FSC update #15

FSC update #15

Changes to the financial advice regime, 23 October 2019

This is the fifteenth message from the Financial Services Council about future changes coming to financial advice regulation. The FSC’s goal is to highlight key things you need to know about the Financial Services Legislation Amendment Act (FSLAA), its regulations and the Code of Conduct for Financial Advice. For more information, visit navigatingregulation.co.nz

Draft disclosure regulations Exposure Draft and discussion paper are out – have your say!

The Ministry of Business, Innovation and Employment released draft disclosure regulations on 10 October. You have until 8 November to submit opinions and corrections. We encourage you to have your say.

Purpose of consultation

  • Are the proposed regulations workable in practice?
  • Do the regulations effectively implement Cabinet’s decisions?
  • Are there gaps, errors, or anything unclear?

About the Exposure Draft

  • 19 pages
  • Easy to read
  • Clear subheadings to navigate content

Key changes to be aware of

Proposed amendments to the Financial Markets Conduct Regulations 2014 include:

  1. a new clause 192A requiring financial advice providers to keep records;
  2. new clauses 229A to 229H describing the disclosure requirements broadly; and
  3. a new schedule 21A describing the detail of what must be disclosed at each specified event.

Key elements of the draft disclosure regulations

Proposed amendments to the Financial Markets Conduct Regulations 2014 would mean four stages of disclosure would apply to anyone giving financial advice:

  1. publicly, such as on your website;
  2. when you know the nature and scope of advice, such as in your scope of engagement document;
  3. when you give financial advice, such as in your statement of advice document; and
  4. when (if) you receive a complaint.

Other general requirements would apply, too (e.g. keeping records of disclosures given and ensuring disclosures are clear and concise).


The new financial advice regime commences in June 2020. This consultation asks providers to consider the requirements and whether they think transitional provisions may be required (refer paragraph 23 of the discussion paper).

A summary of the changes

To read a summary of our latest knowledge about the regime, refer to the Financial Services Council Advice Hub or read the draft disclosure regulations on the MBIE website.

Frequently asked questions

Further details

For more information see the disclosure regulations on the MBIE website.

Please feel free to email any questions about the Code, FSLAA or this message to fsc@fsc.org.nz.

The FSC Navigating Regulation Hub is available here where you can find up to date information about FSLAA, including video from the Navigating Regulation Advice Summits held in February 2019.

Visit the FSC Navigating Regulation Hub
Trecia Brown
Head of Solutions and Services