A new regime for financial advice services will come into effect from 29 June 2020.
The Financial Services Legislation Amendment Act Commencement Order 2019 has been gazetted, bringing into force on 29 June 2020 the provisions of the Financial Services Legislation Amendment Act 2019 that are not already in force.
Among the changes which will come into force on 29 June 2020 are new Subparts 5A and 5B which make major changes to the regime for financial advice services under the Financial Markets Conduct Act 2013. The new regime replaces the Financial Advisers Act 2008.
The Financial Service Providers (Registration) Amendment Regulations (No 2) 2019 have also been gazetted. These come into force on 25 November 2019, amending the Financial Service Providers (Registration) Regulations 2010.
The effect of the amending regulations is to make changes connected to the new financial advice services regime. The 2013 Act allows the Financial Markets Authority to issue a transitional licence covering the service of acting as a provider of a financial advice service. This will allow a provider to comply with the new regime which comes into force on 29 June 2020.
The change made by the amending regulations is to require an applicant for registration as a financial service provider to confirm in the application whether they hold, or intend to hold, a transitional licence or will be authorised to provide a financial advice service under such a licence.
Changes to fees and levies - including the fee for a transitional licence - are made by the Financial Markets Conduct (Fees) Amendment Regulations (No 2) 2019. Most come into force on 29 June 2020 and prescribe different fees for providers in different circumstances.