The new financial advice regime for financial advisers in New Zealand begins on 16 March 2023, yet many advisers are still burying their heads in the sand when it comes to getting a full license in order to provide regulated financial advice.
In an effort to encourage more advisers to get on board, the Financial Services Council (FSC) has today released and busted ten top myths for financial advisers, coinciding with the 2022 FSC Conference this week, focused this year on growing financial confidence and wellbeing in Aotearoa.
Richard Klipin, Chief Executive Officer, FSC, said “We know from our Money & You research that New Zealanders who get financial advice are more financially confident with higher levels of wellbeing, and that is why we have been supporting the advice community through the transition to the new rules over the past few years.”
From 16 March 2023, anyone who gives regulated financial advice to retail clients will need to have a full licence or be engaged by a licensed Financial Advice Provider as a financial adviser or nominated representative. If not, they will be breaking the law.
“It’s not just about breaking the law, it’s the worry that clients may find themselves without the financial advice that they rely on after 16 March 2023”, continued Klipin.
Members of the FSC’s Professional Advice Committee have busted a list of common myths they’ve heard and addressed them to show how important it is to ensure that financial advisers meet the new requirements for giving great advice by the deadline. Some of the myths include:
If I keep ignoring the new requirements, it will all go away.
I have my transitional licence so feel comfortable that I can roll up into another of my dealer group FAP’s for full licensing closer to the March deadline – no worries!
I’ve never had a complaint and none of my clients would ever complain, so it won’t matter.
Trisha Edmonds, Co-Chair of the FSC’s Professional Advice Committee, said “We all work with many advisers daily, and it’s great to see that a large majority are prepared or are in the process of preparing for this change, which at the end of the day will improve financial advice for all New Zealanders.
“Equally, however, it is worrying some of the feedback we hear from parts of the adviser community ranges from denial to misplaced confidence that they either don’t need to or will be able to meet the needs of the regime the day before the cut-off. This simply isn’t the case," concluded Edmonds.
Klipin concluded, “Financial advice is so important to Kiwis, and we hope that busting these myths will help encourage all financial advisers that haven’t yet to take the first step, to find out more and take action.”