Final numbers out

The Financial Markets Authority (FMA) says the transition to full licensing for financial advisers is a success with more than 2,500 financial advice providers licensed or operating as an authorised body by the deadline.

FMA Director of Deposit Taking, Insurance and Advice, Michael Hewes, says that number includes licences issued to sole operators as well as small firms and large entities employing multiple advisers.

New Zealand now has 1,360 licenced financial advice providers (FAPs) broken down by class to:

  • 451 holding a class 1 licence for sole adviser businesses,
  • 855 class with a class 2 licence for businesses that engage more than one adviser,
  • 54 with a class 3 licence for large organisations that engage nominated representatives among their staff.

There are 1,140 authorised bodies (an entity such as a company or partnership) named on FAP licences, and 8,838 advisers on the financial services providers register (FSPR) who will be linked to FAP licences on the FSPR by June 2023.

Nominated representatives associated with class 3 FAP licences total 11,957. 

Hewes says the FMA has been impressed at how many advisers have “recognised the opportunity and willingly done the mahi to meet the new requirements. Collectively, these efforts have further strengthened the sector as a whole.

“The total number of advisers covered by those full licences will be known in June, once their details have been linked to each licence-holders’ registration on the Financial Service Providers Register.”

Hewes says focus on advice will now turn to monitoring and supervising the licensed advice providers, having finalised the questions for regulatory returns that licensees must file every year, with the first due in September 2024.

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