The Financial Markets Authority (FMA) has published an information sheet to guide financial advice providers (FAPs) struggling to comply with record-keeping obligations.
Standard Condition 1 under the new financial advice regime requires both transitional FAP licences and full FAP licences to “create in a timely manner and maintain adequate records” in relation to their financial advice service.
The information sheet provides an overview of FAPs’ record-keeping obligations, examples of how FAPs can demonstrate compliance, and areas for consideration when reviewing record-keeping practices.
FMA director of supervision James Greig noted that the previous financial advice regime had consistently identified poor record-keeping as an area of concern, including insufficient records on services provided to clients and incomplete information on whether their FAP obligations had been fulfilled.
“Good record-keeping ultimately helps FAPs to demonstrate that they are serving client interests,” Greig said. “We know that many FAPs are adapting and evolving their processes to comply with this standard condition, so we are trying to help the industry with this practical information sheet.”
