Explanatory note
This note is not part of the regulations, but is intended to indicate their general effect.
The main change made by these regulations is to add the following exemptions:
an exemption for financial service providers who have no place of business in New Zealand and who do not promote their services to persons in New Zealand. The exemption does not apply if the provider is required to be registered by an Act other than the FSP Act:
an exemption for Australian offerors in respect of offers made under the arrangements between Australia and New Zealand for the mutual recognition of securities offerings. Those arrangements allow certain offers made in New Zealand to comply with Australian law rather than New Zealand law.
The regulations also include changes to exemptions as a consequence of the Financial Services Legislation Amendment Act 2019. That Act, among other things, introduces a new regime for financial advice services under the Financial Markets Conduct Act 2013. The changes include—
revoking an exemption for entities that provide financial adviser or broking services where there is only 1 adviser. The exemption is not required under the new regime. That regime requires providers of those services (and financial advisers) to be registered under the FSP Act:
continuing an exemption for a member of an angel organisation in respect of financial advice services provided to other members of angel organisations. Angel organisations are organisations directed at facilitating the provision of capital from investor members to innovative or start-up businesses. The exemption has been amended so that it applies only if all members of the angel organisation to whom the advice is provided are wholesale clients.
Issued under the authority of the Legislation Act 2012.
Date of notification in Gazette: 17 December 2020.
These regulations are administered by the Ministry of Business, Innovation, and Employment.