New Zealand’s Financial Markets Authority (FMA) says the country’s financial advice regulatory regime is now in full effect following the end last week of the two-year transitional licensing phase.

All financial advice providers must now hold or operate under a full licence from the FMA, allowing them to continue to provide regulated financial advice to retail clients.

The new requirements are part of legislative changes passed in 2019 to raise adviser standards, compliance and protect consumers.

FMA says the value of quality financial advice is particularly relevant in the current environment, when many New Zealanders are navigating challenging financial decisions.

“The new regime is designed to give people greater confidence to go and get professional advice while making important financial decisions,” FMA Director of Deposit Taking, Insurance and Advice, Michael Hewes said.

He says the transitional period has been successful, with more than 2500 financial advice providers either directly licensed or operating as an authorised body to date.