The Financial Markets Authority (FMA) has confirmed it has yet to receive any applications from insurers and brokers for robo-advice, also known as digital advice, since it opened applications last month.
An FMA spokesperson released the following statement: “We have yet to receive any applications. A small number of providers have expressed an interest to us in using the exemption in the coming months.
“This aligns with our expectations following the two consultations we carried out before enabling the digital advice exemption.”
Under the current reading of the Financial Advisers Act (FAA) only a natural person may give financial advice. Reform to the FAA is expected to come into force in 2019 that will permit digital advice.
Until then, the FMA will allow financial advisers, insurers and other financial institutions, the opportunity to apply to rely on its exemption powers and provide advice to their clients via an algorithm.
New Zealand is already behind the US, the UK, Canada and Australia in allowing brokers and insurers to provide digital advice to their clients, so after a consultation period with the industry, the FMA decided to grant its use.
When the law reforms are introduced in 2019, the exemption will be revoked.
The Financial Markets Authority (FMA) has confirmed it has yet to receive any applications from insurers and brokers for robo-advice, also known as digital advice, since it opened applications last month.
An FMA spokesperson released the following statement: “We have yet to receive any applications. A small number of providers have expressed an interest to us in using the exemption in the coming months.
“This aligns with our expectations following the two consultations we carried out before enabling the digital advice exemption.”
Under the current reading of the Financial Advisers Act (FAA) only a natural person may give financial advice. Reform to the FAA is expected to come into force in 2019 that will permit digital advice.
Until then, the FMA will allow financial advisers, insurers and other financial institutions, the opportunity to apply to rely on its exemption powers and provide advice to their clients via an algorithm.
New Zealand is already behind the US, the UK, Canada and Australia in allowing brokers and insurers to provide digital advice to their clients, so after a consultation period with the industry, the FMA decided to grant its use.
When the law reforms are introduced in 2019, the exemption will be revoked.
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