Regulatory Framework 

Since 15 March 2021, the provision of financial advice in New Zealand has been regulated by a revised financial advice regime. This regime requires individuals who provide regulated financial advice (as defined by the FMCA) to retail clients to hold, or operate under, a financial advice provider licence unless a specific exemption applies. Individuals who provide regulated financial advice to wholesale clients only do not need this licence but certain requirements of the FMCA will still apply. 

This revised financial advice regime is accompanied by a new client money and property services regime. 

Financial Advice Provider Licence  

Under the FMCA (as amended by FSLAA), members who hold or operate under a financial advice provider market services licence must (amongst other things): 

• Demonstrate competency equivalent to the learning outcomes of the NZ Certificate in Financial Services (Level 5) 
• Comply with conduct and disclosure obligations under the regime 
• Members can operate under another entity’s licence (such as their firm or employer) provided all regulatory requirements are met. 

Qualified Statutory Accountant (QSA) Exemption  

The activities of members who hold a Certificate of Public Practice may fall within a limited exemption to holding a license, known as the QSA exemption. However, this exemption was narrowed by the FSLAA and should not be assumed to apply automatically. 

Action required: 

• Review the wording of the exemption to confirm that your activities qualify for the exemption. 
• If unclear, seek legal advice before relying on this exemption. 
• If not, cease the non-qualifying activities until such time as you comply with the FCMA. 
• This narrow exemption also applies to the client money or property services regime. 

Further information on FMCA requirements

The FMCA is administered by Financial Markets Authority (FMA).  If you require further information about your obligations under the FMCA, including how to apply for a Financial Advice Provider License, please refer to the FMA website. 

NZICA Financial Advisory Services Standard

FAS:  Financial Advisory Services, issued by the New Zealand Regulatory Board of the New Zealand Institute of Chartered Accountants (NZICA), sets out the ethical and professional standards expected of members in public practice who provide financial advisory services (as defined in FAS). 

FAS also contains general information on the QSA exemption to assist members. 

For more details, please visit  the FAS standard.