FSPR deadline causes panic

The Financial Service Providers Register has threatened to de-list advisers who have not linked their registration to a financial advice provider or authorised body under the new regime, causing panic across the industry.

Friday, May 21st 2021, 8:11AM 6 Comments

Under the new regulatory regime, advisers need to ensure their FSPR registration is linked to a FAP or authorised body.

FAPs and ABs must add their FSCL membership number onto the FSPR and link their advisers by June 15.

Advisers need to login and insert their own FSCL membership number, and confirm with their FAP/AB that they have been linked.

However, many advisers have not yet taken steps to go through the administrative steps with the FSPR.

The lack of action has prompted the FSPR to send an email to advisers, notifying them of an intention to de-register them.

Brokers said some people had been given notice of an intention to de-register them within ten days.

Bruce Patten of NZFSG said "an avalanche of people" had contacted the group, concerned over their FSPR registration and looking for advice.

"There's a lack of understanding about this, and many people have ignored previous emails," Patten said.

In response to "a high volume of calls and emails" from advisers, FSCL has sent out details on how to complete the linking and registration process with FSPR.

Information on how to complete the process can be found here.

Tags: FSCL FSPR

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Comments from our readers

On 20 May 2021 at 10:39 am Andy the adviser said:

This wouldn't have been an issue if the new regulations and requirements weren't so convoluted and unnecessary.

"Never underestimate the power of bureaucracy to screw things up". Anon.

On 20 May 2021 at 5:13 pm w k said:

world rugby sets the rules for rugby games - the dos and the don'ts.
image they now also referee every game, manage, coach and trains every team, except play the game. and then they tell players how each move can only be executed in a certain manner.
what do you think would be the outcome the sport?

On 21 May 2021 at 11:45 am LNF said:

Bureaucrats utopia. Never had it so good. Could someone far wiser than me detail the specific points where the public has derived a benefit or added security. 1 point will do !.

On 21 May 2021 at 3:46 pm John Milner said:

With all due respect, if you ignore email reminders or can’t manage just linking yourself to a FAP, you probably shouldn’t be in the industry.
Leave now. There’s plenty of lawns that need mowing.

On 21 May 2021 at 5:34 pm gavin austin adviser business compliance said:

A bit blunt John but you have a point. There has been communication about this and it's not that difficult but not straight forward either.

Guidence on how to do it wasn't released early enough in my view. Must admit I didn't find it that easy myself.

As for other comments - regulations here to stay guys so either get on and do it yourself, follow the FMA guidelines (I haven't read them yet so no comment on how good they are) or get someone to help you.

Over the last 10 years the biggest issue I've encountered is that many adviser are just too proud to ask for help and then can't understand why they're in trouble, so, adapt or hope the FMA don't knock on your door to do an audit.

On 21 May 2021 at 6:32 pm Murray Weatherston said:

Given the legal requirement is for a financial adviser to be linked to a FAP or AB by 15 June, and today is only 21 May, its a bit hard to understand why FSP Registrar would be threatening to deregister alleged recalcitrants within 10 days (i.e. before 15 June).
At the same time there is no excuse for any adviser not knowing about the deadline.

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