Regulations introduced on 15 March 2021 included new rules for registering as an FSP from outside of New Zealand, and measures to address misuse of the Financial Service Providers Register (FSPR).
Who must register
You are now required to register on the FSPR if any of the following applies:
- you provide financial services to clients in New Zealand above a minimum threshold
- you are a reporting entity under the Anti Money Laundering and Countering Financing of Terrorism Act 2009, that provides financial services
- you offer licensed financial services
- you act as a financial adviser or a consumer credit provider.
FSPs that provide financial services to retail clients in New Zealand, but have no place of business here, are required to register. Providers in this category must complete registration by 16 December 2021.
Providers that do not have a place of business in New Zealand and that do not promote their services to New Zealand clients are exempt from registration requirements (unless they are otherwise required to be licensed).
Confirming you meet the threshold
To register, an FSP must now confirm that they expect to meet a minimum business threshold.
Who can't register
From 15 March 2021, you can no longer register on the FSPR if:
- you provide financial services solely to off-shore clients
- you are an offshore FSP that provides financial services solely to wholesale clients in New Zealand.
Existing FSPs that do not meet the new conditions will be deregistered.
Limitations on promoting registered status
The new regulations introduce limitations on FSPs promoting their registration, and set out a ‘disclaimer statement’ that must be included on an FSP’s website if:
- the FSP is registered but not licensed in New Zealand
- the FSP is not a financial adviser or a certified person (in respect of the service of being a creditor under a credit contract)
- the provider refers to its FSPR registration (for example, in an advertisement or on its website) or New Zealand dispute resolution membership, other than where the reference is required by law or dispute resolution rules.
Any breach of the requirement to include the warning statement can result in deregistration from the FSPR. These statements can be found on the Government’s legislative website.