ASB reveals its position on FAPs

The big four bank has formally declared that it will work with individual businesses that choose to operate under their own FAP (financial advice provider) license, as well as those who work under the umbrella of an aggregator group's. 

ASB notified groups of its decision over the past week. The decision will be welcomed by groups keen to offer members a chance to handle their own FAP and regulatory requirements under the FSLAA regime. 

ASB confirmed its position to TMM Online.

A spokeswoman said in a statement: "The financial advice regime is changing due to the implementation of FSLAA and from June 2020, regulated financial advice will only be able to be provided to retail clients by a licensed Financial Advice Provider on its own account, or by a financial adviser or nominated representative on behalf of a FAP.

"ASB’s standard broker terms and conditions already require head groups to comply with, and ensure any of their nominees comply with, all applicable laws. Therefore, it will be the responsibility of the head groups to ensure FSLAA is complied with, which includes ensuring advice provided to the end customer is provided by or on behalf of a FAP.

"ASB will continue relationships with [brokers] 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," the spokeswoman added.

ASB's decision falls into line with ANZ and BNZ. The two banks have said they will allow businesses to take their own FAP, or work under a group's.

Westpac is the last of the major banks to declare its position on which FAPs it will work with. Smaller banks are also working through their position, including Kiwibank, The Co-Operative Bank, SBS and TSB.