On 25 June 2020 the New Zealand Ministry of Business, Innovation and Employment released the disclosure requirements for financial advisers operating under the new regime introduced under the Financial Services Legislation Amendment Act (Act) and has set the commencement date to 15 March 2021.
The new disclosure requirements will require financial advisers to disclose important information about their services to their client. These disclosure requirements are set in the regulations of the Act and includes disclosure of fees, range of products the financial adviser advises on, whether the financial adviser has any conflicts of interest and dispute resolution services.
The disclosure requirements are designed to improve transparency and assist consumers with important decisions such as choosing where to get financial advice.
The Financial Markets Authority (FMA) is also encouraging financial advisers to apply for their transitional licenses by the end of the year.
Our recommendation is that any financial advisers that may be affected by the Act start planning for changes and apply for the transitional license if they have not done so as soon as possible.
Any questions or concerns can be addressed to us in the meantime, and we will do our best to provide helpful and informative advice with regards to the Act and the new regime.
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