A financial advice provider (FAP) is an individual or entity (e.g. a company) that provides a "financial advice service". An individual or entity provides a financial advice service if they give regulated financial advice to their clients on their own account, or they engage others to give regulated financial advice to their clients on their behalf.
To use the term Financial Advice Provider from the start of the new financial advice regime on Monday 15 March 2021, an individual or entity must be registered on the Financial Service Providers Register (FSPR).
If you provide advice to retail clients, you also must either:
As a financial advice provider, you can engage financial advisers to work on your behalf to provide financial advice to your retail clients.
You can hold a financial advice provider licence in your own name (as an individual), or your company can hold the licence in its name (in which case you, personally, will need to be engaged by your company as a financial adviser and provide advice on its behalf).
Note that holding a financial advice provider licence in your individual name means you cannot call yourself a financial adviser and you will be personally responsible for any liabilities incurred as a financial advice provider, including liabilities for breach of legal duties.
To see some of the other ways you can operate in the new regime, Explore your options here.
Anyone who gives regulated financial advice to retail clients must either hold, or operate under, a Financial Advice Provider (FAP) licence issued by the FMA. Target application dates have now been set for FAP full licences. If you hold a transitional licence this may affect you.
This action plan sets out the key steps needed to apply for your Class 1 or Class 2 Financial Advice Provider (FAP) licence.
Use it to check your progress now and identify the steps you still need to complete to ensure you’re ready to apply by the target date of 30 September 2022. Download the 8 steps to apply for a FAP full licence.
STEP 1: Decide which licence class to apply for
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There are 3 licence classes. See how they compare or Explore your options TIP: Think about your current and future plans for your business. If you’re a sole adviser, you might be considering a Class 1 licence. But if you have plans to expand or bring on another adviser, a Class 2 licence might suit you best. |
STEP 2: See what questions we'll ask |
Get familiar with the FAP full licence application kit and download the questions relevant for your chosen class of licence. The questions set out what you need to demonstrate to meet the requirements for that class of licence. TIP: As you go through them you might like to highlight or note any further action required by you. |
STEP 3: Assess your business against the questions |
Where you identify any gaps, set aside time to do the work needed to ensure you meet the requirements. TIP: Use our self-assessment tools on common topics to help you check you're on the right track. Choose from the list below: |
STEP 4: Get the basic admin done |
Log in to the FSPR on the Companies Office website and select the “Financial advice provider – licensee – full licence” service. You'll need to do this at least 24 hours before you start your draft application online |
STEP 5: Log in to the application portal |
Go to the FMA applications portal. For a quick overview of the online application process, watch the video |
STEP 6: Start your draft application |
We won't see any of your answers until you press SUBMIT. Complete as much as you can, then save a draft and come back and finish the job when you're ready. TIP: You know your business best. Simply tell us in your own words how your business operates and what works for you and your customers. |
STEP 7: Seek further help if you need it |
Your success is important to us. Please get in touch with any questions. Contact the FMA or talk to trusted colleagues and business contacts about what might be helpful for you. |
STEP 8: Press submit! |
Congratulations on finishing your application. We’ll be in touch soon to advise the outcome. |
Before applying for a full licence with the FMA, all financial advice providers must be registered for the “Financial advice provider – licensee – full licence” service on the Financial Service Providers Register (FSPR).
The FSPR is a public register which is maintained by the Companies Office.
Any authorised bodies under your licence, or financial advisers you engage, must also be registered on the FSPR.
Fees are payable for some transactions on the FSPR, including when you register, and when you complete your annual confirmations. Visit the FSPR website for more information about how to register, maintain or update your registration.
Financial advice providers will initially be able to operate under a transitional licence. Transitional licences are valid for up to two years from 15 March 2021.
After two years, the transitional period ends, all transitional licences expire and advice can no longer be provided under a transitional licence.
Transitional licence-holders will need to apply for and be granted a full licence by 16 March 2023 if they want to continue providing advice under their own licence.
From 16 March 2023, the transitional competency regime (also known as the competency safe harbour) also comes to an end, and you must meet the competency requirements under the new Code of Professional Conduct for financial advice services.
From 16 March 2021, anyone applying for a Financial Advice Provider licence must apply for a full licence.
There are three classes of full FAP licence.
Once granted, full licences are subject to seven standard conditions, as well as any specific conditions added to a licence, and any conditions under the FMC Act and FMC Regulations.
Find out how to apply for a Financial Advice Provider full licence.
There are three classes of Financial Advice Provider licence.
You should apply (and be assessed) for the class of Financial Advice Provider (FAP) licence that best suits your particular circumstances and the nature of the service your FAP and any authorised bodies intend to provide.
As a general indication:
When you engage a financial adviser under your licence, you must record details of the engagement on the Financial Service Providers Register (FSPR).
You’ll need to do this within three months, or the financial adviser may be deregistered if they offer no other services.
Remember that you may need to link to yourself on the FSPR if your company will engage you, personally, as a financial adviser under its licence.
Watch the short video below to see how to link to a financial adviser on the FSPR or visit the Companies Office website for more information.
The cost of applying for a Financial Advice Provider full licence will depend on the class of licence that best suits your business structure.
As a general indication:
*Additional fees may apply if the application assessment exceeds the allocated hours. We will inform you if additional fees are likely to be charged.
This licence application fee is payable to the FMA when you submit your application. It does not include any fees to register on the FSPR or levies payable when you complete your annual confirmation.
For more details about ongoing costs that may apply to maintain your registration as a financial advice provider see the levies and waivers section on this page or visit the MBIE website.
Fees for variations to an existing licence
The above fee is payable to the FMA when you submit your application. This payment is to apply for a full licence; it does not include any annual levies, or fees to register on the FSPR. Additional fees may apply if the application assessment exceeds the allocated hours. We will inform you if additional fees are likely to be charged.
The fee payable to the FMA when you apply to vary an existing licence is $115 (incl. GST). This does not apply to adding a new licence type. Additionally, the FMA will invoice you for time spent assessing the variation application based on the FMA hourly rate $230 per hour for an FMA board member and $178.25 per hour for FMA staff.
Note: We will not issue a new or varied licence until the fee is paid in full. Licence fees are not refundable if an application is rejected.
The Financial Markets Authority (Levies) Regulations 2012 (the Regulations), as amended in 2020, set out the levies payable by industry. The levies are set by the Ministry of Business, Innovation, and Employment (MBIE).
The FMA receives funding from the Crown and a proportion of our costs is recouped from industry through levies.
A financial markets participant falls within one or more levy ’class’, depending on what financial services they provide.
The table below (see levy class description) provides a high-level description of each levy class. For the full description of levy classes, see Schedule 2 in the Regulations.
The table below provides a high-level description of each levy class. For the full description of levy classes, see Schedule 2 in the Regulations.
Class | Description |
1 | Persons making an application for registration on the Financial Service Providers Register |
2 | Registered banks and licensed non-bank deposit takers |
3 | Licensed insurers |
4 | Licensed supervisors of debt securities and managed investment products in registered schemes |
5 | Managers (of registered schemes) |
6 | Persons who undertook trading activities on licensed markets, contributory mortgage brokers, trading financial products or foreign exchange on behalf of other persons (other than persons included in class 6A, 6B, 6C or 6D, authorised bodies that only provide the service under a market services licence held by a person in class 6A or 6D and DIMS wholesale providers) or licensed derivatives issuers |
6A | Licensed discretionary investment management service (DIMS) retail providers |
6B | Providers of a regulated client money or property service (as defined in section 6(1) of the FMC Act) other than persons included in class 6(a) or 6C |
6C | Custodians and persons providing custodial services |
6D | Crowdfunding service providers and peer-to-peer lending service providers |
6E | Licensed financial benchmark administrators |
6F | Authorised bodies |
6G | Financial advisers |
6H | Licensed financial advice providers |
7 | All other financial service providers that are not included in any of classes 2 – 6H |
8 | Listed issuers (other than persons included in class 8A) |
8A | Small listed issuers |
9 | Lodgement of a product disclosure statement (PDS) |
10 | Licensed market operators |
10A | Licensed market operators that operate growth markets (other than persons included in class 10) |
11 | FMC reporting entities that lodge financial statements (or group financial statements) and auditor’s reports |
12 | Accredited bodies |
13 | Licensed overseas auditors |
14 | Persons that apply for registration or incorporation under the Building Societies Act 1965; the Companies Act 1993; the Friendly Societies and Credit Unions Act 1982; or the Limited Partnerships Act 2008 |
15 | Persons that are registered or incorporated and required to make annual returns under the Building Societies Act 1965; the Companies Act 1993; the Friendly Societies and Credit Unions Act 1982; or the Limited Partnerships Act 2008 |
It is the responsibility of each financial service provider to ensure they are registered for the service(s) they provide and have paid the appropriate levies. As part of their online annual confirmation to the Registrar, they must select all of the applicable classes to determine the levies payable and confirm the information they have provided is true, correct and complete.
Under the Financial Service Providers (Registration and Dispute Resolution) Act 2008 (the FSP Act) it is an offence to:
These offences could result in a fine of up to $100,000 and/or imprisonment for individuals, and a fine of up to $300,000 for businesses.
It is also an offence under the FSP Act to fail to notify the Registrar if any of the details contained on the FSPR are no longer correct. Failure to notify could result in a fine of up to $10,000.
We have discretionary power to waive a levy (in whole or part).
We will only do so if we are satisfied that the circumstances or characteristics of the financial markets participant are exceptional when compared with the circumstances or characteristics of others in the same class, so that it would make it inequitable for the person to pay the levy. The threshold is deliberately high.
The waiver power is not intended to be used to revisit settled policy positions.
Once we receive a waiver application and the fee, we will assess it. If we decide to grant the waiver, we must notify our decision in the Gazette, and publish the decision and reasons for it on our website.
You will need to email the following information to compliance@fma.govt.nz with the subject line ‘Levy waiver application’.
How to pay your waiver application fee
You can pay by electronic deposit or internet banking. Payment can be made by applicants or law firms making applications on behalf of their clients.
The person paying the application fee must be the person who pays the subsequent fees and costs. For example, if a law firm pays the application fee, that law firm must also pay any additional fees and costs.
We recommend if law firms apply for waivers on behalf of their clients, the parties discuss and agree who will be responsible for paying the FMA’s fees before submitting a waiver application.
Payment option | How to pay | Additional information |
Electronic deposit or internet banking | Where bill pay is available please select ‘Financial Markets Authority - Other' Otherwise, our bank details are: Bank: Westpac Account name: Financial Markets Authority Account number: 03-0584-0198005-000 |
To ensure we process your payment correctly please provide the following information: Particulars: Payer’s name* Code: Waiver Reference: Applicant’s name You do not need to forward a hard copy of your application if paying electronically |
* This is the name of the person paying the application fee. This person will be invoiced for any subsequent fees and costs. Payment by credit card is not available for this application process.
What are the fees
How long does it take
All financial advice providers are regulated under the Financial Markets Conduct Act 2013 (FMC Act), as amended by the Financial Services Legislation Amendment Act 2019 (FSLAA) and need to meet certain duties and obligations. Most of these duties apply to everyone giving advice, but there are a few additional duties for licensed financial advice providers, particularly providers who engage others to give advice on their behalf.
Here’s a summary of the main duties that apply to everyone who gives regulated financial advice to a retail client:
If you give financial advice to retail clients, you must:
As a financial advice provider, you will have additional obligations, for example:
If any of the following occurs, the licensee or an authorised body must, as soon as practicable, send a report containing details of the matter to the FMA:
Anyone giving advice to retail clients is subject to a new Code of Professional Conduct for financial advice services. This outlines the standards of conduct, client care, competence, knowledge, and skill you need to meet when giving regulated financial advice to retail clients in New Zealand. The Minister of Commerce and Consumer Affairs approved the Code of Conduct in May 2019. It takes effect from the start of the new regime on Monday 15 March 2021.
A person who gives financial advice must:
Part 1: Ethical behaviour, conduct and client care
1. Treat clients fairly
2. Act with integrity
3. Give financial advice that is suitable
4. Ensure the client understands the financial advice
5. Protect client information
Part 2: Competence, knowledge and skill
6. Have general competence, knowledge and skill
7. Have particular competence, knowledge, and skill for designing an investment plan
8. Have particular competence, knowledge and skill for product advice
9. Keep competence, knowledge, and skill up-to-date
Visit the Code of Professional Conduct for financial advice services website.
As a financial advice provider, it’s your job to ensure your advisers and nominated representatives meet the competence, knowledge and skill standards set out in the Code of Professional Conduct.
If you’re engaging a financial adviser who was previously an authorised financial adviser (AFA), registered financial adviser (RFA), or QFE adviser, they may be able to take advantage of the competency safe harbour for two years up until 16 March 2023.
The competency safe harbour does not apply where
Or where
For more information, see the Competency safe harbour section of the Financial Adviser page.
Or visit the Code of Professional Conduct for financial advice services website.
As a part of the financial advice regime introduced in March 2021, there are new disclosure obligations for those providing regulated financial advice to retail clients.
These are detailed in regulations 229A to 229J of the Financial Markets Conduct Regulations 2014.
Publicly available information
Disclosures relating to advice
Certain other information must be given to retail clients when:
Complaints information
More details about the information required to be disclosed can be found in Schedule 21A of the regulations here.
Requirements for form and manner of disclosure
The regulations include general requirements for the form and manner of disclosure (see regulation 229H).
All disclosures must be
You can also make information available or give information in the form and manner you reasonably consider appropriate, having regard to any stated purpose of the relevant regulation (see regulation 229H(3)).
For example, provided all other requirements are met, including a way to allow a recipient to readily store disclosure information in a permanent and legible form, disclosure of information through an email with a prominent hyperlink may be appropriate.
In this context, prominence may require a suitable warning as to the nature and importance of the information.
Financial Service Providers registering or filing their annual confirmation on the Financial Service Providers Register are required to declare if they are captured under the Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) Act 2009 as a Reporting Entity and who they are supervised by. Find out more about your AML/CFT obligations on the AML FAQ web page.
Transitional only:
All transitional and full licence holders and authorised bodies need to comply with standard conditions.
The standard conditions for FAP transitional licences are:
You must create in a timely manner and maintain adequate records in relation to your financial advice service.
You must have an internal process for resolving client complaints relating to your financial advice service that provides for:
Read more about standard conditions for FAP transitional licences.
The standard conditions for FAP full licences are:
Summary of what’s required
For more information, download the Standard Conditions for FAP full licences PDF.
Tools and help available
Summary of what’s required
For more information, download the Standard Conditions for FAP full licences PDF.
Tools and help available
Standard Condition 3 only applies to FAP full licences.
For more information, download the Standard Conditions for FAP full licences PDF.
Standard Condition 4 only applies to FAP full licences.
Summary of what’s required
For more information, download the Standard Conditions for FAP full licences PDF.
Tools and help available
Standard Condition 5 only applies to FAP full licences.
Summary of what’s required
For more information, download the Standard Conditions for FAP full licences PDF.
Tools and help available
Standard Condition 6 only applies to FAP full licences.
Summary of what’s required
For more information, download the Standard Conditions for FAP full licences PDF.
Standard Condition 7 only applies to FAP full licences.
Summary of what’s required
For more information, download the Standard Conditions for FAP full licences PDF.
Read more about standard conditions for FAP full licences.
The FMA is one of several organisations that has a role in enforcing the new financial advice regime.
For an overview of what this means, see the MBIE fact sheets:
Q: How does a licensed financial advice provider (or authorised body) notify the FMA when they add or remove a financial adviser?
A: This important step is completed on the Financial Service Providers Register (FSPR). To see how to link to or remove an adviser from your licence, watch this short video or visit the Companies Office website for more information. The FMA will be notified of the change automatically when you update the FSPR. No separate notification to us is necessary.
Q: We want to link our FAP to a financial adviser on the FSPR - why can't we find their details?
A: : If you have followed the steps on the Companies Office website and are still unable to link to a financial adviser on the FSPR, this may be because the adviser has either applied for, or holds, a Financial Advice Provider licence in their individual name. If this is the case, they will not appear as a “Financial adviser” on the FSPR. That’s because a financial advice provider cannot also be a “Financial adviser”.
If the person concerned no longer wants to apply for or hold a FAP licence themselves, they should email questions@fma.govt.nz to discuss next steps. Once the FAP licence service is removed from their FSP registration they will be able to register as a financial adviser. Your FAP can then link to them.
Q: If I want to engage someone to provide financial advice under my licence, do they need to be an employee?
A: No.
Being an employee is just one of many ways you can engage individuals to provide financial advice under your licence. How you choose to engage someone may vary based on your business structure and how you consider it most appropriate to oversee the financial advice provided on your behalf.