FSP license in New Zealand

FSP license in New Zealand

In line with the law, a legal entity operating in the NZ monetary market can pass registratiοn as a financial service provider (for short, FSP). When an institution obtains a status of a FSP in New Zealand, it is permitted to carry out such activities as:

  • Advisory services;
  • Deposit accepting;
  • Brοkerage services;
  • Portfolio management on behalf of customers;
  • Provision of credits on contractual basis;
  • Running a money transferring;
  • Issuing e-funds;
  • Forex dealing.

Once the registering procedure is over, FSPs will need to acquire a suitable authorization for uts operation – a license. Under the law, institutions considering to deliver its services in NZ will be obliged to acquire at minimum one authorization among the 6 listed below.

The license for:

  • DΙMS (discretionary investment management service);
  • MIS (managed investment scheme);
  • Derivative issuer;
  • Crowdfunding services;
  • P2P lending services;
  • Independent trustee.

 Obligations for FSP in New Zealand

NZ FSPs fall under a bunch of conditions regarding registering, listed below:

  • FSPs must make an appropriate record in the Registrar annually and cover fees. Infringement of this regulation leads to a fine of up to 250,000 USD;
  • FSPs are also obliged to complete reports that convey their financial performance that must be checked by auditors each year.
  • FSPs must comply with a DSR scheme establishing rules which the entity must follow when tackling business disputes unless its customers are solely banking institutions, funds, and other corporate structures with a formal authorization to operate or persons with assets of 2,000,000 USD and a yearly profit over 200,000 USD/repaying an entry fee of 500,000 USD;
  • For each offer, FSPs must draw a guideline with the NZ FMA, with details in the respect of the tradable financial assets on offer, the conditions of the offer, and details about its issuers;
  • Prior to delivering services and products, New Zealand FSPs must develop a comprehensive plan for investing, covering core details that non-professional investors could grasp the meaning of;
  • FSPs must keep records on all tradable financial assets that were delivered and ensure it is audited annually.

The process of securing FSP registration in NZ

Stage 1: Choosing and reservation of legal entity name.

Stage 2: Company incοrporation.

Stage 3: Tax registration.

Stage 4: Bank account setting up.

Stage 5: FSP registration.

Stage 6: FSP license application.

Stage 7: Application for dispute resοlution scheme (DRS).

Please contact us to get more information.

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