400Licence may cover authorised bodies

1. A licence may, in its conditions, authorise 1 or more named related bodies corporate of the licensee to provide a market service covered by the licence if the FMA is satisfied that—

2. arrangements are or will be in place to ensure that the licensee will maintain appropriate control or supervision over the provision of that service by the related body corporate under the licence; and
3. the related body corporate is capable of effectively performing that service (having regard to the proposed conditions of licence); and
4. there is no reason to believe that the related body corporate is likely to contravene the market services licensee obligations; and
5. the related body corporate is, or will be, registered under the Financial Service Providers (Registration and Dispute Resolution) Act 2008 on and from commencing to provide that service; and
6. the related body corporate meets the eligibility criteria and other requirements prescribed by the regulations for the purposes of this section (if any).

7. A licence may also, in its conditions, authorise 1 or more named entities to provide a financial advice service covered by the licence if the FMA is satisfied that—

8. arrangements are or will be in place to ensure that the licensee will maintain appropriate control or supervision over the provision of that service by the entity under the licence; and
9. the entity is capable of effectively providing that service (having regard to the proposed conditions of the licence); and
10. there is no reason to believe that the entity is likely to contravene the market services licensee obligations; and
11. the entity is, or will be, registered under the Financial Service Providers (Registration and Dispute Resolution) Act 2008 on and from commencing to provide that service; and
12. the entity meets the eligibility criteria and other requirements prescribed by the regulations for the purposes of this section (if any).

13. However, subsections (1) and (1A) do not apply if the licensee is an individual.

14. The licence may also, in its conditions, determine that, for the purposes of 1 or more provisions of this Part, notices or reports need to be given to or by, or powers or duties may be exercised or performed by, only—

15. the licensee (and in this case the relevant action must be treated, for that purpose, as being given to or by, or exercised or performed by, the 1 or more bodies authorised under subsection (1) or (1A)); or
16. 1 or more bodies authorised under subsection (1) or (1A) (and in this case the relevant action must be treated, for that purpose, as being given to or by, or exercised or performed by, the licensee).

17. If an authorised body contravenes any market services licensee obligation, the licensee must be treated as also having contravened that market services licensee obligation.