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Financial Service Providers (Registration and Dispute Resolution) Act 2008

Preliminary provisions

7A: Application of Act

You could also call this:

“This law explains who must follow the rules about financial services”

This law explains who has to follow the Financial Service Providers Act. It applies to you if you’re in the business of providing financial services and:

You provide financial services to people in New Zealand, either yourself or through someone else.

You have a licence or need one under another law to provide financial services.

Another law says you must be registered under this Act.

You provide the service in specific situations that the law describes.

You have to report under the Anti-Money Laundering and Countering Financing of Terrorism Act 2009.

The law gives more details about providing services to people in New Zealand. It doesn’t apply just because people in New Zealand can access your services. It also doesn’t apply if you don’t have an office in New Zealand and don’t serve any retail clients there. There are some exceptions if you only provide a small amount of service to New Zealand.

The Act might also apply to you if you register to give financial advice, even if you’re not in the financial service business.

Remember, there are some situations where the Act applies even if these rules say it shouldn’t. The law also mentions that these rules can be changed by another part of the Act.

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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=LMS464569.

Topics:
Money and consumer rights > Banking and loans Business > Industry rules
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7: Persons who are not in business of providing financial service, or

"People and groups who don't count as financial service businesses"

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8: Act binds the Crown, or

"The government must follow this law too"

Part 1 Preliminary provisions

7AApplication of Act

  1. This Act applies to every person (A) who is in the business of providing a financial service if—

  2. A’s financial services are provided to persons in New Zealand by or on behalf of A; or
    1. A is, or is required to be, a licensed provider under a licensing enactment; or
      1. A is required to be registered under this Act by or under any other enactment (including under a licence condition); or
        1. A provides the service in the prescribed circumstances; or
          1. A is a reporting entity to which the Anti-Money Laundering and Countering Financing of Terrorism Act 2009 applies.

            1. The following apply for the purposes of subsection (1)(a):

            2. the paragraph does not apply merely because A’s financial services are accessible by persons in New Zealand:
              1. the paragraph does not apply if A—
                1. does not have a place of business in New Zealand; and
                  1. does not provide the service to any retail client in New Zealand:
                  2. the paragraph does not apply if the extent to which the financial service is provided to persons in New Zealand is less than any prescribed threshold:
                    1. the paragraph applies regardless of where the financial service is provided from.

                      1. Subsection (2)(c) does not apply in the prescribed circumstances.

                      2. This Act may also apply to a person who registers for financial advice services under section 22C (even though the person is not in the business of providing a financial service).

                      3. See section 12(1A), which applies section 12 to a person even if this Act would not otherwise apply to the person under this section.

                      4. This section is subject to section 7.

                      Notes
                      • Section 7A: inserted, on , by section 66 of the Financial Services Legislation Amendment Act 2019 (2019 No 8).