FMA’s latest licence numbers show advisers are poised for change

The latest figures from the FMA’s transitional licence progress show that a huge majority of the industry are ready for March 15.

Wednesday, December 23rd 2020, 6:00AM

by Daniel Smith

Back in September, things were looking shaky for over 2,000 financial advisers who had yet to apply for their transitional licences.

But now, at the end of the year, the data is showing that a big final surge before the holiday break has seen 97% of the industry covered by a transitional licence.

As of December 20, 1,356 licences have been approved alongside 715 authorised bodies, meaning that well over 2,000 businesses have made the decision to engage with the new regime. Of individual financial advisers, 9,157 are covered by a transitional licence, giving some leeway for double-ups where advisers may be working for more than one FAP, that means that around 97% of the industry is now covered.

FMA director of market engagement, John Botica is pleased with the results.

“I am very pleased to see advisers taking the transition seriously and engaging [with us] in the process. With everything else that has been going on this year, all of the stresses and strains that 2020 has thrown up, advisers have really answered the call to be part of a regime designed to provide even better customer outcomes.

“Up and down the country advisers make life better for their clients. They should rightly be proud. Licensing numbers show that the overwhelming majority are well on the way to being ready for the new regime.”

Last week the numbers showed that only 8,423 advisers had gained their transitional licence, meaning in the past week there has been a last minute surge of 734 advisers getting covered by a transitional licence before the holidays.

Those 3% of advisers who are yet to gain their transitional licence will have until March 15 to do so if they wish to continue to give financial advice.

Tags: FMA John Botica licensing