Half of advisers face deregistration

The situation is urgent for the 50% of financial advisers who have not yet been linked to a FAP, and they only have 15 days to make it right.

Katrina Shanks, CEO of Financial Advice New Zealand recently sent out a message to their adviser network stating they have recently been informed that only 50% of financial advisers have been linked to a FAP.

Shanks told Good Returns she is concerned with those numbers.

“What we are saying now is that advisers need to act with urgency.

“They need to go on to the FSPR and see whether they have been linked to a FAP. If they have not then they need to contact their FAP, as they can’t do it themselves.

“There are only 18 days until that deregistration process begins. Time is running out.”

Once that deregistration process begins on June 15, there is nothing an adviser can do to stop becoming deregistered.

Luckily, the process of linking an adviser to a FAP is relatively easy.

“The process is extremely simple. You can link more than one person to your FAP at the same time with the same process and log in,” Shanks says.

“There are instructions on our website and on the Companies Office website.”

The only issue is that a FAP needs to be the one doing the linking. An adviser cannot link themselves to a FAP, only a FAP can link an adviser to itself.

“It is becoming really urgent at this point. Advisers have had three months and it is down to the final 18 days.

“Advisers need to make sure this is done.”

After this last hurdle is completed, advisers can take a breather before they apply for their full licences.

“Once the FAP has linked the adviser, then the adviser is pretty much good to go for the next two years,” she says.

“They also need to make sure that the FAP has their dispute resolution registered with the Companies Office. But after that they have until March 15, 2023 to obtain their full licence.”

This week will see Financial Advice New Zealand team up with the FMA for a series of roadshows across the country educating advisers on how they can best prepare to apply for their full licence.

“We are trying to encourage advisers to obtain their full licences sooner rather than later, as there will be some adviser businesses that will need to do some work to meet the conditions for full licensing,” says Shanks.

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