FSP rules tightened
Registered financial advisers have been subject to only limited disclosure obligations.
But Commerce Minister Craig Foss said Cabinet had agreed to strengthen the financial service providers registration regime.
“The proposed changes will further help prevent the misuse of the register by overseas entities trying to take advantage of New Zealand’s reputation,” he said. “These measures will help maintain New Zealand’s reputation as a trusted place to do business and work towards achieving the Government’s Business Growth Agenda outcomes.”
The Financial Markets Authority will be able to direct the registrar of financial services to decline registration where the FMA is not convinced it is necessary or desirable, and the registrar’s inspection powers will be widened to seek any information necessary, including whether an application should be referred to the FMA.
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