Some examples of common financial services are below:
Providing financial advice
(including investment planning)
Issuing and managing means of payment (for example, credit and debit cards, cheques, travellers’ cheques, money orders, bankers’ drafts, and electronic money)
Foreign currency exchanges – whether buying or selling
Once registered, the FSP can offer:
Financial adviser service
Keeping, investing, administering, or managing money, securities, or investment portfolios on behalf of other persons
Operating a money or value transfer service
Issuing and managing means of payment (for example, credit and debit cards, cheques, … amongst others.
Entities and individuals who:
– live or have a place of business in New Zealand; and
– are in the business of providing financial services (in New Zealand or overseas) must register to provide that particular financial service on the FSPR.
Those entities and individuals will have to register as a financial service provider (FSP).
If you intend to provide financial services under the FMC Act and, if you are registered, or in the process of getting registered as a financial service provider (FSP), you must apply to the Financial Markets Authority (FMA) for a license to provide services under the Financial Markets Conduct Act 2013 (FMC Act).
The Financial Markets Authority (FMA) is the New Zealand government agency responsible for financial regulation. It is responsible for regulating all financial market participants, exchanges and the setting and enforcing of financial regulations.
FMA does not oversee or maintain the FSPR, the Companies Office performs this role. But FMA does have the power to deregister a business or individual or prevent them from registering in the first place.
FMA expects that a current or prospective FSP must show clearly how they are conducting the business from NZ, in order to justify having a New Zealand FSP registration.
If you provide a ‘financial service’ related to crypto currencies, you need to comply with the ‘fair dealing’ requirements in the Financial Markets Conduct Act 2013 (FMC Act). The Financial Service Providers (Registration and Dispute Resolution) Act 2008 and anti-money laundering obligations may also apply. Key activities considered ‘financial services’ include exchanges, wallets, deposits, broking and ICOs.
For a license to be granted,
There must be no doubt
That the applicant meets or can meet
All of the licensing requirements
It is our suggestion for a client to visit NZ and
Meet us personally, as soon as
Your NZ corporate entity has been registered
– Company Application Form to be filled and signed;
– Organizational/structure chart showing board of directors, shareholders, list of senior persons compliance officer, Money Laundering Reporting Officer, and deputy) and other officers who will be responsible for the day-to-day operations;
– Business plan with 3-year projections giving details of proposed activities, types of customers, products and services to be offered.
– Internal Procedures Manual;
– Anti-Money Laundering & Compliance Procedures Manual;
– Details of proposed membership with an Exchange, clearing and settlement facility, etc;
– Details of procedures and systems to prevent conflicts of interest, terrorism and money laundering;
– An indication as from where the company intends to operate.
Step 1 – The current process appears to take about I ½ to 2 weeks to incorporate a company, obtain a NZ Bank account and necessary/eventual changes on the shareholder and directorship structure.
Step 2 – A Business Plan has to be written and edited, CVs to be vetted, a NZ office and a part time manager appointed before formally applying online with FSPR. Dependent upon WA’s input, it can take another 4 to 6 weeks for this process to be completed.
Step 3 – FSPR tends to take another 4 to 5 weeks, considering all questions they may and usually place before handing over the application to FMA.
Step 4 – FMA’s official position is that their enquiries will take up to 60 working days (i.e., 12 weeks) before we get a definite answer.
Therefore 5 to 6 months
For you to consider getting your own project licensed,
Will be a reasonable timing!
Registered with I.C.O. – Information Commissioner’s Office, under the Data Protection (Charges and Information) Regulations 2018 (the Regulations)
TBA & Associates – Tax Business Advisors Limited
Registered in England | Company Reg. No. 07074712 | Registered office at SVS House, Oliver Grove, SE25 6EJ London | VAT Registration Nr: 114329148
Registered as Trust and Corporate Service Provider | Supervised by HMRC Anti-Money Laundering Supervision | Registration number: XWML00000128543