After months of consultation, New Zealand’s Financial Markets Authority (FMA) will use its exemption powers to circumvent laws preventing personalised robo-advice.

Businesses that want to offer personalised robo-advice must provide the FMA with good character declarations for directors and senior managers, and information showing they have the capability and competence to provide the automated service.

“This is consistent with our gatekeeper role for other financial advisers… and provides us with increased visibility over the providers entering this market,” Director of Regulation Liam Mason says.

“The exemption conditions and our ability to monitor providers will help us manage risks and ensure consumer protection safeguards are in place.”

The FMA will not impose financial limits on the advice, and the eligible product list has been expanded to include mortgages and personal insurance.

A further consultation will occur next month to finalise details of the application process and drafting of the exemption notice.

The application process is expected to begin early next year.

Proposed changes to financial adviser laws allowing personalised robo-advice will not take effect until 2019.