Financial Service Providers register to open Monday

Commerce Minister Simon Power is urging people who provide financial services to register with the Financial Service Providers Register when it opens on Monday.

"The opening of the register marks the start of the transition to full implementation of the Financial Advisers Act and the Financial Service Providers Act", Mr Power said.

Once fully implemented these Acts require all financial service providers, including financial advisers, to be registered. If they provide services to the public, they are also required to be a member of an approved dispute resolution scheme.

"Financial advisers in particular will also be subject to new minimum standards of disclosure, competence, conduct, and accountability.

"This regime is essential if we are to have a financial sector which investors and investment product providers can have confidence in."

The timeline from here is:

• 1 December - financial service providers must be registered and must belong to a dispute resolution scheme. Financial advisers who may be working under a qualifying financial entity or whose qualifying financial entity is still awaiting approval have until 31 March 2011 to register.
  
• 1 July 2011 - the Acts come fully into force. All financial advisers who need authorisation from the Securities Commission must have completed their training and finalised their authorisation by this date.

"The requirement to register applies to a wide range of financial service providers, and anyone who is in doubt about whether it applies to them should seek legal advice."

The Financial Service Providers Register is available at: www.fspr.govt.nz

For information about Authorised Financial Advisers: www.seccom.govt.nz/afa

For information about dispute resolution schemes: www.consumeraffairs.govt.nz