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Financial Service Providers (Registration and Dispute Resolution) Act 2008

Registration - Miscellaneous

44A: Who financial adviser is treated as engaged by when engaged indirectly

You could also call this:

“A simple guide to who hires a financial adviser when they work through someone else”

When someone gives financial advice, they might be hired directly by a company or through another person. This law explains who is considered to be the employer in these situations.

If you are giving financial advice and you’re hired by one company through another company, you might be considered to be working for both companies or just one of them. It depends on whether both companies need to be registered for giving financial advice.

If both companies need to be registered for financial advice services, then you’re treated as if you’re working for both of them. But if only one company needs to be registered, or if neither needs to be registered, then you’re treated as if you’re only working for the first company that hired you, not the company in between.

When we say a company needs to be registered, we mean they have to sign up officially. This could be because this law says they need to, or because some other law or rule says they need to.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS464795.

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"Rules for managing financial services and providers"

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Part 2 Registration
Miscellaneous

44AWho financial adviser is treated as engaged by when engaged indirectly

  1. For the purposes of this Act, if a person (A) is engaged to give financial advice by a person (B) indirectly through an interposed person (C) (as described in section 431E(b) of the Financial Markets Conduct Act 2013), A must be treated as engaged by—

  2. both B and C, if both B and C are required to be registered under this Act for a financial advice service; or
    1. B (and not C), in any other case.

      1. In this section, required to be registered means required to be registered—

      2. by this Act; or
        1. by or under any other enactment (including under a licence condition).

          Notes
          • Section 44A: inserted, on , by section 89 of the Financial Services Legislation Amendment Act 2019 (2019 No 8).
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