This page provides information about the disclosure requirements that will apply in the new financial advice regime after the Financial Services Legislation Amendment Act comes into force.
In June 2020, the Financial Markets Conduct (Regulated Financial Advice Disclosure) Amendment Regulations 2020 were made. These regulations give effect to previous Cabinet decisions that set the disclosure requirements that will apply in the new regime.
A number of changes were made in response to feedback received on an exposure draft of the regulations released in October 2019. These changes are summarised below and aim to improve the workability of the regulations.
At the same time as the disclosure regulations were made, a commencement order was also made setting 15 March 2021 as the new start date for the new financial advice regime (delayed from 29 June 2020 to allow the sector to better focus on helping clients with the impact of COVID-19). This means that the duties in the new regime, including the disclosure regulations, will apply from 15 March 2021.
Exposure draft consultation
Background on new disclosure requirements
On 25 February 2019 Cabinet agreed on the disclosure requirements that will apply in the new financial advice regime. Once the new regime has come into force, anyone who gives regulated financial advice to a retail client will be required to disclose information regarding:
- the licence they hold and certain duties that they are subject to
- the financial advice services that they can provide, the range of products they can advise on, and any limitations on the advice
- the applicable fees and costs associated with the advice
- the commissions, incentives and other conflicts of interests that could impact the advice
- the complaints handling and dispute resolution process
- any previous disciplinary history, and certain criminal convictions or civil proceedings
- in the case of financial advisers, bankruptcy proceedings within four years of the date of discharge.
In developing the disclosure requirements we publicly consulted on an exposure draft of the regulations, released a discussion paper on the proposed requirements, and completed consumer testing.