New Zealand Legislation: Acts
Acts are laws made by Parliament
In this Act, unless the context otherwise requires,—
acting through has the meaning set out in section 5I(2)
advertisement means a form of communication that is to be, or has been, distributed to a person and—
(a) in relation to a financial adviser service,—
(i) refers to a financial adviser or financial adviser service or is reasonably likely to induce persons to seek a financial adviser service; and
(ii) is authorised or instigated by, or on behalf of, a financial adviser, a QFE, or a member of a QFE group, or prepared with the co-operation of, or by arrangement with, a financial adviser, a QFE, or a member of a QFE group; and
(b) in relation to a broker service,—
(i) refers to a broker or broking service or is reasonably likely to induce persons to seek a broking service; and
(ii) is authorised or instigated by, or on behalf of, a broker or prepared with the co-operation of, or by arrangement with, a broker
approved dispute resolution scheme has the same meaning as in section 4 of the FSP Act, but also includes the reserve scheme within the meaning of section 71 of the FSP Act
approved rating agency means a rating agency nominated or approved under the Reserve Bank of New Zealand Act 1989 or section 62 of the Insurance (Prudential Supervision) Act 2010
associated entity, in relation to a QFE, means an entity that, under an approval given under section 67(4) or 71, is an associated entity of that QFE
authorised means authorised by the FMA under section 55
authorised financial adviser means a person described in section 51
bank in New Zealand means a registered bank that carries on in New Zealand the business of banking
bank term deposit means a fixed term deposit product offered by a registered bank in New Zealand
bonus bond means a unit in an approved unit trust within the meaning of section 3(1) of the Finance Act (No 2) 1990
broker has the meaning set out in section 77A
broker obligation means an obligation of a broker under this Act or the regulations
broking service has the meaning set out in section 77B
building society has the same meaning as in section 2(1) of the Building Societies Act 1965
business includes any profession, trade, or undertaking, whether or not carried on with the intention of making a profit
call building society share or call credit union share means a share issued by a building society or credit union under which—
(a) the shareholder, in the case of a building society, or member, in the case of a credit union, has a right to demand repayment of the value of the share in full at any time; and
(b) the building society or credit union has an obligation to repay the value of the share in full not later than 1 working day after the demand is made; and
(c) the rate of dividend or interest payable or any other benefit provided does not alter as a result of the demand being made; and
(d) no fee or other amount is payable as a result of the principal sum not having been held by the building society or credit union for a particular period of time
call debt security means a debt security under which—
(a) the security holder has a right to demand repayment of the principal sum in full at any time; and
(b) the issuer has an obligation to repay the principal sum in full not later than 1 working day after the demand is made; and
(c) the rate of interest payable or any other benefit provided does not alter as a result of the demand being made; and
(d) no fee or other amount is payable as a result of the principal sum not having been held by the issuer for a particular period of time
category 1 product means any of the following products (other than a product that is a category 2 product):
(a) a security; or
(b) a land investment product (as defined in the regulations); or
(c) a futures contract; or
(d) an investment-linked contract of insurance; or
(e) any other product specified by the regulations; or
(f) a renewal or variation of the terms or conditions of an existing category 1 product
category 2 product means any of the following products:
(a) a bank term deposit; or
(b) a bonus bond; or
(c) a call building society share; or
(d) a call credit union share; or
(e) a call debt security; or
(f) a share in a co-operative company (as defined in section 2(1) of the Co-operative Companies Act 1996); or
(g) a unit in a cash or term portfolio investment entity (as defined in the regulations); or
(h) a consumer credit contract within the meaning of the Credit Contracts and Consumer Finance Act 2003; or
(i) a contract of insurance (other than an investment-linked contract of insurance); or
(j) a life insurance policy (within the meaning of section 2(1) of the Securities Act 1978) issued before 1 January 2009; or
(k) any other product specified by the regulations; or
(l) a renewal or variation of the terms or conditions of any existing category 2 product
chartered accountant has the same meaning as in section 2 of the New Zealand Institute of Chartered Accountants Act 1996
class of financial products means a group of financial products with similar characteristics
class service has the meaning set out in section 15(3)
client has the meaning set out in section 5A
client money means money received from, or on account of, a client in relation to acquiring, holding, or disposing of a financial product
client property means property received from, or on account of, a client in relation to acquiring, holding, or disposing of a financial product
code means the code of professional conduct brought into force under section 94
college of education has the same meaning as in section 159 of the Education Act 1989
conduct obligation means,—
(a) in relation to a financial adviser, a QFE, or a member of a QFE group, an obligation described in section 32:
(b) in relation to a broker, an obligation described in section 77J
controlling owner has the meaning set out in section 4 of the FSP Act
conveyancing practitioner has the same meaning as in section 6 of the Lawyers and Conveyancers Act 2006
credit union has the meaning set out in section 2 of the Friendly Societies and Credit Unions Act 1982
Crown organisation has the same meaning as in section 6 of the Lawyers and Conveyancers Act 2006
director means a director as defined in section 126 of the Companies Act 1993
disclosure obligation means,—
(a) in relation to a financial adviser, a QFE, or a member of a QFE group, an obligation described in section 21:
(b) in relation to a broker, an obligation described in section 77D
discretionary investment management service has the meaning set out in section 12
dispose of includes—
(a) dispose of by allotting, withdrawing from, or terminating; and
(b) agree to dispose of
document means—
(a) any material, whether or not it is signed or otherwise authenticated, that bears symbols (including words and figures), images, or sounds from which symbols, images, or sounds can be derived, and includes—
(i) a label, marking, or other writing that identifies or describes a thing of which it forms part, or to which it is attached:
(ii) a book, map, plan, graph, or drawing:
(iii) a photograph, film, or negative; or
(b) information electronically recorded or stored, and information derived from that information
entity—
(a) includes a body corporate and an unincorporated body (including partners in a partnership, members of a joint venture, or the trustees of a trust) and the sole trustee of a trust acting in his, her, or its capacity as trustee of that trust; but
(b) does not include an individual
exempt provider means—
(a) a person to whom both of the following 2 subparagraphs apply (an overseas financial adviser):
(i) the person is not ordinarily resident in New Zealand (within the meaning of section 4 of the Crimes Act 1961) and does not have a place of business in New Zealand; and
(ii) no financial adviser services provided by the person are received by retail clients in New Zealand; and
(b) a person who is exempted under section 148 of this Act or the regulations from the obligation to register by virtue of providing financial adviser services; and
(c) a person who is excluded from the application of the FSP Act under section 7(2) and (3) of that Act or who is exempted, under the FSP Act, from the obligation to register (unless the exclusion or exemption is limited so that it does not apply in respect of financial adviser services)
financial adviser has the meaning set out in section 8
financial adviser obligation means an obligation of a financial adviser under this Act, the regulations, or the code
financial adviser service has the meaning set out in section 9
financial product means a category 1 product or a category 2 product
financial service means a financial service as defined in section 5 of the FSP Act (but excluding financial services provided by a person to whom section 7(2) or (3) of that Act applies)
FMA means the Financial Markets Authority established under Part 2 of the Financial Markets Authority Act 2011
futures contract has the same meaning as in section 37(1) of the Securities Markets Act 1988
general education system has the same meaning as in section 120 of the Education Act 1989
incorporated law firm has the meaning given by section 6 of the Lawyers and Conveyancers Act 2006
individual means a natural person
investment-linked contract of insurance has the meaning set out in the regulations
investment planning service has the meaning set out in section 11
investment statement has the same meaning as in section 38C of the Securities Act 1978
issuer has the same meaning as in section 2(1) of the Securities Act 1978
lawyer has the same meaning as in section 6 of the Lawyers and Conveyancers Act 2006
lecturer means a person who is employed by a university, polytechnic, or college of education to teach or instruct students of the university, polytechnic, or college of education
licensed service has the same meaning as in section 4 of the FSP Act
local authority has the same meaning as in section 5(1) of the Local Government Act 2002
member of a QFE group means a partner entity or an associated entity
Minister means the Minister of the Crown who, under the authority of any warrant or with the authority of the Prime Minister, is for the time being responsible for the administration of this Act
Ministry means the department of State that, with the authority of the Prime Minister, is for the time being responsible for the administration of this Act
nominated representative means an individual who has been nominated by a QFE or by a partner entity in accordance with section 74 and whose nomination has not been terminated under that section
non-profit organisation means any organisation, whether incorporated or not, that is carried on other than for the purposes of profit or gain to an owner, member, or shareholder
on behalf of the business of another person or on behalf of another person's business has the meaning set out in section 5I(1)
overseas regulator means a body in another country with functions corresponding to those of the FMA under this Act
partner entity, in relation to a QFE, means an entity that is part of the QFE
personalised service has the meaning set out in section 15
polytechnic has the same meaning as in section 159(1) of the Education Act 1989
prescribed means prescribed by regulations made under this Act
principal officer means a director or a person who occupies a position equivalent to that of a director (such as a trustee or partner)
product provider means—
(a) the issuer, in the case of a security:
(b) the creditor, in the case of a consumer credit contract (within the meaning of the Credit Contracts and Consumer Finance Act 2003):
(c) the insurer, in the case of a contract of insurance (other than an investment-linked contract of insurance):
(d) the person specified by regulations, in any other case
promoter has the same meaning as in section 2(1) of the Securities Act 1978
prospectus has the same meaning as in section 2(1) of the Securities Act 1978
QFE or qualifying financial entity means an entity described in section 63(1)(a) or a number of partner entities described in section 63(1)(b)
QFE adviser means an individual who is not an authorised financial adviser and who is—
(a) an employee of a QFE or any member of a QFE group; or
(b) a nominated representative of a QFE or a partner entity
QFE group means a group of entities that consists of—
(a) the partner entities that are part of a QFE and the associated entities of that QFE, if any; or
(b) in the case of a QFE that does not come within paragraph (a), that QFE and its associated entities
real estate agent means a person who is a licensee under the Real Estate Agents Act 2008
record includes—
(a) any file, register, ledger, book of account, or passbook, and any reproduction or copy of them or any entry in any of them; and
(b) any apparatus or equipment in or on which information is recorded, stored, or embodied in any form so as to be capable of being retrieved, reproduced, or processed by any means; and
(c) any material by means of which information is supplied to, or derived from, any such apparatus or equipment
register means the register of financial service providers maintained under the FSP Act
registered means registered under the FSP Act in respect of a financial adviser service, and registration has a corresponding meaning
registered bank has the same meaning as in section 2(1) of the Reserve Bank of New Zealand Act 1989
registered exchange has the same meaning as in section 2(1) of the Securities Markets Act 1988
registered legal executive means a person who is a member of the New Zealand Institute of Legal Executives Incorporated and holds a current annual registration certificate issued by that body
registered valuer has the same meaning as in section 2 of the Valuers Act 1948
Registrar means the Registrar of Financial Service Providers
regulations means regulations made under this Act
related body corporate has the meaning set out in section 5B(2) of the Securities Markets Act 1988
relevant service has the meaning set out in section 14(3)
retail client has the meaning set out in section 5B
security—
(a) means—
(i) any interest in, or right to participate in, any capital, assets, earnings, royalties, or other property of any person:
(ii) any interest in, or right to be paid, money that is, or is to be, deposited with, lent to, or otherwise owing by any person (whether or not the interest or right is secured by a charge over any property); but
(b) does not include—
(i) a security exempted from Part 2 of the Securities Act 1978 under any of paragraphs (b) to (h) of section 5(1) of that Act; or
(ii) an investment-linked contract of insurance; or
(iii) a life insurance policy (within the meaning of section 2(1) of the Securities Act 1978) issued before 1 January 2009
standard conditions means standard terms and conditions for the time being approved by the FMA under section 147A or 147C and in force under section 147D
State services has the meaning given to it in section 2 of the State Sector Act 1988
State services employee means an employee or chief executive in any part of the State services, whether paid by salary, wages, or otherwise
statutory officer means a person—
(a) holding or performing the duties of an office established by an enactment; or
(b) performing duties expressly conferred on that person by virtue of his or her office by an enactment; or
(c) holding office as the chief executive of a Crown organisation
Takeovers Code means the takeovers code in force under the Takeovers Act 1993
tax agent has the same meaning as in section 3(1) of the Tax Administration Act 1994
teacher means a person in a teaching position in the general education system
teaching position has the same meaning as in section 120 of the Education Act 1989
trust account records—
(a) means records relating to a trust account; and
(b) includes any information that relates to a trust account and that is recorded or stored by means of any tape recorder, computer, or other device, and any material subsequently derived from information so recorded or stored
trustee corporation means Public Trust, the Māori Trustee, or any corporation authorised by an Act to administer the estates of deceased persons and other trust estates (and any wholly owned subsidiary of that corporation that is guaranteed by the corporation)
university has the same meaning as in section 159 of the Education Act 1989
wholesale client has the meaning set out in section 5C.
Section 5 acting through: inserted, on 1 July 2010, by section 8(1) of the Financial Advisers Amendment Act 2010 (2010 No 40).
Section 5 advertisement: substituted, on 1 July 2010, by section 8(2) of the Financial Advisers Amendment Act 2010 (2010 No 40).
Section 5 approved dispute resolution scheme: substituted, on 1 July 2010, by section 8(2) of the Financial Advisers Amendment Act 2010 (2010 No 40).
Section 5 approved rating agency: substituted, on 1 February 2011, by section 241(2) of the Insurance (Prudential Supervision) Act 2010 (2010 No 111).
Section 5 associated entity: inserted, on 1 July 2010, by section 8(1) of the Financial Advisers Amendment Act 2010 (2010 No 40).
Section 5 authorised: amended, on 1 May 2011, by section 84(3) of the Financial Markets Authority Act 2011 (2011 No 5).
Section 5 authorised advertisement: repealed, on 1 July 2010, by section 8(3) of the Financial Advisers Amendment Act 2010 (2010 No 40).
Section 5 bonus bond: inserted, on 1 July 2010, by section 8(1) of the Financial Advisers Amendment Act 2010 (2010 No 40).
Section 5 broker: inserted, on 1 July 2010, by section 8(1) of the Financial Advisers Amendment Act 2010 (2010 No 40).
Section 5 broker obligation: inserted, on 1 July 2010, by section 8(1) of the Financial Advisers Amendment Act 2010 (2010 No 40).
Section 5 broking service: inserted, on 1 July 2010, by section 8(1) of the Financial Advisers Amendment Act 2010 (2010 No 40).
Section 5 building society: inserted, on 1 July 2010, by section 8(1) of the Financial Advisers Amendment Act 2010 (2010 No 40).
Section 5 call building society share or call credit union share: inserted, on 1 July 2010, by section 8(1) of the Financial Advisers Amendment Act 2010 (2010 No 40).
Section 5 call debt security: substituted, on 1 July 2010, by section 8(2) of the Financial Advisers Amendment Act 2010 (2010 No 40).
Section 5 category 1 product: substituted, on 1 July 2010, by section 8(2) of the Financial Advisers Amendment Act 2010 (2010 No 40).
Section 5 category 2 product: substituted, on 1 July 2010, by section 8(2) of the Financial Advisers Amendment Act 2010 (2010 No 40).
Section 5 chartered accountant: amended, on 7 July 2010, by section 10 of the New Zealand Institute of Chartered Accountants Amendment Act 2010 (2010 No 74).
Section 5 class of financial products: inserted, on 1 July 2010, by section 8(1) of the Financial Advisers Amendment Act 2010 (2010 No 40).
Section 5 class service: inserted, on 1 July 2010, by section 8(1) of the Financial Advisers Amendment Act 2010 (2010 No 40).
Section 5 client: substituted, on 1 July 2010, by section 8(2) of the Financial Advisers Amendment Act 2010 (2010 No 40).
Section 5 client money: inserted, on 1 July 2010, by section 8(1) of the Financial Advisers Amendment Act 2010 (2010 No 40).
Section 5 client property: inserted, on 1 July 2010, by section 8(1) of the Financial Advisers Amendment Act 2010 (2010 No 40).
Section 5 Commission: repealed, on 1 May 2011, by section 82 of the Financial Markets Authority Act 2011 (2011 No 5).
Section 5 Commissioner for Financial Advisers or Commissioner: repealed, on 1 May 2011, by section 5 of the Financial Advisers Amendment Act 2011 (2011 No 9).
Section 5 conduct obligation: substituted, on 1 July 2010, by section 8(2) of the Financial Advisers Amendment Act 2010 (2010 No 40).
Section 5 controlling owner: inserted, on 1 July 2010, by section 8(1) of the Financial Advisers Amendment Act 2010 (2010 No 40).
Section 5 conveyancing practitioner: inserted, on 1 July 2010, by section 8(1) of the Financial Advisers Amendment Act 2010 (2010 No 40).
Section 5 credit union: inserted, on 1 July 2010, by section 8(1) of the Financial Advisers Amendment Act 2010 (2010 No 40).
Section 5 disclosure obligation: substituted, on 1 July 2010, by section 8(2) of the Financial Advisers Amendment Act 2010 (2010 No 40).
Section 5 discretionary investment management service: inserted, on 1 July 2010, by section 8(1) of the Financial Advisers Amendment Act 2010 (2010 No 40).
Section 5 entity: substituted, on 1 July 2010, by section 8(2) of the Financial Advisers Amendment Act 2010 (2010 No 40).
Section 5 exempt provider: inserted, on 1 July 2010, by section 8(1) of the Financial Advisers Amendment Act 2010 (2010 No 40).
Section 5 financial adviser service: substituted, on 1 July 2010, by section 8(2) of the Financial Advisers Amendment Act 2010 (2010 No 40).
Section 5 financial planning service: repealed, on 1 July 2010, by section 8(3) of the Financial Advisers Amendment Act 2010 (2010 No 40).
Section 5 financial service: inserted, on 1 July 2010, by section 8(1) of the Financial Advisers Amendment Act 2010 (2010 No 40).
Section 5 FMA: inserted, on 1 May 2011, by section 82 of the Financial Markets Authority Act 2011 (2011 No 5).
Section 5 incorporated law firm: inserted, on 1 July 2010, by section 8(1) of the Financial Advisers Amendment Act 2010 (2010 No 40).
Section 5 investment-linked contract of insurance: inserted, on 1 July 2010, by section 8(1) of the Financial Advisers Amendment Act 2010 (2010 No 40).
Section 5 investment planning service: inserted, on 1 July 2010, by section 8(1) of the Financial Advisers Amendment Act 2010 (2010 No 40).
Section 5 investment transaction: repealed, on 1 July 2010, by section 8(3) of the Financial Advisers Amendment Act 2010 (2010 No 40).
Section 5 life insurance policy: repealed, on 1 July 2010, by section 8(3) of the Financial Advisers Amendment Act 2010 (2010 No 40).
Section 5 local authority: inserted, on 1 July 2010, by section 8(1) of the Financial Advisers Amendment Act 2010 (2010 No 40).
Section 5 member of a QFE group: inserted, on 1 July 2010, by section 8(1) of the Financial Advisers Amendment Act 2010 (2010 No 40).
Section 5 nominated representative: inserted, on 1 July 2010, by section 8(1) of the Financial Advisers Amendment Act 2010 (2010 No 40).
Section 5 non-profit organisation: inserted, on 1 July 2010, by section 8(1) of the Financial Advisers Amendment Act 2010 (2010 No 40).
Section 5 on behalf of the business of another person or on behalf of another person's business: inserted, on 1 July 2010, by section 8(1) of the Financial Advisers Amendment Act 2010 (2010 No 40).
Section 5 overseas regulator: amended, on 1 May 2011, by section 84(3) of the Financial Markets Authority Act 2011 (2011 No 5).
Section 5 partner entity: inserted, on 1 July 2010, by section 8(1) of the Financial Advisers Amendment Act 2010 (2010 No 40).
Section 5 personalised service: inserted, on 1 July 2010, by section 8(1) of the Financial Advisers Amendment Act 2010 (2010 No 40).
Section 5 product provider: inserted, on 1 July 2010, by section 8(1) of the Financial Advisers Amendment Act 2010 (2010 No 40).
Section 5 promoter: inserted, on 1 July 2010, by section 8(1) of the Financial Advisers Amendment Act 2010 (2010 No 40).
Section 5 QFE or qualifying financial entity: substituted, on 1 July 2010, by section 8(2) of the Financial Advisers Amendment Act 2010 (2010 No 40).
Section 5 QFE adviser: inserted, on 1 July 2010, by section 8(1) of the Financial Advisers Amendment Act 2010 (2010 No 40).
Section 5 QFE group: inserted, on 1 July 2010, by section 8(1) of the Financial Advisers Amendment Act 2010 (2010 No 40).
Section 5 registered: substituted, on 1 July 2010, by section 8(2) of the Financial Advisers Amendment Act 2010 (2010 No 40).
Section 5 registered legal executive: inserted, on 1 July 2010, by section 8(1) of the Financial Advisers Amendment Act 2010 (2010 No 40).
Section 5 related body corporate: inserted, on 1 July 2010, by section 8(1) of the Financial Advisers Amendment Act 2010 (2010 No 40).
Section 5 related company: repealed, on 1 July 2010, by section 8(3) of the Financial Advisers Amendment Act 2010 (2010 No 40).
Section 5 relevant service: inserted, on 1 July 2010, by section 8(1) of the Financial Advisers Amendment Act 2010 (2010 No 40).
Section 5 retail client: inserted, on 1 July 2010, by section 8(1) of the Financial Advisers Amendment Act 2010 (2010 No 40).
Section 5 security: substituted, on 1 July 2010, by section 8(2) of the Financial Advisers Amendment Act 2010 (2010 No 40).
Section 5 standard conditions: inserted, on 1 July 2010, by section 8(1) of the Financial Advisers Amendment Act 2010 (2010 No 40).
Section 5 standard conditions: amended, on 1 May 2011, by section 84(3) of the Financial Markets Authority Act 2011 (2011 No 5).
Section 5 statutory officer: inserted, on 1 July 2010, by section 8(1) of the Financial Advisers Amendment Act 2010 (2010 No 40).
Section 5 trust account: repealed, on 1 July 2010, by section 8(3) of the Financial Advisers Amendment Act 2010 (2010 No 40).
Section 5 trustee corporation: inserted, on 1 July 2010, by section 8(1) of the Financial Advisers Amendment Act 2010 (2010 No 40).
Section 5 wholesale client: added, on 1 July 2010, by section 8(1) of the Financial Advisers Amendment Act 2010 (2010 No 40).
