MR No. 2021 – 56
The Financial Markets Authority (FMA) - Te Mana Tātai Hokohoko has released three new self-assessment tools to help financial advice providers (FAPs) prepare for full licensing.
John Botica, FMA Director of Market Engagement, said the tools are a response to market feedback and have been designed to assist providers to address gaps in their existing compliance approach.
“We recognise that the requirements of full licensing can seem like a big step up, particularly for smaller advice businesses. These tools are designed to help them identify the aspects of their business where they’re already compliant, as well as those areas where they might need to do a bit more work in order to apply for a Class 1 or Class 2 full licence.”
The tools take the form of a checklist, which financial advice providers can use to assess their existing business practices. Used in conjunction with the full licence application kit, the tools aim to give transitional licence holders the confidence to apply for a Class 1 or Class 2 full licence.
"Every advice firm is different, and the new regime recognises that,” Mr Botica said. “We hope these tools will help encourage financial advice providers to assess their own level of compliance and respond to the obligations and requirements in a way that suits their businesses – and customers – best."
The first tools focus on three of the seven standard conditions that apply to FAP full licences and cover record keeping; cyber security and business continuity planning; and key outsourcing arrangements. Mr Botica said more self-assessment tools will be developed and added to the FMA website in plenty of time for FAPs preparing to submit their full licence applications by the target date of 30 September 2022.
The full set of self-assessment tools will be added to the FAP page of the FMA website as they become available.