Financial Service Provider Application

This week Queen City Law Commercial and Property lawyer Jan Chen looks at what it takes to become a Financial service provider.Jan_Profile 1

To read more about Jan click here. To download this article as a PDF click here.

To be registered as a Financial Service Provider (“FSP”) in New Zealand, the entity or individual (“the Applicant”) must live, or have a place of business in New Zealand, and are in the business of providing financial services in New Zealand or overseas.  The meaning of “financial services” is defined in section 5 of the Financial Service Providers (Registration and Dispute Resolution) Act 2008 (“the Act”).  Common financial services are providing financial advice (including financial planning), mortgages, saving and cheque accounts, loans, insurance, money management and/or advice, investment management and/or advice, consumer loans and credit, foreign currency exchanges (includes buying and selling), and money transfers.

THE PRE-REQUISITES

Before applying for FSP registration, the Applicant will need to:

–         Join an approved dispute resolution scheme; and

–         Register as a user of the FSPR site.

For a list of approved schemes, please visit http://www.business.govt.nz/fsp/about-the-fspr/dispute-resolution-schemes for details.  Please note that a joining fee and ongoing maintenance fee will apply for such application.

A list of the approved dispute resolution schemes are as follows (from the Consumer Affairs website):

·          Financial Services Complaints Limited (FSCL)

Person responsible for FSCL:

Susan Taylor – Chief Executive Officer.

Level 13, Forsyth Barr House

45 Johnston Street

Wellington

P O Box 5967

Wellington 6011.

www.fscl.org.nz

·          Insurance & Savings Ombudsman (ISO) Scheme

Person responsible for the ISO Scheme:

Karen Stevens – Insurance & Savings Ombudsman

Level 7, 99-105 Customhouse Quay

Wellington 6011

PO Box 10-845

Wellington 6143

www.iombudsman.org.nz

·          Banking Ombudsman Scheme

The Banking Ombudsman Scheme is open to banks and non-bank deposit-takers regulated by the Reserve Bank that have a minimum credit rating of BB.

Person responsible for the Banking Ombudsman Scheme:

Deborah Battell – Banking Ombudsman

Level 11, BP House

20 Customhouse Quay

Wellington 6011

PO Box 10-573

Wellington 6143

www.bankomb.org.nz

·          Financial Dispute Resolution (Reserve Scheme)

Financial Dispute Resolution (FDR) is the reserve scheme.

Person responsible for Financial Dispute Resolution:

Stuart Ayres – Manager, FDR

Level 9, 109 Featherston Street, Wellington 6011

Freepost 231075

P.O. Box 5730

Wellington 6145

Freecall 0508 337 337

Fax 04 918 4901

www.fdr.org.nz

Please note that this is a pre-requisite of the FSP application and we are unable to proceed with the application before the Applicant joins any approved dispute resolution scheme.

To find out how to register as a user, please visit http://www.business.govt.nz/fsp/about-the-fspr/your-account/register-as-a-user

THE APPLICATION PROCESSnzbucks

The formal registration process step-by-step for registration is as follows:

– Logon with an iGovt username[1];

– Supply the following information:

o the legal name of the entity (or body);

o any trading names;

o the country of origin of the entity;

o registration or identification number of the entity in its home jurisdiction (if applicable);

o business address (at least one physical address in New Zealand must be provided, where the Registrar may contact the FSP);

o The financial services that the FSP provides.

o The name of the consumer dispute resolution scheme the FSP has joined.

o The full legal name and any aliases of every director, controlling owner and senior manager of the entity, and

o The date of birth, gender, and the residential address of every individual director, controlling owner and senior manager of the entity.

– Pay the relevant fee: $357.78 (as of the date of this publication);

– The FSPR will then carry out a criminal history check with the relevant overseas authority. The applicant will be asked to confirm that the entity or body applying is not disqualified from registration by reason of any of the people in its management being personally disqualified for any of the reasons set out in section 14 the Act.[2]

– If all criminal checks are clear then registration as an FSP is complete.

[1] For info on registering for igovt username, see: www2.i.govt.nz/cls/static/homepage – we can assist in this process.

[2] People who have been convicted of crimes involving dishonesty under the Crimes Act 1961, in the last five years, such as fraud, as well as anyone convicted of money laundering, or financing of terrorism offence, will be excluded from registering or from being involved in the management of a registered financial service provider. Undischarged bankrupts and banned directors will also not be able to register.

To get Queen City Law to help you with your application click here.