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Financial Markets Conduct Act 2013

Licensing and other regulation of market services - Additional regulation of financial advice and financial advice services - Miscellaneous provisions

431T: Nomination of nominated representatives

You could also call this:

"Choosing someone to give financial advice on your behalf"

Illustration for Financial Markets Conduct Act 2013

A financial advice provider can choose someone to be their nominated representative if they have a licence to give financial advice. You need to be engaged by the provider to give financial advice on their behalf, not be a financial adviser or provider yourself, and not already be a nominated representative of another provider. The provider must have a licence that covers financial advice services.

If you are nominated as a representative of one provider, you can also be nominated by another provider if they have the same licence or if their licences say it is okay, related to an arrangement referred to in section 403(4)(b)(ii). The nomination must be made in a specific way, if the FMA says so.

When you are nominated, it starts on the date it is made or a later date, and it stays in force until the provider cancels it, they no longer comply with the rules, or you no longer comply with the rules. The provider must keep a record of their nominated representatives, and it must be up to date and in the right format.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS465833.

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Part 6Licensing and other regulation of market services
Additional regulation of financial advice and financial advice services: Miscellaneous provisions

431TNomination of nominated representatives

  1. A financial advice provider (P) may nominate an individual (A) as a nominated representative of P if—

  2. P holds, or is authorised to provide a service under, a licence that covers financial advice services; and
    1. A—
      1. is engaged by P to give financial advice on P’s behalf; and
        1. is not a financial adviser or a financial advice provider; and
          1. is not a nominated representative of any other financial advice provider.

          2. However, subsection (1)(b)(iii) does not prevent an individual being nominated as a nominated representative of 2 or more financial advice providers if—

          3. the providers are authorised to provide a financial advice service under the same licence; or
            1. the nomination of the same individual as a nominated representative of 2 or more providers is authorised by conditions on the providers’ licences and those conditions are related to an arrangement referred to in section 403(4)(b)(ii).

              1. A nomination must be made in the manner (if any) specified by the FMA.

              2. A nomination—

              3. takes effect on the date it is made or any later date specified in it; and
                1. remains in force until the first to occur of the following:
                  1. P revokes the nomination by giving written notice to A:
                    1. P ceases to comply with subsection (1)(a):
                      1. A ceases to comply with subsection (1)(b).

                      2. A financial advice provider must keep an up-to-date record of its nominated representatives in the prescribed manner.

                      Notes
                      • Section 431T: inserted, on , by section 29 of the Financial Services Legislation Amendment Act 2019 (2019 No 8).