New Zealand Financial Service Provider License (FSP)

For over 8 years, Fionza Consulting has excelled in securing the New Zealand Financial Service Provider License (FSP). Our team of seasoned experts provides comprehensive guidance on the requirements and regulatory obligations, ensuring a high likelihood of approval from the New Zealand Financial Markets Authority (FMA). At Fiozna Consulting, we ensure our clients meet all necessary criteria and maintain legal compliance in their business operations.

New Zealand Financial Service Provider License (FSP)

Fiozna Consulting assists international clients in securing the New Zealand FSP (Financial Service Provider) License. Under the Financial Service Providers (Registration and Dissolution Act 2008) (‘the Act’), a New Zealand company can be registered as a financial services provider. This means that the company is effectively registered by the Ministry of Economic Development to offer financial services or, in the words of the legislation, becomes a financial services provider.

Once your business secures registration as an FSP, you can conduct the following business activities:

• Broking service
• Financial adviser service
• Acting as a deposit taker
• 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
• Giving financial guarantees
• Changing foreign currency
• Entering into derivative transactions, or trading in money market instruments, foreign exchange, interest rate and index instruments, transferable securities, and futures contracts on behalf of another person

Types of Financial Service Provider Licenses

Fionza Consulting assists clients in obtaining various types of Financial Service Provider Licenses in New Zealand. These licenses include:

• Auditors
• Crowdfunding platforms
• Derivatives issuers
• Independent trustees
• Managed investment scheme (MIS) managers
• Market operators
• Peer-to-peer lending
• Supervisors
• Financial Advice Providers

Stricter Requirements for FSP License Application

In recent months, the requirements to set up a New Zealand Financial Service Provider (FSP) have become substantially stricter. It is crucial to stay updated with these changes and ensure your FSP business meets all regulations from the beginning. The Financial Markets Authority (FMA) has the power to direct the Registrar to remove companies that give a false or misleading impression about the extent to which they are regulated in New Zealand.

Does Your Business Need a New Zealand Financial Service Provider License?

You will be required to register your business as a Financial Service Provider (FSP) if you:

• Have a place of business in New Zealand
• Provide financial services both locally and globally

You are not eligible to register your business as a Financial Service Provider (FSP) if you:

• Do not intend to provide financial services from New Zealand
• Do not intend to target New Zealand as a market
• Do not intend to establish a working office in New Zealand

How Long to Secure a New Zealand Financial Service Provider License?

Securing a New Zealand Financial Service Provider (FSP) License is a process approved by the New Zealand Financial Markets Authority (FMA), typically taking up to 12 weeks for approval.

Mandatory Requirements to Secure an FSP License in New Zealand

Fiozna Consulting can guide you through the essential requirements to secure an FSP License, which include:

• Clear Business Plan:Your company must demonstrate that it is conducting business from New Zealand for both local and international customers.
• Business Operations Timeline:You must start your FSP business within 3 months of securing registration, as no time extensions are allowed.
• Local Presence:You are required to set up an office in New Zealand and hire local employees.
• Resident Director:At least one director must be a resident of New Zealand.
• AML/CFT Program:A full Anti-Money Laundering and Countering Financing of Terrorism (AML/CFT) program must be in place, with an annual AML/CFT Act 2009 Report filed.

Website Requirements

Your fully functional website must demonstrate:

• Compliance with the regulations of the financial activities applied for
• That your FSP is conducted from New Zealand
• That your FSP serves both local New Zealand and international customers

Required Documents

• Organizational chart
• Quality business plan with 3-year financial projections
• Internal Procedures Manual
• AML/CFT Procedures Manual

Advantages of Securing a New Zealand Financial Service Provider License

Fionza Consulting highlights several advantages of obtaining a New Zealand Financial Service Provider (FSP) License:

• No Minimum Capital Requirement:Your company is not required to meet a minimum capital threshold.
• Legitimate Onshore Financial Centre:Enjoy the benefits of traditional financial centres while being recognized as a legitimate onshore financial centre.
• Safe Jurisdiction:New Zealand is not blacklisted by the OECD or the World Trade Organization and is regarded as a secure jurisdiction with long-term stability.

Key Amendments to the Financial Service Providers Act (FSP Act)

Recent amendments to the Financial Service Providers Act address concerns regarding overseas entities registering on the FSPR to mislead investors. These changes aim to protect New Zealand’s international reputation and ensure proper regulation. The key amendments to the FSP Act include:

1. Territorial Scope Tightening:Ensuring it is evident that New Zealand is one of your target markets.
2. New Regulation-Making Powers:Prescribing circumstances and thresholds for when an entity must register on the FSPR, and required warning statements for certain advertisements.
3. Provision for Financial Advisers:Registration (and de-registration) of financial advisers (but not nominated representatives).
4. Increased Obligations:Dispute resolution scheme providers now have increased obligations to report regulatory breaches.

How to Secure FSP Registration in New Zealand

Fionza Consulting, with over 10 years of experience, advises global clients on securing FSP registration. Our comprehensive service includes incorporating a new New Zealand company, opening a corporate bank account, drafting legal documents, sourcing qualified local employees and physical offices, and securing registration.

Step 1: Reservation of Company Name

Fionza Consulting will check your company name through the ONECheck tool. Once we verify the availability of your company’s name, we will create a RealMe® login account and an online services account with the Companies Register on behalf of your company. Through this account, we will reserve your company name for 20 working days.

Step 2: Preparation and Submission of Relevant Documents for Company Incorporation

After reserving your company’s name, Fiozna Consulting will complete the registration of your company through the online services account. You will need to prepare documents for a foreign director, including the application form, notarized passport copies, and proof of address for individual directors and shareholders. We will also draft your company’s constitution and other relevant corporate documents based on your business activity and corporate structure.

Step 3: Tax Registration

The tax registration process can be completed during company incorporation. Fiozna Consulting’s accounting and tax team will submit the relevant application for your company. Once your company is incorporated, you will receive your company’s certificate of incorporation, Inland Revenue, and GST numbers.

Step 4: Corporate Bank Account Opening

Upon successful company incorporation, Fiozna Consulting will open a corporate bank account with a reputable bank in New Zealand.

Step 5: Financial Service Provider Registration

We will register your company as a Financial Service Provider through the online services account. Fiozna Consulting will help you submit your business and contact addresses, confirm that your company meets the business requirements, provide information about services provided, and verify whether your company is a reporting entity under the Anti-Money Laundering and Countering Financing of Terrorism Act 2009. The New Zealand Companies Office will conduct criminal history checks on all individuals named in the application, which will take approximately 2-5 working days.

Step 6: Financial Service Provider License Application

Based on the financial services your company provides, Fiozna Consulting will apply for the appropriate New Zealand FSP license(s) through the Financial Markets Authority. You will need to send us the CVs and signed declarations of all relevant personnel, confirming that the company meets the minimum standards required for a Financial Service Provider.

Step 7: Dispute Resolution Scheme (DRS) Application

If your company offers financial services to retail clients, you will need to join an approved consumer dispute resolution scheme (DRS). Fiozna Consulting will assist you in choosing the appropriate DRS and submitting the details of your DRS membership to the relevant personnel.

Tax and Accounting Obligations in New Zealand

Fionza Consulting ensures your New Zealand company meets all tax and accounting obligations. Here’s what you need to know:

Corporate Income Tax

• Flat Tax Rate:All New Zealand companies are subject to a flat corporate income tax rate of 28%.
• Non-Resident Companies:Non-resident companies are only taxed on income derived from business activities within New Zealand.

Annual Financial Statements

• Compliance:Companies must file annual financial statements that adhere to New Zealand Generally Accepted Accounting Principles (GAAP).
• Auditing:These statements must be audited by a licensed auditor.

Financial Service Providers

• Annual Confirmation:New Zealand financial service providers must file an annual confirmation with the FSP register.
• Annual Renewal Fee:An annual renewal fee is required for financial service providers.

Alternative Jurisdictions for Financial Licenses

Fionza Consulting provides guidance on securing financial licenses in various jurisdictions. Here’s a detailed overview of alternative jurisdictions for financial licenses:

Cyprus

All financial companies in Cyprus are regulated by the Cyprus Securities and Exchange Commission (CySEC), which has implemented strict measures to minimize the risk of fraudulent activities. The main appeal of a financial license in Cyprus is that it encompasses many of the primary financial services, saving time and money compared to jurisdictions requiring multiple licenses. As a member of the EU, a financial license from Cyprus also grants access to the extensive EU market.

Mauritius

Financial services in Mauritius are regulated by the Mauritius Financial Services Commission (FSC) under the Financial Services Act 2007. With a relatively low corporate tax rate of 15%, Mauritius is an attractive jurisdiction for financial companies seeking low-cost operations. Obtaining a Mauritius Forex Brokerage license is also less expensive and requires less minimum capital than in most other jurisdictions. Additionally, the Mauritius government offers corporate tax incentives to international financial companies, boosting its financial sector.

Hong Kong

Many financial companies choose Hong Kong due to numerous tax incentives for foreign investors. The Securities and Futures Ordinance (SFO) of Hong Kong regulates and issues nine types of Financial Service Licenses. The application process for a financial license in Hong Kong is relatively straightforward, and the strict regulations and checks by the SFO ensure that licensed financial firms are credible and reliable.

Vanuatu

Known as a tax haven, Vanuatu imposes no corporate income tax, making it an attractive jurisdiction for financial companies seeking a financial license. The Vanuatu Financial Services Commission (VFSC) regulates and licenses the financial industry. Obtaining a Vanuatu Forex and Securities Dealer License allows financial firms to transact financial instruments such as shares and options and manage investment portfolios. The business-friendly environment and low capital requirements have attracted many investment and fund management institutions to Vanuatu.

Our Services

If you are considering applying for a payment license, it is always advisable to hire a consultant to assist with the application process. Applications that seek professional help are often more detailed and of significantly higher quality.

Fionza Consulting specializes in providing consulting services for obtaining payment licenses and offers a comprehensive set of services, including:

• Comprehensive Timeline:We create a detailed timeline for the full setup and operation of your entity.
• Document Drafting:We draft all necessary documents required for the license application.
• Application Assistance:We take all the necessary steps to ensure a successful license application.

In addition to payment licenses, Fionza Consulting can assist with obtaining other types of offshore financial licenses, depending on your long-term business goals.