New Zealand deregisters 155 financial service providers in October 2015

A total of 155 individuals and companies were deregistered from New Zealand’s Financial Service Providers Register (FSPR) in October 2015, in a move highlighting the strict reputation of local authorities.

The number of individuals and businesses deregistered is way higher than the 119 entities that lost their registration in September this year. The deregistration is done under section 18(1) of the Financial Service Providers (Registration and Dispute Resolution) Act 2008. This part of the Law states:

“18. Deregistration of financial service provider

(1) The Registrar must deregister a financial service provider after a notice period in accordance with sections 19 and 20, if the Registrar is satisfied that the provider—

(a) is no longer qualified to be registered in accordance with section 13; or

(aa) has failed to notify the Registrar of the name, business address, and membership number, as required by section 16(1)(ab); or

(b) is not in the business of providing a financial service (at any time after the expiry of 3 months after registration); or

(c) has been registered because of a false or misleading representation or omission; or

(d) has proffered an application fee or annual confirmation fee or levy that has subsequently been dishonoured, declined, or reversed.”

Meanwhile, a number of companies have challenged their removal from the FSP register. The latest example is provided from retail Forex broker Excelsior Markets. The company was struck off the register in May this year, in response to orders coming from the Financial Markets Authority (FMA) and is now challenging this decision in court.

The latest Deregistration Notice can be viewed by clicking here.

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