The Financial Markets Authority has published an information sheet for Financial Advice Providers on how to demonstrate compliance with record keeping obligations.

Under the new financial advice regime Standard Condition 1 for both transitional FAP licences and full FAP licences states: “You must create in a timely manner and maintain adequate records in relation to your financial advice service.”

The regulator has provided information online to help advisers respond to the new rules.

Its information sheet provides an overview of the record keeping obligations and sets out areas for FAPs to consider when reviewing their record keeping practices. It also includes examples to illustrate how FAPs can demonstrate compliance with the requirements.

FMA director of supervision James Greig said: “Our monitoring of the previous financial advice regime consistently identified poor record keeping as an area of concern. This included insufficient records about the services provided to clients and incomplete information on whether key obligations had been fulfilled.

“Good record keeping ultimately helps financial advice providers to demonstrate that they are serving client interests. We know that many financial advice providers 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.”

June 2022

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