Readiness for the New Financial Advice Regime - March 15, 2021
Having a transitional licence is just the first step. This series of Workbooks have been developed to assist Financial Advice New Zealand members meet their obligations under the new licensed financial services regime..
Financial Advisers will have personal obligations under the new regime as persons who provide regulated financial advice to retail clients on behalf on their FAP.
These obligations stem from the Financial Service Legislation Amendment Act, the Code of Professional Conduct for Financial Advice Services and other regulations such as the new Disclosure Regulations (Financial Markets Conduct – Regulated Financial Advice Disclosure – Amendment Regulations 2020).
There will be personal liability for these obligations from the date the new regime starts on 15th March 2021. This ‘regime start date’ will also mark the close of applications for a transitional licence, the start of the two-year transitional period and the opening of full licensing.
YOUR OBLIGATION AT THREE LEVELS
The obligations as advisers are at three levels:
Level 1 - Duties under the law
Level 2 - Requirements under the Code of Professional Conduct
Level 3 - Regulations such as Disclosure Regulations.
Each workbook deals with one Duty from the Act and all the Code Standards relevant to that Duty in the Code of Professional Conduct.