Regulation of financial advice

MBIE is responsible for administering legislation relating to the regulation of financial advice in New Zealand.

Financial advice is currently regulated under the Financial Advisers Act 2008.

Financial Services Legislation Amendment Act

The Financial Services Legislation Amendment Bill had its third reading on 4 April 2019 and has now been passed into law. The legislation introduces a new regulatory regime for financial advice.

Visit the NZ Parliament website(external link) to view the history of  the Financial Services Legislation Amendment Act.

Next steps for new regime

Cabinet has agreed that the new regime will come into effect in June 2020. The exact date will be set by Order in Council in the coming months. Now is the time for industry to familiarise itself with the requirements of the new legislation and the Code of Conduct, before applications for transitional licensing open (expected in quarter 4 of 2019).

What are expected timeframes June 2019 new
What is happening now June 2019 new 2

Developing supporting regulations

Cabinet has recently agreed further details of the new regime, including the licensing fees and levies, the registration requirements, and other aspects of the regulations.

More detail is available on the Regulations to support the Financial Services Legislation Amendment Act page

Code of conduct

In May 2019, the Minister of Commerce and Consumer Affairs approved a Code of conduct developed by an independent Code Working Group. The new Code will come into effect in June 2020.

Read the Cabinet paper relating to approval of the code [PDF, 211 KB]

Read the Code of conduct and about its development

Licensing

The Financial Markets Authority (FMA) will continue to work with the industry to help participants understand and get ready for the new financial advice regime and licensing.

Applications for transitional licences are expected to open in quarter 4 of 2019.

Updates regarding these activities will be provided on the Financial Markets Authority website throughout the year.

The Financial Markets Authority website(external link)

Development of the Financial Services Legislation Amendment Act

The Financial Services Legislation Amendment Act was developed following a statutory review of the existing regulatory regime for financial advice.

Read more about the review and the development of the new regime

Feedback welcome

In addition to the formal engagement processes we welcome feedback at any time.

If you would like to contact us, please email faareview@mbie.govt.nz.

Last updated: 07 May 2019