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Is your provider licensed?

Wednesday 14 September 2016

Why licensing is good for you

If your financial service provider has recently sent you information to say they’re licensed, this means they’re now operating under rules that reflect the biggest change in financial services in 30 years.

Under the Financial Markets Conduct (FMC) Act, many financial service and product providers must hold a licence issued by the FMA. Licensing has been phased in over the last couple of years, with the last licence type (managed investment funds) being phased in by 1 December 2016.

Look for a licensed provider

To get protection from New Zealand laws make sure you’re using a provider licensed by us to offer financial services or financial products.

See who needs a licence and the list of those already licensed.

Three reasons licensing is good for you

  1. Licensed providers get checked and monitored by the FMA: Licensed providers have to show us they have the capacity and capability to provide the licensed service. We ask them to send us detailed information on the people running their business, and on the financial resources and systems they have to run their business. We proactively monitor all licence holders to ensure they are meeting their obligations, using a mix of desk-based research, phone discussions and office visits. 
  2. Protection when things go wrong: Licensed providers are held to high standards. If you think your provider is not doing that, you can contact us and we’ll investigate. All financial service providers must belong to a dispute resolution scheme, which will make sure you have a fair hearing if you have problems or a disagreement with your provider. 
  3. Simpler offer and reporting information: We expect licensed providers to communicate clearly and simply with their customers. This means their website, brochures and even the conversations they have with you should be designed to help you to understand their products and services. 

See who needs a licence and the list of those already licensed.