According to the New Zealand Financial Service Providers (Registration and Dispute Resolution) Act 2008 and the New Zealand Financial Service Providers’ Register (New Zealand FSP), all financial service providers (including financial advisers and forex brokers) who operate in New Zealand, or through New Zealand, need to be registered under the FSPR.
There are a number of key benefits to register a forex brokerage company under the FSPR:
- New Zealand is a highly reputable business jurisdiction;
- Access to the Asia/Pacific (APAC) region;
- Limited to zero bureaucracy when applying for FSP regulation as oppose to Western countries;
- Fast licensing process – less than 3 months;
- No capital requirements; no qualification requirements; no excessive supervisory requirements;
- Low licensing professional fees as oppose to other jurisdictions;
- No economic instability despite the late global financial crisis.
Registration is obligatory for individuals or entities that provide financial services and for those who live or have a place of business in New Zealand. A financial service provider is considered to be a credit provider, and credit union, a finance company, a registered bank, a broking service, a FOREX company etc.
Forex brokers wishing to apply for FSP regulation will have to pass a general background check, and those who grant services to retail clients will have to join an approved consumer dispute resolution scheme.
In order to apply for the registration within the FSP, the following are required:
- physical presence, including postal and business address (including telephone number, fax etc);
- local director, duly qualified and approved by the Financial Markets Authority (FMA);
- participation to an approved dispute resolution scheme.
Applicant companies need to provide details of their directors (directors need not be residents of the New Zealand – apart from the compliance director/manager) and the controlling owner (any person (including another company or entity) who beneficially owns 50% or more of the FSP).
Once the registration process is completed, meaning therefore that the financial service provider has met all necessary requirements, their business information is publicly available on the FSPR.