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Financial Service Providers (Registration and Dispute Resolution) Act 2008

Registration - Registrar’s inspection powers

37: Registrar’s inspection powers

You could also call this:

“How the Registrar can check if you're following the rules for financial services”

The Registrar or someone they authorise can check if a person is following the rules about providing financial services in New Zealand. They can do this by:

  1. Asking to see important documents.
  2. Checking if information given to them is correct.
  3. Asking people to confirm or fix information.
  4. Looking at and copying important documents.
  5. Taking documents for a short time to copy them.

The Registrar can ask you to provide information about yourself or another person or company you’re connected to. If you’re asked to do something, the person checking must show you that the Registrar has given them permission.

You must not try to stop the Registrar from doing these checks. If you don’t help when asked, you might get in trouble. For example, if you’re registered to provide financial services and don’t give information when asked, the Registrar might think you’ve stopped providing services.

If you knowingly don’t do what the Registrar asks, or if you try to stop them from doing their job, you could be fined. The fine can be up to $30,000 for a person or $300,000 for a company.

This law doesn’t change other laws about tax or statistics. The Registrar is checking for specific things, like whether you’re providing financial services in New Zealand, if you’re following the rules, and if the information you’ve given is correct.

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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=DLM1109544.

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Part 2 Registration
Registrar’s inspection powers

37Registrar’s inspection powers

  1. The Registrar, or a person authorised by the Registrar, may take any of the steps listed in subsection (2) for the purpose of ascertaining whether a person—

  2. provides a financial service to persons in New Zealand as referred to in section 7A(1)(a); or
    1. is in the business of providing a financial service in breach of section 11; or
      1. is holding out or has held out that the person is in the business of providing a financial service in breach of section 12; or
        1. is qualified or has been qualified to be registered in accordance with section 13; or
          1. is ordinarily resident in New Zealand; or
            1. has a place of business in New Zealand; or
              1. is in the business of providing a financial service; or
                1. has made a false or misleading representation or omission in breach of section 41.

                  1. The steps referred to in subsection (1) are the following:

                  2. requiring a person to produce for inspection relevant documents within that person’s possession or control:
                    1. ascertaining whether information provided to the Registrar is correct:
                      1. requiring a person, in relation to information provided to the Registrar, to—
                        1. confirm that the information is correct; or
                          1. correct the information:
                          2. specifying—
                            1. a particular form in which the confirmation or correction referred to in paragraph (ab) must be provided; and
                              1. a date by which the confirmation or correction must be provided; and
                                1. whether the confirmation or correction must be verified by the production of original documents or certified copies of original documents or by a statutory declaration:
                                2. inspecting and taking copies of relevant documents:
                                  1. taking possession of relevant documents and retaining them for a reasonable time for the purpose of taking copies.

                                    1. The Registrar, or a person authorised by the Registrar, may, under subsection (1), require a person (A) to do either or both of the following under subsection (2)(a) or (ab) (without limiting subsection (1) or (2)):

                                    2. produce a relevant document relating to another person; or
                                      1. confirm that information provided by another person is correct, or correct that information, if A is reasonably able to give that confirmation or to make that correction.

                                          1. Example

                                          A is a director of ABC Limited.

                                          A may be required to produce a document relating to ABC Limited’s business or to confirm information provided by ABC Limited.

                                        1. Any person who exercises powers under subsection (1) must make his or her authorisation from the Registrar available on request.

                                        2. Nothing in this section limits or affects the Tax Administration Act 1994 or the Data and Statistics Act 2022.

                                        3. A person must not obstruct or hinder the exercise of a power conferred by subsection (1).

                                        4. If a registered financial service provider, or a director of such a provider, does not comply with a requirement made under subsection (2)(a) or (ab) in relation to the provider (including compliance with the specifications in subsection (2)(ac)) within 20 working days from the date the requirement was notified to the provider or director, the Registrar may assume that the provider is no longer in the business of providing a financial service and sections 18 to 20 apply.

                                        5. A person who knowingly fails to comply with a requirement under subsection (2) commits an offence and is liable on conviction,—

                                        6. in the case of an individual, to a fine not exceeding $30,000:
                                          1. in the case of a person who is not an individual, to a fine not exceeding $300,000.

                                            1. A person who breaches subsection (5) commits an offence and is liable on conviction,—

                                            2. in the case of an individual, to a fine not exceeding $30,000:
                                              1. in the case of a person who is not an individual, to a fine not exceeding $300,000.

                                                1. In this section, relevant document means a document that contains information relating to whether a person—

                                                2. provides a financial service to persons in New Zealand as referred to in section 7A(1)(a); or
                                                  1. is in the business of providing a financial service or a particular financial service; or
                                                    1. is holding out or has held out that the person is in the business of providing a financial service in breach of section 12; or
                                                      1. is qualified or has been qualified to be registered in accordance with section 13; or
                                                        1. is ordinarily resident in New Zealand; or
                                                          1. has a place of business in New Zealand; or
                                                            1. is in the business of providing a financial service; or
                                                              1. has made a false or misleading representation or omission in breach of section 41.

                                                                Compare
                                                                Notes
                                                                • Section 37(1)(aaa): inserted, on , by section 86(1) of the Financial Services Legislation Amendment Act 2019 (2019 No 8).
                                                                • Section 37(1)(ca): inserted, on , by section 25(1) of the Financial Service Providers (Registration and Dispute Resolution) Amendment Act 2014 (2014 No 34).
                                                                • Section 37(1)(cb): inserted, on , by section 25(1) of the Financial Service Providers (Registration and Dispute Resolution) Amendment Act 2014 (2014 No 34).
                                                                • Section 37(1)(cc): inserted, on , by section 25(1) of the Financial Service Providers (Registration and Dispute Resolution) Amendment Act 2014 (2014 No 34).
                                                                • Section 37(2)(aa): inserted, on , by section 25(2) of the Financial Service Providers (Registration and Dispute Resolution) Amendment Act 2014 (2014 No 34).
                                                                • Section 37(2)(ab): inserted, on , by section 25(2) of the Financial Service Providers (Registration and Dispute Resolution) Amendment Act 2014 (2014 No 34).
                                                                • Section 37(2)(ac): inserted, on , by section 25(2) of the Financial Service Providers (Registration and Dispute Resolution) Amendment Act 2014 (2014 No 34).
                                                                • Section 37(2A): inserted, on , by section 86(2) of the Financial Services Legislation Amendment Act 2019 (2019 No 8).
                                                                • Section 37(4): amended, on , by section 107(1) of the Data and Statistics Act 2022 (2022 No 39).
                                                                • Section 37(6): replaced, on , by section 86(3) of the Financial Services Legislation Amendment Act 2019 (2019 No 8).
                                                                • Section 37(7): amended, on , by section 413 of the Criminal Procedure Act 2011 (2011 No 81).
                                                                • Section 37(8): amended, on , by section 413 of the Criminal Procedure Act 2011 (2011 No 81).
                                                                • Section 37(9)(aaa): inserted, on , by section 86(4) of the Financial Services Legislation Amendment Act 2019 (2019 No 8).
                                                                • Section 37(9)(a): amended, on , by section 23 of the Financial Service Providers (Registration and Dispute Resolution) Amendment Act 2010 (2010 No 41).
                                                                • Section 37(9)(ca): inserted, on , by section 25(4) of the Financial Service Providers (Registration and Dispute Resolution) Amendment Act 2014 (2014 No 34).
                                                                • Section 37(9)(cb): inserted, on , by section 25(4) of the Financial Service Providers (Registration and Dispute Resolution) Amendment Act 2014 (2014 No 34).
                                                                • Section 37(9)(cc): inserted, on , by section 25(4) of the Financial Service Providers (Registration and Dispute Resolution) Amendment Act 2014 (2014 No 34).