Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1698836577439.pdf (New Zealand)
Reprint as at 1 December 2014 Financial Service Providers (Exemptions) Regulations 2010 (SR 2010/423) Anand Satyanand, Governor-General Order in Council At Wellington this 22nd day of November 2010 Present: His Excellency the Governor-General in Council Pursuant to sections 44(1)(ab) and 79(1)(a) of the Financial Service Providers (Registration and Dispute Resolution) Act 2008, His Ex- cellency the Governor-General, acting on the advice and with the consent of the Executive Council, and on the recommendation of the Minister of Commerce in accordance with section 44(1A) of that Act, and on the recommendation of the Minister of Consumer Affairs in accordance with section 79(1A) of that Act, makes the following regulations.
Note Changes authorised by subpart 2 of Part 2 of the Legislation Act 2012 have been made in this official reprint.

Note 4 at the end of this reprint provides a list of the amendments incorporated.

These regulations are administered by the Ministry of Business, Innovation, and Employment.
1 r 1 14A Financial Service Providers (Exemptions) Regulations 2010 Reprinted as at 1 December 2014 Contents Title Commencement Interpretation Part 1 Exemptions from application of Act Exemption for directors of promoters Exemption for financial services provided to related entities Exemption for sole adviser practice Exemption for individual trustees Exemption for loyalty schemes Exemption for gift cards and other gift facilities Exemption for credit provided, on interim basis, by non-financial service business Exemption for Lloyd’s underwriters Exemption for individual members of angel organisations Exemption for New Zealand Police Exemption for National Provident Fund and Annuitas Management Limited Exemption for The Tindall Foundation Part 2 Exemption from obligation to be member of dispute resolution scheme Page 2 2 2 4 4 4 5 5 6 7 7 7 7 8 8 8 15 Exemption for low-value non-cash payment facilities Regulations Title These regulations are the Financial Service Providers (Exemp- tions) Regulations 2010.
Commencement These regulations come into force on 1 December 2010.
Interpretation In these regulations, unless the context otherwise requires,— 1 2 3 2 Reprinted as at 1 December 2014 Financial Service Providers (Exemptions) Regulations 2010 r 3 Act means the Financial Service Providers (Registration and Dispute Resolution) Act 2008 angel organisation means an incorporated or unincorporated body that— (a) is established for the purpose of facilitating the provi- sion of capital by investors (either alone or in combin- ation) to innovative or start-up businesses; and does not itself directly provide capital to those busi- nesses (b) cash means New Zealand or foreign currency in notes or coins or both Crown organisation means a Crown entity (as defined in sec- tion 7(1) of the Crown Entities Act 2004), a department (as defined in section 2(1) of the Public Finance Act 1989), or a government-related organisation (as defined in section 4 of the Crown Organisations (Criminal Liability) Act 2002 facility means a means of payment (including a means that is intangible property, a contract, an arrangement, a term of a contract or arrangement, or a combination of any or all of these, whether or not it also includes a physical device such as a debit card) Lloyd’s means the society of that name incorporated by the Imperial Act known as the Lloyd’s Act 1871 make non-cash payments means to make payments, or cause payments to be made, other than by the physical delivery of cash non-financial service business means a person whose only or principal business is the provision of goods or services that are not financial services provide includes to offer to provide relevant service means any conduct referred to in any of para- graphs (a) to (n) of section 5 of the Act user, in respect of a facility, means the person who is entitled to use the facility to make payments (for example, by using the debit card in accordance with its terms) and not the person who receives the payments.
3 Part 1 r 4 Financial Service Providers (Exemptions) Regulations 2010 Reprinted as at 1 December 2014 Part 1 Exemptions from application of Act Exemption for directors of promoters A director of a promoter of securities is exempt from the ap- plication of the Act in respect of the director’s participation as a promoter in the offer of those securities to the public (within the meaning of section 5(i) of the Act).
Exemption for financial services provided to related entities 4 5 (1) A body corporate is exempt from the application of the Act in respect of a relevant service provided to— (a) (b) a related entity; or a limited partnership if the body corporate and the gen- eral partner are related bodies corporate.
In this regulation, a body corporate is related to an entity or another body corporate if it is related to it within the meaning of section 12(2) of the Financial Markets Conduct Act 2013, where, if subclause (1)(a) applies, a reference to “another body corporate” is taken to be a reference to “an entity”.

In this regulation, entity has the meaning given in section 6(1) of the Financial Markets Conduct Act 2013.
Regulation 5: replaced, on 1 December 2014, by regulation 4 of the Financial Service Providers (Exemptions) Amendment Regulations 2014 (LI 2014/336).

(2) (3) Exemption for sole adviser practice 6 (1) A sole adviser practice is exempt from the application of the Act in respect of all financial adviser services or broking ser- vices it provides (and any other relevant service provided in connection with those services).
(2) A sole adviser practice is a body corporate that is in the busi- ness of providing financial adviser services and to which all of the following apply: (a) there is only 1 financial adviser employed or engaged by the body corporate in providing those services (the individual adviser); and the individual adviser is— (b) 4 Reprinted as at 1 December 2014 Financial Service Providers (Exemptions) Regulations 2010 Part 1 r 8 (i) (ii) the only director, or 1 of only 2 directors, of the body corporate; and the only senior manager (if any) of the body cor- porate.
(3) However, the exemption applies only if— (a) (b) (c) (d) the individual adviser is registered; and the sole adviser practice’s name or trading name is stated on the register as the individual adviser’s trading name or principal; and the sole adviser practice provides only the types of financial services for which the individual adviser is registered; and the sole adviser practice is a member of an approved dis- pute resolution scheme or the reserve scheme (if section 48 would have applied to the sole adviser practice if it were not exempted from the Act by this regulation).
Exemption for individual trustees 7 (1) An individual trustee or individual superannuation trustee who is in the business of providing a financial service in that cap- acity is exempt from the application of the Act in respect of those services.

(2) However, the exemption applies only if the trustees of the trust, or the superannuation trustees of the superannuation scheme, are collectively registered as an unincorporated body.
Exemption for loyalty schemes 8 (1) A person is exempt from the application of the Act in respect of a relevant service provided in the course of providing a loyalty scheme.
(2) A loyalty scheme is a facility by which a person may make non-cash payments and to which all the following apply: (a) the facility is issued under a scheme the sole or main purpose of which is to promote the purchase of goods from, or the use of services of, 1 or more non-financial service businesses; and a member of the scheme is allocated credits under the facility (however described and whether or not a mon- etary value is expressly attributed to the credits) as a re- (b) 5 Part 1 r 9 Financial Service Providers (Exemptions) Regulations 2010 Reprinted as at 1 December 2014 (c) sult of the purchase of goods from, or the use of services of, the non-financial service business or businesses (the stored value); and the stored value— (i) can be used to make a non-cash payment for goods or services, or to obtain some other benefit, only from 1 or more non-financial service busi- nesses; but cannot be withdrawn in cash.
(ii) Exemption for gift cards and other gift facilities 9 (1) A person is exempt from the application of the Act in respect of a relevant service provided in the course of providing a gift facility.
(2) A gift facility is a facility by which a person may make non- cash payments and to which all of the following apply: (a) the facility is promoted or marketed only as a gift prod- uct; and the amount that is credited as being the value of the facility (the stored value)— (i) (ii) (iii) (iv) is determined at the time of the issue of the facil- ity; and can be used to make a non-cash payment for goods or services only from 1 or more non-finan- cial service businesses; and cannot be increased, or used and re-credited, after the issue of the facility (unless it is because of the reversal of a payment made under the facility in the case of a refund or because of a correction of an error); and cannot be withdrawn in cash (unless it is the with- drawal of the remaining full amount of the stored value after the making of 1 or more non-cash pay- ments under the facility and the provider has rea- sonably determined that that amount is unlikely to be able to be used conveniently under the fa- cility).
(b) 6 Reprinted as at 1 December 2014 Financial Service Providers (Exemptions) Regulations 2010 Part 1 r 13 10 Exemption for credit provided, on interim basis, by non-financial service business A non-financial service business is exempt from the applica- tion of the Act in respect of the provision of credit under credit contracts to its customers if— (a) the credit is provided in order to facilitate the provision of goods or services to those customers; and in the ordinary the non-financial service business, course of its business, assigns the credit contracts to another person within 1 working day of providing the credit.
(b) Exemption for Lloyd’s underwriters 11 (1) An underwriting member of Lloyd’s is exempt from the appli- cation of the Act in respect of any insurance business carried on by the member in that capacity.

(2) However, the exemption applies only if the underwriting member is a member of— (a) (b) an approved dispute resolution scheme or the reserve scheme; or a group of underwriting members of Lloyd’s that col- lectively are members of an approved dispute resolution scheme or the reserve scheme.
12 Exemption for individual members of angel organisations (1) An individual who is a member of an angel organisation is exempt from the application of the Act in respect of financial adviser services provided to any other member of that or any other angel organisation.
(2) However, the exemption applies only if— (a) (b) the angel organisation of which the individual is a mem- ber is registered; and the individual is named on a list of individual mem- bers kept by the angel organisation and (if reasonably requested) provided to the Registrar.

13 Exemption for New Zealand Police The New Zealand Police is exempt from the application of the Act.
7 Part 1 r 14 Financial Service Providers (Exemptions) Regulations 2010 Reprinted as at 1 December 2014 14 (1) Exemption for National Provident Fund and Annuitas Management Limited The board of trustees of the National Provident Fund is exempt from the application of the Act.
(2) Annuitas Management Limited is exempt from the application of the Act in respect of any financial services it provides— (a) to the board of trustees of the National Provident Fund, to the Government Superannuation Fund Authority, or to any other Crown organisation; or on behalf of any person in paragraph (a) (unless that person is not itself exempt from the application of the Act in respect of those services).
(b) 14A Exemption for The Tindall Foundation (1) The Tindall Foundation is exempt from the application of the Act in respect of a financial service referred to in section 5(e) of the Act.
(2) However, the exemption applies only if The Tindall Founda- tion— (a) (b) is exempted from the application of all of the provisions of the Anti-Money Laundering and Countering Finan- cing of Terrorism Act 2009; and does not provide credit under a consumer credit contract (as defined in section 11 of the Credit Contracts and Consumer Finance Act 2003).

Regulation 14A: inserted, on 1 December 2014, by regulation 5 of the Financial Service Providers (Exemptions) Amendment Regulations 2014 (LI 2014/336).
Part 2 Exemption from obligation to be member of dispute resolution scheme 15 Exemption for low-value non-cash payment facilities (1) A financial service provider is exempt from the obligation to be a member of an approved dispute resolution scheme or the reserve scheme under section 48 of the Act in respect of a rele- vant service (other than the provision of credit under a credit contract) provided in the course of providing a low-value non- cash payment facility.
8 Reprinted as at 1 December 2014 Financial Service Providers (Exemptions) Regulations 2010 (2) However, the exemption applies only if the financial service provider gives written notice to the Registrar that it is relying on an exemption from section 48 of the Act.
(3) A low-value non-cash payment facility is a facility for mak- ing non-cash payments to which both of the following apply: the total amount that is available for making non-cash (a) payments, under all facilities of the same class issued by the financial service provider, by any one user of the facility at any one time, does not exceed— (i) $1,000, in the case of an individual user (unless it is reasonable for the financial service provider to believe that the individual does not hold the fa- cility for personal, domestic, or household use); or $15,000, in any other case; and (ii) the total amount that is available for making non-cash payments by all users of that class of facility issued by the financial service provider does not exceed $15 mil- lion at any one time.
(b) Rebecca Kitteridge, Clerk of the Executive Council.

Issued under the authority of the Legislation Act 2012.

Date of notification in Gazette: 25 November 2010.

9 Notes Financial Service Providers (Exemptions) Regulations 2010 Reprinted as at 1 December 2014 Reprints notes 1 2 3 General This is a reprint of the Financial Service Providers (Exemp- tions) Regulations 2010 that incorporates all the amendments to those regulations as at the date of the last amendment to them.
Legal status Reprints are presumed to correctly state, as at the date of the reprint, the law enacted by the principal enactment and by any amendments to that enactment.

Section 18 of the Legislation Act 2012 provides that this reprint, published in electronic form, has the status of an official version under section 17 of that Act.

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See also http://www.pco.parliament.govt.nz/editorial-conven- tions/.

4 Amendments incorporated in this reprint Financial Service Providers (Exemptions) Amendment Regulations 2014 (LI 2014/336) 12 10 Wellington, New Zealand: Published under the authority of the New Zealand Government—2014