Groups apply for transitional licensing
Dealer groups have stepped up preparations for the new regulatory regime by applying for their financial advice provider licences.
Thursday, March 12th 2020, 6:33PM
TMM Online asked some of New Zealand's biggest broker groups for an update on their transition to the new regime, with most groups laying the groundwork to become a FAP under the regime.
Groups will need to become a FAP to continue working with lenders, though some groups, like Newpark, want their members to take individual FAP status beneath them.
Newpark has applied for its own FAP as it plans for the new regime, but will continue to ask members to work under their own FAP licence.
Newpark GM Andrew Scott told TMM the company had been granted its FAP license on March 13.
Astute Financial's Sarah Johnston told TMM her group submitted its application to become a FAP on March 3.
Josh Bronkhorst of Mortgage Link also confirmed the group has applied for its FAP licence and intends to be a FAP under the new regime.
Meanwhile, Mortgage Lab will work under Kepa's FAP.
Rupert Gough, head of Kepa Home Loans, said the group has conducted due diligence on all members coming underneath its FAP licence.
"We have had a fantastic response from advisers looking to come under our licence as authorised bodies," Gough said. "We've done our due diligence on all those advisers that have expressed interest and will be applying for [our] transitional licence next week."
The market is still waiting on NZFSG's formal application to become a FAP, though the dealer group has already confirmed it will make the move.
It comes as the deadline moves closer for transitional licensing, which arrives on June 29.
The new regime is expected to lead to a shake-out in the industry. TMM Online revealed this week that iLender's Jeff Royle has set up a new business to take over clients from industry-leavers.
| « Jeff Royle targets industry leavers | Emergency OCR cut to 0.25% » |
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