New guidance for client money and property services brokers

It replaces the FMA’s 2014 guidance note to align with the new regulatory regime.

The FMA found issues with the previous guidance through monitoring visits and misconduct cases and finalised the new note following consultation with providers and custodians.

A ‘provider’ under the FMC Act is a financial service provider who holds, transfers, or deals with client money or property on behalf of clients. It replaces the ‘broker’ role under the old Financial Advisers Act 2008.

The note also provides additional guidance for custodians who have specific obligations in addition to those that apply to all client money and property service providers.