Financial Service Provider (FSP) in New Zealand can legally engage in activities and offer services such as:
- Deposit Taking Keeping, investing and managing money, securities and investment portfolios on behalf of third parties.
- Providing credit under a credit contract
- Operating a money or value transfer service
- Issuing and managing means of payment
- Giving financial guarantees
- Changing foreign currency
-Entering into or trading on an exchange, in an over-the-counter market or otherwise, the following on behalf of another person: money market instruments (including cheques, bills, certificates of deposits); foreign exchange (including forward foreign exchange contracts); derivative products including, but not limited to, futures and options; exchange rate and interest rate instruments, including products such as swaps and forward rule agreements; transferable securities; other negotiable instruments and financial assets content area text goes here.
A Financial Service Provider that offers financial services using a New Zealand based Company and all the clients are based outside New Zealand, the FSP then will operate outside the geographical scope of Part II of the Securities Act 1978 and it will not be subject to regulation by the Reserve Bank as a non-bank deposit taker.
FSP should however been registered in the new Register and if retail services are offered to the customers, FSP should also join a government approved Dispute Resolution Scheme before applying for FSP registration.
Share:
