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Financial Service Providers (Registration and Dispute Resolution) Act 2008

Dispute resolution - Financial service provider must be member of dispute resolution scheme

49: Who are retail clients

You could also call this:

"People who need extra protection when using financial services"

When you receive a financial service, you're either a retail client or a wholesale client. You're a retail client if you're not a wholesale client.

You're a wholesale client if:

You're in the business of providing financial services and you get the service as part of your business.

You're what's called a 'wholesale investor' under the Financial Markets Conduct Act 2013.

You're getting a service related to an offer of financial products, and you're a 'wholesale investor', 'close business associate', or relative of the person or company offering the products.

You're an 'eligible investor' under section 49A of this law.

You're getting financial advice or a regulated client money or property service, and you're considered a wholesale client for that service under the Financial Markets Conduct Act 2013.

If any of these apply to a company or organisation, they also apply to the owners, directors, employees, and agents of that company or organisation.

In this law, 'entity' means a company, group, or organisation, including partnerships and trusts, but not individual people.

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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=DLM1633910.

Topics:
Money and consumer rights > Banking and loansMoney and consumer rights > Consumer protection
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48A: When financial adviser is exempt from being member, or

"When a financial adviser doesn't need to join a complaint-handling group"

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49A: Who are eligible investors, or

"People who want fewer protections when getting money help"

Part 3Dispute resolution
Financial service provider must be member of dispute resolution scheme

49Who are retail clients

  1. A retail client is any person who receives a financial service who is not a wholesale client.

  2. The following persons who receive a financial service are wholesale clients in respect of that financial service:

  3. a person who is in the business of providing any financial service and receives the financial service in the course of that business:
          1. a person who is a wholesale investor (within the meaning of clause 3(2) of Schedule 1 of the Financial Markets Conduct Act 2013, except that the relevant time for the purpose of applying that schedule under this paragraph must be treated as the time immediately before the service is received by the client):
            1. a person who is, in relation to an offer of financial products, a wholesale investor (within the meaning of clause 3 of Schedule 1 of the Financial Markets Conduct Act 2013), if the service relates to that offer or to financial products that have been acquired by that person under that offer:
              1. a person who is, in relation to an offer of financial products, a close business associate of the offeror (within the meaning of clause 4 of Schedule 1 of the Financial Markets Conduct Act 2013), if the service relates to that offer or to financial products that have been acquired by that person under that offer:
                1. a person who is, in relation to an offer of financial products, a relative of the offeror or of a director of the offeror (within the meaning of clause 5 of Schedule 1 of the Financial Markets Conduct Act 2013), if the service relates to that offer or to financial products that have been acquired by that person under that offer:
                  1. an eligible investor under section 49A:
                    1. if the financial service is a financial advice service or a regulated client money or property service, a person who is a wholesale client in respect of that service under clause 4 of Schedule 5 of the Financial Markets Conduct Act 2013.

                      1. If subsection (2) applies to a person (A), it applies equally to any controlling owner, director, employee, agent, or other person acting in the course of, and for the purposes of, A's business to the same extent as it applies to A.

                      2. In this section,—

                        entity—

                        1. includes a body corporate and an unincorporated body (including partners in a partnership, members of a joint venture, or the trustees of a trust) and the sole trustee of a trust acting in his, her, or its capacity as trustee of that trust; but
                          1. does not include an individual.

                          Notes
                          • Section 49: replaced, on , by section 27 of the Financial Service Providers (Registration and Dispute Resolution) Amendment Act 2010 (2010 No 41).
                          • Section 49(2)(b): repealed, on , by section 150 of the Financial Markets (Repeals and Amendments) Act 2013 (2013 No 70).
                          • Section 49(2)(c): repealed, on , by section 92(1) of the Financial Services Legislation Amendment Act 2019 (2019 No 8).
                          • Section 49(2)(d): repealed, on , by section 92(1) of the Financial Services Legislation Amendment Act 2019 (2019 No 8).
                          • Section 49(2)(e): replaced, on , by section 150 of the Financial Markets (Repeals and Amendments) Act 2013 (2013 No 70).
                          • Section 49(2)(f): replaced, on , by section 150 of the Financial Markets (Repeals and Amendments) Act 2013 (2013 No 70).
                          • Section 49(2)(fa): inserted, on , by section 150 of the Financial Markets (Repeals and Amendments) Act 2013 (2013 No 70).
                          • Section 49(2)(fb): inserted, on , by section 150 of the Financial Markets (Repeals and Amendments) Act 2013 (2013 No 70).
                          • Section 49(2)(h): replaced, on , by section 92(2) of the Financial Services Legislation Amendment Act 2019 (2019 No 8).
                          • Section 49(4) private offer of securities: repealed, on , by section 150 of the Financial Markets (Repeals and Amendments) Act 2013 (2013 No 70).