Plain language law

New Zealand law explained for everyone

Financial Markets Conduct Act 2013

Licensing and other regulation of market services - Issue of licences, conditions, and duration - Conditions of licence

406A: Effect of condition requiring giver of advice or interposed person to be authorised by licence or registered

You could also call this:

"Rules for people giving financial advice who need a licence or to be registered"

Illustration for Financial Markets Conduct Act 2013

If you give financial advice, you might need a licence or to be registered. This rule applies when a licence has a condition that says the person giving advice or the person in between must be authorised by a licence or registered under the Financial Service Providers (Registration and Dispute Resolution) Act 2008. You must follow the rules that apply to the type of condition in your licence.

If your licence has a condition that says you must be authorised by a licence, the rules in this part of the law apply to you as if you were providing a financial advice service. This means you must follow the rules when giving advice on behalf of someone else. You must also follow the rules if you engage individuals to give advice on behalf of someone else.

If your licence has a condition that says you must be registered under the Financial Service Providers (Registration and Dispute Resolution) Act 2008, the rules in that Act apply to you. This means you must follow the rules when giving advice on behalf of someone else, or when engaging individuals to give advice on behalf of someone else. These rules do not change how the law applies to the person who holds the licence.

This text is automatically generated. It might be out of date or be missing some parts. Find out more about how we do this.

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=LMS465778.

Topics:
Money and consumer rights > Banking and loansBusiness > Industry rulesBusiness > Fair trading
Previous

406: Consequences of contravening conditions, or

"What happens if you break the rules of your licence?"

Next

407: Duration of licence, or

"How long your licence lasts before it expires or gets cancelled"

Part 6Licensing and other regulation of market services
Issue of licences, conditions, and duration: Conditions of licence

406AEffect of condition requiring giver of advice or interposed person to be authorised by licence or registered

  1. This section applies if, under section 403(4)(b) and (c), a licence relating to a financial advice service—

  2. authorises the licensee or an authorised body (P) to do either or both of the following:
    1. engage an entity (E) to give regulated financial advice to P’s retail clients on P’s behalf:
      1. engage an individual through 1 or more interposed persons (F) to give advice to P’s retail clients on P’s behalf; and
      2. includes either or both of the following conditions:
        1. a condition requiring E or F to be authorised by a licence to provide a financial advice service (a licensing condition):
          1. a condition requiring E or F to be registered under the Financial Service Providers (Registration and Dispute Resolution) Act 2008 (FSP Act) (a registration condition).

          2. If the licence includes a licensing condition, for the purpose of enabling compliance with that condition, this Part applies,—

          3. in relation to E, as if E, in giving regulated financial advice on behalf of P, were providing a financial advice service; and
            1. in relation to F, as if F, in engaging individuals to give regulated financial advice on behalf of P, were providing a financial advice service.

              1. If the licence includes a registration condition, for the purpose of enabling compliance with that condition, the FSP Act applies,—

              2. in relation to E, as if E, in giving regulated financial advice on behalf of P, were providing a financial advice service; and
                1. in relation to F, as if F, in engaging individuals to give regulated financial advice on behalf of P, were providing a financial advice service.

                  1. This section does not affect the application of this Part or the FSP Act to P.

                  Notes
                  • Section 406A: inserted, on , by section 25 of the Financial Services Legislation Amendment Act 2019 (2019 No 8).