Commerce and Consumer Affairs Minister, Kris Faafoi, is seeking feedback on a recently released discussion paper containing proposals to help deter the misuse of the Financial Service Providers Register.
“Some mainly offshore-controlled entities have been “free-riding” off New Zealand’s reputation for sound financial markets regulation by using their registration to imply that they are actively regulated in New Zealand when that is not the case,” Faafoi explained.
“I want feedback on the proposals that aim to address this unscrupulous behaviour,” he said.
The proposals include:
1. Having a threshold for registration & exemptions, below which providers do not required or able to register on the FSPR
2. Limits on promotion of registered status
The Financial Services Legislation Amendment Bill amends the regime for registration of financial service providers.
“The Bill essentially changes the scope of registration from those that provide financial services from New Zealand to those that provide financial services to persons in New Zealand,” the report stated.
“Providers with a place of business in New Zealand that provide financial services only to overseas persons will not be able to register.
“The intention is that the need to have New Zealand clients would reduce the ease and net benefit of seeking registration for the purpose of misuse.”
“I encourage consumers and people in the financial services industry to provide feedback on the proposed regulations,” said Faafoi.
Read the full discussion paper here and make a submission here before 15 May 2018.