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Financial Markets Conduct Act 2013

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

431ZE: Provider must keep records of client money and client property

You could also call this:

"Providers must keep clear records of clients' money and property."

Illustration for Financial Markets Conduct Act 2013

If you are a provider who gets or holds money for a client, you must keep records that show what happens to that money. You must keep these records in a way that makes it easy for others to check them. If you get or hold property for a client, you must keep records that say what the property is, when you got it, and what happened to it if you got rid of it.

You must also keep any other records that you are supposed to keep. You have to keep all these records in a way that makes them easy to audit, review, or inspect. You must also follow any rules about how to keep these records and how they should be audited, reviewed, or inspected.

You can find more information about this by looking at the Financial Services Legislation Amendment Act 2019 and the earlier version of this law.

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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=LMS465985.

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431ZD: Provider must account for client money and client property, or

"Keep track of other people's money and things, and tell them what's happening with it."

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431ZF: Provider must report on client money and client property, or

"Providers must tell clients what's happening with their money and property"

Part 6Licensing and other regulation of market services
Regulation of client money or property services: Obligations for handling client money and client property

431ZEProvider must keep records of client money and client property

  1. A provider who receives or holds client money on trust for a client must keep, or ensure that there are kept, trust account records that disclose clearly the position of the client money in the trust account.

  2. A provider who receives or holds client property on trust for a client must keep, or ensure that there are kept, records that—

  3. identify the client property; and
    1. show the date when the client property was received; and
      1. if the client property has been disposed of, show when the client property was disposed of and to whom.

        1. A provider must also keep all other prescribed records.

        2. A provider must—

        3. keep the records required by this section, or ensure that they are kept, in a manner that enables those records to be conveniently and properly audited, reviewed, or inspected; and
          1. comply with the prescribed requirements (if any) relating to those records and their audit, review, or inspection.

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