Pursuant to section 148 of the Financial Advisers Act 2008, the Financial Markets Authority (FMA) on 15 May 2017 granted the exemptions contained in the Financial Advisers (Certified Investment Management Analyst) Exemption Notice 2017.

The notice exempts certain people, on specified conditions, from the requirements under Code Standard 16 of the Code of Professional Conduct for Authorised Financial Advisers to attain the Core Component and Investment Strand of the New Zealand Certificate in Financial Services (Level 5) in order to be an Authorised Financial Adviser (AFA) and provide certain financial adviser services.

The exemptions apply to a person who has been granted certification by Investment Management Consultants Association Inc. under the Certified Investment Management Analyst certification program and who is currently certified and entitled to use the CIMA® and Certified Investment Management Analyst® designation.

The FMA, after satisfying itself as to the matters set out in section 148(3) of the Act, considers it appropriate to grant these exemptions because:

• The CIMA certification program provides a post-graduate level specialist program designed for investment and wealth professionals and suited to those involved in any aspect of constructing multi-asset and multi-manager portfolios. The program goes beyond the minimum education standards required under the Code in terms of complexity and depth in certain areas;
• we are satisfied that a CIMA certificate holder will have qualifications that are comparable to the topics and associated learning outcomes under the Investment Strand;
• we are further satisfied that the costs of requiring CIMA certificate holders to attain the Core Component would be unreasonable or not justified by the benefit of compliance in circumstances where:
• holders will already have some of the required knowledge, competence and skills under the Core Component through completing the CIMA certification program and other competency requirements under the Code;
• conditions will require holders to identify any gaps or deficiencies in their competency, knowledge and skills compared, in each case, with the learning outcomes for the Core Component and how they could be addressed through structured professional development in a written professional development plan;
• the exemption from the Core Component will cease to apply if those gaps or deficiencies in their competency, knowledge and skills are not addressed through structured professional development within 12 months; and
• Code Standard 14 will in any event prevent holders providing a financial adviser service unless they have the necessary competence, knowledge and skill to do so;
• in forming a view on the adequacy of the nature and content of the CIMA certification program, the FMA has taken advice from the Code Committee who set the competency requirements in the Code. The Code Committee confirmed that if they had been asked to consider the CIMA certification program as an alternative designation for the Core Component and Investment Strand in the Competence Alternatives Schedule of the Code in the context of a review of the Code, it is likely that the Committee would have allowed this; and
• we are satisfied that, for the reasons given above, granting the exemptions would not undermine consumer protection.

Copies are available on the Financial Markets Authority’s website: www.fma.govt.nz.

Copies are also available for purchase on request to the Financial Markets Authority, Level 2, 1 Grey Street, Wellington, or Level 5, Ernst & Young Building, 2 Takutai Square, Britomart, Auckland, or by post to PO Box 1179, Wellington 6140.