FMA announces date for transitional licence applications

The Financial Markets Authority (FMA) has announced that it will start accepting transitional licence applications from 4 November 2019. An online decision tool ‘Explore your options’ (Tool) has been released to assist advisers in deciding how they would like to operate in the new regime. Access the Tool here.

The FMA has published a Financial Advice Provider Transitional Licence Guide (Guide), outlining what applicants will be asked as part of the application process. The Guide is available here.

Our previous discussion on the transitional licence applications and the FMA’s consultation on proposed standard conditions on transitional licensees can be found here.

Who does this apply to?

This is relevant for all involved in the provision of financial advice, financial services or financial products. Under the new financial advice regime, all providers of regulated financial advice to retail clients will need a financial advice provider (FAP) licence.

What does the guide cover?

The FMA will be accepting licence applications between 4 November 2019 and June 2020.

From the start of the new regime in June 2020, you will only be able to provide advice to retail clients if you have a FAP licence, or if you have been accepted as a financial adviser, nominated representative or authorised body under another FAP’s licence.

The Guide includes a checklist with all the information required to complete your application, including:

  • RealMe login
  • Financial Service Provider number
  • type of services and products you plan to provide advice on
  • approximate number of financial advisers and/or nominated representatives you will engage to provide regulated financial advice to retail clients on your behalf
  • details of any authorised bodies and
  • details of any criminal convictions or regulatory action relating to you, your senior managers or directors,  and any authorised bodies on your licence.

Our view

The Guide confirms earlier market understanding that the transitional licence applications will be a relatively simple process ahead of the full licence applications. As such, these will be at a high level.

What next

If you have any questions in relation to the transitional licensing process or the new financial services regulatory regime in general, please contact one of our experts.

Who can help