Licence and registration requirements in New Zealand

The regulation of the accounting profession has changed to allow the profession to be more efficient and effective. The main changes include:

• amendments to the rules as to who can perform statutory audits
• replacing references to “chartered accountant” in legislation with “qualified statutory accountant” or “qualified auditor”
• allowing audit firms to incorporate
• introducing a requirement for the independent assurance of the financial statements of large and medium-sized charities.

Qualified auditors and statutory accountants are required to be members of an accredited body. A qualified statutory accountant means a person who is either a chartered accountant or a member of an accredited body (other than the Institute) who holds the full professional letters of that body, for example, a certified practising accountant (CPA). An accredited body is a body that is granted accreditation, or is treated as having been granted accreditation, under the Auditor Regulation Act 2011.

A CPA Australia membership allows practitioners to perform a range of audits including Financial Market Conduct audits in New Zealand in certain cases.

More information for accountants

• Financial reporting requirements
• Financial Reporting Act 2013

In New Zealand you do not need to register as a tax adviser. However, tax practitioners often choose to register with the Inland Revenue Department (IRD) as tax agents, which allows them an extension of time for filing their clients’ tax returns and to receive standard communications from Inland Revenue.

Most professional tax advisers are either accountants or lawyers and are members of their respective professional societies. If tax advisers provide financial advice, they are covered by the Financial Markets Conduct Act 2013.

More information for tax advisers

• Applying to be a tax agent

The audit profession in New Zealand is primarily regulated by the Auditor Regulation Act 2011.

The requirements for auditors who carry out audits of Financial Market Conduct (FMC) reporting entities are covered by the legislation. FMC reporting entities include:

• issuers of regulated products
• listed issuers
• banks
• insurers
• credit unions
• building societies.

The legislation requires anyone who carries out an FMC audit to hold a licence that authorises them to act as an auditor.

Audit firms

Audit firms must be registered and must contain a licensed auditor in order to accept an engagement or appointment to act as an FMC auditor.

When an audit firm is a partnership, each partner or director must be a licensed auditor with the appropriate authority to conduct an FMC audit.

Licensed auditor

A licensed auditor means a person who holds, or is treated as holding, a licence issued by an accredited body or the FMA. The FMA oversees licensing and prescribes the requirements for the licensing and registration of auditors. It is also responsible for implementing and maintaining effective audit regulatory systems, which includes regular quality reviews of every registered audit firm and licensed auditor.

The FMA is empowered to grant accreditation to persons and bodies that it is satisfied are fit and proper.

The FMA has accredited CPA Australia to license auditors who carry out issuer audits in New Zealand.

More information for licensed auditors

• Licensed auditor requirements
• Qualified auditor requirements
• Auditor licensing and registration
• Auditor's ongoing obligations

In an insolvency, accountants or a person who keeps the creditor’s or bankrupt’s accounts can represent their clients at a creditors’ meeting.

Accountants are permitted to act as receivers and liquidators. Anyone may be appointed an administrator of a company, although an accountant will usually be appointed.

An administrator can be appointed by the company, the liquidator or interim liquidator, a secured creditor or the court. While a company is in administration, the administrator has control of the company’s business, property and affairs. The administrator may carry on the business of the company and manage its property and affairs.

The administrator may:

• terminate or dispose of all or part of the business, or property, and
• perform any function, and exercise any power, that the company or any of its officers could perform or exercise if the company were not in administration.

The Insolvency Practitioners Regulation Act 2019 was passed by the New Zealand Parliament in June 2019 and came into force on 17 June 2020.

The legislation introduced a co-regulatory licensing framework to promote quality, expertise and integrity in the insolvency profession. It creates powers to restrict or prohibit individuals from providing insolvency services and strengthens measures to automatically disqualify insolvency practitioners.

More information for liquidators

• Implementation of insolvency licensing framework
• Liquidation
• Appointments and responsibilities

A financial adviser makes recommendations or gives opinions or guidance about acquiring or disposing of a financial product. An authorised financial adviser is registered and authorised by the Financial Markets Authority (FMA). All financial advisers must be registered on the Financial Service Providers Register (FSPR).  This is a public register maintained by the NZ Companies Office.

Financial advisers are regulated by the provisions of the Financial Markets Conduct Act 2013. The FMA oversees this legislation. The legislation requires financial advisers to be competent. This requirement ensures that they have the experience, expertise and integrity to match a person effectively to a financial product that best meets their need and risk profile. The Act also aims to ensure that financial advisers are held accountable for any advice they give, and that they manage conflicts of interest appropriately.

Financial adviser code

From 15 March 2021, a new financial advice regime came into effect, removing the Registered Financial Adviser (RFA), Authorised Financial Adviser (AFA) and QFE advisor types. To provide regulated financial advice, you will now need to obtain a Financial Advice Provider (FAP) license. 

A Code of Professional Conduct governs FAPs as well as providing a basis for discipline. It details the minimum standards of adviser competence, knowledge and experience, ethical conduct and client care. It lays down guidelines for continuing professional development and specifies standards for the various classes of authorised financial advisers.

Qualified financial accountants are not defined as financial advisers and are not required to comply with the provisions of the legislation.

Accountants who are not qualified statutory accountants must comply with the requirements of the code. Exemptions will only apply in limited circumstances. Even then, the code requires accountants to do further training.

More information for financial advisers

• Financial Advice Provider