Latest Update – March 2017

New Zealand Financial Service Company – Updated March 2017

If you are interested in setting up a financial service provider company in New Zealand, please find hereinafter attached our proposal of services. Do not hesitate to contact us at

Why Have Set Up Fees for New Zealand Financial Services Increased? 

Between 2006 to 2012 nearly 100 New Zealand financial companies went down for various reasons. Many of those bankruptcies could have been avoided if there would have been a better legal framework. Therefore, the government of New Zealand has reviewed from 2008 to 2014 the whole legal framework in relation to Financial Service Providers.

New laws enacted included:

  • Financial Advisers Act 2008
  • Financial Service Providers (Registration and Dispute Resolution) Act 2008
  • Financial Markets Authority Act 2011
  • Securities Trustees and Statutory Supervisors Act 2011
  • The Financial Markets Conduct Act 2013
  • Non-bank Deposit Takers Act 2013
  • Companies Amendment Act No 4 2014


New Criminal Offenses

  • Due to all those Acts authorities declared new criminal offenses for directors who exercise powers or perform duties in bad faith; directors who allow insolvent companies to incur debt.
  • Have professionalized advisory services, including by requiring advisers to adhere to a code of conduct.
  • Have been empowered to take legal action on behalf of investors against directors, trustees and auditors; to conduct market surveillance; prevent products being structured to avoid FMA oversight; and warning powers on low-ball unsolicited offers.
  • Have given the FMA the power to refuse registration or deregister FSPs where registration would create false or misleading appearances about the extent of the financial service provider’s New Zealand presence or would otherwise be damaging to the integrity or reputation of New Zealand’s financial markets
  • Have greater oversight and regulation of finance companies; requiring independent directors, minimum capital requirements and restrictions on the amount of related party transactions allowed
  • Have enacted comprehensive and AML/CFT laws, regulations and requirements making documented AML/CFT risk assessment and compliance programme are essential, in addition to facilities to perform Politically Exposed Persons and sanctions checks on applicants and customers.

What are the Consequences of the Changes in the Legal framework on Financial Service Providers Incorporation?

  1. Firstly, it becomes more time consuming to incorporate a FSP. While company incorporation takes only 7 days the preparation of the application will takes at least a month and the approval process may take up to 3 months from the filling of the application
  2. Secondly, Local Directors are required and those directors may find themselves exposed to criminal charges so it is a big responsibility that only a few accept...
  3. Thirdly, the Company will need supporting staff for compliance and real office being specified that those services can be outsourced

All those reasons are why the legal fees to incorporate a NZ Financial Service Provider Company have increased so much.

What are our fees to incorporate a NZ Financial Service Provider?

Our fees for the incorporation of a New Zealand Financial Service Provider are US$125,000 (please note that ready-made ones, IF/WHEN available are in the region of US$180,000 to US$220,000).

Our work will include:

  1. Complete Company Incorporation
  2. Complete FSP Application
  3. Preparation of all policy and procedures documents
  4. Preparation of all legal documents
  5. Introduction of 1 x NZ Local Director (“Director”) The Client is not required to utilise the services of the Director(s) introduced by RPP. It is up to the Client to appoint or choose the Director(s) that are suitable for their purposes, however RPP will not be responsibility for the suitability or qualifications of candidates proposed by the Client.
  6. Provision of second NZ local director if required
  7. Provision of Senior Manager
  8. Provision of office administrative staff
  9. Provision of New Zealand office address
  10. Provision of office management services

What are our Fees to Maintain a NZ Financial Service Provider? 

To provide points 5 to 10 (as above) on a monthly period our fees will be between US$8,000 to US$10,000 per month. A Security Deposit of six (6) months is required.

What are our Fees to open Bank Account for NZ Financial Services Provider? 

Between US$5,000 to US$10,000 depending on banks and countries.

What are the Information to be provided by the Client 

  • If an existing company, the certificate of incorporation, company extract, articles of association
  • Complete Shareholder details, including identification and proof of address
  • If Shareholder is a company, details of all directors and shareholders of the shareholding company, including identification and proof of address
  • Balance sheet and cash flow projections for the business
  • Business plan
  • Key Management team
  • Personnel related to the operation of the FSP
  • Full details of the proposed Director(s) or Responsible Managers (RM) including but not limited to full name, date of both, place of birth, identification and proof of address
  • CV/Resume and work history for the Director(s) and RM
  • Copies of all relevant qualifications for the Director(s) and RM (university degree etc.)
  • Qualifications held by the Director(s) and RM’s for all the specific advice authorizations being applied for
  • Police check of Director(s) and RM
  • Bankruptcy check of Director(s) and RM