Financial Service Provider (FSP) is the license granted by the Financial Service Provider Register (FSPR) to companies in New Zealand after a process of application that includes the incorporation or registration of the entity with the Bureau of Companies. In order to maintain your license as a FSP, you must start being active within three months. Failure to do so will result in the license being revoked. This of course is not the only requirement you need to meet in order to obtain and keep a FSP license. Here are some of the key points you need to address when applying:
- Have a physical office within the country.
- Have a compliance officer employed within the stated office.
- Make arrangements for client record keeping and anti-money laundering to be handled by the firm’s office in the jurisdiction.
- Be a registered corporation and comply with the country’s business laws.
We estimate the that the costs of a FSP to keep its appointment is at least $40k to $50k a year.
Once registered as a FSP your organization can offer:
- Financial adviser service
- A broking service
- Acting as a deposit taker as defined in the Reserve Bank of New Zealand Act 1989
- Keeping, investing, administering, or managing money, securities, or investment portfolios on behalf of other people
- Providing credit under a credit contract
- Operating a money or value transfer service
- Issuing and managing means of payment (for example, credit and debit cards, checks, travel checks, money orders, bankers’ drafts, and electronic money)
- Giving financial guarantees
- Participating in an offer of securities to the public as an issuer of the securities or a promoter
- Changing foreign currency
- Entering into derivative transactions or trading in money market instruments, foreign exchange, interest rate and index instruments, transferable securities (including shares), and futures contracts on behalf of another person
- Providing forward foreign exchange contracts
- Acting as an insurer
- Providing any other financial service that is prescribed for the purposes of New Zealand complying with the FATF Recommendations, other recommendations by FATF, or other similar international obligations that are consistent with the purpose of the 2008 Act.
The activities a FSP can undertake are practically unlimited and there are no restrictions (subject to the laws of the jurisdiction where it operates) as long as it does not take deposits from the New Zealand public or do not do business in New Zealand.
Turning your organization into a FSP can be a very profitable business, however as we already established, it is not an easy thing to do. What is more, there have been new requirements added recently, which are very strict and can be complex if not addressed by a professional, such as a resident director.
We at FAS CPA & Consultants have practical experience in successfully applying for FSP license and excellent, expert knowledge of all the requirements from the FSPR in New Zealand, including disputes for FSP delicensing.
Our Turn Key Package includes:
Resident Employee Selection
Office Space Hunting
Resident Director Selection
FSP License Application
Download application here: FAS FSP APPLICATION
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FAS CPA & Consultants
9000 SW 137 AV Suite 224 Miami, FL 33186 T: 786-462-7899 E: firstname.lastname@example.org