Small banks stall on licensing

Banks across New Zealand are formulating their position on whether they will work with head group FAPs only; individual adviser businesses with a FAP licence; or aggregator groups without a FAP licence. 

TSB spokeswoman Philippa Walker said the bank was "currently reviewing our approach". She added: "We will look to communicate our decision with third parties in the first half of 2020."

The Co-operative Bank's head of products Matt Macpherson told TMM Online the bank "haven’t confirmed this yet". He added: "We have done some thinking on the subject but will work through the detail in early 2020."

It adds to the growing level of uncertainty around the new regime, with major banks Westpac and ASB yet to decide on which adviser relationships they will allow. 

ANZ and BNZ are set to work with intermediaries that are under a group's FAP licence, as well as those with their own FAP licence.

ANZ New Zealand wrote to advisers on October 17 to state it would "only deal with intermediaries who are lawfully able to provide regulated financial advice to retail clients either under their own FAP licence, or under another entity’s FAP licence".

Kiwibank said it intends to work with intermediaries "able to provide regulated financial advice under a FAP licence".

SBS Bank will "likely follow the approach whereby the adviser must be lawfully permitted to operate under their own FAP licence or under another entity’s FAP licence", according to acting chief risk officer Richard Cameron.