finPOWER Newsletter 21 April 2010

Wednesday, 21 April 2010

Below is some very important information on Seminars that will effect you if you are a Finance Service Provider in New Zealand.

New Legislation

We recently attended the Ministry of Economic Development's Business Update Seminar which were looking at new legislation that is about to come into force. Specifically, we were interested in:

  • Financial Service Providers (Registration and Dispute Resolution) Act 2008
  • Financial Advisors Act 2008
  • Financial Service Providers (Pre Implementation Adjustments) Bill

A key fact that came out of this session was that all Financial Service Providers will need to register with the Ministry of Economic Development (MED) and be a member of an approved Dispute Resolution Service. The definition of a Financial Service Provider is very broad and the legislation is such to ensure a wide net is cast to catch as many players in the financial space as possible.

You will have to register on the Financial Service Providers Register; a web based, public register administered by the MED. Registration will cost $350.00 with an annual fee of $60.00. In addition each Director, Controlling Owner and Senior Manager is required to have a Criminal History check undertaken annually at a cost of $35 per check.

The Business Update Seminars are being held progressively throughout the main centres for the next 3 weeks and we strongly advise you to attend and get schooled up on your obligations under these new Acts. There are heavy penalties for non compliance - $100,000 fine for individuals and $300,000 fine for corporates plus jail time!

To find out when there is a Seminar near you go to the MED's website here.