The Securities Commission says it is currently reviewing Adviser Business Statements (ABS) from 80 prospective QFEs and the first QFE licences are expected to be granted in late January. The standard conditions come into force on January 20.

Commissioner for Financial Advisers, David Mayhew says the conditions put in place for QFEs are in line with the legislative intent that consumers should receive equivalent protection whether they choose an authorised financial adviser (AFA) or a QFE adviser.

He says the fundamental principle is that the QFE takes responsibility for the QFE adviser.

In addition to conditions about the QFE maintaining procedures to ensure retail clients receive adequate consumer protection, they specify a range of requirements including regulatory notifications, record-keeping and disclosure.

"In particular, the disclosure obligations are critical," Mayhew stressed. "We want consumers to receive meaningful information that helps them choose an adviser and decide whether to follow the advice given.

Disclosure conditions take effect from 1 July.

Mayhew says the QFE conditions were developed in consultation with industry and he acknowledges their input.

"This is one of the last building blocks for the new regime and is fundamental to promoting public confidence in their professionalism and integrity."

The standard conditions are published on the Securities Commission website - an entity must comply with the conditions from the date it becomes a QFE.