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Financial Markets Conduct Act 2013

Licensing and other regulation of market services - Regulation of client money or property services

431V: Overview of client money or property services regime

You could also call this:

"Rules for looking after people's money and property when providing a service"

Illustration for Financial Markets Conduct Act 2013

When you provide client money or property services, you must follow certain rules. The Financial Service Providers (Registration and Dispute Resolution) Act 2008 says you must be registered and be a member of an approved dispute resolution scheme if you are in the business of providing this service. You do not need a market services licence to provide this service.

You must tell retail clients important information, as stated in section 431X. You must also be careful and skilled when providing the service, as stated in section 431ZA. You have to handle client money and property correctly, following the rules in sections 431ZC to 431ZH, which includes holding the money or property on trust if you have to.

If you do not follow these rules, section 431ZI explains who is responsible. This information is a guide to help you understand the rules about client money or property services.

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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=LMS465958.

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431W: Meaning of client money or property service and certain other terms, or

"What 'client money or property service' means in simple terms"

Part 6Licensing and other regulation of market services
Regulation of client money or property services

431VOverview of client money or property services regime

  1. This subpart and other legislation regulate client money or property services as follows:

  2. the Financial Service Providers (Registration and Dispute Resolution) Act 2008 provides for when a person in the business of providing the service must be registered under that Act and when that provider must be a member of an approved dispute resolution scheme. The provider is not required to hold a market services licence:
    1. a person who provides the service must—
      1. disclose information to retail clients under section 431X; and
        1. exercise care, diligence, and skill under section 431ZA; and
          1. handle client money and property in accordance with sections 431ZC to 431ZH, including holding the money or property on trust (if those duties apply under section 431Z(2)):
          2. section 431ZI sets out who is responsible if those duties are contravened.

            1. This section is a guide only to the general scheme and effect of this subpart and other legislation in relation to client money or property services.

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