ASB and Westpac delay licensing decision
Advisers face a further wait to discover ASB and Westpac's stance on FAP licensing under the new regulatory regime.
Wednesday, December 11th 2019, 8:48AM
The two banks have not yet made a decision on whether they will work with individual businesses that take on a FAP (Financial Advice Provider) licence, whether they will only work with group FAPs, or whether they will work with groups without a FAP licence.
A spokesman for Westpac said the lender was "still weighing up the implications of the law reform". "We’ll contact the aggregator groups directly with our decision in the first instance," he added.
Meanwhile, a spokeswoman for ASB said: "We’re currently reviewing our position and will provide an update to the market soon."
The wait is now likely to go into the new year as advisers await clarity from the two banks. ANZ and BNZ have both set out their position on how they will work with advisers under the new regime.
ANZ will work with adviser businesses and groups that hold a FAP licence. It will allow adviser businesses to take their own FAP, and be part of a group with a FAP licence.
In the letter to advisers, ANZ said it expected FAP licence holders to "meet industry standards" and show "robust advice and governance processes".
The decision whether to take a FAP licence, or work underneath an aggregator group's, is one of the key decisions facing adviser businesses today. Businesses have argued they may lose independence working under a group FAP, while large groups have argued businesses will need back office and regulatory support under a head group's licence.
Transitional licensing for the new regime opened on November 25, and the transitional period runs until next June.
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