New Zealand’s Fintech Regulation

Thanks to comprehensive government support, New Zealand’s fintech sector is developing at a rapid pace. Considering starting a business in New Zealand & looking for information on the key aspects of New Zealand’s fintech regulation? Then what follows below will definitely be of interest to you.

Regulatory Framework

There are four major financial regulators in New Zealand:

• The FMA - responsible for overseeing & licensing financial services in New Zealand.
• New Zealand’s Reserve Bank - responsible for overseeing banking institutions, insurers & depositaries.
• The DIA - responsible for AML;
• New Zealand’s Trade Commission - responsible for overseeing compliance with consumer lending, fair trade & competition legislation

New Zealand’s government departments (e.g. Innovation & Business Ministry) & regulators are constantly demonstrating their support for fintech development by actively collaborating with key market players.

Regulated Activities

Registering a company in New Zealand requires obtaining an FMA financial license. That is necessary the applicant’s company will be:

• extending investment management services;
• furnishing crowdfunding services;
• issuing derivatives; 
• accepting deposits from investors;
• providing advice to investors;
• providing P2P lending services. 

Starting an insurance business in New Zealand requires obtaining the Reserve Bank’s license. Financial services providers must apply for registration with the FSPR & comply with some basis requirements (e.g. confirming their data & services on an annual basis).

Any non-domestic fintech companies providing financial services in New Zealand must also be registered with the FSPR. If a company’s activities fall under the definition of “doing business”, it must be registered in the country’s corporate register database as a foreign company or subsidiary. Registration entails an obligation to submit annual financial statements & comply with AML legislation.

Registered financial institutions in New Zealand are required to abide by certain obligations, such as:

• conducting DD;
• implementing compliance programs;
• assessing money-laundering risks;
• monitoring transactions; 
• reporting suspicious activities.