Financial Service Providers (Exemptions) Regulations 2010

6 Exemption for sole adviser practice

(1)

A sole adviser practice is exempt from the application of the Act in respect of all financial adviser services or broking services it provides (and any other relevant service provided in connection with those services).

(2)

A sole adviser practice is a body corporate that is in the business of providing financial adviser services and to which all of the following apply:

(a)

there is only 1 financial adviser employed or engaged by the body corporate in providing those services (the individual adviser); and

(b)

the individual adviser is—

(i)

the only director, or 1 of only 2 directors, of the body corporate; and

(ii)

the only senior manager (if any) of the body corporate.

(3)

However, the exemption applies only if—

(a)

the individual adviser is registered; and

(b)

the sole adviser practice’s name or trading name is stated on the register as the individual adviser’s trading name or principal; and

(c)

the sole adviser practice provides only the types of financial services for which the individual adviser is registered; and

(d)

the sole adviser practice is a member of an approved dispute resolution scheme or the reserve scheme (if section 48 would have applied to the sole adviser practice if it were not exempted from the Act by this regulation).