The government has agreed to stricter monitoring rules for financial service providers, giving regulators the ability to probe deeper into the affairs of firms and block anyone who doesn't pass muster.
Cabinet plans to strengthen the financial service providers registration (FSPR) scheme by granting regulators new investigative powers and the ability to remove providers from the register, Commerce Minister Craig Foss said in a statement.
The FSPR opened three years ago as part of government efforts to restore investors' faith in financial advisers and the wider sector.
The changes will give the Financial Markets Authority the ability to direct the registrar to turn down registration or de-register a provider that doesn't meet the regulator's satisfaction, extend the registrar's inspection powers to seek information on whether a provider should be registered, and will disqualify people with overseas criminal convictions for theft, fraud or money laundering within the past five years of registration.
"The proposed changes will further help prevent the misuse of the register by overseas entities trying to take advantage of New Zealand's reputation," Foss said. "They build on the government's reforms to strengthen the company registration regime and improve anti-money laundering and anti-terrorist funding efforts."
