A new financial advice regime to be introduced in New Zealand has been postponed until next year as advisers battle volatile financial markets caused by the COVID-19 outbreak.

The transitional licensing application window, which is part of the Financial Services Legislation Amendment Act, is expected to be extended to at least March next year, while a new Code of Professional Conduct for Financial Advice Services will take effect at the same time. The exact date will be advised later.

Financial Advice NZ CEO Katrina Shanks welcomed the delay.

“This is exactly the right decision,” she said. “This will give members the breathing space to concentrate on advising and supporting clients through the implications of the current volatile markets.”

Financial Advice NZ had urged a delay to allow advisers to focus on supporting clients through the unpredictable markets and to provide support, advocacy and advice “without the distractions the licensing process entails”.

The delay follows a one-month extension to April 30 of submissions on New Zealand’s Financial Markets (Conduct of Institutions) Amendment Bill.

Advisers who have already registered will not have to do so again, and Ms Shanks says advisers should continue to work towards applying for their licence.