Financial Advisers (Personalised Digital Advice) Exemption Amendment Notice 2018

2018/150

Coat of Arms of New Zealand

Financial Advisers (Personalised Digital Advice) Exemption Amendment Notice 2018

Pursuant to sections 148 and 148A of the Financial Advisers Act 2008, the Financial Markets Authority, being satisfied of the matters set out in section 148(2) of that Act, gives the following notice.

Notice

1 Title

This notice is the Financial Advisers (Personalised Digital Advice) Exemption Amendment Notice 2018.

2 Commencement

This notice comes into force on 30 August 2018.

3 Principal notice

This notice amends the Financial Advisers (Personalised Digital Advice) Exemption Notice 2018 (the principal notice).

4 Schedule 1 amended

In Schedule 1, insert in its appropriate alphabetical order:

Nikko Asset Management New Zealand Limited

Dated at Wellington this 23rd day of August 2018.

Liam Mason,
Director of Regulation,

Financial Markets Authority.

Statement of reasons

This notice comes into force on 30 August 2018. It amends the Financial Advisers (Personalised Digital Advice) Exemption Notice 2018 (the principal notice), which came into force on 1 June 2018.

The principal notice permits entities listed in Schedule 1 of the notice to provide personalised services to retail clients where those services are provided through a digital advice facility.

This notice amends the principal notice to add Nikko Asset Management New Zealand Limited (Nikko Asset Management) to that list of entities.

The Financial Markets Authority (the FMA), after satisfying itself as to the matters set out in section 148(2)(b) of the Financial Advisers Act 2008, considers it appropriate to amend the principal notice because—

  • extending the exemptions to Nikko Asset Management is consistent with the objectives of promoting the sound and efficient delivery of financial adviser services and encouraging public confidence in the professionalism and integrity of the providers. In order to rely on the exemptions, a provider must be listed in Schedule 1 of the principal notice. The FMA is satisfied that Nikko Asset Management has the capability and competency to provide personalised services to retail clients through a digital advice facility, and that its directors and senior managers are of good character. Nikko Asset Management must meet the exemption conditions specified in the principal notice, which seek to ensure that providers take an appropriate degree of care in providing the service and that consumer protection safeguards are in place; and

  • in these circumstances, the FMA is satisfied that the costs of compliance by Nikko Asset Management with the requirement for personalised services to retail clients to be provided by one of the specified types of human adviser are unreasonable and are not justified by the benefit of compliance.

Issued under the authority of the Legislation Act 2012.

Date of notification in Gazette: 27 August 2018.

This notice is administered by the Financial Markets Authority.