What is an FSP?
As set out in Section 4 of the Financial Service Providers (Registration and Dispute Resolution) Act 2008, a Financial Service Provider is a person or entity who provides or offers to provide a financial service.
Any New Zealand registered entity that provides a financial service anywhere in the world must be registered as a Financial Service Provider or FSP. The Act only applies to a person who is ordinarily resident in New Zealand or an entity that has a place of business in New Zealand. Therefore, in order to hold an FSP registration, an entity must have a place of business in New Zealand and must provide some or all of its financial services from that address.
If a person or entity cannot fulfil this requirement, then it must not provide or offer to provide any financial service to anyone, anywhere in the world.
Why does the FSP Register exist?The key objectives of the register are to:
- Provide an electronic register of FSPs, as mandated by the Financial Service Providers (Registration and Dispute Resolution) Act 2008;
- Increase the level of transparency of public information related to FSPs, their licensed services and their related dispute resolution schemes;
- Ensure certain people are prevented from being involved in the management of FSPs, such as those with specific criminal convictions;
- Assist New Zealand to comply with its international obligations to prevent money laundering and the financing of terrorism;
- Provide a ‘one stop shop’ to enable Financial Service Providers to meet registration and authorisation requirements via a single web page.
What is the process for FSP registration?Registration is a straight forward process of recording:
- The place of business
- The range of financial activities offered
- Disputes Resolution scheme belonged to
- The controlling owners
- The directors
- The senior staff
Along with a annual criminal history check undertaken for the above staff.
The following pdf documents outlines most of the regulatory requirements you must meet to hold an FSP Registration and do business in New Zealand, along with upcoming changes to the regulatory environment. This document will be updated periodically, but is provided as reference only, and can not be guaranteed to be complete and correct.
New Zealand has a reputation for being an easy and friendly place to do business and is virtually corruption free. New Zealand businesses are seen to be honest and reliable and with the correct structure, an FSP can be non-tax resident in New Zealand. The structures we use are legally sound and individually customised to suit your business by lawyers and accountants who are professionals in the industry.