Last updated 25 June 2020
The new financial advice regime set out in the Financial Services Legislation Amendment Act 2019 (FSLAA) will come into force on 15 March 2021.
The existing regime under the Financial Advisers Act 2008 will continue to apply until March 15 2021, and the window for transitional licensing applications will also be extended until then.
The new regime seeks to ensure that financial services are provided in a way that promotes greater confidence and more informed participation.
To achieve this goal, some key changes in the new regime include:
- A Code of Conduct that introduces new standards of competence and professional conduct.
- New requirements that ensure the interests of clients comes first.
- The removal of the distinctions between class and personalised advice.
- The removal of the categories of Authorised Financial Advisers (AFAs), Registered Financial Advisers (RFAs), and Qualifying Financial Entities (QFEs).
- New requirements for registration on the Financial Service Providers Register (FSPR), to prevent its misuse.