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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 - Limitations on giving regulated financial advice and holding out

431F: Limitation on who can give regulated financial advice to retail clients on behalf of financial advice provider

You could also call this:

"Who can give financial advice to people on behalf of a financial advice company"

Illustration for Financial Markets Conduct Act 2013

If you want to give regulated financial advice to retail clients on behalf of a financial advice provider, you must follow certain rules. You can give advice if you are a financial adviser or a nominated representative nominated under section 431T by the provider and you are engaged directly by the provider as described in section 431E(a). You can also give advice if you are a financial adviser or a nominated representative and you are engaged indirectly through other people, but only if the provider's licence allows this.

If you are an entity, you can give advice if the provider's licence allows you to do so. A financial advice provider or an interposed person must not let you give advice if you are not allowed to do so. In this case, the provider's licence refers to the licence that authorises the provider to give financial advice services.

You need to make sure you are allowed to give advice under the provider's licence, whether you are engaged directly or indirectly, or if you are an entity.

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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=LMS465797.

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431E: Meaning of engaged, or

"What it means to work for someone, like being their employee"

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431G: Prohibitions on holding out in relation to giving financial advice, or

"Don't pretend to be a financial advisor if you're not one"

Part 6Licensing and other regulation of market services
Additional regulation of financial advice and financial advice services: Limitations on giving regulated financial advice and holding out

431FLimitation on who can give regulated financial advice to retail clients on behalf of financial advice provider

  1. A person (A) must not give regulated financial advice on behalf of a financial advice provider (P) to a retail client unless—

  2. both of the following apply:
    1. A is a financial adviser or a nominated representative nominated under section 431T by P:
      1. A is engaged directly by P (as described in section 431E(a)); or
      2. all of the following apply:
        1. A is a financial adviser or a nominated representative nominated under section 431T by P:
          1. A is engaged by P indirectly through 1 or more interposed persons (as described in section 431E(b)):
            1. the conditions on P’s licence authorise P to engage A through those interposed persons to give the advice; or
            2. both of the following apply:
              1. A is an entity:
                1. the conditions on P’s licence authorise P to engage A to give the advice.

                2. A financial advice provider or an interposed person must not allow a person engaged by the provider or person to give advice in contravention of subsection (1).

                3. In this section, P’s licence means the licence under which P is authorised (as licensee or an authorised body) to provide the financial advice service.

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