The FMA used its exemption powers last year to grant robo-advice
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The Financial Markets Authority (FMA) announced yesterday that it would open applications for financial institutions and financial advisers to apply to rely on the robo-advice “digital advice” exemption by the end of the month.
The FMA said that it believed over time, digital advice would be a “significant addition to the channels where financial advice is accessed in New Zealand, but we believe that ‘in-person’ advice will continue to be the dominant channel.”
In October last year, the FMA announced that it would use its exemption powers under the current reading of the Financial Advisers Act (FAA) to allow robo-advice to be used in New Zealand under a licence structure.
The FMA received 49 submissions during the consultation period from various financial institutions such as banks and insurers.
The regulator expanded the eligibility of product suites to include personal insurance products, mortgages and investments such as KiwiSaver.
The FMA said last year it had proposed the exemption in order to foster and promote innovation within financial markets and to improve consumer access to online financial advice, and financial advice in general.
New Zealand is behind other OECD countries such as the UK and Canada that already allow digital advice to be produced by a ‘non-human’.
The FMA will be supporting brokers and financial advisers through the law changes. More information on the changes and the support available to brokers is on the regulator’s website.
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