Regulation of financial advice

We are 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 Bill

In 2016 the Government announced changes to introduce a new regulatory regime for financial advice. These changes will be given effect by the Financial Services Legislation Amendment Bill.

The Bill is awaiting its final stages in the House before it becomes law. In March 2019, the Minister of Commerce and Consumer Affairs released a Supplementary Order Paper (SOP) to the Bill.

The SOP makes a number of technical amendments to the Bill.

Visit the NZ Parliament website(external link) to keep up to date with timings and progress for the Financial Services Legislation Amendment Bill.

After considering the Bill, the Economic Development, Science and Innovation Select Committee in 2018 recommended some changes in response to concerns raised by submitters. These changes are summarised in the Committee’s commentary on the revised Bill:

The commentary and revised Bill(external link)

The submissions and advice to the Committee(external link)

Next steps for new regime

Once the Bill is passed, we will provide updated estimates of key dates for implementing the new financial advice regime.

Regardless of when the Bill passes, there will be time built in for industry to prepare to meet the new regime's requirements.

new financial regime timeline
new financial regime what is happening now visual

Visit the New Zealand Parliament website to keep up to date with timings and progress(external link).

Developing supporting regulations

We are currently developing supporting regulations that are required for the implementation of the new regulatory regime. This includes the regulations that will set the disclosure requirements, set the licensing fees, and change the FMA levy.

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

Code of conduct

On 1 August 2017 a Code Working Group was established to develop the new Code of conduct for financial advice.

Learn more about the Code Working Group and engage in the development of the Code of conduct

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.

More information regarding these activities will be released on the Financial Markets Authority website in due course.

The Financial Markets Authority website(external link)

Development of the Financial Services Legislation Amendment Bill

The Financial Services Legislation Bill 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: 12 March 2019
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