Pursuant to section 148 of the Financial Advisers Act 2008, the Financial Markets Authority (FMA) on 8 February 2018 granted the exemptions contained in the Financial Advisers (Australian Qualified Advisers) Exemption Notice 2018.

The FMA, after satisfying itself as to the matters set out in section 148(3) of the Act, considers it appropriate to grant the exemptions for the following reasons—

• The exemptions and conditions of exemption in the notice are the same as the exemptions under the Financial Advisers (Australian Qualified Advisers) Exemption Notice 2016, and substantially the same as its predecessors: the Financial Advisers (Australian Qualified Advisers) Exemption Notice 2014 and the Financial Advisers (Australian Qualified Advisers) Exemption Notice 2012, which have been in place for a number of years and the policy reasons for these previous notices remain valid and relevant. The exemptions continue to be required and remain appropriate in light of the policy of the notice.
• The exemptions do not undermine consumer protection because:
  • in order to come within the exemptions a person must have satisfied training requirements in Australia which meet ASIC’s requirements and must have experience as a representative or have acted under their own Australian licence; and
  • the exemptions are limited to exemptions from the Code’s educational competency requirements in order to be an authorised financial adviser (AFA), and Australian advisers must meet the other eligibility requirements under the Act in order to become an AFA; and
  • the Australian advisers will be subject to the overarching competency requirements of the Code (which require an adviser, before providing a service to have the competence, knowledge and skills to provide that service) and the remaining requirements of Code Standard 15 (which require the adviser to have knowledge of the Act, Code and other legal obligations of AFAs); and
  • as AFAs the Australian advisers will be subject to the other provisions of the Code and New Zealand laws relating to the provision of financial adviser services and will also be subject to monitoring and oversight by the FMA and disciplinary committee decisions in the event of a breach of the Code.
• The costs of compliance with the Code qualifications requirements for Australian advisers, which would involve them qualifying in both Australia and New Zealand, would not be justified by the benefit of compliance with the Code qualifications requirements. ASIC has provided similar recognition for New Zealand qualified advisers. Together with this exemption, this will facilitate the flow of advisers and services across the Tasman. This is consistent with the close economic relationship between Australia and New Zealand and the recognition of qualifications for other occupations under Trans-Tasman mutual recognition legislation.

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.