Update on NZCFS5 (V2)

The Code of Professional Conduct for Financial Advice Providers (new Code) stipulates the minimum standards of competence, knowledge and skill are those contained in the New Zealand Certificate in Financial Services Level 5 (version 2). The problem is that version 2 has not yet had the unit standards approved by NZQA so may not be available until sometime in early 2020. This creates potential issues for future FAPs and advisers. The good news is Strategi Institute has a solution to this issue that will enable advisers to confidently commence their level 5 training and not come under pressure to undertake level 5 training, transition to the new regime and meet new compliance obligations all at the same time. Download a copy of the new Code here.

Strategi Institute has its new course content and assessments ready to go but may not be able to commence providing this until sometime in early 2020. Once NZQA has approved the unit standards, then we need to make any last-minute tweaks to reflect any changes then submit all material to Skills Organisation for moderation. This process can take three months.

If you wait until sometime in early 2020 to commence your level 5, then the combination of doing your level 5 study, transitioning to the new regulatory regime, getting to grips with new compliance and conduct obligations plus new advice templates, might be such that you don’t have enough time to generate a good level of income. This sees you and your business suffer financially.

Strategi encourages all advisers to smooth out their workload and start their level 5 sooner rather than later. There is no transition period for compliance and good conduct. You are expected to be meeting the requirements of the new regime - including operating at the level of NZCFS5 (V2) - from day one of regime commencement (June 2020). The best way to be operating at the right level is to have undertaken your level 5 qualification prior to June 2020.

Advisers do not have to attain version 2 of the level 5 qualification. Having the current version 1 of NZCFS5 or even holding the old National Certificate in Financial Services (Financial Advice) Level 5 is perfectly acceptable. You can demonstrate the requisite competence, knowledge and skill to meet version 2 via your CPD.

Strategi Group has developed a solution which will satisfy the needs of all those who hold an existing level 5 qualification or intend to obtain the NZCFS5 version 1 rather than wait until a date in the future that is currently unknown, for version 2. The solution includes:

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  • Providing a series of ‘closing the gaps’ courses and online modules. These fill the gaps between past level 5 qualifications and the new version 2 qualification.
  • Publishing edition 5 of the ‘Regulatory guide for the financial services industry’. This provides all the necessary information to meet the legislation, regulation, and code. This publication will be available in both hard and soft copy.
  • CPD module and questions that cover the legislation, regulation and code. This will be available on RADAR plus large organisations which have their own learning management system will be able to purchase it and host on their own platform.
  • A series of workshops plus consultancy services to assist advisory businesses to build new advice templates.
  • Compliance reviews which FAPs can undertake soon after entering the new regime. These will assess the standard at which financial advice is being delivered, help contribute towards CPD, and provide confirmation that the FAP and the advisers are operating at the equivalent of NZCFS5 (v2).

Contact us if you need additional information.