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.
Individuals and businesses who provide financial services must comply. Entities and individuals who provide financial services to clients in New Zealand and to whom the Financial Service Providers (Registration and Dispute Resolution) Act 2008 applies, must register.
You will need to register if you:
The relevant thresholds are set out in the Financial Service Providers (Registration) Regulations 2020 webpage and more information can be found on the Financial Service Providers Register.
The Financial Service Providers Register website provides guidance on the definition of financial service.
Financial Service Providers (Exemptions) Regulations 2010 has defined activities and services that don’t need to be registered on the FSPR.
You can't register as an FSP if you are:
The FSPR registration process is conducted differently depending on your status.
As part of the registration process, all individuals and directors or senior managers of entities will be subject to a criminal history check. You will also be charged a fee.
You must file annual confirmation on the FSPR website confirming your details and services to remain registered as an FSP. Find how to file annual confirmation here.
A DRS manages all disputes related to a registered FSP(Financial Services Provider).
There are 4 approved dispute regulation schemes:
Some FSPs are covered by their employer’s scheme. If you change employer, details must be updated on FSPR.
Most FSPs that provide services to retails clients must join an approved DRS within 10 working days of registering as an FSP. Check more details on the FSPR website.
The FMA has obligations under the Financial Service Providers Act (Registration and Dispute Resolution) to monitor financial service providers. This includes monitoring:
FMA has other obligations under other legislation.
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.
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.
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.
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.
Marinas will not be regulated under the FMC Act and will no longer need to register on the Financial Service Providers Register.