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Guidance Note: Broker Obligations

Page last updated: 3 Feb 2014

Issuing guidance is one of the ways FMA strives to be transparent and share our approach with the market. Guidance helps market participants to be confident that they understand how we interpret and intend to apply the law relating to broker obligations. This guidance note is based on the law as at January 2014, and is for brokers (as defined in the Financial Advisers Act 2008 (Act)).

This guidance does not change or add to existing legal requirements for brokers. It is aimed at improving compliance with broker conduct obligations and trust accounting obligations in Part 3A of the Act, by setting out how FMA interprets and applies certain parts of Part 3A. The focus of this guidance is on custody of client money and client property, and the key obligation of brokers to hold client money and client property on trust.

Download Guidance Note: Broker Obligations PDF.