Many financial advisers were recently contacted by the FSPR about de-registration. The FSPR said they intended to de-register advisers for not adding their dispute resolution scheme (DRS) details on the FSPR. The FSPR’s notice said that those advisers needed to add their DRS details on the FSPR within 20 working days of receiving the notice, otherwise they would face de-registration. However, until a financial adviser is linked to their financial advice provider (FAP), or authorised body (AB), the financial adviser cannot update their DRS details on the FSPR.
Because FAPs/ABs have had three months from 15 March 2021 to link their financial advisers (that is, until 15 June 2021), not all financial advisers have yet been linked. Those financial advisers cannot update their DRS details on the FSPR until they have been linked by their FAP/AB.
FSCL suggests that you take the following steps to ensure you are compliant:
1. If you are linked to your FAP/AB, and your DRS details are showing on the FSPR, you don’t need to do anything further.
2. If you’re not linked, and/or your DRS details are not showing on the FSPR, urgently contact your FAP/AB and get them to link you on the FSPR. If you are not linked by 15 June 2021, the FSPR will initiate de- registration. If the FSPR initiates de-registration, you’ll have 20 working days to object, or to be linked. But the sooner you are linked, the better.
3. For information about the linking process, please see the guides and video provided by the FSPR.
4. If, during the linking process, your FAP confirms that its DRS membership will cover you – you don’t need to do anything further.
5. If your FAP/AB confirms its DRS membership will not cover you, you will need to update your DRS details on the FSPR within 10 working days of you being linked (otherwise the FSPR will initiate de- registration).
6. Continue to check the FSPR to see whether you have been linked. Once you’ve been linked, you need to immediately update your DRS details.
7. To enter your DRS details you’ll need to know your FSCL membership number. You can find this by searching here: http://www.fscl.org.nz/search-financial-service-advisors
8. Then go to the FSPR’s website, and follow these steps:
a) Log in to your online services account using your RealMe details.
b) From the FSPR dashboard, use the ‘FSP registrations’ tab to find and select the FSP you need to submit DRS information for.
c) Select the ‘Financial Services’ tab, and click on the button labelled ‘Maintain Financial Services’.
d) Scroll to the bottom of this screen to the heading ‘Dispute Resolution Scheme’.
e) Select your DRS from the drop-down list and enter your membership number in the field provided. If you are exempt from joining a DRS, select ‘Exempt’ from the drop-down list and provide details of the section in the Act or Regulations that apply to you.
f) Read the declaration and confirm that you’ve done so.
g) Review the information you have entered.
h) Click on ‘Submit’.
9.For more information about updating your DRS details, look at the FSPR’s guidance material.