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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 - Duties on persons giving regulated financial advice

431I: Duty to meet standards of competence, knowledge, and skill

You could also call this:

"People giving financial advice must be competent and knowledgeable to help others make good decisions"

Illustration for Financial Markets Conduct Act 2013

If you give regulated financial advice to someone, you must meet certain standards. You need to have the right competence, knowledge, and skill to give the advice. This includes doing any required continuing professional development as set out in the code of conduct for giving the advice.

You also have to meet any eligibility criteria the government has set for giving financial advice. This is so you can give good advice to people who are not experts in finance. You can find more information about the rules for giving financial advice in the Financial Services Legislation Amendment Act 2019.

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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=LMS465810.

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Money and consumer rights > Banking and loansMoney and consumer rights > Consumer protectionBusiness > Industry rules
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431H: Liability for duties, or

"What happens if you don't follow the rules when giving financial advice"

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431J: Duty to ensure client understands nature and scope of advice, or

"Make sure your client understands the financial advice you give them"

Part 6Licensing and other regulation of market services
Additional regulation of financial advice and financial advice services: Duties on persons giving regulated financial advice

431IDuty to meet standards of competence, knowledge, and skill

  1. A person must not give regulated financial advice to a retail client unless the person meets—

  2. the standards of competence, knowledge, and skill (including any continuing professional development requirements) provided in the code of conduct for giving the advice; and
    1. any prescribed eligibility criteria in relation to the giving of the advice.

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