All financial service providers must generally be registered on the Financial Service Providers Register (FSPR) to legally provide financial services to clients in New Zealand. There is a requirement to also be licensed by the FMA or Reserve Bank to provide some financial services.
Financial service providers include financial advice providers, client money or property services, building societies, credit providers, credit unions, money changers, finance companies, foreign currency exchange dealers, fund managers, insurers, investment portfolio managers, issuers and registered banks.
Do I need to register as an individual if my employer is registered?
The Act requires the person or entity that carries on the business to be registered. Therefore if you are an employee of a financial services provider company you don't have to be registered unless you are offering certain financial advice services. If you are a nominated representative of a financial advice provider you do not have to be registered.
Does my entity need to register if it is only servicing its outstanding loans?
The Act requires credit providers to be registered. Providing credit generally means providing a loan or having a debt due to you. The requirement covers credit provided under a credit contract, as set out in the Credit Contracts and Consumer Finance Act 2003 (with some additional exclusions set out in the Financial Service Providers Act). This covers lending to businesses as well as to retail customers.
Your entity provides credit (and needs to be registered) until the credit is completely repaid (or forgiven). Providing credit includes having a loan due to you that was originally made by another provider. For example, you will usually need to register if you have bought or been assigned a loan.
Credit providers providing credit to retail customers will also need to belong to a dispute resolution scheme.
Should I register on a dispute resolution scheme?
Financial service providers who have retail clients must belong to either an approved dispute resolution scheme or the reserve scheme established by the government. If you provide a financial advice service as an employee of a financial advice provider and your employer is a member of a scheme you will be covered by their membership for the services you provide on their behalf. The Ministry of Consumer Affairs administers the government's reserve scheme and has information on approved schemes.
Do I need to register if I am a one-off or occasional issuer?
Generally not. One-off or occasional instances of issuing by a business that otherwise is not a financial service provider would not normally be sufficient to constitute being in the business of providing a financial service. There are some exceptions to the general rule where the issuing of securities is closely tied to the core business of the issuer.
What are the regulation and registration requirements for marinas?
Marinas will not be regulated under the FMC Act and will no longer need to register on the Financial Service Providers Register.