Financial Markets Conduct Act 2013

Licensing and other regulation of market services - Issue of licences, conditions, and duration - Expiry, suspension, or cancellation of licences

409: Effect of expiry, suspension, or cancellation of licence on appointments

You could also call this:

"What happens to your job if your licence expires, is cancelled, or suspended?"

Illustration for Financial Markets Conduct Act 2013

If your licence expires or is cancelled, it does not automatically end any appointments you hold. However, if you keep holding the appointment without getting a new licence that covers it, you might break the law, specifically section 388. You need to get a licence or authorisation that covers your appointment to avoid this.

If your licence is suspended, you are not considered to be holding or authorised by that licence while it is suspended. This means you cannot use the suspended licence to carry out activities that require it.

When a licence is suspended, it affects the person or people the suspension is about, and they are not allowed to act as if they still hold the licence until the suspension is lifted.

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This page was last updated on 15 July 2025

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM4091591.

Topics:

Money and consumer rights > Banking and loansBusiness > Industry rules

408: When FMA may suspend or cancel licence, or

"When can the FMA stop or cancel your licence?"

409A: Restriction on suspending or cancelling licence to act as financial institution, or

"The government needs permission from the Reserve Bank to stop a financial company's licence."

Part 6Licensing and other regulation of market services
Issue of licences, conditions, and duration: Expiry, suspension, or cancellation of licences

409Effect of expiry, suspension, or cancellation of licence on appointments

The expiry or cancellation of a licence does not, of itself, terminate an appointment held by the licensee or any authorised body (but, if the person continues to hold the appointment and does not obtain a licence, or authorisation under a licence, that covers the appointment, the person may contravene section 388).
If a licence is suspended, the person or persons to whom the suspension relates are taken not to hold, or be authorised by, that licence while the suspension is in effect.