FMA releases record keeping information sheet for financial advice providers

Media Advisory

MR No. 2022 – 13

The Financial Markets Authority (FMA) – Te Mana Tātai Hokohoko has published an information sheet for financial advice providers (FAPs) about how they can demonstrate compliance with record keeping obligations.

Under the new financial advice regime Standard Condition 1 for both transitional FAP licences and full FAP licences states: “You must create in a timely manner and maintain adequate records in relation to your financial advice service.”

The information sheet provides an overview of the record keeping obligations and sets out areas for FAPs to consider when reviewing their record keeping practises. It also includes examples to illustrate how FAPs can demonstrate compliance with the requirements.

James Greig, FMA Director of Supervision said: “Our monitoring of the previous financial advice regime consistently identified poor record keeping as an area of concern. This included insufficient records about the services provided to clients and incomplete information on whether key obligations had been fulfilled.

“Good record keeping ultimately helps financial advice providers to demonstrate that they are serving client interests. We know that many financial advice providers are adapting and evolving their processes to comply with this standard condition, so we are trying to help the industry with this practical information sheet.”

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