This document sets out guidance for how providers of client money or property services (providers) and custodians can meet their obligations under the Financial Markets Conduct Act 2013 (FMC Act).
Download the Guide for providers of client money or property services PDF
Who is a client money or property service provider?
Broadly speaking, a ‘provider’ under the FMC Act is a financial service provider who holds or deals with client money or property on behalf of clients. This can include stockbrokers, providers of portfolio administration services and financial advisers who receive property or money from clients.
Some financial service providers are commonly known as brokers but do not hold client money or property, such as some financial advisers or financial advice providers who provide insurance or mortgage advice. This guidance does not apply to those people in relation to that advice service.
Certain persons are not classed as providers under the FMC Act, including law firms, accountants and real estate agents acting in the ordinary course of their businesses, and licensed derivatives issuers providing a service in the ordinary course of business (who are subject to separate obligations).
The first part of this guidance applies to providers and to custodians of client money and client property. Custodians are a subset of providers under section 431W of the FMC Act, and as such are subject to the provider obligations in addition to the custodian obligations.
Guidance specific to custodian obligations is provided in the second part of the guidance.
Read more about providers of client money and property services
