66 Eligibility for QFE status

(1)

The FMA may confer QFE status on a single entity applying under section 64(a) or on 2 or more entities applying under section 64(b) if it is satisfied that—

(a)

each entity is registered or is entitled to be registered; and

(b)

no entity is debarred from applying for QFE status; and

(c)

on the grant of QFE status and at all times while a QFE, the single entity that will be the QFE has, or the partner entities that will be the QFE together have, the capacity to, and will,—

(i)

discharge its or their ongoing compliance obligations under section 76 and all other obligations on it under this Act or the regulations (other than any broker obligations); and

(ii)

comply with the terms and conditions (if any) of the grant of QFE status; and

(iii)

maintain procedures to ensure that retail clients of the QFE receive adequate consumer protection.

(2)

In determining under subsection (1)(c) whether clients receive adequate consumer protection, the FMA must, in relation to QFE advisers who provide personalised services that relate to category 1 products,—

(a)

consider whether the clients will receive protection of a similar standard to that provided by advisers who are subject to the code; and

(b)

in doing so, take into account the scope of category 1 products in respect of which those QFE advisers provide financial adviser services.

Section 66: substituted, on 1 July 2010, by section 23 of the Financial Advisers Amendment Act 2010 (2010 No 40).

Section 66(1): amended, on 1 May 2011, by section 84(3) of the Financial Markets Authority Act 2011 (2011 No 5).

Section 66(2): amended, on 1 May 2011, by section 84(3) of the Financial Markets Authority Act 2011 (2011 No 5).