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Financial Service Providers (Registration and Dispute Resolution) Act 2008

Registration - Registration of financial service provider - Registration of financial advisers

22D: Financial adviser may be deregistered if not engaged by provider for extended period

You could also call this:

“Financial advisers can lose their registration if they don't work with a provider for a long time”

If you are registered as a financial adviser, you need to be working with a financial advice provider to give advice to regular people. If you don’t work with a provider for three months or more, you might lose your registration.

The person in charge of registrations (called the Registrar) can remove you from the list of registered advisers if you haven’t been giving advice for a while. This is because you’re not considered to be in the business of giving financial advice anymore.

The three-month rule only starts counting after you become registered. Any time before that doesn’t count.

Sometimes, the rules might give you more than three months. This could happen in special situations that are written in the regulations. The Registrar might decide how long you have in each case.

Remember, these rules are there to make sure that registered financial advisers are actively working in their field.

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This page was last updated on

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS464649.

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Part 2 Registration
Registration of financial service provider: Registration of financial advisers

22DFinancial adviser may be deregistered if not engaged by provider for extended period

  1. This section applies if the Registrar is satisfied that—

  2. an individual (A) is registered under section 22C; but
    1. for a continuous period of at least 3 months (or a longer period that applies under subsection (4)), A has not been engaged by any financial advice provider to give regulated financial advice to retail clients on the provider’s behalf.

      1. A must be treated as being no longer in the business of providing a financial advice service (and, accordingly, must be deregistered for that service under section 18(1)(b)).

      2. Any period before A is registered under section 22C must be disregarded for the purposes of this section.

      3. The regulations may provide—

      4. that, in 1 or more types of circumstances specified in the regulations, a period longer than 3 months applies under subsection (1)(b) (instead of the 3-month period):
        1. that the period that applies in particular circumstances is a period specified in the regulations or is a period determined on a case-by-case basis by the Registrar:
          1. for how the Registrar determines the period that applies.

            Notes
            • Section 22D: inserted, on , by section 81 of the Financial Services Legislation Amendment Act 2019 (2019 No 8).