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Financial Markets Conduct Act 2013

Licensing and other regulation of market services - Additional regulation of financial advice and financial advice services - Preliminary matters

431A: Overview of financial advice and financial advice services regime

You could also call this:

"Rules for Giving Advice About Money"

Illustration for Financial Markets Conduct Act 2013

When you give financial advice, you are making a recommendation or giving an opinion about money. You can find out what kind of advice is regulated by looking at section 431C(1). If you give advice as part of a business, it is regulated, unless it is excluded under clauses 8 to 18 of Schedule 5.

You must have a special licence to give regulated financial advice as a business. You can be authorised as a licensee or an authorised body, as explained in sections 388(ba), 389(2), and 431D, and also in section 400.

There are rules about who can give regulated financial advice to people who are not experts in finance, as explained in section 431F. The licence you have might also limit the types of advice you can give, as explained in sections 403(4)(a) and 546(1)(d)(iv).

You and anyone who helps you give financial advice have duties to follow, which are explained in sections 431I to 431R. If you do not follow these duties, you might be responsible, as explained in section 431H.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS465780.

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431B: Additional purpose of subpart, or

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Part 6Licensing and other regulation of market services
Additional regulation of financial advice and financial advice services: Preliminary matters

431AOverview of financial advice and financial advice services regime

  1. This subpart and other parts of this Act regulate financial advice and financial advice services as follows:

  2. a person gives financial advice if the person makes a recommendation, gives an opinion, or provides financial planning of a kind described in section 431C(1). The advice is regulated financial advice if it is given in the ordinary course of a business and is not excluded under clauses 8 to 18 of Schedule 5 (see section 431C(3)):
    1. a person must not carry on a business of giving regulated financial advice unless the person is authorised by a market services licence or exempt from the licensing requirement (see sections 388(ba), 389(2), and 431D). A person may be authorised as a licensee or as an authorised body (see section 400):
      1. there are limitations on who can give regulated financial advice on behalf of a financial advice provider to a retail client (see section 431F). This section is a Part 6 services provision, contravention of which may give rise to civil liability (see section 449):
        1. conditions of the provider’s licence may also limit the types of advice that may be given by financial advisers or nominated representatives (see sections 403(4)(a) and 546(1)(d)(iv)):
          1. people who give financial advice, financial advice providers, and any interposed persons are subject to the duties set out in sections 431I to 431R:
            1. section 431H sets out who is responsible if those duties are contravened and the nature of the person’s liability. Sections 431I to 431R are also Part 6 services provisions under section 449.

              1. This section is a guide only to the general scheme and effect of this Act in relation to financial advice and financial advice services.

              Notes
              • Section 431A: inserted, on , by section 29 of the Financial Services Legislation Amendment Act 2019 (2019 No 8).