Financial Services Provider (FSP) License

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. One of the requirements to keep the license active is the start of activity within three months of FSP license granting. If this last requirement is not fulfilled the FSPR will strike the FSP license.

Recently the country has tightened up what is required of firms wishing to appear on the FSPR. These extra requirements significantly increased what was expected from a financial services provider:

  • Have a physical office within the country.
  • Have a compliance officer employed within the said office.
  • Client record keeping and anti-money laundering to be handled by the firm’s office in the jurisdiction.
  • The Financial Service Provider must be a registered corporation and comply with the countries business laws.

A new requirement effective October 2015 is the obligation to keep a resident director in addition to a resident employee. The FSPR is very strict on this requirement to the point of verification of address and contacting directly to those listed as employees and requiring proof of lease agreements and NZ ID documentation. In addition, the FSP is required to become a member of a Dispute Resolution Scheme (DRS).

We estimate the that the costs of a FSP to keep its appointment is at least $40K a year.

The meaning of financial services is defined in section 5 of the Financial Service Providers (Registration and Dispute Resolution) Act 2008.

Common examples of financial service are:

  • Building Societies
  • Credit Providers
  • Credit Unions
  • Financial Advisers
  • Finance Companies
  • Foreign Currency Exchange Dealers
  • Fund Managers
  • Insurers
  • Investment Portfolio Managers
  • Issuers
  • Money Changers
  • Registered Banks providing financial services elsewhere

Once registered, the FSP can offer:

  • Financial adviser service
  • A brokerage 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 persons
  • 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, travelers’ checks, money orders, bankers’ drafts, and electronic money)
  • Giving financial guarantees
  • Participating in an offer of securities to the public in either of the following capacities:
  • As an issuer of the securities
  • As 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.

Note that there are various types of licenses and that during the process of application for FSP registration you will select a specific type of license. Click on the link FSP license types. Each type of license is designed to provide a type of financial service. 

Our Turn Key Package includes:

Company Incorporation
Resident Employee Selection
Office Space Hunting
Resident Director Selection
FSP License Application
Accountant Introduction

Download application here: FAS FSP APPLICATION


Price  $65,000.00

We have practical experience in applying successfully for FSP licenses and know the details of the requirements from the FSPR in New Zealand and even responded to challenges for deregistration. Contact us for more information support@fascpaconsultants.com

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Fulton Abraham Sanchez, the founder of FAS CPA & Consultants of Miami, FL, is a Certified Public Accountant specialized in Offshore Banking Consulting. You can email him to fa@fascpaconsultants.com.

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Fulton Abraham Sanchez, CPA

Fulton Abraham Sánchez, CPA is a Certified Public Accountant, specialized in Tax Planning for Real Estate, Hedge/Equity Funds, Fintech, Crypto, Expats, IRS Debt Resolution and Offshore Strategies. You can email him to fa@fascpaconsultants.com and follow us on Facebook : FAS CPA & Consultants.

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