Registered financial advisers
IMPORTANT NOTICE: From Monday 15 March 2021, the RFA category ceases to exist.
If you currently offer financial advice to retail clients or will do so in future, this change affects you.
Read more about the new financial advice regime and the steps you need to take before 15 March 2021
Registered Financial Advisers (RFAs) are individual advisers who are required to be registered under the Financial Advisers Act 2008 but who, because of the limited scope of their services and/or clients, do not need to become Authorised Financial Advisers.
RFAs must, when providing financial adviser services act with care, diligence and skill (section 33 of the Financial Advisers Act 2008), not engage in misleading or deceptive conduct (section 34), ensure advertisements are not misleading, deceptive or confusing (section 35) and comply with disclosure obligations when providing personalised services to retail clients.
RFAs need to annually renew their registration on the Financial Service Providers Register and notify the Registrar of changes. They must be a member of a dispute resolution scheme, if providing services to retail clients. See more
RFAs can provide financial advice for category 2 products. RFAs are permitted to provide a class service to a retail client, or a financial adviser service to a wholesale client.
Putting investor interests first is at the heart of raising the standards of how financial advice is conducted. All financial advisers must comply with the requirements of the Financial Advisers Act 2008 (FA Act). This includes disclosure obligations which are set out in regulations. See more
The obligation to exercise care, diligence and skill and not act in a way that is misleading, deceptive or confusing applies to all people who provide financial adviser services. See insurance and credit examples. In general, when providing advice, advisers must:
RFA disclosure statements must follow the prescribed format outlined in the regulations. This makes it easier for consumers to compare the services being offered by different advisers.
The explanatory notes that make up part of the regulations provides a starting point for understanding the requirements. You may not add any information to the prescribed form other than unobtrusive information such as a corporate logo. In addition, you should note the following:
Any person can complain to the FMA about the activities of an RFA and FMA can investigate that complaint and take appropriate action.
RFAs are not subject to disciplinary committee proceedings under the Act but we have a range of enforcement actions we can take. The Registrar may also deregister RFAs, or we may give a direction to deregister an RFA in certain circumstances. See Financial Service Providers (Registration and Dispute Resolution) Act 2008, sections 18A to 18C.