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FINANCIAL SERVICES PROVIDER
FSP REGISTRATION
NEW ZEALAND
Due to changes in most jurisdictions there are currently no bank licenses available at flexible terms for small banks. Many websites still market bank charters from countries such as Nauru, Montenegro, Montserrat and others, although these have since long stopped issuing licenses. Other websites market banks from Belize and various Caribbean jurisdictions, where applications can still be filed, but no new banks have been approved for years.
Even in the case where you would obtain a bank license, the problems continue. Due to regulations such as the US Patriot Act, any licensed bank must have an actual physical presence in the country of licensing, with full time staff and day to day management. This regulation is meant to stop so called "shell banks".
Since most correspondent banks have no idea how to comply with the Patriot Act and other new regulations, they often choose to simply decline any applications for correspondent accounts from any new banks, especially if they are registered in a small jurisdiction. This means that even in the unlikely event that you would obtain a bank license, in this time when almost no country would issue them, your bank would not be able to open the correspondent accounts needed to operate a banking business.
SOLUTION
To register a New Zealand Licensed Company as a Financial Services Provider.
One refreshing exception is New Zealand, a highly respected jurisdiction with a modern legal framework and rated the most business friendly nation in the world by the World Bank in 2005. Banking services can be offered in and from New Zealand by different types of entities, including but not limited to Registered Banks, Finance Companies, Credit Unions and Building Societies.
We focus on the New Zealand Finance Company (Financial Services Provider) which is not subject to supervision by the Reserve Bank of New Zealand and yet entitled to offer banking services to its individual and corporate customers worldwide.
New Zealand is a premier jurisdiction for the establishment of a new bank. Most jurisdictions actually detour and discourage establishing new banks through excessive regulation, requirements and formalities. The New Zealand Financial Services Provider (Company) is a refreshing alternative, offering modern legal framework and English banking law that supports the ability to open your own bank.
Our Firm can provide you with a New Zealand FSP Company which is virtually identical to a bank with the products and services a bank offers but without the large initial costs, capital or risks associated with a large corporate bank. And it’s so simple to operate that one person can run their bank as a “turnkey” operation. At the same time, the NZ FSP can operate as a hedge fund, unleashing respectable profit potential.
New Zealand Online Banks and New Zealand Finance Companies, are authorized to provide banking services under New Zealand law.
With very little or no restrictions on the number of customers, deposits, amounts or currencies, the entity can provide individuals and commercial organizations banking services around the globe.
ADVANTAGES OF NEW ZEALAND
New Zealand is recognized as a premium jurisdiction for the following reasons:
It provides the all advantages of all traditional financial centers, and is recognized as a true onshore financial centre which is not blacklisted by any jurisdiction or authority in the world. It is not perceived by O.E.C.D. as a harmful tax jurisdiction, and has no connotations as a tax haven.
It is a member of the O.E.C.D. and World Trade Organization.
New Zealand is a member of the British Commonwealth, English is the main language, has a common law system, and the majority of legislation including trust law is founded on British law.
It is not a member of the EU, and is not influenced by the EU Savings Tax Directive and any future developments (should they be extended to apply to companies or trusts).
It is a signatory to the 1922 Hague Convention and can provide Apostilled documentation as well as Notarized documentation.
In today’s troubled and unstable times New Zealand is considered a safe location and offers long term security. It has a Westminster style Government and together with its administration, is stable and competent.
New Zealand has a well-developed infrastructure, including a progressive and robust economy, efficient telephone and internet services, competitive and frequent air travel, experienced reliable professionals serving global clients with trust and company requirements which include legal opinions on tax, trust and company matters, and has reliable internet global banking services.
New Zealand repealed its entire Banking Act in 1995 and thereby facilitated free entry into the business of banking. Although there are several laws regulating a financial business, New Zealand is unique in the sense that an international banking entity can be established without capital requirements, qualification requirements or excessive supervisory requirements.
If banking services are not offered to the public in New Zealand, the requirements of prospectus, supervisory trustee and investment statements as set out in Part II of Securities Act 1978 do not apply.
FSP’s offering services to nonresidents also operate outside the geographical scope of the Non-Bank Deposit Taker (NBDT) regulations as defined in/by the Reserve Bank of New Zealand Act 1989. The NBDT regime only applies to FSP’s offering financial services to the public in New Zealand.
New Zealand Financial Service Company Requirements – there are very few limitations on who can own a New Zealand Finance Company, below are requirements:
(a) No Capital Reserve Requirements – Most banks will have to have 1 to 30 million dollars in reserves prior to being issued a license. The NZFC does not require this.
(b) Director and Shareholders – Any residency is accepted and individuals can be of any nationality. Foreign corporations can also be a shareholder in your NZFC.
(c) Minimum Shareholders – At least one shareholder is required.
AUTHORIZED FINANCIAL ACTIVITIES
We offer a complete range of services for the formation and registration of a legally compliant Financial Service Provider (FSP) in New Zealand. An FSP can legally engage in activities and offer services such as:
Deposit Taking
Keeping, investing and managing money, securities and investment portfolios on behalf of third parties
Providing credit under a credit contract
Operating a money or value transfer service
Issuing and managing means of payment
Giving financial guarantees
Changing foreign currency
Entering into or trading on an exchange, in an over-the-counter market or otherwise, the following on behalf of another person:
- money market instruments (including cheques, bills, certificates of deposits);
- foreign exchange (including forward foreign exchange contracts);
- derivative products including, but not limited to, futures and options;
- exchange rate and interest rate instruments, including products such as swaps and forward rule agreements;
- transferable securities;
- other negotiable instruments and financial assets
THE FSP ADVANTAGE
If you offer financial services using a New Zealand based Company and all your clients are based outside New Zealand, your Company will still operate outside the geographical scope of Part II of the Securities Act 1978 and it will not be subject to regulation by the Reserve Bank as a non-bank deposit taker. You should however register your Company as an FSP in the new Register and if you are offering services to retail customers your Company should also join a government approved Dispute Resolution Scheme before applying for FSP registration.
The new FSP registration requirement for a New Zealand Company offering Financial Services is an excellent measure to increase the credibility and usability of such entity. With a registered FSP you will not be dependent on legal interpretations and regulatory exemptions when required to demonstrate that your Company is indeed a bona fide provider of Financial Services and properly registered as such. All registration documents are issued by the New Zealand government (Ministry of Economic Development) and legalized with Apostil for international recognition.
We can form, register and maintain for you the New Zealand Finance Company.
Our team of qualified accountants providing advice on and forming domestic and international business structures, together with the relevant tax advice, will be at your permanent disposal, providing you the day to day compliance for your New Zealand FSP Company.
We offer a complete package with formation and registration of your NZ FSP, ongoing compliance service locally in New Zealand, resident agent, registered and full serviced virtual offices, as well as the infrastructure you will need to make your entity fully operational, such as accountancy, full permanent support, auditing, introduction to an online banking software provider and to a private label debit card provider, with your own design bearing the logotype of your NZ FSP.
The NZ FSP can offer virtually anything a fully licensed bank can offer, but the word “bank” cannot be included in the name. Instead, you can use the words “Savings & Loans”, “Clearing House”, “Finance House”, “Trust”, “Credit”, “Financial Services”, as some examples.
ACTS REGULATING NZFC
Although the NZFC is not subject to Central Bank supervision and regulation, its activities are regulated by several acts. Some of the relevant acts are listed below:
• Bills of Exchange Act 1908
• Stamp and Cheque Duties Act 1971.
• Cheques Act 1960
• Companies Act 1993
• Consumer Guarantees Act 1993
• Credit Contracts and Consumer Financial Act 2003
• Electronic Transactions Act 2002
• Fair Trading Act 1986
• Financial Transactions Reporting Act 1996
• Investment Advisers (Disclosure) Act 1996
• Personal Property Securities Act 1999
• Proceeds of Crime Act 1991
• Property Law Act 1952
• Reserve Bank of New Zealand Act 1989
• Securities Act 1978
• Unclaimed Money Act 1969.
All information about the above ACTS – Compliance Manual – will be provided together with all statutory documents of your NZ FSP.
OUR PACKAGE
Our package is designed to provide a ready to use fully compliant FSP Company, allowing the buyer to focus on offering financial services while our office will ensure that the company is in compliance with local regulations and requirements.
Our NZ FSP package offers everything you need as a turn-key service to get you organized and operational. This complete service includes:
Organization of your New Zealand Company
Assistance establishing a bank account
Registration as Approved Issuer Levy
Licensing as approved Financial Services Provider
Registration with FDR NZ Arbitrator
Introduction to Debit/Credit Card issuer (optional)
Introduction to Banking Software Provider (optional)
Full regular consultancy and technical assistance
Formation of your NZ FSP includes all of the organizational formalities, documents and government liaison facilitation.
Your financial entity will be formed professionally and quickly through our consultants. We will provide all of your documentation, notary and licenses to operate as a bank. A corporate kit and seal will be included with your NZ FSP formation. Registered office with a physical address and onsite agent is included and necessary to maintain your operational entity and used to assign your status as registered issuer. This service ensures that your financial company is in compliance with local regulations and requirements.
We shall provide assistance obtaining online banking software, if desired, to administer your finance company. Plus we can arrange a bank account where you have the ability to send and receive wires for your institution.
TIME FRAME
Time Frame for establishing a new ready to operate FSP: 3 weeks’ time
READYMADE LICENSED FSP’s
We also provide New Zealand Readymade Finance Companies duly registered and licensed available for immediate delivery.
Please contact us for details.
REGISTRATION AS FSP
Registration as FSP (Financial Services Provider) is now mandatory in 2010 for all people who provide financial services to register with the Financial Service Providers.
Banks, Building Societies, Credit Unions, Finance Companies and other Financial Service Providers are required to register.
The FSPR is the result of New Zealand passing The Financial Service Providers (Registration and Dispute Resolution) Act 2008 into law on September 29 2008.
This law is meant to strengthen the confidence in New Zealand based Financial Service Providers by implementing a requirement for all such entities and individuals to be registered in the FSPR.
This requirement applies regardless of whether an FSP is offering services to clients located within or outside New Zealand. FSPs offering services to retail customers, whether within or outside New Zealand also need to become members of a Government approved Dispute Resolution Scheme (DRS) or the Government Reserve Scheme before being able to register as an FSP.
A DRS is basically a third party Arbitrator authorized by the government to help settle any dispute in which an FSP might find itself with a retail client. This requirement is meant to strengthen consumer protection in the financial industry.
Joining a DSR is a rather straight forward process, so if you are planning to offer services to retail customers this requirement would not constitute an obstacle or cause any significant delay when establishing your FSP.
The opening of the register marks the start of the transition to full implementation of the Financial Advisers Act and the Financial Service Providers Act.
Financial advisers in particular will also be subject to new minimum standards of disclosure, competence, conduct, and accountability.
This regime is essential if New Zealand is to have a financial sector which investors and investment product providers can have confidence in.
The timeline from here is:
- 1 December 2010 – financial service providers must be registered and must belong to a dispute resolution scheme. Financial advisers who may be working under a qualifying financial entity or whose qualifying financial entity is still awaiting approval have until 31 March 2011 to register.
- 1 July 2011 – the Acts come fully into force. All financial advisers who need authorisation from the Securities Commission must have completed their training and finalised their authorisation by this date.
The requirement to register applies to a wide range of financial service providers, and anyone who is in doubt about whether it applies to them should seek legal advice.
WHO MUST REGISTER AS A FINANCIAL SERVICES PROVIDER?
Entities and individuals who (a) live or have a place of business in New Zealand; and (b) are in the business of providing financial services (in New Zealand or overseas) must register to provide that particular financial service on the FSPR.
Those entities and individuals will have to register as a financial service provider (FSP) by 1 December 2010, or 31 March 2011 for financial advisers.
The meaning of ‘financial service’ is defined in section 5 of the Financial Service Providers (Registration and Dispute Resolution) Act 2008. There are some exceptions set out in section 7 of the Act, such as lawyers and accountants who provide financial services as an incidental part of their business.
Common examples of financial service providers required to register are:
- Building Societies
- Credit Providers
- Credit Unions
- Financial Advisers (including financial planners)
- Finance Companies
- Foreign Currency Exchange Dealers
- Fund Managers
- Insurers
- Investment Portfolio Managers
- Issuers
- Money Changers
- Registered Banks
- Some professional trustees (such as trustees of debt securities or superannuation scheme trustees).
Individuals or companies unsure as to whether or not they will be required to register should seek their own independent legal advice.
WHO DOES NOT HAVE TO REGISTER?
Some individuals and entities who provide a financial service may not have to register:
(a) certain types of financial advisers;
(b) lawyers, chartered accountants, tax agents, or real estate agents who provide a financial service as a necessary incident of their practice;
(c) a non-profit organisation providing free financial services;
(d) a trustee of a family trust providing financial services to beneficiaries
WHO CANNOT REGISTER?
There are some people who cannot register on the Financial Service Providers Register.
People who have been convicted of crimes involving dishonesty under the Crimes Act 1961, in the last five years, such as fraud, as well as anyone convicted of a money laundering, or financing of terrorism offence, will be excluded from registering or from being involved in the management of a registered financial service provider.
Undischarged bankrupts and banned directors will also not be able to register.
WHO IS THE CONTROLLING OWNER?
A controlling owner of a financial service provider (FSP) is any person (including another company or entity) who beneficially owns 50% or more of the FSP.
For the purposes of the FSPR, the controlling owner is the person who enjoys the benefits of owning the majority interest in the FSP, not necessarily the person named in official documents – such as a company’s share register – as the legal owner. The beneficial owner is not always the registered owner (often otherwise known as the nominee owner).
The name of the controlling owner will not be made public on the FSPR. It is collected by the Registrar for the purposes of disqualification checks.
WHO IS A SENIOR MANAGER?
A senior manager of a financial service provider is a person who is not a director but occupies a position that allows the person to exercise significant influence over the management or administration of that provider (for example, a chief executive or a chief financial officer), and to be the link between the company and FSPR, engaged to provide regular and annual reports as legally required.
WHAT IS A FINANCIAL SERVICE?
Some examples of common financial services are:
- providing financial advice (including financial planning)
- mortgages, saving and cheque accounts, and loans
– services your bank, building society or credit union may offer
- insurance
– including life, health, home/contents, and vehicle
- money management and/or advice
- investment management and/or advice
- consumer loans and credit
– such as a retailer selling an item on credit or providing a cash loan
- foreign currency exchanges
– whether buying or selling
- money transfers.
WHAT HAPPENS IF ONE DOES NOT REGISTER?
Financial service providers must be registered to legally provide financial services. If they provide, or offer to provide, financial services without current registration, they are in breach of section 11 of the Financial Service Providers (Registration and Dispute Resolution) Act 2008.
If a financial service provider provides, or offers to provide, financial services while in breach of the Act:
(a) individuals face up to 12 months imprisonment or a fine not exceeding NZ$100,000;
(b) body corporates such as companies, building societies and credit unions face a fine not exceeding NZ$300,000.
REGISTRATION WITH FDR
FDR is the independent dispute resolution scheme for the New Zealand financial industry, established by the government as the reserve scheme for settling disputes between people and businesses, and the organizations that provide them with financial services and advice. Under the regime, a wide range of Financial Service Providers (FSPs) must be registered to legally provide financial services. In order to register FSPs must be members of an external dispute resolution service, one of which is FDR.
Joining a dispute resolution scheme is a critical part of registering as a financial service provider.
FSP PACKAGE FEES
We offer a complete service package including:
Certified Company documents and Company seal
Registered office and resident agent Address for service and address for communication
Physical Business address
All relevant government filings
Registration as/with FSPR Registration with NZ Regulator FDR
Introduction to a banking software provider
Introduction for private label debit and credit cards
Our fees vary depending on the range of required and optional services;
In order to provide you a tailored-made solution, pls kindly contact us
TIME TO INCORPORATE AND REGISTER AS FSP
Approximately 2 to 3 weeks’ time
OUR SERVICES
Consulting, tax planning, company structuring Company registration, Providing legal seat and office facilities, Management services, Bank account opening, Providing legal representative, Bookkeeping, audit, VAT registration and accounting, Payroll accounting, Supplementary documentation, Notary public and international legalizations.
In case you may have any further matter or question to clarify, please don't hesitate to contact us, before taking your decision.
OFFSHORE INCORPORATION SERVICES
COMPANY FORMATION & MANAGEMENT SERVICES
TAX PLANNING AND ASSET PROTECTION SOLUTIONS
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PRIVATE LIMITED COMPANIES
LIMITED LIABILITY COMPANIES
LIMITED LIABILITY PARTNERSHIPS
TRUSTS
PRIVATE & FAMILY FOUNDATIONS
BANK FORMATION
PANAMANIAN LICENSED FINANCIAL CORPORATIONS
NEW ZEALAND OFFSHORE FINANCIAL INSTITUTIONS
SECURE & CONFIDENTIAL NOMINEE STRUCTURES
INCORPORATION IN EUROPE AND
MAJOR INTERNATIONAL OFFSHORE CENTRES
OFFSHORE BANKING
WORLDWIDE FULL SERVICED VIRTUAL OFFICES
FREE CONSULTANCY
info@eurofinanzza.com
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