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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

49B: Acceptance of certification

You could also call this:

“When someone says they're a big business customer, you need to check they really understand what that means”

When you provide a financial service, you need to be careful about accepting certifications from clients. Here’s what you need to know:

You can only accept a certification if you’re sure the client understands what it means. You need to listen to their reasons for the certification and make sure they know what will happen because of it. If you think the client might be wrong or you need more information, you can’t accept the certification.

The person who accepts the certification doesn’t have to be the same person who provides the financial service, but it can be.

If you accept a certification without checking properly, you’re breaking the rules for wholesale certification. This is serious and could lead to you having to pay money as a penalty or to make up for any problems you caused. You can find more information about these penalties in sections 79A and 79B of the law.

Remember, it’s your job to make sure certifications are correct and that clients understand what they mean.

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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=DLM3080332.

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49A: Who are eligible investors, or

"People who want fewer protections when getting money help"

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49C: Revocation of certification, or

"How to cancel your special investor status with a financial company"

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

49BAcceptance of certification

  1. A financial service provider must not accept a certification unless he, she, or it, having considered the client's reasons for the certification,—

  2. is satisfied that the client has been sufficiently advised of the consequences of the certification; and
    1. has no reason to believe that the certification is incorrect or that further information or investigation is required as to whether or not the certification is correct.

      1. The person who accepts the certification of a client may be the person providing the financial services to the client (but does not need to be).

      2. A financial service provider who accepts a certification without having complied with subsection (1) contravenes a wholesale certification requirement.

      3. Contravention of this section may give rise to a pecuniary penalty order or compensatory order (see sections 79A and 79B).

      Notes
      • Section 49B: inserted, on , by section 27 of the Financial Service Providers (Registration and Dispute Resolution) Amendment Act 2010 (2010 No 41).