Updates and timing announced for new financial advice regime
Today, the Government published new regulations for the new financial advice regime being introduced by the Financial Services Legislation Amendment Act 2019 (FSLAA).
The FSLAA will repeal the Financial Advisers Act 2008 (FAA) and insert into the Financial Markets Conduct Act (FMCA) the new regulatory regime for financial advice.
Who does this affect?
All businesses involved in the provision of financial advice, financial services or financial products must examine their operations and assess how they will be affected by the incoming regime. They should make use of this new clarity in timing to get these processes in order well ahead of the changes coming into effect.
What do the regulations cover?
The new regulations give effect to previous policy decisions announced in June 2019:
- The Financial Services Legislation Amendment Act Commencement Order 2019 sets 29 June 2020 as the commencement date of the new financial advice regime, from which point all of the remaining provisions of FSLAA come into force.
- The Financial Markets Authority (Levies) Amendment Regulations 2019 updates the definitions in the Financial Markets Authority (Levies) Regulations 2012 and amends the Financial Market Authority (FMA) levies to recover the same amount of funding from the financial advice sector.
- The Financial Markets Conduct (Fees) Amendment Regulations (No 2) 2019 sets the licensing fees that will apply in the new financial advice regime.
- Financial Service Providers (Registration) Amendment Regulations (No 2) 2019 makes minor changes to the registration regulations to facilitate transitional licensing.
To coincide with the new regulations, the FMA announced that it will now start accepting transitional financial advice provider licence applications from Monday_25 November 2019.
Confirmation of the ‘go live’ date of 29 June 2020 is helpful in terms of clarity. However, particularly for large and medium sized organisations, eight months (including Christmas and New Year) will be a very tight timeframe if they are not already well advanced in preparing for the new regime.
View our previous discussion on the the timing of the new regime, passing of the FSLAA and the approval of the new Code of Professional Conduct for Authorised Financial Advisers, the conditions of the licence and the draft disclosure regulations.
The regulations needed for transitional licensing will come into force on 25 November 2019, while the remainder of the regulations will come into force on 29 June 2020.
If you have any questions in relation to FSLAA or are considering how these changes affect your business, please contact one of our experts.
Who can help
Sorry we couldn't find any results relating to your query.