The Financial Services Legislation Amendment Bill, which is currently before Parliament, includes changes aimed at addressing misuse of the Financial Service Providers Register (FSPR) by some unscrupulous firms, who are taking advantage of New Zealand's reputation to mislead customers.
Despite having little genuine connection to New Zealand , these providers have been registering on the FSPR to create the impression they are licensed and subject to active regulation in New Zealand, when that is not the case. This risks damage to New Zealand’s reputation and that of other registered providers.
The current consultation relates to regulations required to support measures in the Bill aimed at addressing this behaviour. These measures include restricting registration to providers that will have New Zealand clients , and limiting the extent to which providers may promote their registered status.
While the proposals are aimed specifically at addressing the issue of misuse, they may also impact:
- existing registered financial service providers who do not (and will not be required to) operate under a licence issued by the Financial Markets Authority or Reserve Bank
- providers that do not have a place of business in New Zealand but provide financial services to persons in New Zealand.
If you think you may be affected by the changes, we encourage you to read the discussion paper to learn more about the changes, and to provide any feedback by making a submission.
Submissions on the discussion paper close on Tuesday 15 May 2018. If you have any queries, please email email@example.com.