Authorised Financial Advisers
IMPORTANT NOTICE: From Monday 15 March 2021, the AFA category ceases to exist.
We are no longer accepting new AFA applications.
Read more about the new financial advice regime and the steps you need to take before 15 March 2021.
Authorised Financial Advisers (AFAs) are individual advisers who are permitted to provide personalised financial adviser services to retail clients, for category 1 and category 2 products, depending on the scope of their licence. They can also provide class services and wholesale services. Category 1 and 2 products are described in s5 of the Financial Advisers Act 2008.
The focus is on the nature of the service, rather than the product recommendations. A service that identifies the financial situation and goals of a group of people the individual belongs to can also be an investment planning service.
If you provide any of the following financial adviser services to retail clients:
For a complete list of exemptions see s13 and s14 of the Act.
To become an AFA you need to meet eligibility requirements, including minimum competence requirements and good character.
Once you have completed the steps above, you can apply for authorisation online at the FSPR.
Before beginning your application, please read the financial adviser authorisation guide and related resources listed below.
Renewing your authorisation
Your authorisation can be terminated for the following reasons:
If we decide to cancel, suspend or amend the terms and conditions of your authorisation, you will be notified first and given the opportunity to make submissions. We will notify your change of status to the registrar. If your authorisation is cancelled or suspended because you are no longer eligible or you have breached your obligations under the Act, we may also make this information public.
Application type | Fee |
Application for AFA authorisation |
$1,144.89 |
Renewal of AFA authorisation |
$572.44 |
The fees above are payable to the Companies Office when you apply to become an AFA. This is additional to the fee for registration as an FSP.
The fee to vary the terms and conditions of an AFA authorisation is $115. This is payable to the FMA when you apply for the variation. We will then invoice you for the time spent assessing the variation application, based on the FMA hourly rate.
For more information see the Financial Advisers (Fees) Regulations 2010.
As an AFA you must comply with a number of obligations when providing financial adviser services. It's important you understand your scope of obligations.
You must annually renew your registration on the Financial Service Providers Register and notify the Registrar of changes. You must be a member of a dispute resolution scheme, if providing services to retail clients.
An AFA must comply with the terms and conditions of authorisation which will include:
The standard conditions include requirements for the AFA to maintain an adviser business statement, provide an annual confirmation and to notify us of significant matters.
Most terms and conditions will remain in place for the term of the authorisation. The conditions can only be varied during this time in the circumstances outlined below
Situation | Section of the Financial Advisers Act |
On application by an AFA (if approved by the FMA) |
s55A(1) and (2) |
If they are reporting or accounting standard conditions. Changes are subject to consultation |
s147A(3) and 147E |
For other standard conditions, in limited circumstances, such as in response to an emergency or where necessary to avoid the defeat of the purpose of the Financial Advisers Act. Changes are subject to consultation |
s147A(3)(a) to (e) and 147E |
If the business of the AFA has changed in such a way that there is a material risk to consumers; and/or the AFA has been or is involved in market practices that are in material respects inconsistent with the purpose of the Act |
s55A(3) |
On an AFA's default |
s59(2)(d) |
If an AFA applies to renew their authorisation new terms and conditions may apply.
The Code of Professional Conduct sets out minimum standards and applies to all AFAs from the date of authorisation and while they remain authorised.
Make sure your advertisements are clear and true
A financial adviser must not advertise a financial adviser service in a way that is misleading, deceptive or confusing. This is in addition to the general requirement that a financial adviser's conduct in providing a service must not be misleading or deceptive (See sections 35 and 34 of the Financial Advisers Act (FAA).
Tell your clients what's important
Find out more on your disclosure obligations.
See more information on Annual AFA information return.
The FMC Act sets out minimum compliance standards of behaviour for people operating in the financial markets.
It prohibits:
The Anti-Money Laundering and Countering Financing of Terrorism Act 2009 (the Act) imposes several obligations:
The FMA supervises designated business groups (DBGs) and reporting entities listed in Section 130 of the Act.
You must be licensed to provide DIMS i.e. when an investor gives you the authority to make decisions about buying and selling financial products on their behalf.
AFA are exempted to provide DIMS under certain situations.
Exemption | When |
AFA can provide personalised DIMS under the Financial Advisers Act (FA Act) | When you are authorised by us to do so. Check your obligations |
AFA can provide DIMS without a licence or authorisation for a short period of time |
When urgent decisions are required, or for a known or specified period. Find out how you can offer DIMS in these situations |
AFAs providing personalised DIMS must comply with AFA standard conditions and the Code. Standard conditions 8 and 9 are specific to AFAs providing personalised DIMS.
Monitoring activities include a mix of desk-based research (investigating complaints, checking websites, and reviewing documents, eg. Adviser Business Statements, professional development plans), phone discussions and office visits. We may also use mystery shopping.
We have a formal complaints process if people or companies breach the Financial Advisers Act 2008. AFAs have certain whistle-blowing protections if they report a breach under the Act.
We have a formal complaints process if people or companies breach requirements. AFAs who breach the code may also face the Disciplinary Committee.
The Disciplinary Committee is an independent body. It conducts disciplinary proceedings arising from complaints about AFAs relating to breaches of the Code of Professional Conduct for AFAs. The Committee may take a range of actions as a result of proceedings, including cancellation of authorisation, suspension, and censure.
In certain circumstances, it may be possible to obtain an exemption from being registered as a financial adviser or from any of the obligations under the Financial Advisers Act 2008, regulations or the Code of Conduct.
Financial Advisers Act exemptions guidance
It explains the approach of the Financial Markets Authority (the FMA) to granting exemptions under the Financial Advisers Act 2008. It is intended to provide answers to commonly asked questions in relation to exemptions and to provide information to potential applicants on the process for making an application.
Download Financial Advisers Act exemptions guidance note PDF.