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Financial Markets Conduct Act 2013

Licensing and other regulation of market services - Key provisions

388: When provider of market services needs to be licensed

You could also call this:

"When you need a licence to provide market services like managing schemes or giving financial advice"

Illustration for Financial Markets Conduct Act 2013

You cannot provide certain market services without a licence. These services include acting as a manager of a scheme, or acting as an independent trustee of a restricted scheme. You can find out if you are exempt under section 389.

You also need a licence to provide financial advice, which is explained in section 431D. A licence is required to provide discretionary investment management services, which are covered in subparts 4 to 6. You need a licence to act as a financial institution, as explained in subpart 6A.

You must have a licence to issue derivatives, which is covered in subpart 5. This rule applies to you if you make a regulated offer of derivatives. You should check the rules that apply to your situation.

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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=DLM4091564.

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387A: Other provisions relating to financial advice services and client money or property services, or

"Extra rules for people giving financial advice and handling clients' money or property"

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389: Exemptions from need for market services licence, or

"When you don't need a special licence to provide market services"

Part 6Licensing and other regulation of market services
Key provisions

388When provider of market services needs to be licensed

  1. A person must not provide any of the following market services without holding, or being authorised to provide the service under, a market services licence that covers that service (unless an exemption applies under section 389):

  2. acting as a manager of a registered scheme (other than a restricted scheme):
    1. acting as an independent trustee of a restricted scheme:
      1. acting as a provider of a financial advice service (see section 431D):
        1. acting as a provider of a discretionary investment management service (see subparts 4 to 6):
          1. acting as a financial institution (see subpart 6A):
            1. acting as a derivatives issuer in respect of a regulated offer of derivatives that is made by the derivatives issuer (see subpart 5).

              Notes
              • Section 388(ba): inserted, on , by section 16 of the Financial Services Legislation Amendment Act 2019 (2019 No 8).
              • Section 388(ca): inserted, on , by section 8 of the Financial Markets (Conduct of Institutions) Amendment Act 2022 (2022 No 36).