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Questions are being asked amongst RSE employers about Freedom Pacific.  This Forex company is being heavily promoted to seasonal workers and some give positive feedback, yet those that do are unable to recall what the exchange rate was.

The most common point in favour was that there are no service fees.  However others claim that they were charged $5 to remit money back to Vanuatu.

Enquiries regarding the exchange rate and how that compares to existing money transfer services such as Western Union BSPs Moneygram, Vodafone’s RocketRemit and all major banks has proved fruitless.

Information has come to light that as of 20 September 2023, Freedom Pacific (New Zealand) Ltd was deregistered from the NZ Companies Office which holds the register for Financial Service Providers.

This, from the Companies Office Website.

Who needs to register

Under the Financial Service Providers (Registration and Dispute Resolution) Act 2008, an FSP is required to register on the FSPR if any of the following applies:

  • It provides financial services to persons in New Zealand above a minimum business threshold.
  • It is a reporting entity under the Anti Money Laundering and Countering Financing of Terrorism Act 2009 (AML/CFT Act) that provides financial services.
  • It is licensed to provide a financial service, or required by another Act to be licensed or registered in relation to a specific financial service.

If you provide financial services without a current registration, you could be fined or sent to prison.

Who Needs to be Registered

Everyone in New Zealand in the business of providing a financial service, whether in New Zealand or overseas, must be registered on the Financial Service Providers Register (FSPR) before they can legally provide financial services. There are some exceptions and exemptions.

Who must register

Under the Financial Services Providers (Registration and Dispute Resolution) Act 2008, everyone who provides, or offers to provide, a financial service in New Zealand or from New Zealand to other countries must register as an FSP.

Registration as a financial service provider is not an official approval of an individual, business or organisation. It doesn’t indicate that you’re licensed or regulated in New Zealand or any other country.

Who doesn’t have to register

There are some individuals and organisations that don’t need to register on the FSPR to provide financial services.

  • Employees who provide financial services
    If you’re an employee of a company that’s a registered FSP, you don’t have to register if you’re providing only wholesale or class services (or both).
  • Qualifying Financial Entities (QFEs) advisers that don’t need to register
    If you’re a QFE adviser, whether or not you need to register depends on the services you provide. The FMA website provides information to help you decide if you must register or not.
  • Businesses that provide financial services
    Businesses that provide financial services as a necessary part of their practice don’t have to register on the FSPR. This includes: (a) lawyers; (b) chartered accountants; (c) tax agents; and (d) real estate agents.

Who is exempt from registration?

There are some activities and services that you don’t need to be registered on the FSPR to provide. These include:

  • angel investors supporting start-up businesses
  • sole adviser practices — although you still need to register as an individual FSP
  • providers of gift cards and loyalty schemes.

The full list of exemptions is in the Financial Service Providers (Exemptions) Regulations 2010.

Who can’t register as an FSP

You can’t register or be involved in the management of a registered FSP if, for example, you:

  • are an undischarged bankrupt

  • are a banned director

  • are subject to a confiscation order under the Proceeds of Crime Act 1991, or

  • have been convicted of:

  • money laundering

  • an offence relating to the financing of terrorism

  • a crime involving dishonesty within the last 5 years

 

This story is developing but in the meantime RSE workers are advised to be careful.

By admin