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Financial Service Providers (Registration and Dispute Resolution) Act 2008

Registration - Registration of financial service provider - Deregistration of financial service provider

18: Deregistration of financial service provider

You could also call this:

“How a financial service provider can be removed from the register”

If you’re a financial service provider, the Registrar can remove you from the register for several reasons. This can happen after a notice period of 20 working days. Here are some reasons why you might be deregistered:

You no longer meet the requirements to be registered.

You didn’t tell the Registrar about your name, business address, or membership number when you were supposed to.

You need to be part of an approved dispute resolution scheme but you’re not.

You’re not actually providing financial services anymore or don’t need to be registered anymore.

You gave false or misleading information to the Registrar or the FMA about your registration or anything else related to this law.

You didn’t follow important rules or give important information that you were supposed to.

The fee or levy you paid for your application or annual confirmation didn’t go through.

The Registrar might ask the FMA for advice on whether to deregister you. The FMA or a disciplinary committee can also tell the Registrar to deregister you.

You can ask to be deregistered yourself if you want to. The Registrar will do this from the date you ask for.

If you’re not allowed to provide a particular service anymore, the Registrar can deregister you just for that service.

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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=DLM1109518.

Topics:
Business > Industry rules Money and consumer rights > Consumer protection Money and consumer rights > Banking and loans
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17: Duty to notify changes relating to financial service provider, or

"Financial service providers must tell the Registrar about important changes"

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18A: Purpose of FMA's powers relating to deregistration, or

"Why the FMA can remove someone from the financial service providers list"

Part 2 Registration
Registration of financial service provider: Deregistration of financial service provider

18Deregistration of financial service provider

  1. The Registrar must deregister a financial service provider after a notice period in accordance with sections 19 and 20, if the Registrar is satisfied that the provider—

  2. is no longer qualified to be registered in accordance with section 13; or
    1. has failed to notify the Registrar of the name, business address, and membership number, as required by section 16(1)(ab); or
      1. is required by section 48 to be a member of an approved dispute resolution scheme but is not a member of any such scheme as required; or
        1. at any time after the expiry of 3 months after registration, is not in the business of providing a financial service or is otherwise no longer required to be registered under section 11; or
          1. has made a representation to the Registrar or the FMA that is false or misleading in any material particular in connection with obtaining or maintaining its registration under this Act or any other matter relating to this Act (for example, false information about the extent to which the person is in the business of providing a financial service); or
            1. has failed to comply with a duty provided for under regulations made under section 44(1)(bb) and (bc) or has otherwise failed to provide any material information that it is required to provide by or under this Act, and the Registrar is satisfied that the failure is serious after having regard to the matters set out in subsection (1AB); or
              1. has proffered an application fee or annual confirmation fee or levy that has subsequently been dishonoured, declined, or reversed.

                1. Subsection (1)(ab) does not apply in respect of any time before the end of the period of 10 working days referred to in section 16(1)(ab).

                2. In considering whether a failure is serious under subsection (1)(ca), the Registrar—

                3. must have regard to—
                  1. the nature and extent of the failure; and
                    1. the circumstances in which the failure occurred; and
                      1. whether the provider has previously failed to comply with the duty referred to in that paragraph or has otherwise previously failed to provide any material information that it is required to provide by or under this Act; and
                      2. may have regard to any other matters that the Registrar thinks relevant.

                        1. The Registrar may, if the Registrar considers it necessary or desirable after taking into account section 18A, refer consideration of whether a financial service provider should be deregistered to the FMA for the FMA's direction.

                        2. The Registrar must deregister a financial service provider if—

                        3. the FMA gives a direction under section 18B(3)(c)(i); or
                          1. the FMA gives a direction under section 469(2)(a) or (b) of the Financial Markets Conduct Act 2013; or
                            1. the disciplinary committee gives a direction under clause 46(3)(a) or (b) of Schedule 5 of the Financial Markets Conduct Act 2013.

                              1. Deregistration under subsection (1B)(c) relates only to the provider’s registration for a financial advice service.

                              2. The Registrar must deregister a financial service provider if the provider so requests in writing, with effect from any future date requested. The Registrar must notify any relevant licensing authority of this deregistration.

                              3. The Registrar must deregister a financial service provider in respect of a particular service after a notice period in accordance with sections 19 and 20 if the Registrar is satisfied that the provider is disqualified from being registered in respect of that service.

                              4. For the purposes of this section and sections 19 and 20, notice period means 20 working days from the date of the Registrar’s notification under section 19.

                              Notes
                              • Section 18(1)(aa): inserted, on , by section 18(1) of the Financial Service Providers (Registration and Dispute Resolution) Amendment Act 2014 (2014 No 34).
                              • Section 18(1)(ab): inserted, on , by section 100(1) of the Regulatory Systems (Commercial Matters) Amendment Act 2017 (2017 No 12).
                              • Section 18(1)(b): replaced, on , by section 77(1) of the Financial Services Legislation Amendment Act 2019 (2019 No 8).
                              • Section 18(1)(c): replaced, on , by section 77(2) of the Financial Services Legislation Amendment Act 2019 (2019 No 8).
                              • Section 18(1)(ca): inserted, on , by section 77(2) of the Financial Services Legislation Amendment Act 2019 (2019 No 8).
                              • Section 18(1)(d): amended, on , by section 17(2) of the Financial Service Providers (Registration and Dispute Resolution) Amendment Act 2010 (2010 No 41).
                              • Section 18(1AA): inserted, on , by section 100(2) of the Regulatory Systems (Commercial Matters) Amendment Act 2017 (2017 No 12).
                              • Section 18(1AB): inserted, on , by section 77(3) of the Financial Services Legislation Amendment Act 2019 (2019 No 8).
                              • Section 18(1A): inserted, on , by section 18(2) of the Financial Service Providers (Registration and Dispute Resolution) Amendment Act 2014 (2014 No 34).
                              • Section 18(1B): replaced, on , by section 77(4) of the Financial Services Legislation Amendment Act 2019 (2019 No 8).
                              • Section 18(1C): inserted, on , by section 77(4) of the Financial Services Legislation Amendment Act 2019 (2019 No 8).
                              • Section 18(2A): inserted, on , by section 63 of the Credit Contracts Legislation Amendment Act 2019 (2019 No 81).