New Zealand Financial Service Providers: what types of financial activities are allowed?

We are often posed questions regarding New Zealand Financial Service Providers (FSP), and one of the main questions raised is what type of financial activities does New Zealand legislation allow to be conducted by a Financial Service Provider?

You may contact us for more information about registration of New Zealand Financial Service Providers

We would like to remind you that, DESPITE what has been said in recent publication in some international media and on some internet sites: 

  1. New Zealand registered companies which is operated on an international financial market are not required to obtain a New Zealand Financial Service Provider (FSP) status, and
  2. New Zealand and foreign companies cannot obtain a New Zealand Financial Service Provider (FSP) status if they do not have established business in New Zealand and/or do not have a “place of business” in New Zealand and/or do not provide financial products in New Zealand.

To answer the initial question we have provided a general list of financial services offered by a New Zealand Financial Service Provider (FSP).

  • A contributory mortgage broke
  • Deposit takers, lenders and registered banks;
  • A public issuer
  • An issuer of securities to the public
  • A statutory supervisor of participatory securities
  • A trustee in respect of securities offered to the public
  • A unit trustee
  • A superannuation trustee
  • A promoter of securities offered to the public
  • A manager of participatory security or unit trust
  • 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
  • Giving financial guarantees
  • Changing foreign currency
  • Entering into or trading on an exchange (in an over-the-counter market or otherwise) the following on behalf of another person:
    1. Money market instruments (including cheques, bills, certificates of deposits);
    2. Foreign exchange (including forward foreign exchange contracts);
    3. Derivative products including, but not limited to, futures and options;
    4. Change rate and interest rate instruments, including products such as swaps and forward rule agreements;
    5. Transferable securities;
    6. Other negotiable instruments and financial assets.

Please note, that:

  • any financial business provided to retail customers in New Zealand is subject to participation in a obligatory Dispute Resolution Scheme,
  • to conduct business in New Zealand, overseas registered company must obtain prior  registration with the Companies Office.
September 29th, 2011