Financial Services Legislation Amendment Bill

64 New section 7A inserted (Application of Act)

After section 7, insert:

7A Application of Act

(1)

This Act applies to every person (A) who is in the business of providing a financial service if—

(a)

A’s financial services are provided to persons in New Zealand by or on behalf of A; or

(b)

A is, or is required to be, a licensed provider under a licensing enactment; or

(c)

A is required to be registered under this Act by any other enactment; or

(d)

A provides the service in the prescribed circumstances.; or

(e)

A is a reporting entity to which the Anti-Money Laundering and Countering Financing of Terrorism Act 2009 applies.

(2)

The following apply for the purposes of subsection (1)(a):

(a)

the paragraph does not apply merely because A’s financial services are accessible by persons in New Zealand:

(b)

the paragraph does not apply if A—

(i)

does not have a place of business in New Zealand; and

(ii)

does not provide the service to any retail client in New Zealand:

(c)

the paragraph does not apply if the extent to which the financial service is provided to persons in New Zealand is less than any prescribed threshold:

(d)

the paragraph applies regardless of where the financial service is provided from.

(2A)

Subsection (2)(c) does not apply in the prescribed circumstances.

(3)

This Act may also apply to a person who registers for financial advice services under section 22C (even though the person is not in the business of providing a financial service).

(4)

See section 12(1A), which applies section 12 to a person even if this Act would not otherwise apply to the person under this section.