New Zealand FMA License
In New Zealand, a Financial Markets Authority (FMA) license authorizes a person or organization to provide certain financial services or operate financial products under the Financial Markets Conduct Act 2013 (FMCA).
What Is an FMA License?
An FMA license is a regulatory authorization issued by the Financial Markets Authority (FMA) that allows a business to legally provide specific financial services or operate in financial markets in New Zealand.
The FMA ensures that licensed entities:
- Meet fit and proper person criteria for directors and senior managers
- Have adequate governance, systems, and controls
- Treat clients fairly and transparently
- Comply with anti–money laundering (AML/CFT) obligations
Types of FMA Licenses
The most common licenses issued by the FMA include:
| License Type | What It Covers |
| Financial Advice Provider (FAP) | Allows the entity to give financial advice to retail or wholesale clients, directly or through nominated representatives. |
| Managed Investment Scheme (MIS) | Covers entities that manage collective investment schemes (e.g., KiwiSaver, unit trusts, managed funds). |
| Discretionary Investment Management Service (DIMS) | For providers who make investment decisions on behalf of clients (portfolio managers). |
| Derivatives Issuer License | Required for issuing, trading, or making markets in derivative products (options, futures, CFDs, etc.). |
| Market Operator License | For operating licensed markets such as stock exchanges (e.g., NZX). |
| Peer-to-Peer Lending Platform | For operating platforms that match borrowers and lenders directly. |
| Equity Crowdfunding Platform | For platforms that allow companies to raise capital from retail investors online. |
| Supervisors License | For trustees/supervisors of debt securities, MIS, and other financial products. |
Who Must Hold an FMA License?
You must hold (or be covered by) an FMA license if you:
- Provide regulated financial advice to retail clients
- Manage investment products or funds for the public
- Offer or operate derivatives or crowdfunding/P2P platforms
- Operate a financial market or supervise a financial product
If you only provide wholesale services or act as a representative under another license holder, you may not need your own license — but you must still appear on the Financial Service Providers Register (FSPR).
Penalties for Operating Without an FMA License
Operating a financial service without the required license can result in:
- Criminal prosecution or civil penalties
- Financial penalties up to NZD $1 million (individuals) or NZD $5 million (companies)
- Revocation of registration or banning of individuals from the industry
How to Apply for an FMA License
Step 1: Register as a Financial Service Provider (FSP) – Information available on the FSPR website
Step 2: Identify which FMA license you need.
Step 3: Apply via the FMA’s online portal, providing:
- Governance and ownership details
- Business plan and compliance framework
- Fit and proper person certificates for key individuals
- Financial resources and insurance information
Step 4: The FMA reviews the application (may take several months).
Step 5: If approved, your license is published on the FMA’s public register.
