Advisers who are AFAs are required to comply with their terms and conditions of authorisation under Section 45 of the Financial Advisers Act 2008. The terms and conditions include Standard Conditions prescribed by the Financial Markets Authority (FMA). AFAs who fail to comply with the Standard Conditions commit an offence and may be liable to a fine up to $5,000 under Section 126 of the Financial Advisers Act 2008.
Strategi has recently issued a Guidance Note to assist advisers to better understand their responsibilities in this area, and to reinforce to AFAs the importance of complying with the Standard Conditions (including any other conditions that may be imposed by the FMA at the time of their individual authorisation). This valuable Guidance Note provides hints and examples on how advisers can ensure they comply at all times.
Strategi provides Guidance Notes to its compliance clients as part of the service package. Contact Strategi for a copy of this Guidance Note or to discuss your needs.