by Jenha White
One financial adviser waiting for the sole trader definition was distressed speaking to Good Returns yesterday because it takes two to five working days to get the criminal check required for registration and he believed the final deadline was just five working days away.
The Ministry of Economic Development says confirmation on the sole trader definition will be coming out very shortly and is likely to be this week.
Speaking to advisers, there appears to be confusion on registration dates as the December 1 deadline has been pushed to get advisers on the front foot.
However, Securities Commission communications manager Roger Marwick says that date is recommended, the final date for companies and individuals providing financial adviser services to be registered is March 31.
According to the Financial Advisers Act a financial adviser service is:
However, if an adviser or its entity provide anything else apart from a "financial adviser service" such as a broking service, foreign currency services, acting as a trustee for securities, trading in money market instruments or shares and other things the individual and/or entity must be registered by December 1.
It is financial service providers that have to be registered by December 1 such as: building societies, credit providers, credit unions, foreign currency exchange dealers, finance companies, fund managers, investment portfolio managers, issuers, money changers, registered banks and some professional trustees and money changers .
Advisers should also be aware that all advisers must comply with the Financial Advisers Act requirement to exercise care, diligence and skill as of 1 December, regardless of whether or not they have registered by that date.
In a nutshell:
1 December:
31 March:
Jenha is a TPL staff reporter. jenha@tarawera.co.nz
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This advice above applies if the only financial services you provide fall within the definition of "financial adviser services"
If you provide other financial services for example a "broking service" or "keeping, investing, administering, or managing money, securities, or investment portfolios on behalf of other persons" you will still need to be registered by December 1 or you will be in breach of the law.
All this is set out in the Financial Service Providers etc Act, which you can read at www.legislation.govt.nz