Improving the financial service provider regime

Commerce Minister Craig Foss today announced Cabinet had agreed to strengthen the financial service providers registration regime.

“The regime makes information about providers available and ensures consumers have access to free dispute resolution services,” says Mr Foss.

The rules include new powers to investigate providers and prevent their registration, or remove them from the register.

“The proposed changes will further help prevent the misuse of the register by overseas entities trying to take advantage of New Zealand’s reputation.

“These measures will help maintain New Zealand’s reputation as a trusted place to do business and work towards achieving the Government’s Business Growth Agenda outcomes.

“They build on the government’s reforms to strengthen the company registration regime and improve anti-money laundering and anti-terrorist funding efforts,” says Mr Foss.

The changes will:

• Provide the FMA with the ability to direct the Registrar to decline registration or to de-register an FSP where the FMA is not satisfied that registration is necessary or desirable in light of the purposes of the Act.
• Extend the Registrar’s inspection powers to seek any information necessary to determine whether an FSP should be registered including whether an application should be referred to the FMA.
• Disqualify persons with overseas criminal convictions for theft, fraud or money laundering within the past five years from registration. Those with New Zealand criminal convictions are already disqualified.