FMA sets FAP full licence target application dates

Today the FMA has published target application dates for financial advice provider (FAP) full licences.

A link to the media release is available.

Who needs to read it?  Why?

This update will be of significance to anyone that currently holds a FAP transitional licence, or anyone who is expecting to give financial advice in the future, and are looking to apply for a FAP full licence.

All providers of regulated financial advice to retail clients will need a FAP licence.

What does it cover?

The target dates vary depending on the class of FAP full licence:

  • The target date for Class 3 FAP licence applications is 30 June 2022.
  • The target date for Class 1 and Class 2 FAP licence applications is 30 September 2022.

Guidance on the different classes of FAP full licence, and how to apply, are available on the FMA’s FAP full licence application information webpage. Class 3 is the broadest category, and the one likely to be used by major providers.

The FMA has published the questions for the Class 1 licence application, Class 2 licence application, and Class 3 licence application. Note that the answers are to be submitted through the online application form.

Our view

All those who are looking to apply should be getting on with preparing their FAP full licence applications – particularly those who are looking to apply for a Class 3 licence. There are only just over 8 months to run to the target date of 30 June 2022 (with the Christmas period also taking out some of the available time).

The FMA has been clear, that in contrast to the granting of the transitional licences, full licence applications are likely to receive more scrutiny. So FAP licence holders who have not started their preparations already, would be well advised to start at least 6 months in advance.

Before you apply, we recommend going through the licence application questions for the relevant class carefully, and the FAP licence requirements and application kit, to ensure all required information, documentation and arrangements are in place.

What next?

If you have any questions in relation to licence applications or the financial advice regime in general, please contact one of our experts.

Co-authored by Lana Ou, a Solicitor in our Financial Services team.

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