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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

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

You could also call this:

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

You need to be careful about saying you’re registered to provide financial services in New Zealand. You can only say this if you’re actually registered and, if required, a member of an approved dispute resolution scheme.

This rule applies to three situations:

  1. You can’t say you’re registered under this Act unless you really are registered and, if needed, part of an approved dispute resolution scheme.

  2. You can’t say you’re registered for a specific financial service unless you’re truly registered for that service and, if needed, part of an approved dispute resolution scheme.

  3. You can’t say you can or want to provide financial services in New Zealand unless you’re registered for that service (if required) and, if needed, part of an approved dispute resolution scheme.

These rules apply to everyone, even if other parts of this Act don’t apply to them.

If you break these rules on purpose, you’re committing a crime. If you’re caught, you could be punished. If you’re an individual, you might go to jail for up to 12 months or pay a fine of up to $100,000, or both. If you’re not an individual (like a company), you might have to pay a fine of 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=DLM1109508.

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

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

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12A: Registration for certain overlapping services not required, or

"You don't need to sign up twice for some money-related jobs if you're already signed up for similar work"

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

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

  1. A person must not—

  2. hold out that the person is registered under this Act unless that person—
    1. is registered under this Part; and
      1. is, if required by section 48, a member of an approved dispute resolution scheme; or
      2. hold out that the person is registered under this Act in respect of a particular service unless that person—
        1. is registered for that service under this Part; and
          1. is, if required by section 48, a member of an approved dispute resolution scheme; or
          2. hold out that the person is entitled, qualified, able, or willing to be in the business of providing a financial service to persons in New Zealand unless that person—
            1. is, if required by this Part, registered for that service under this Part; and
              1. is, if required by section 48, a member of an approved dispute resolution scheme.

              2. This section applies to a person even if this Act would otherwise not apply to the person under section 7A.

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

              4. 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 12: 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 12: 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 12 heading: amended, on , by section 11(1) of the Financial Service Providers (Registration and Dispute Resolution) Amendment Act 2014 (2014 No 34).
                  • Section 12(1): replaced, on , by section 71 of the Financial Services Legislation Amendment Act 2019 (2019 No 8).
                  • Section 12(1A): inserted, on , by section 71 of the Financial Services Legislation Amendment Act 2019 (2019 No 8).
                  • Section 12(2): amended, on , by section 413 of the Criminal Procedure Act 2011 (2011 No 81).