Qualifying financial entities (QFEs) are companies or organisations that are registered on the Financial Service Providers Register and have been granted QFE status. An organisation that employs a number of financial advisers may want to become a QFE. The benefits of becoming a QFE vary for each organisation depending on:
the product category on which advice is given
whether the product is provided by the QFE (or QFE group) or a third party, and
whether advisers also provide an investment planning service.
QFE status enables an organisation to streamline the registration, disclosure, dispute resolution and supervision arrangements that will apply to its advisers under the financial adviser regime. In return, the QFE takes responsibility for its advisers' compliance. Further discussion on the benefits and obligations of QFE status is set out in the QFE Adviser Business Statement Guide.
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. Read more about your obligations and terms and conditions.
The Anti-Money Laundering and Countering Financing of Terrorism Act (AML/CFT Act) 2009 and its Regulations place obligations on New Zealand’s financial institutions to detect and deter money laundering and terrorism financing. Find out how it affects you.