Nominated representatives* must be engaged by a licensed financial advice provider (or authorised body) but are not registered on the FSPR. Only certain registered firms can engage nominated representatives.
If you are currently listed on the FSPR as an “authorised financial adviser” (AFA) or a “registered financial adviser” (RFA), the Companies Office will automatically transition you to the new category of “financial adviser” when the new regime begins on 15 March 2021.
If you are a financial adviser, you will then need to make sure that the financial advice provider (or authorised body) that has agreed to engage you, links to you on the FSPR.
Any financial adviser who is not linked to a licensed financial advice provider (or authorised body) on the FSPR within three months of the start of the new regime, will be deregistered.
*Please note: Nominated representatives will have less discretion than financial advisers and can only provide advice if the provider has sufficient processes and controls in place. These processes and controls must:
limit the nature and scope of the advice given
allow the financial advice provider to regulate the type of advice given and when ensure nominated representatives have the correct competence, knowledge and skill needed for the advice being provided.
If you’re currently listed on the FSPR as an AFA or an RFA you have nothing to pay as the Companies Office will automatically transition you to the new category of “financial adviser”.
However, from the start of the new regime on Monday 15 March 2021, financial advisers will be charged an FMA levy (payable to the Companies Office at FSPR annual confirmation). You will also be charged a fee of $86.25 (incl GST) at annual confirmation.
MBIE have announced an increase in FMA levies, which will be phased in over the next three years. As an indication, the FMA levy for financial advisers payable for annual confirmations that fall between 15 March 2021 – 30 June 2021 will be $345 (incl GST).
For full details, including the increased levy amounts (exclusive of GST) that will apply from 1 July 2021 and 1 July 2022, see the MBIE website.
Nominated representatives do not need to register on the Financial Service Providers Register and do not personally have to pay a levy as this will be covered by the financial advice provider.*