If you're already registered as a financial service provider (FSP), you can apply to the Financial Markets Authority (FMA) for a licence to offer services under the Financial Markets Conduct (FMC) Act 2013.
Market services you need to be licensed for
There are 6 financial services that were introduced in the Financial Markets Conduct (FMC) Act 2013 that you need to be licensed for.
Managed investment scheme managers (MIS)
A manager of a registered scheme pools money from a number of investors, who rely on the investment expertise of the scheme manager to preserve or increase their investment. Examples are KiwiSaver, workplace investment schemes and forestry partnerships.
FMC Act 2013 — Section 6 — includes the definition of a manager
FMC Act 2013 — Section 9 — definitions of financial benefit and managed investment schemes
Discretionary Investment Management Service (DIMS)
A DIMS is where you're authorised by your client to make buying and selling decisions about their investment portfolio, often without needing to refer to them each time. It may still be a DIMS if your client has the right to be consulted first or to countermand your decisions.
Independent trustee of a restricted scheme
Every restricted managed investment scheme must have a licensed independent trustee. A restricted scheme is a KiwiSaver, superannuation or workplace savings scheme on the register of Managed Investment Schemes. On the register they are identified as a restricted scheme.
You're a derivatives issuer if you're in the business of entering into derivatives.
The FMC Act contains a wide definition of a derivative, which includes:
- futures contracts and forwards
- options (except options to acquire an equity security, a debt security or a managed investment product by way of issue)
- contracts for difference, margin contracts and rolling spot contracts
- caps, collars, floors and spreads.
FMC Act 2013 — Section 8 — includes the definition of a derivative
Peer-to-peer lending providers
A peer-to-peer lending service is one where you act as an intermediary between borrowers and lenders. Loans are usually for personal, charitable or small business purposes.
A crowdfunding service is where you act as an intermediary between companies issuing shares and investors by providing the facility, usually a website, where the offer can be made to the public.
Applying for a licence
Before you apply for a licence you need to be registered with us as a financial service provider (FSP).
When you register you select the financial services you provide. If any of these are services licensed under the FMC Act, you need to apply to the FMA for a licence before you can provide or offer that service.
If you're adding a new market service
Select any new services you're providing. If you need to be licensed by the FMA to provide that service, apply to them. After we receive confirmation that you're licensed for that service it appears in your registration as an FSP.
After you're licensed for market services
Every provider registered on the Financial Service Providers Register (FSPR) must file an annual confirmation and pay the associated fee and levies.
When you file your annual confirmation you also pay a levy to the Financial Markets Authority (FMA). The amount you pay depends on:
- the financial services you provide, and
- the class that applies to your services under Financial Markets Authority (Levies) Regulations 2012.