New Zealand’s Financial Services law has changed

New financial services laws came into effect on March 15. The Financial Services Legislation Amendment Act 2019 (the Act), established a new regulatory regime for the provision of financial advice in New Zealand, including insurance broking services. The new regime affects financial institutions and individuals that that provide financial advice to retail clients.

Under the act, a retail client is anyone (individual or company), that in the last 2 financial years has less than $5 million in net assets or turnover. There are exceptions for government entities and others that operate in the investment advice sector.

Anyone not classified as retail is deemed to be a wholesale client and largely falls outside the new regulations.

A new Code of Professional Conduct for financial advice providers has also been introduced and this guides the standards of conduct, client care, competence, knowledge, and skill that we must follow.
 

What does this mean for you?

The key outcome of the law changes is to make it easier for retail clients to obtain financial advice, to make the advice simpler and easier to understand and to improve the quality of financial advice for all New Zealanders.

We will be providing enhanced disclosure to you in respect of the advice you receive to ensure you are able to make informed decisions.
 

What does this mean for Aon?

At Aon, providing good financial advice outcomes for our clients is at the core of what we do and we’re supportive of these efforts to raise advice standards in the industry. 

We obtained a transitional licence to operate under the new regime and over the next 2 years we will work towards obtaining a full licence as required. Aon is a ‘Financial Advice Provider (FAP) and is regulated by the Financial Markets Authority.

All our brokers that provide financial advice to retail clients are recognised as Financial Advisers. Over the next 2 years all retail brokers will need to obtain a level 5 certificate in financial services or an equivalent.

If you have any questions on how these changes may impact you, please contact your Aon insurance broker or for more information on the Act, please refer to: Financial Markets Authority

This website contains general information only and does not take into account your individual needs or financial situation. It is important to note that limits, excesses, terms and conditions and exclusions apply to the products and services outlined on this website. Please refer to the relevant policy documents for details of cover, the provision of which is subject to the insurer’s underwriting criteria that apply at the time. Please contact us if you have any questions.