Transitional licensing delayed

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There's a few more weeks to wait before you can apply for a transitional FAP licence.

Thursday, October 24th 2019, 11:41AM 2 Comments

The Ministry of Business, Innovation and Employment has pushed back the start date for financial advice provider (FAP) transitional licensing from November 4 to November 25.

It said because new regulations for the regime, setting out the FMA levies and licence fees to be charged, would take effect on November 25, licensing would coincide with that.

"You will have more than six months to apply, but we recommend you apply early to ensure you have your licence in time for the start of the new financial advice regime on June 29, 2020."

MBIE says in a statement that a number of regulations relating to the new regime were published today. These regulations give effect to previous policy decisions announced in June this year, and:

• Set 29 June 2020 as the commencement date of the new financial advice regime, from which point all of the remaining provisions of the Act come into force
• Amend the FMA levies to recover the same amount of funding from the financial advice sector 
• Set the licensing fees that will apply in the new financial advice regime 
• Make minor changes to the registration regulations to facilitate transitional licensing.

Regulations are unable to come into force until at least 28 days have passed from the date they are notified in the New Zealand Gazette. Accordingly, the regulations needed for transitional licensing will come into force on 25 November 2019, while the remainder of the regulations will come into force on 29 June 2020.

The regulations relating to licensing fees and registration need to be in force before the FMA can start processing licence applications. Unfortunately this means the FMA will be unable to start accepting transitional licence applications before 25 November 2019. The FMA will provide an update on the new transitional licensing date later today.

Tags: FAP financial advisers Financial Services Legislation Amendment Act licensing MBIE regulation

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