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Financial Service Providers (Registration and Dispute Resolution) Act 2008

Registration - Registration of financial service provider - Registration of financial advisers

22C: Registration of financial advisers

You could also call this:

“How to sign up as a financial advisor, even if you're not the boss”

You can register as a financial service provider for financial advice services to retail clients even if you’re not running a business to provide that service. This applies if you’re not disqualified under section 14.

For example, if you work for a company that gives financial advice to clients, you might need to register even though you’re just an employee. This is because some types of financial advice can only be given by registered financial advisers.

The rules for registration in sections 15 to 16 will apply to you, with some changes. Once you’re registered, the law will treat you as if you were running a business providing financial advice, even though you’re not.

There are some special rules about when you can be removed from the register. You can’t be removed just because you’re not required to be registered anymore. But you can be removed if you’re treated as no longer providing financial advice services, if you don’t pay your fees on time, or if certain other rules apply to you.

For some parts of the law, you’ll be treated as if you’re providing financial advice to a client if you’re hired by a financial advice provider to give advice on their behalf, and you give advice to their client.

Some financial advisers don’t have to be members of an approved dispute resolution scheme. You can find out more about this in section 48A.

In this section and the next one, a ‘retail client’ means the same thing as it does in the Financial Markets Conduct Act 2013.

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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=LMS464647.

Topics:
Money and consumer rights > Banking and loans Business > Industry rules
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22B: Suspension of registration, or

"When and how your registration as a financial service provider can be paused"

Next

22D: Financial adviser may be deregistered if not engaged by provider for extended period, or

"Financial advisers can lose their registration if they don't work with a provider for a long time"

Part 2 Registration
Registration of financial service provider: Registration of financial advisers

22CRegistration of financial advisers

  1. An individual (A) who is not disqualified under section 14 may be registered as a financial service provider for financial advice services provided to retail clients even though A is not in the business of providing that service.

    Example

    Susan is employed by ABC Limited (ABC) to give regulated financial advice to ABC’s retail clients.

    ABC is required to be licensed under section 388(ba) of the Financial Markets Conduct Act 2013 and registered under this Act. Under section 431D of that Act, ABC is the entity that is providing the financial advice service. Susan is not providing the service because she is not in business and is only giving the advice on behalf of ABC to ABC’s clients.

    However, under the conditions of ABC’s market service licence, the type of service that Susan gives may not be given by a nominated representative. That type of service can be given only by a financial adviser (that is, a person who is registered under this Act). Subsection (1) allows Susan to register even though, as an employee, she is not in the business of providing a financial advice service.

  2. Sections 15 to 16 apply with all necessary modifications for the purposes of registration under this section.

  3. If A becomes registered under this section, this Act (and the rules of an approved dispute resolution scheme) apply with all necessary modifications to A as if A were in the business of providing a financial advice service and A were registered under section 16.

  4. However,—

  5. A may not be deregistered in respect of the financial advice service under section 18(1)(b) on the basis that A is no longer required to be registered under section 11; and
    1. section 18(1)(b) applies to A in respect of that service only if—
      1. A is treated as being no longer in the business of providing a financial advice service under section 22D; or
        1. A does not comply with section 28(1) by the due date (see section 28(3)); or
          1. section 37(6) applies to A.

          2. For the purposes of Part 3, A must be treated as providing a financial advice service to a client (C) if—

          3. A is engaged by a financial advice provider to give regulated financial advice on the provider’s behalf; and
            1. C is a client of that provider; and
              1. A gives financial advice to C.

                1. See section 48A, which provides for when financial advisers are exempt from being members of an approved dispute resolution scheme.

                2. In this section and section 22D, retail client has the same meaning as in clause 3 of Schedule 5 of the Financial Markets Conduct Act 2013.

                Notes
                • Section 22C: inserted, on , by section 81 of the Financial Services Legislation Amendment Act 2019 (2019 No 8).