by Jenha White
Commerce Minister Simon Power yesterday announced that ‘sole adviser practices' will have to register on the new Financial Service Providers Register in their own name, but they will not have to register their company as well, minimising registration fees.
He says advisers who have registered their sole adviser practice can apply to the Companies Office for a refund for the company. Several refunds have already been processed.
Regulation 6 in the new Financial Service Providers (Exemptions) Regulations 2010 says a sole adviser practice is eligible if:
Sole adviser practices which wish to rely on this exemption from the need to register their company on the FSPR, must ensure that:
If an adviser does not register their company (relying on this exemption), the company will be restricted to only providing those financial services for which they are personally registered.
FAANZ says the definition of a sole adviser practice does not go far enough and does not represent the true nature of how some businesses are run through various structures.
The Association believes more needs to be done and it will be looking to continue discussions with the government about further changes that need to be made.
Jenha is a TPL staff reporter. jenha@tarawera.co.nz
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