The end of the first regulatory returns period is on July 1 with the return due by Sept. 30 and Edwards said advisers must ensure they get their governance in order.
Advisers are obligated to provide the FMA with an annual regulatory return, which include information on the nature, size and complexity of their service, the level of skill or training of the adviser, and the types of financial products they offer.
Failure to meet this obligation would be a breach of the third standard condition of holding a FAP license, according to Edwards.
“Advisers will waste a lot of time and energy tracking down and reporting on figures that they really should already have on hand,” he said. “Good record-keeping is at the core of running a valuable, successful business.”
“Advisers should be able to give an honest assessment of their systems and their ability to produce this sort of good governance reporting.”