The Financial Markets Authority (FMA) is to be given a bigger tool kit in relation to the financial service providers’ registration regime.
The Government announced the move last week.
The proposed changes will:
- enable the FMA to direct the Registrar of Financial Service Providers (Registrar) to decline a registration or to de-register a provider where the FMA is not satisfied that the registration meets the purposes of the Financial Service Providers (Registration and Dispute Resolution) Act 2008
- extend the Registrar’s powers of inspection to seek any information necessary to determine whether a financial service provider should be registered, including whether an application should be referred to the FMA, and
- disqualify from registration anyone with overseas criminal convictions within the last five years for theft, fraud or money laundering (persons convicted within New Zealand are already disqualified).
The changes will require new legislation, which the Government intends to progress as part of pending reforms to consumer credit laws. We will keep you informed of further developments as they occur.