FMA Licensing
If you are a financial services provider, you may need a licence from the Financial Markets Authority (FMA) before you can offer your products and services.
The licences granted by the FMA are:
Auditors
Authorised Financial Advisors
Crowdfunding Platforms
Derivatives Issuers
Designated Business Settlements
Discretionary Investment Management Services (DIMS)
Financial Advice Providers
Independent Trustees Managed Investment Scheme (MIS) Manager
Market Operators
Peer-to-Peer Lending
Supervisors
Each licence is subject to different conditions, therefore it is important to make sure that you apply for the licence that meets the products and services being offered. If you are unsure, please discuss with us.
Eligibility criteria
Before you begin, make sure you know whether you are eligible for a licence. Your application needs to show the FMA how you will be able to meet the legal criteria of a financial service provider.
Minimum standards
As a financial service provider you must have proper systems and processes in place to carry out your business. The Financial Markets Conduct Act (2014) (FMC Act) lists seven categories of minimum standards that licence holders must meet. These are:
- Fit and proper
- Capability
- Operational infrastructure
- Financial resources
- Governance
- Culture
- Compliance
Even though there is not a fixed set of rules about how you should meet the minimum standards in the FMC Act, it is important that your application clearly outlines the systems and processes you have in place to meet the minimum standards specific to your financial service.
Standard conditions
When the FMA grants you a licence, you will have to comply with certain conditions under the FMC Act, the Financial Markets Conduct Regulations, or any conditions the FMA decide to impose. Conditions vary for different types of licences.
There are standard and specific conditions for each type of licence. Some examples include: keeping relevant records and providing information on the strength of your finances and systems, among others.
Our approach
We would meet with you for an initial free consultation. This will allow us to better understand your business and advise you on what would be required of you if you were to make application for a licence. We would also discuss with you your on-going compliance obligations.