Start your own Online Bank and offer financial services to any number of clients resident anwhere in the world. A New Zealand Financial Service Provider (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
- 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;
other negotiable instruments and financial assets
How To Start A Bank With A Thousand Dollars":
Land Without A Banking Law
The legal framework for banking
activities in New Zealand explained
How to avoid de-registration
on the (FSPR)
How to maintain a legally
compliant Registered Office
and Place of Business
Place of Business
Contrary to widespread
disinformation, an FSP is not required to
have its own employees or dedicated
office premises in New Zealand.
Dispute Resolution Schemes
What are they?
Do you need to be member of one?
How to incorporate a
New Zealand Company Online.
Step by Step instructions.
Limited Partnership Formation
How to form and register
a New Zealand LP
How to register online
as a New Zealand
Financial Service Provider (FSP).
Step by Step instructions
New Zealand as a Tax Haven
Unknown to most people,
including to members of the
New Zealand offers zero
tax structures for
AML & KYC
Anti-Money Laundering and
Know Your Customer Regulations.
The latest (2013) legislation explained.
The FSP Act and FSP Regulations
What Happens Next?
There are regulatory changes
in the pipeline, but the “Thousand
Dollar Bank” concept remains intact
Worldwide shipping within 24 hours. Free US shipping.
Publisher: Opus Operis LLP - United Kingdom
Author: Michael Magnusson
Paperback: 236 pages
New Zealand repealed its entire Banking Act in 1995 and replaced it with nothing. There are several laws regulating a financial business, but 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 the Securities Act 1978 (gradually being replaced by the Financial Markets Conduct Act 2013) do not apply. FSPs offering services to non residents also operate outside the geographical scope of the Non-Bank Deposit Taker (NBDT) regulations as defined in the Reserve Bank of New Zealand Act 1989. The NBDT regime only applies to FSPs offering financial services to the public in New Zealand. See our FSP Laws section for further information about FSP related legislation.
The New Zealand government opened the doors to its long awaited Financial Service Provider Register (FSPR) on August 16, 2010. 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. Please visit our FAQ section for the definitions of retail and wholesale customers.
It means that 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.
In our opinion 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.