New Zealand Finance Company FAQ
Establishing a New Zealand Finance Company that is authorized to operate as a bank is less complicated and easier than you think. Below are some of the most commonly asked questions about forming and operating a New Zealand Finance Company. If you still have questions about establishing an OFC in New Zealand or banking offshore, please call 800.959.8819 or email us at info@offshorecompany.com and we'll be happy to answer your questions.
New Zealand OFC FAQs
What rules and regulations must I follow?
The New Zealand Finance Company is not a chartered financial institution that is regulated by Central Banking Supervision, instead the New Zealand Securities Commission has posted Corporate Governance principles that apply to their business entities as well as legislative acts for banking operations:
- Bills of Exchange Act 1908
- Cheques Act 1960
- Companies Act 1993
- Consumer Guarantees Act 1993
- Credit Contracts and Consumer Finance Act 2003
- Electronic Transactions Act 2002
- Fair Trading Act 1986
- Financial Transactions Reporting Act 1996
- Investment Advisers (Disclosure) Act 1996
- Personal Property Securities Act 1999
- Proceeds of Crime Act 1991
- Property Law Act 1952
- Reserve Bank Act 1989
- Securities Act 1978
- Unclaimed Money Act 1969
What kind of accounts/lines of credit can I set up for my clients and how do you determine rates?
You are flexible to set up the kind of accounts and lines of credit that prudent banking judgment will dictate. You determine rates based on market interest rates and the safety of the loan.
Why New Zealand over other jurisdictions?
New Zealand is a very stable, safe and business-friendly jurisdiction. New Zealand is the only jurisdiction that currently offers a finance company such as the one being offered here.
Can it be operated as a brick & mortar bank establishment?
Yes, if you so choose. Most finance companies, however, are online.
How do I provide the banking services, ie. Check books, Credit/ATM cards etc?
There are service providers with whom we are associated that provide these service for financial institutions. We will help in this regard as part of our service.
Do I have to set up my own bank account to hold my customer's funds?
Yes. Setting up a bank account at a major bank for your finance company is part of the service we provide when establishing your New Zealand Finance Company.
How to I promote either a Hedge Fund or Offshore Bank?
Be sure to seek adequate legal counsel before promoting so legal compliance is maintained. Business relationships, investors and money managers.
Is there a regulatory authority?
There is very minor regulation and our New Zealand accountant can help keep you compliant. The "prudent man" concept is used – treat depositors the way you would want to be treated if you were a depositor.