Interpretation of the Financial Legislation
In this guide, we outline our approach to New Zealand's Financial Services Legislation Amendment Act 2019, Financial Service Providers (Registration and Dispute Resolution) Act 2008 and Financial Markets Conduct Act 2013.
Updated 30 December 2021
MoneyHub is a journalistic resource that publishes resources on a range of topics, from consumer products (electricity providers, mobile phone plans) to financial products (insurance, bank accounts, KiwiSaver and investment platforms etc). We also cover a range of guides to navigating Work and Income, school and higher education and the responsibilities of parenting, employment and home-ownership, among other themes.
Our focus at all times is on the cost of a product or service, its terms and conditions (i.e. fine print) and, in some instances, giving a journalistic opinion about the product or service. For a number of investing-related guides, we also make comparisons to help consumers better understand the products and features.
Our journalistic approach is highly risk-averse, and we never provide financial advice in any form. Our guides present factual information and, where necessary, opinion (which is made based on fees, performance and coverage, with all data points provided by the financial product/service provider and/or a trusted third-party such as Morningstar or resources from Sorted.org.nz.
We highlight the relevant legal framework below, covering an interpretation of the Financial Services Legislation Amendment Act 2019, Financial Service Providers (Registration and Dispute Resolution) Act 2008 and Financial Markets Conduct Act 2013.
MoneyHub is a journalistic resource that publishes resources on a range of topics, from consumer products (electricity providers, mobile phone plans) to financial products (insurance, bank accounts, KiwiSaver and investment platforms etc). We also cover a range of guides to navigating Work and Income, school and higher education and the responsibilities of parenting, employment and home-ownership, among other themes.
Our focus at all times is on the cost of a product or service, its terms and conditions (i.e. fine print) and, in some instances, giving a journalistic opinion about the product or service. For a number of investing-related guides, we also make comparisons to help consumers better understand the products and features.
Our journalistic approach is highly risk-averse, and we never provide financial advice in any form. Our guides present factual information and, where necessary, opinion (which is made based on fees, performance and coverage, with all data points provided by the financial product/service provider and/or a trusted third-party such as Morningstar or resources from Sorted.org.nz.
We highlight the relevant legal framework below, covering an interpretation of the Financial Services Legislation Amendment Act 2019, Financial Service Providers (Registration and Dispute Resolution) Act 2008 and Financial Markets Conduct Act 2013.
Firstly, the (new) Schedule 5 inserted into Financial Markets Conduct Act 2013, "Exclusions from definition of financial advice", outlines:
A person does not give financial advice merely by doing 1 or more of the following:
Our view:
A person does not give financial advice merely by doing 1 or more of the following:
- (a) providing factual information (for example, information about the cost or terms and conditions of a financial advice product, or about the procedure for acquiring or disposing of a financial advice product):
- (c) making a recommendation or giving an opinion about a kind of financial advice product in general rather than a particular financial advice product (for example, an opinion about shares generally rather than shares of a particular company):
Our view:
- MoneyHub's journalists and research team provides factual comparisons and product reviews of a number of financial advice products, defined by the Financial Services Legislation Amendment Act 2019 as a financial product, a contract of insurance, a consumer credit contract (and similar products).
- We never recommend any particular policy, credit policy or financial product for any particular person. All information published is general in nature and compiled and presented based on the products' features, pros and cons. At all times, we encourage consumers to compare their options independently before making any decision. We may shortlist providers of financial products which we believe to offer specific value, which is done so as an opinion and as a starting block to encourage thorough and individually-led product comparison.
Furthermore, the Financial Services Legislation Amendment Act 2019 outlines Further exclusions from regulated financial advice:
(8) Ancillary services and other occupations
Financial advice is not regulated financial advice if the person giving the advice--
(a) carries on one of the following occupations:
(ii) journalist: or an occupation prescribed by the regulations; and
(b) gives the advice--
(i) in the ordinary course of carrying on that occupation; and
(ii) as an ancillary part of carrying on the principal activity of that occupation, being an activity that is not the provision of a financial service.
(3) Financial advice is not regulated financial advice if--
it is given only as an ancillary part of a business whose principal activity is not the provision of a financial service.
Our view: MoneyHub's publications are not in any way financial advice. However, we include the above legislation for relevance and completeness. We are not relying on these provisions to exempt our resources from any current New Zealand law.
Defining "Financial Service"
To understand the scope of "financial service", we look at Section 5 of the Financial Service Providers (Registration and Dispute Resolution) Act 2008, which defines "financial service" as any of the following financial services - a financial adviser service, a broking service (including a custodial service), being a licensed NBDT, as defined in the Non-bank Deposit Takers Act 2013, being a registered bank, keeping, investing, administering, or managing money, securities, or investment portfolios on behalf of other persons, being a creditor under a credit contract, operating a money or value transfer service, issuing and managing means of payment, giving financial guarantees, participating in an FMC offer as the issuer or offeror of the financial products, acting in any of the following capacities in respect of regulated products or financial products offered under an FMC offer, as an issuer, supervisor, investment manager, licensed market service, acting as a custodian in respect of a registered scheme or a discretionary investment management service provided by a DIMS licensee, operating a financial product market, changing foreign currency, trading financial products or foreign exchange on behalf of other persons, providing forward foreign exchange contracts, acting as an insurer, providing any other financial service that is prescribed for the purposes of New Zealand complying with the FATF Recommendations, other recommendations by FATF, or other similar international obligations that are consistent with the purpose of this Act.
(8) Ancillary services and other occupations
Financial advice is not regulated financial advice if the person giving the advice--
(a) carries on one of the following occupations:
(ii) journalist: or an occupation prescribed by the regulations; and
(b) gives the advice--
(i) in the ordinary course of carrying on that occupation; and
(ii) as an ancillary part of carrying on the principal activity of that occupation, being an activity that is not the provision of a financial service.
(3) Financial advice is not regulated financial advice if--
it is given only as an ancillary part of a business whose principal activity is not the provision of a financial service.
Our view: MoneyHub's publications are not in any way financial advice. However, we include the above legislation for relevance and completeness. We are not relying on these provisions to exempt our resources from any current New Zealand law.
Defining "Financial Service"
To understand the scope of "financial service", we look at Section 5 of the Financial Service Providers (Registration and Dispute Resolution) Act 2008, which defines "financial service" as any of the following financial services - a financial adviser service, a broking service (including a custodial service), being a licensed NBDT, as defined in the Non-bank Deposit Takers Act 2013, being a registered bank, keeping, investing, administering, or managing money, securities, or investment portfolios on behalf of other persons, being a creditor under a credit contract, operating a money or value transfer service, issuing and managing means of payment, giving financial guarantees, participating in an FMC offer as the issuer or offeror of the financial products, acting in any of the following capacities in respect of regulated products or financial products offered under an FMC offer, as an issuer, supervisor, investment manager, licensed market service, acting as a custodian in respect of a registered scheme or a discretionary investment management service provided by a DIMS licensee, operating a financial product market, changing foreign currency, trading financial products or foreign exchange on behalf of other persons, providing forward foreign exchange contracts, acting as an insurer, providing any other financial service that is prescribed for the purposes of New Zealand complying with the FATF Recommendations, other recommendations by FATF, or other similar international obligations that are consistent with the purpose of this Act.
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Concluding comments from MoneyHub founder, Christopher Walsh:
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