What are the current rules? Are you and your company compliant?
Registration for individuals
All individuals who provide a financial service (broadly comprising of either a financial adviser service, a broking service, or keeping, investing, administering, or managing money, securities, or investment portfolios on behalf of other persons) need to be registered on the Financial Service Providers Register to provide that service. This is a requirement under the Financial Service Providers (Registration and Dispute Resolution) Act 2008 (FSP Act 2008).
Note that advisers who are employed by a qualifying financial entity (QFE) as a QFE adviser, do NOT have to be individually registered but the QFE does.
Find out about the individual registration process.
Authorisation for individuals
Not all financial advisers need to be authorised by the Financial Markets Authority, and it will depend on the type of financial product (category 1 or category 2) in relation to which the financial adviser service will be provided.
To become an AFA you need to meet eligibility requirements, including minimum competence requirements and good character.
Find out more about applying for authorisation.
Licensing for individuals
Some advisers will also need to hold a licence under the Financial Markets Conduct Act 2013. Licences are issued by the Financial Markets Authority to enable AFAs to provide specific services to certain clients. An adviser will need a license to provide clients with advice on those services.
Registration for companies and businesses
Businesses offering financial services in New Zealand must be on the Financial Service Providers register (FSPR). Some common examples of financial service provider businesses are:
Building societies and credit unions
Credit providers
Credit unions
Money changers
Finance companies
Fund managers
Insurance companies
Investment portfolio managers
Issuers
Registered banks
Licensing for companies and businesses
Companies/businesses involved in providing a market service under the Financial Markets Conduct Act 2013 will need to be licensed by the FMA to do business. These services include:
Crowdfunding platforms
Independent Trustees
Supervisors
Derivatives issuers
Discretionary investment management services
Managed investment scheme managers
Peer-to-peer lending
Find out more about the FMA licensing requirements.
