BNZ outlines stance on new regulatory regime

BNZ will only deal with groups who hold a FAP licence under the new regulatory regime, becoming the first bank to formally outline its stance on the subject.

The lender has contacted dealer groups over the past few weeks to formalise its position on the new regime, which comes into effect over the next year. It says it will only continue relationships with groups who hold a financial advice provider (FAP) licence.

A BNZ spokesman told TMM Online the bank has taken the decision to provide the best outcomes for its customers and end users. 

"With the change of regulation effective from next year, anyone giving regulated financial advice to retail customers will need to be engaged by a licensed financial advice provider. We have decided to only hold contractual relationships with aggregators who have obtained a FAP licence because we believe this will deliver the best outcomes for our customers.

"It means they can trust that the organisation they are dealing with has quality policies, processes and systems in place to help safeguard them as they work through the home buying process," the spokesman said.

BNZ is the first bank to clarify how it will treat groups' regulatory designations under the new regime. One dealer group contacted by TMM said they were still unclear whether BNZ wanted groups to take on full liability and auditing and compliance responsibilities for their members as a FAP.

Some groups are still uncertain over whether they will be able to obtain a full FAP licence under the new regime. Some groups have privately questioned whether groups will meet the legal definition of a FAP, and have sought legal advice on the topic, sources said. 



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