MBIE urges caution for FAPs engaging multiple advisers

The first transitional licences are being issued for financial advice providers who will work under the new financial advice regime, either as individuals or entities engaging financial advisers and nominated representatives.

MBIE has put out two new fact sheets, dealing with the prospect of one adviser dealing with multiple FAPs, and interposed persons.

The Financial Services Legislation Amendment Act allows for licensing conditions to prohibit financial advice providers engaging a financial adviser who is also engaged by another FAP.

Licensing conditions may be imposed either by the Financial Markets Authority, or through regulations developed by MBIE, to prohibit particular types of arrangements if concerns arise with regards to how these arrangements are impacting on consumers.