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Financial Service Providers (Registration and Dispute Resolution) Act 2008

Registration - Registration of financial service provider - Deregistration of financial service provider

18B: Consideration of deregistration of financial service provider by FMA

You could also call this:

“FMA can check if a financial service provider should be taken off the list”

The Financial Markets Authority (FMA) can look into removing a financial service provider from the register. They can do this if someone asks them to or if they decide to on their own. When the FMA thinks about removing a provider, they need to consider if it’s necessary or helpful.

If the FMA decides they want to remove a provider, they have to tell the provider first. They’ll send a letter explaining why they want to do this. The provider then has at least 20 working days to write back and explain why they shouldn’t be removed.

After reading what the provider says, the FMA can do one of two things. They can tell the Registrar to remove the provider, or they can tell the Registrar not to remove them. The FMA has to explain why they made their decision.

If a provider doesn’t like the FMA’s decision to remove them, they can ask a judge at the High Court to look at it again.

When the FMA tells the Registrar to remove a provider, some normal rules about removing providers don’t apply.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM6197866.

Topics:
Business > Industry rules Money and consumer rights > Banking and loans Money and consumer rights > Consumer protection
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18A: Purpose of FMA's powers relating to deregistration, or

"Why the FMA can remove someone from the financial service providers list"

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18C: FMA may direct deregistration regardless of whether section 18(1) applies, or

"FMA can remove a financial service provider from the register for any reason"

Part 2 Registration
Registration of financial service provider: Deregistration of financial service provider

18BConsideration of deregistration of financial service provider by FMA

  1. The FMA—

  2. may, but is not required to, consider a referral under section 18(1A); and
    1. may otherwise consider giving a direction under this section at its own discretion (if a referral has not been made).

      1. If the FMA decides to consider the referral or otherwise decides to consider giving a direction under this section, the FMA must, after taking into account section 18A, consider whether it is necessary or desirable for a financial service provider to be deregistered.

      2. If, after acting under subsection (2), the FMA decides to give a direction to the Registrar under this section to deregister the financial service provider, the FMA must—

      3. give the financial service provider—
        1. written notice of its intention to give the direction; and
          1. the reasons why it intends to give the direction; and
            1. a date (being not less than 20 working days after the date of the notice referred to in subparagraph (i)) by which the applicant may make written submissions to the FMA in relation to its proposed direction; and
            2. consider any submissions received in accordance with paragraph (a)(iii); and
              1. either,—
                1. if the FMA remains of the view that the financial service provider should be deregistered, direct the Registrar to deregister the provider; or
                  1. if the FMA decides that the provider should not be deregistered, advise the Registrar accordingly; and
                  2. give its reasons for the direction or advice, as the case may be.

                    1. A provider who is not satisfied with a direction given under this section may appeal to the High Court under section 42.

                    2. Sections 19 and 20 do not apply if a financial service provider is deregistered as a result of a direction given under subsection (3)(c)(i).

                    Notes
                    • Section 18B: inserted, on , by section 19 of the Financial Service Providers (Registration and Dispute Resolution) Amendment Act 2014 (2014 No 34).
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