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
- 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 monitor all licence holders to ensure they are meeting their obligations, using a mix of desk-based research, phone discussions and office visits.
- Help when things go wrong: Licensed providers are held to high standards. If you have concerns about your provider’s conduct you can contact us. All financial service providers must also belong to a dispute resolution scheme. This makes sure you have a fair hearing if you can’t resolve a problem or disagreement with your provider.
- Better information: We expect licensed providers to communicate clearly and simply with you, and to take your interests into account. 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.