Strategi Institute provides multiple alternative ways to demonstrate this standard:

• Building the equivalent of NZCFS5(V2) through internal training, processes and systems. This approach works for the big end of town which wants to engage nominated representatives. We don’t recommend this approach for small FAPs due to the cost involved (plus those FAPs are unlikely to have in place sufficiently robust processes and systems to be able to achieve and maintain the equivalent status) but it is a great option for large scale operators.
• Recognition of prior learning. This is where Strategi Institute assesses an individual’s past qualifications and experience and where we can evidence a direct match of qualifications, then we can credit that past learning towards attaining the NZCFS5 (V2). This approach might sound simple and easy but the reality is it is time consuming, expensive and in the end harder than just doing the NZCFS5(V2) from scratch. Very few individuals in the industry have ended up going all the way down this pathway as it just becomes too difficult and expensive.
• From 15 March 2023, CPD will be a requirement due to Code Standard 9. If you completed one of the old level 5 qualifications, then they provided training on the old legislation, regulation and Code. If you have not updated your competence, knowledge and skill relating to the new regulatory environment, then the ‘Closing the Gaps’ course can be quickly and cheaply undertaken as part of your CPD. This does not give you the NZCFS5 (V2). Instead, it is verifiable CPD designed to prove you have undertaken the necessary knowledge training on the new legislation, regulation, Code, conduct and regulator guidance material.

The reality of the situation is that if an adviser does not hold the NZCFS5(V2) or one of the alternative qualifications as outlined in the Code of Professional Conduct for Financial Advice Services (the Code) by 15 March 2023, then they will not be able to provide financial advice. In addition, advisers will need to have completed multiple specialist strands of the qualification if they provide advice in multiple areas e.g.: if they provide advice on mortgages and life insurance, then the adviser will need to have attained the Residential Property Lending Strand and the Life Disability and Health Strand.

Where are some advisers getting stuck?

• Many still have not started the Level 5 qualification and do not appreciate that even if they started today, they might struggle to complete on time. Strategi Institute is trying to assist these advisers with fast-track workshops and other support mechanisms. 
• Many are delaying starting the qualification as they are struggling to make an income in today’s tough financial market. These individuals mistakenly believe they will get an extension of time or else they will somehow be able to complete the qualification in a matter of weeks. A number of these individuals may have to cease operating on 15 March 2023 and focus 100% on getting their qualification. The FMA has been at pains to try and encourage these advisers to start their Level 5 qualification.
• Some advisers started the New Zealand Certificate in Financial Services (Level 5) version 1 and never finished it. The unit standards for Version 1 of the qualification expire at the end of the year and if an individual has not completed it by that date, then the work they have done is nullified. This is an NZQA imposed rule – it is not something dreamt up by Strategi Institute.
• Many advisers have not realised they will need multiple specialist strands to cover the broad spectrum of advice they provide. These specialist strands take time to complete so starting now is a good move.

Let us help you

We want to help these advisers get on the right pathway so they can continue operating the businesses they have worked so hard to build but for whatever reason are stuck or overwhelmed by the requirements. If this is you (or if you know of advisers who have not started their education journey or are struggling to complete), then reach out to the Strategi Institute team to get a solution in place.