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Financial Service Providers (Registration and Dispute Resolution) Act 2008

Registration - Registration of financial service provider - Application for registration as financial service provider

15B: FMA may prevent registration of financial service provider

You could also call this:

“The FMA can stop you from becoming a registered financial service provider”

When you apply to be registered as a financial service provider, the Registrar might send your application to the Financial Markets Authority (FMA) to look at. The FMA doesn’t have to review it, but they can if they want to.

If the FMA decides to review your application, they’ll think about whether you should be allowed to register or not. If they think you shouldn’t be registered, they have to do a few things:

First, they need to tell you that they’re thinking about not letting you register. They’ll explain why and give you at least 10 working days to respond in writing.

After they’ve looked at what you’ve written, if they still think you shouldn’t be registered, they’ll tell the Registrar to reject your application. They’ll also explain why they made this decision.

The Registrar has to do what the FMA says if they’re told to reject your application.

If you’re not happy with the FMA’s decision, you can appeal to the High Court.

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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=DLM6197831.

Topics:
Money and consumer rights > Banking and loans Business > Industry rules
Previous

15A: Purpose of FMA's powers relating to registration, or

"The FMA can stop people from registering as financial providers if it might mislead others"

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15C: FMA may prevent registration regardless of whether applicant is otherwise qualified to be registered, or

"FMA can stop someone from registering as a financial service provider, even if they meet all other rules"

Part 2 Registration
Registration of financial service provider: Application for registration as financial service provider

15BFMA may prevent registration of financial service provider

  1. On receipt of an application under section 15, the Registrar may, if the Registrar considers it necessary or desirable after having regard to section 15A, refer the application to the FMA and the FMA may, but is not required to, consider the application.

  2. If the FMA decides to consider the application, the FMA must, after taking into account section 15A, consider whether preventing the applicant from being registered under section 16(1) is necessary or desirable.

  3. If, in the FMA's view, the applicant should be prevented from being registered under section 16(1), the FMA must—

  4. comply with subsection (4); and
    1. if, having considered any submission received under subsection (4), the FMA remains of the view that the applicant should be prevented from being registered, direct the Registrar to reject the application in accordance with section 16(2); and
      1. give its reasons for that direction.

        1. Before giving a direction under subsection (3)(b), the FMA must—

        2. give the applicant—
          1. written notice of its intention to give the direction; and
            1. the reasons why it intends to give that direction; and
              1. a date (being not less than 10 working days after the date of the notice referred to in subparagraph (i)) by which the applicant may make written submissions to the FMA in relation to its proposed direction; and
              2. consider any submissions received in accordance with paragraph (a)(iii).

                1. The Registrar must comply with a direction given under subsection (3)(b).

                2. A provider who is not satisfied with a direction given under this section may appeal to the High Court under section 42.

                Notes
                • Section 15B: inserted, on , by section 15 of the Financial Service Providers (Registration and Dispute Resolution) Amendment Act 2014 (2014 No 34).