Adviser licensing programme makes further progress

Progress towards full licensing under the FAP regime has been inching forward steadily as the deadline looms.

Advisers have to get a full licence by March 16, which is the date on which provisional licences expire.

Without such a licence they will have to stop working.

Initially progress towards full licensing was mixed, with some firms rushing forward early and others complaining that it was a burdensome bureaucratic imposition, on top of many others.

But there was a rush in the second half of the year and this has continued in the last few weeks.

Figures from the Financial Markets Authority (FMA) show that as of December 11, 73% of the total number of 1750 Financial Advice Providers (FAPs) are either operating under, or have applied for, a FAP Full licence.

“We remind the industry that any remaining FAP transitional licences will expire on March 16, 2023,” an FMA official said.

“We are currently contacting all FAP transitional licence holders to ask what their intentions are and if any assistance might be required. We strongly recommend that transitional FAPs intending to apply for a full licence do so by 23 December to help ensure their licence can be processed in time for March 2023.”

The FMA adds it is continuing to receive licence applications daily and its application portal will remain open through the summer break.

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