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Financial Markets Conduct Act 2013

Licensing and other regulation of market services - Key provisions

389: Exemptions from need for market services licence

You could also call this:

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

Illustration for Financial Markets Conduct Act 2013

You do not need a market services licence in some situations. If you have a financial product market licence, you are exempt from the licensing requirement. You are also exempt if you act as an operator of a designated FMI or carry out activities in a licensed market.

You are exempt from the licensing requirement if you do not provide services to retail clients. You are also exempt if you provide a prescribed exempt service. The terms designated FMI and operator have meanings given in section 5 of the Financial Market Infrastructures Act 2021.

Some exemptions have terms and conditions that you must follow. You can find more information about these terms and conditions in section 449A. You are exempt from the licensing requirement if you act as a Lloyd's underwriter or provide a prescribed exempt service.

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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=DLM4702224.

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Part 6Licensing and other regulation of market services
Key provisions

389Exemptions from need for market services licence

  1. A person is exempt from the licensing requirement under section 388 to the extent that the person—

  2. carries out activities that are covered by a financial product market licence:
    1. acts as an operator of a designated FMI:
      1. carries out activities as a participant in a licensed market, or in another prescribed overseas market, in the prescribed circumstances.

        1. In subsection (1)(b), designated FMI and operator have the meanings given in section 5 of the Financial Market Infrastructures Act 2021.

        2. A person is exempt from the licensing requirement under section 388(ba) in respect of a service (unless a declaration applies under subpart 3 of Part 9) to the extent that—

        3. the service is not provided to any retail clients; or
          1. the service is a prescribed exempt service.

            1. A person is exempt from the licensing requirement under section 388(c) in respect of a service (unless a declaration applies under subpart 3 of Part 9) to the extent that—

            2. the service is not a retail service (see clause 35 of Schedule 1); or
              1. the service is a prescribed exempt service.

                1. A person is exempt from the licensing requirement under section 388(ca) in respect of a service to the extent that—

                2. the person acts as a Lloyd’s underwriter; or
                  1. the service is a prescribed exempt service.

                    1. The exemptions in subsections (2)(b), (3)(b), and (4)(a) and (b) are subject to the prescribed terms and conditions (if any).

                    2. See section 449A, which relates to prescribed terms and conditions in connection with the exemption for Lloyd’s underwriters under subsection (4)(a).

                    Notes
                    • Section 389(1) heading: inserted, on , by section 17(1) of the Financial Services Legislation Amendment Act 2019 (2019 No 8).
                    • Section 389(1)(b): replaced, on , by section 163(1) of the Financial Market Infrastructures Act 2021 (2021 No 13).
                    • Section 389(1A): inserted, on , by section 163(1) of the Financial Market Infrastructures Act 2021 (2021 No 13).
                    • Section 389(2) heading: inserted, on , by section 17(2) of the Financial Services Legislation Amendment Act 2019 (2019 No 8).
                    • Section 389(2): replaced, on , by section 17(2) of the Financial Services Legislation Amendment Act 2019 (2019 No 8).
                    • Section 389(3) heading: inserted, on , by section 17(2) of the Financial Services Legislation Amendment Act 2019 (2019 No 8).
                    • Section 389(3): inserted, on , by section 17(2) of the Financial Services Legislation Amendment Act 2019 (2019 No 8).
                    • Section 389(4) heading: inserted, on , by section 9 of the Financial Markets (Conduct of Institutions) Amendment Act 2022 (2022 No 36).
                    • Section 389(4): inserted, on , by section 9 of the Financial Markets (Conduct of Institutions) Amendment Act 2022 (2022 No 36).
                    • Section 389(5) heading: inserted, on , by section 9 of the Financial Markets (Conduct of Institutions) Amendment Act 2022 (2022 No 36).
                    • Section 389(5): inserted, on , by section 9 of the Financial Markets (Conduct of Institutions) Amendment Act 2022 (2022 No 36).
                    • Section 389(6): inserted, on , by section 9 of the Financial Markets (Conduct of Institutions) Amendment Act 2022 (2022 No 36).