Transitional financial advice provider licence applications to open in November 2019

26 July 2019

The Financial Markets Authority (FMA) has confirmed it will accept transitional licence applications from 4 November 2019. It has released an Application Guide for Transitional Financial Advice Provider Licences, and an online ‘Explore your options’ tool to help advisers decide how they wish to operate under the new regime.

The Financial Services Legislation Amendment Act 2019 (FSLAA) creates a new licensing regime for financial advisers which will come into force in June 2020. There will be two phases to the licensing process – the initial transitional licence, and full licencing by June 2022.

Anyone providing financial advice to retail clients will need to obtain a Financial Advice Provider Transitional Licence. The FMA expects the transitional licence application process will be able to be completed almost entirely online.

Application Guide for Transitional Financial Advice Provider Licences

The Application Guide for Transitional Financial Advice Provider Licences (the Application Guide) outlines the application process and the information applicants will need to complete the application.

The FMA will accept applications between 4 November 2019 and June 2020, costing of $405 (excluding GST) plus $38.75 (excluding GST) per authorised body named on the application.

‘Explore your options’ online tool

The ‘Explore your options’ online tool asks potential applicants questions about how they intend operate under the new regime and provide advice to retail clients. It outlines the most suitable option for the applicant, and links to fact sheets and further information about financial advice provider licences.

Next steps

If you would like assistance with a transitional licensing application or on what the new regime could mean for you, please contact one of the authors listed below.

Quick Links

Financial Services Legislation Amendment Act – Introduced 8 April 2019

MBIE Guidance on the regulation of financial advice

Transitional Financial Advice Provider Licence Application Guide

Explore your options online tool

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