About 86% of New Zealand financial advice providers have either started or completed applications for full licences that will allow them to continue operating when their transitional permit expires next year, the Financial Markets Authority (FMA) says.

FMA says 66% are now operating under or have applied to the regulator for a full licence. Another 20% have taken the step to register on the Financial Service Providers Register (FSPR) for the “financial advice provider-licensee-full licence” service but have not yet formally applied for a licence.

The regulator had set September 30 as the deadline for advisers holding transitional licences to apply for Class 1 or 2 full licences, before their temporary permits expire on March 16 next year.

Under new advice laws that commenced in March last year, advisers who service retail clients are required to hold, or operate under, a Financial Advice Provider (FAP) licence.

To help the sector transition to the new licensing system, advisers were initially able to operate with the transitional licences.

The FMA says as at September 30, the total number of licensed financial advice providers – both transitional and full – stands at 1750.

“We are pleased the majority of transitional licence holders are choosing to step up and… apply for a full licence,” FMA Director of Regulation and Operations John Botica said.

“This is a credit to everyone in the sector and will ensure New Zealand consumers can benefit from access to quality financial advice.”