Adviser annual confirmation

In addition to being registered on the Financial Service Providers Register, advisers (whether RFAs or AFAs) are also required to maintain their registration at all times during which they provide a financial service.

Section 28 of the Financial Service Providers (Registration and Dispute Resolution) Act 2008 requires that in order to maintain registration, each registered financial service provider (FSP) must provide annually to the Registrar (by the due date) confirmation of the details relating to them. The purpose of this annual confirmation is twofold:

  1. To confirm the FSP is still in business and legally qualified to operate, and

  2. To confirm the information held on the FSP register, about the FSP, is still correct.

The first annual confirmation for an adviser is not due until the calendar year following registration. For example, if an adviser has registered as a FSP in April 2011, their first annual confirmation will not be due till April 2012.

A reminder email will be sent by the Registrar to advisers usually on the first working day of the month in which the annual confirmation is due. This reminder is only sent via email provided by advisers at the time of their registration. It is therefore important advisers provide the email address they normally use to transact business. If their email address has changed since their registration, they should email the Registrar or call 0508 377 746 and provide their new email address. Ignoring the email reminder from the Registrar may result in the Registrar initiating a deregistration action by sending a notice of intention to deregister.

Advisers have 20 working days to respond appropriately to this notice. Failure to provide an annual confirmation may result in a deregistration action being initiated by the Registrar.

A levy dependent on the class and category (within each class) to which the FSP belongs to, is also payable by the FSP at the time of providing annual confirmation. For full details of the classes, and categories within classes and the applicable levies, please refer to the Financial Markets Authority (Levies) Regulations 2012. For example, at the time of annual confirmation, AFAs and RFAs pay the following fees:

Item AFAs RFAs
Annual confirmation fee $86.25 $86.25
FMA levy $379.50 $529.00
Total $465.75 $615.25

Filing Your Annual Confirmation Online

Filing the annual confirmation is an easy online process. An annual confirmation fee, DRS fee and the FMA levy are payable.

  1. Log on to the FSPR website using your RealMe login id and password.
  2. Select the option Online Services – Do It Now and choose Search for FSP and bring up your details by entering your name or your FSP number.
    1. If you were sent a reminder to file your annual confirmation the FSP details will appear in your My Unfinished Business (MUB). Click on the FSP name in your MUB to begin filing your annual confirmation.
    2. Alternately, you can select the My Tools menu on the FSP details page and then select File Annual Confirmation.
  3. Check and, if necessary, update some or all of the following information about you (the FSP):
    1. Your general details.
    2. The financial services you offer.
    3. Financial Markets Authority details.
    4. Dispute resolution scheme you are a member of.
    5. Directors.
    6. Controlling owners and senior managers.
  4. The final step in filing your annual confirmation is to Submit and Pay.

Read about the process in detail on the FSPR website.

Updating FSP details and financial services

FSPs are also required, under Section 17 of the Financial Service Providers (Registration and Dispute Resolution) Act 2008, to notify the Registrar of any changes to their registration. FSPs can fulfil this obligation by updating their details online. At present no additional fee is payable when updating FSP details.

Examples of changes could be a change of registered addresses, the dispute resolution scheme the FSP belongs to, or any change to the financial services they provide.

FSPs are required to notify the Registrar about the change(s) within 10 working days from the date the FSP comes to know about the change. A failure to do this may attract a fine of up to NZ$10,000.

Read more about updating your FSP details online on the FSPR website.