Fast facts about FSPR for Financial Service Providers

The FSPR is a searchable online register of people, businesses, and organisations that offer financial services.

The government created the FSPR as part of its new regime to make the financial services sector more accountable and transparent:

The Financial Service Providers (Registration and Dispute Resolution) Act 2008 (the ‘Act’) and
The Financial Advisers Act 2008.

You can read or download the legislation for free at www.legislation.govt.nz

Note

Registration became mandatory from 1 December 2010. However, financial advisers had until March 2011 to be registered.

The FSPR remains open after December to anyone who wants to register and they must be successfully registered before they can legally provide financial services.

What is a financial service?
Who is a financial service provider, and who has to register?
Who cannot register?
Why do you have to belong to a dispute resolution scheme?
What information is required in the application for registration?
What are the fees?
What is authorisation?
What happens if you don’t register?
Contact us

What is a financial service?

Some examples of common financial services are below – see section 5 of the Act for a full list:

providing financial advice (including investment planning)
mortgages, saving and cheque accounts, and loans
consumer loans and credit – such as when you buy an item from a retailer on credit or you obtain a cash loan
issuing and managing means of payment (for example, credit and debit cards, cheques, travellers’ cheques, money orders, bankers’ drafts, and electronic money)
money transfers
foreign currency exchanges – whether buying or selling
money management and/or advice
investment management and/or advice
insurance – including life, health, home/contents, and vehicle.

Who is a financial service provider, and who has to register?

Individuals and entities in the business of providing a financial service must register. Some examples of common financial service providers are:

Building societies and credit unions
Credit providers
Credit unions
Financial advisers (including investment planners)
Money changers
Finance companies
Foreign currency exchange dealers
Fund managers
Insurers
Investment portfolio managers
Issuers
Registered banks
Broking service (including a custodial service).

There are a few exemptions do apply, such as lawyers, chartered accountants, tax agents and real estate agents who provide financial services as a necessary part of their practice.

Who cannot register?

People who have been convicted in the last five years of crimes involving dishonesty, such as fraud and money laundering, cannot register or be involved in the management of a registered financial service provider
Un-discharged bankrupts and banned directors
Other disqualifications are listed in section 14 of the Financial Service Providers (Registration and Dispute Resolution) Act 2008

Why do you have to belong to a dispute resolution scheme?

Most financial service providers who provide a service to retail clients must belong to an approved dispute resolution scheme (DRS). The schemes are designed to help consumers sort problems with their financial service provider. Some Authorised Financial Advisers will be covered by their employer’s scheme. Consumer Protection has information about dispute resolution schemes on their website.

What information is required in the application for registration?

Name and business address
Trading name (if different).
If an applicant provides services to retail clients, they will be required to provide their Dispute Resolution Scheme (DRS) membership details within 10 working days of registration as an FSP. If the DRS membership details are not provided within the required timeframe, the Registrar of Financial Service Providers may initiate deregistration.
Confirmation of which financial services you provide.
Postal and email address for communication.
If you are an individual you must also supply:
- any other names formerly known by including previous names;
- current residential address*;
- date of birth* and
- gender*.
If you are a company or another type of entity, you must also supply:
- the name, gender, date of birth, and residential address of each director/s, senior manager/s, and controlling owner*
- details of registration if incorporated outside New Zealand.

* Note | This information is not publicly available on the FSPR. Details are collected for criminal history checking purposes and not for public view.

What are the fees?

View the current fee schedule.

What is authorisation?

Authorisation means that a financial adviser has met minimum professional standards, including qualification requirements and proof of good character. They must also meet conduct and disclosure obligations under the Financial Advisers Act 2008. Authorisation is required for financial advisers who provide a investment planning service or give personalised advice or provide a discretionary investment management service relating to on complex investment products. Some financial advisers may be covered by their employer’s Qualifying Financial Entities (QFE status) and do not need to be individually authorised. Authorisation status is shown on the FSPR.

For those who need it, authorisation applications are made at the same time as a part of the registration process (read the Financial Adviser information at www.fma.govt.nz).

What happens if you don’t register?

From 1 December 2010 (and 31 March 2011 for financial advisers), financial service providers must be registered to legally provide financial services. If after that date they provide, or offer to provide, financial services without current registration, they are in breach of section 11 of the Financial Service Providers (Registration and Dispute Resolution) Act 2008. If that is the case, they are subject to substantial fines and/or imprisonment.