All financial service providers in New Zealand must be registered on the Financial Service Providers Register (FSPR) to legally provide financial services. There is a requirement to also be licensed by the FMA or Reserve Bank to provide some financial services.
Financial service providers include financial advisers, brokers, building societies, credit providers, credit unions, money changers, finance companies, foreign currency exchange dealers, fund managers, insurers, investment portfolio managers, issuers and registered banks.
Who needs to register
Individuals and businesses who provide financial services must comply. The requirement to register is generally directed at entities and individuals who have a place of business in New Zealand or who live in New Zealand. However, other legislation may require overseas people to be registered on the Financial Service Providers Register.
The Financial Service Providers Register website provides guidance on the definition of financial service.
Who doesn't need to register
- An employee of a company that's a registered FSP
- Some QFE providers may not need to register depending on the types of services. Check here.
- Businesses/individuals that provide financial services as a necessary part of their practice. For example lawyers, chartered accountants, tax agents, and real estate agents.
Exemptions
Financial Service Providers (Exemptions) Regulations 2010 has defined activities and services that don’t need to be registered on the FSPR.
Not eligible
You can't register as an FSP if you are:
- an undischarged bankrupt
- a banned director
- subject to the Proceeds of Crime Act 1991,
- convicted of Anti-Money Laundering and Countering Financing of Terrorism Act 2009
- convicted of dishonesty in the last 5 years
How to register
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.
Filing annual confirmation
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.
Dispute regulation scheme (DRS)
A DRS manages all disputes related to a registered FSP(Financial Services Provider).
There are 4 approved dispute regulation schemes:
- Banking Ombudsman (BOS) scheme applies to registered banks
- Insurance and Financial Services Ombudsman (IFSO)
- Financial Services Complaints Ltd (FSCL)
- Financial Dispute Resolution (FDR)
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.
Monitoring and surveillance
The FMA has obligations under the Financial Service Providers Act (Registration and Dispute Resolution) to monitor financial service providers. This includes monitoring:
- when businesses or individuals appear to be offering financial services but are not registered to provide those services
- where financial adviser services are being provided by people who are not appropriately licensed to provide those services.
- where financial service providers are engaging in misleading or deceptive conduct.
FMA has other obligations under other legislation. For example, financial advisers and brokers have obligations under the Financial Advisers Act 2008 which FMA monitors and enforces.
FAQs
