Financial advice and the FAP regime

A Financial Advice Provider (FAP) is a business licensed by the Financial Markets Authority to give regulated financial advice under the Financial Markets Conduct Act 2013, and the FAP regime is the set of licensing, competency and conduct rules that govern who can give that advice and how.

What counts as regulated financial advice

Broadly, a recommendation or opinion about acquiring or disposing of a specific financial product, or about a particular course of action in relation to one — for example, a recommendation to take out a particular mortgage product or restructure lending in a specific way. General information, education, and factual explanation of how something works do not, on their own, constitute regulated financial advice.

Who can give it

Financial advisers must operate under a licensed FAP, either as the FAP itself, as a financial adviser engaged by one, or as a nominated representative. The FMA maintains a public register of licensed FAPs and advisers, which can be checked directly.

What "this is not financial advice" actually signifies

It signals that the content is general information or education rather than a personalised recommendation about a specific financial product for a specific person's circumstances — the legal boundary the FAP regime exists to police. It does not mean the information is unreliable; it means no individual suitability assessment has been made, and no one is taking regulatory responsibility for whether it suits your situation specifically.

What this means for how Property Club, mentors and educators are structured

Community discussion, mentorship and educational tools are structured to provide information, frameworks and peer experience — not personalised financial advice on specific products. Where a member needs a recommendation tailored to their own financial position, that's a licensed adviser's role, not an educator's, and the distinction is a regulatory one, not a matter of confidence or expertise.

Common misunderstanding

"Not financial advice" is sometimes read as boilerplate or as a way of avoiding responsibility. It's actually doing real legal work: it tells you whether what you just received has gone through a suitability assessment against your personal circumstances, or hasn't. Getting the description of financial advice regulation wrong on a page about financial advice regulation would undermine the point of having the page at all.

Related terms

Sources

• Financial Markets Conduct Act 2013; Financial Markets Authority — Financial Advice Provider register

Last reviewed: 1 August 2026 · General information only, not financial or legal advice.

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