Explanatory note

This note is not part of the order, but is intended to indicate its general effect.

This order brings into force the Financial Service Providers (Registration and Dispute Resolution) Amendment Act 2014 (the Act) on 1 July 2014 (other than sections 3, 7, and 43).

Sections 3 and 43 of the Act are already in force.

Section 7 of the Act (which relates to when a service relating to a credit contract is a financial service) will come into force by way of another Order in Council. It is intended that section 7 will come into force after a regulation under section 44(1)(ab) of the Financial Service Providers (Registration and Dispute Resolution) Act 2008 is made to provide for an exemption relating to securitisation or covered bond arrangements.

The Act makes various changes to the Financial Service Providers (Registration and Dispute Resolution) Act 2008, including—

• giving the Financial Markets Authority powers to prevent the registration of service providers, or to direct the deregistration of service providers, where registration may create a false or misleading appearance with respect to the extent to which a person provides financial services in New Zealand or is regulated by New Zealand law or where registration may otherwise damage the integrity or reputation of New Zealand’s financial markets:

• removing the requirement for the government-established reserve scheme:

• changing the requirements relating to the rules about approved dispute resolution schemes.