New Zealand keeps removing financial firms from FSP register

Another deregistration notice was published on the website of New Zealand’s Financial Service Providers Register (FSPR) earlier today, with the list including the names of businesses and individuals removed from the register in November last year.

A total of 66 businesses and individuals were deregistered from the list, a much smaller number than the 155 firms and individuals who got deregistered from the FSP in October 2015.

All of them were removed in accordance with section 18(1) of the Financial Service Providers (Registration and Dispute Resolution) Act 2008, which 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.”

Several companies have challenged their deregistration from the FSP, with the most recent example provided by Excelsior Markets, which took the Financial Markets Authority (FMA) to court over the deregistration that the company saw as unfair. In December 2015, however, the court upheld the regulatory decision.

You can view the full deregistration list by clicking here.

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