A survey from RiskinfoNZ revealed that over 32% of advisers said they do not plan to apply for a FAP licence. 

This news comes as the industry deals with the disparity between numbers of advisers and those seeking advice.

But Financial Advice NZ CEO Katrina Shanks believes that just because advisers are not currently planning to apply for their full licences does not mean that they never will.

“I don’t think that advisers are having those conversations yet. They have been too focused on March 15 and making sure that they meet the duties and obligations associated with that date.

“It is too early for advisers to think in depth about what their next step is.”

According to Shanks, before advisers can begin to consider their next step, they need to take a moment to allow the new environment to settle.

“The new FAP world, who has a licence, who is working under someone else's licence, all of these require a settling in period to be resolved. After that happens we can talk about what the feeling of the industry is.”

Shanks says that despite the stress of another hurdle to complete, most advisers will be happy that they are most of the way there.

“There are some advisers who will be ready to go into full licensing and that is great, and there are some who are almost ready and just have not gotten onto it. I just think it is still too early to make these kinds of calls, we need to allow the sector to settle, before we can consider full licensing in an informed way.”

Financial Advice NZ is taking its show on the road in June to help advisers realise what full licence applications will look like, and what the standard conditions are.

Shanks says that advisers deserve a break before moving onto the next stage of the new regime.

“Advisers don’t have to apply for another 18 months. Right now most advisers won’t be turning their minds to full licensing so soon after transitional licensing.

“But it doesn’t mean that they will never apply.”