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FinTechs belonging to this category offer asset and portfolio management services via an internet platform or software programs and usually manage and dispose of the assets of their customers long or short term according to their specifications without actually holding the property or the possession of those assets. FinTechs, which provide information about and access to overnight or time deposit accounts at national and foreign banks and which execute the transactions to these accounts, also belong to this category. Some FinTechs however only act on request of the customer.
Aside from that some FinTechs offer software or internet solutions enabling users to manage and plan their personal finances on their own by providing graphics, overviews and compilations of their financial data and sometimes indicating financial risks or opportunities, but without actually managing the assets.
Introduction
Attitude of the country towards modern asset and portfolio management services
In general, as of Q4 2024, there was a record high of $324.5 billion in managed funds in New Zealand, an annual increase of 15.9%. Retail investors increased quarterly by 5.4-11.3% across private wealth investment, retail unit trusts and cash management trusts. While wholesale clients decreased by 4.7%.
The increase suggests no general reservations, other than the risk aversion that could be generally expected in relation to investments.
Legal affairs
Obligations and requirements to provide asset and portfolio management, or ancillary services described above
Providers of asset and portfolio management services must register as Financial Service Providers in accordance with the FSPA with the associated costs as outlined in our section titled FinTech.
Generally, a manager of a management investment scheme (this does not include superannuation schemes or discretionary investment scheme where services are provided to solely wholesale investors) must apply for a financial market service licence in accordance with the Financial Markets Conduct Act 2013 (FMCA). There are several different classes of licence, and the relevant one is dependent upon the structure of the scheme and the nature of the services provided. The associated fee and FMA levy for licensing depends on the total value of assets managed and ranges from $2,100 (plus GST) for a portfolio not exceeding $20 million to $670,000 (plus GST) for a portfolio in excess of $15 billion. A licensed supervisor must also be appointed for the scheme.
Providers will have ongoing obligations including statements of investment performance (SIPO), annual reports and filings and fund updates.
Additional comments regarding the legal situation for asset and portfolio management services or what FinTech’s must be aware of in this business area
Managing client funds in New Zealand will require compliance with the relevant AML laws and regulations and may require registration with a financial service dispute resolution provider.
Economic conditions
Market size for asset and portfolio management services and biggest companies in this business area
However, as of Q4 2024, there were $324.5 billion in managed funds in New Zealand.