under a licence. You need to allow enough time for your licence application to be processed by the FMA.

We suggest that you talk to your own business advisers (e.g. your accountant, lawyer) about what is best for you. Most sole adviser firms are applying in the name of their company and becoming a financial adviser under that licenced company.

Yes, if that is your approach then your company will need to be licensed on the FSPR. However, there is a levy relief for sole advisers which you can apply for from the FMA. Details of this can be found on the FSPR section of the Companies Office.

It will be illegal to provide financial advice from that date if you are not licensed or approved to operate under someone else’s licence.

Technically this is possible but practically it will be more difficult. You will need to demonstrate to the FMA whose licence you are operating under when providing financial advice. It must not be confusing to the customer. There is more information about this on MBIE’s website.

The new regime commences around April 2021. Therefore, you need to be familiar with your new obligations and be ready to meet them. There are a few exceptions such as a competency safe harbour period for existing advisers to complete the competency requirements. There may also be a transitional period for the new disclosure requirements, but that period is probably only going to be relatively short.

We expect that there will be an update on the new disclosure requirements by the end of this month.