Financial Crime World

TOKELAU: Financial Advisors Must Comply with Regulatory Requirements to Maintain Licenses

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In a bid to ensure the highest standards of professionalism in the financial advisory industry, all financial advisors in Tokelau, except for those provisionally registered, are required to participate in continuing professional development (CPD) programs. The CPD requirement aims to help financial advisors stay up-to-date with regulatory, technical, and other developments relevant to their work.

Continuing Professional Development Requirements

  • Financial advisors must complete a minimum of 40 hours of CPD each year.
  • At least 70% of these hours must be approved by their Australian Financial Services (AFS) licensee. The remaining hours can be made up of qualifying activities.

The CPD standard is divided into four mandatory categories:

Categories

  • Technical Competence: Minimum hour requirement: TBD
  • Client Care and Practice: Minimum hour requirement: TBD
  • Regulatory Compliance and Consumer Protection: Minimum hour requirement: TBD
  • Professionalism and Ethics: Minimum hour requirement: TBD

Record Keeping and Reporting

  • Financial advisors are advised to use their AFS licensee’s templates and guidelines to help them meet their CPD requirements.
  • It is essential that they keep accurate records of their CPD activities and provide these records to their AFS licensee upon request.

AFS Licensees’ Responsibilities

  • AFS licensees must update the Financial Advisers Register if a financial advisor under their supervision fails to comply with the annual CPD standard.

Additional Requirements for Tax Advice Services

  • Financial advisors who offer tax advice services to retail clients are required to complete an additional 5 hours of CPD in this area.

Training Requirements for New Financial Advisors

  • Those training to become financial advisors are not required to meet the CPD standards but must complete structured training as part of their professional year requirements.

Regulatory Compliance Emphasis

The Tokelau government has emphasized the importance of regulatory compliance for financial advisors, citing the need to maintain public trust and confidence in the industry. The move is expected to enhance the professionalism and competence of financial advisors in the country.