Law changes look like Aussie model: Stewart

Nick Stewart, who runs advice firm Stewart Group and the Boutique Advisers Alliance, said the new Financial Services Legislation Amendment Bill looked set to take New Zealand down a path similar to the UK or Australian regulatory model. “It reads like the Australian regime but instead of calling it a dealer group they are calling it a Financial Advice Provider (FAP).”

The Financial Markets Authority has indicated that it will allow the requirements of licensing to be tailored to fit the needs of smaller firms.

But Stewart said it should be expected that there would be limitations to that. “There’s no carveout for small firms in Australia.”

He said every business there that was registered to provide a service had to meet the same requirements. “At the end of the day it’s consumers that suffer if someone is given a carveout. I understand the regulator wants as many as possible to front up on day one but when the rubber hits the road and you look at what you need to start operating, it could be very onerous.”