comply with the terms and conditions set out in the QFE's grant of status. The terms and conditions for QFEs include the standard conditions for QFEs, subject to any modifications made as part of the grant of QFE status, and the specific terms and conditions for the QFE
submit an annual report to the FMA. For more information see section 77 of the Act and terms and conditions for QFEs, particularly the reporting and notification standard conditions for QFEs.
A QFE also has responsibility to ensure that members of its QFE group and employees and nominated representatives of the QFE group comply with the terms and conditions of grant of QFE status and that employees and nominated representatives comply with their financial adviser obligations.
Terms and conditions for QFEs
The FMA grants QFE status subject to terms and conditions. The terms and conditions include standard conditions subject to any modifications we consider appropriate and terms and conditions specific to the QFE (if any).
Most terms and conditions will remain in place for the period of QFE status. The conditions may be varied during the period of grant of status in the circumstances outlined below.
FA Act section
on application by a QFE (if approved by FMA)
s75(1) and (2)
if they are reporting or accounting standard conditions. Changes are subject to consultation
s147A(3) and 147E
for other standard conditions, in limited circumstances, such as in response to an emergency. Changes are subject to consultation
s147A(3)(a) to (e) and 147E
if the business of the QFE has changed in such a way that there is a material risk to consumers; and/or the QFE or a member of the QFE group has been or is involved in market practices that are in material respects inconsistent with the purpose of the Act
on a QFE's default
If an entity applies to renew its QFE status, new terms and conditions may apply.
QFEs are supervised by the FMA and must comply with the following obligations:
You must provide a written risk assessment of the money laundering and financing of terrorism activity you could expect in the course of running your business.
You are required to implement an anti-money laundering and countering financing of terrorism programme that includes procedures to detect, deter, manage and mitigate money laundering and the financing of terrorism.
You are required to appoint a compliance officer to administer and maintain your programme.
You are required to perform due diligence processes on your customers. This includes customer identification and verification of identity.
You are required to report suspicious transactions. See more.