From Monday 15 March 2021, you must hold a Financial Advice Provider licence to provide regulated financial advice to retail clients.
Anyone you engage to provide advice must be either a financial adviser or a nominated representative – they cannot be both.
Financial advisers and nominated representatives can both provide advice on behalf of a licensed financial advice provider. However, you can only use nominated representatives under a transitional licence if before 9 April 2019, you were a QFE, a member of a QFE group, or a firm registered on the Financial Service Providers Register that provides class advice through unregistered individuals. This is a statutory licence condition applicable to all transitional licences. Nominated representatives will have less discretion than financial advisers and can only provide advice if you have sufficient processes and controls in place. These processes and controls must:
limit the nature and scope of the advice given
allow you 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.
Applications for Financial Advice Provider full licences are now open. Apply now.
Duties and obligations
As a provider of financial advice, you will be regulated under the Financial Markets Conduct Act 2013 (FMC Act), as amended by the Financial Services Legislation Amendment Act 2019 (FSLAA). You will need to meet certain duties and obligations.
For a summary of the duties and obligations that apply to you, see what it means to be a Financial Advice Provider in the new regime.
Full licence application fee (payable to the FMA)
$1,060.30* for standard applications. For complex applications that take longer than four hours, we will notify you and charge $178.25* per hour for any additional time
FMA levy (payable to the Companies Office at FSPR 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 payable for annual confirmations that fall between 15 March 2021 – 30 June 2021 will be: $299* for the financial advice provider plus $253* for each nominated representative, payable by the financial advice provider. And $345* payable by each financial adviser. These amounts increase from 1 July 2021 to $322 for the financial advice provider plus $276 for each nominated representative and $391 for each financial adviser. Note if your business is the financial advice provider and you’re a financial adviser, don’t forget to include yourself when working out the costs. For example, if you engage two nominated representatives to work with you, the total cost will be $1,150* ($299* + $345* + ($253* x 2)), increasing to $1,265* from 1 July 2021. For full details, including the increased levy amounts (exclusive of GST) that will apply from 1 July 2021 and 1 July 2022 and outyears, see the FMA levy table on the MBIE website.
FSPR annual confirmation fee (payable to the Companies Office)
$86.25* for the financial advice provider. If you are a financial adviser, you will also need to pay $86.25* for yourself
Initial FSPR registration fee (payable to the Companies Office)
$345* plus $529* levy if registering a new entity on the Financial Service Providers Register (FSPR)