The Financial Markets Authority welcomes the statement from the Minister of Commerce and Consumer Affairs Minister, David Clark, introducing the new regulatory regime for financial advice.
Under the new regime, anyone who gives regulated financial advice to retail clients must either hold, or operate under, a Financial Advice Provider licence. All providers of financial advice are now subject to the same obligation to place the interests of their clients first and must adhere to a new Code of Conduct.
John Botica, FMA Director of Market Engagement said the start of the new licensing regime today was the culmination of nearly five years' work aimed at promoting public trust and confidence in the financial advice sector.
"More than 10,200 financial advisers have come into the new licensing system, with more than 1700 transitional licences approved and nearly 1000 authorised bodies. Anyone who is not operating under a transitional Financial Advice Provider licence will now need to apply for a full licence. The transitional period gives advisers two years to complete all the competence, knowledge and skill standards required under the Code of Conduct."
