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Financial Service Providers (Registration and Dispute Resolution) Act 2008

Registration - Requirements for registration and being member of approved dispute resolution scheme and prohibition against holding out

11: Person in business of providing financial service must be registered and member of approved dispute resolution scheme

You could also call this:

“Financial service businesses must register and join a special group to handle complaints”

If you provide financial services as a business, you need to follow two important rules. First, you must register for that service under this part of the law. Second, if section 48 says you need to, you must join an approved dispute resolution scheme.

If you knowingly break these rules, you’re committing an offence. The punishment for this offence depends on whether you’re an individual or not. If you’re an individual, you could go to jail for up to 12 months, be fined up to $100,000, or both. If you’re not an individual (like if you’re a company), you could be fined up to $300,000.

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This page was last updated on

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1109507.

Topics:
Crime and justice > Criminal law Money and consumer rights > Banking and loans Money and consumer rights > Consumer protection Business > Industry rules
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10: Registration and deregistration, or

"How to sign up and be removed from the list of financial service providers"

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12: No holding out that in business of providing financial service unless registered and member of approved dispute resolution scheme, or

"You can only say you're a registered financial service provider if you really are"

Part 2 Registration
Requirements for registration and being member of approved dispute resolution scheme and prohibition against holding out

11Person in business of providing financial service must be registered and member of approved dispute resolution scheme

  1. A person to whom this Act applies who is in the business of providing a financial service must—

  2. be registered for that service under this Part; and
    1. if required by section 48, be a member of an approved dispute resolution scheme.

      1. Every person who knowingly breaches subsection (1) commits an offence and is liable on conviction,—

      2. in the case of an individual, to imprisonment for a term not exceeding 12 months or to a fine not exceeding $100,000, or to both; or
        1. in the case of a person who is not an individual, to a fine not exceeding $300,000.

          Notes
          • Section 11: brought into force (in respect of financial services other than financial adviser services), on , by clause 3 of the Financial Service Providers (Registration and Dispute Resolution) Act Commencement Order 2010 (SR 2010/231).
          • Section 11: brought into force (in respect of financial adviser services), on , by clause 4 of the Financial Service Providers (Registration and Dispute Resolution) Act Commencement Order 2010 (SR 2010/231).
          • Section 11 heading: replaced, on , by section 70(1) of the Financial Services Legislation Amendment Act 2019 (2019 No 8).
          • Section 11(1): replaced, on , by section 70(2) of the Financial Services Legislation Amendment Act 2019 (2019 No 8).
          • Section 11(2): amended, on , by section 413 of the Criminal Procedure Act 2011 (2011 No 81).