No annual returns this year

Advisers are getting a few years off submitting their annual returns – but that doesn’t mean all their regulatory obligations are on hold.

Monday, June 22nd 2020, 10:06PM

John Botica, FMA’s director of market engagement, said annual returns would normally be due for AFAs from July through to August.

“We will come out fairly shortly with the happy message we do not expect AFAs to complete those returns.”

He said the FMA had taken into account the new regime coming into effect early next year. “We think the burden of having to complete those returns again for a population that will cease to exist some time early next year as they become financial advisers under the new regime probably doesn’t make an awful lot of sense.”

But he said advisers would have to keep their adviser business statements up-to-date through the period until the FSLAA rules took effect.

“The current regime is the regulatory foundation until the start of the new regime.”

He said ABSs were important and, when the FMA visited or called on advisers, they could expect to be asked to present their ABS. But they were not part of the new regime.

However, when the new regime came into play, AFAs would probably go on to a transitional licence for up to two years, then take a full licence or work under another FAP. “Twelve months after that is the first date when the regulatory returns will be due. Well before then we will be back talking to you and consulting with you about what the content of annual returns will be.”

He said they were an important tool for the FMA in collecting information about the market.

Tags: FMA John Botica regulation

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