Financial Services Legislation Amendment Bill passes third reading

Published: 04 April 2019

The Financial Services Legislation Amendment Bill passed its third reading in Parliament on Thursday 4 April 2019.

The changes in the Bill are aimed at providing consumers with better access to quality financial advice.

Changes in the Bill:

  • Anyone giving financial advice to retail clients will need to be engaged by a Financial Advice Provider, licensed by the Financial Markets Authority.
  • Anyone giving financial advice will need to meet the same standards (including prioritising their clients’ interests and disclosing key information to their clients), and comply with competency requirements set in a new code of conduct.
  • Ansuring the same consumer protections apply regardless of whether people seek financial advice online or in person.
  • Businesses will need to demonstrate stronger links to New Zealand in order to be on the Financial Service Providers Register.

The new regime for financial advice is expected to come into effect in the first half of 2020, with applications for transitional licences opening later this year.

Read the Minister’s media release on the Beehive site(external link).

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