Financial advisers, investment scams and deposit protection after redundancy

How to check an adviser or firm

1. Search the Financial Service Providers Register (fsp-register.companiesoffice.govt.nz), run by the Companies Office. Search by name, trading name, FSP number or NZBN.
2. Look at the entry. It shows the registration date and status, the services they're registered or licensed for, any linked financial advice provider, and the dispute resolution scheme they belong to.
3. Check the website address and business details on the register match the person you're dealing with. The FMA warns of cloned names that resemble authorised firms.
4. Look up the name on the FMA's warnings and alerts list before you pay anyone.
5. Ask the questions below, and walk away if you get vague answers.

The FMA's guidance on finding an adviser says to ask:

• What type of licence do they hold? They may be working under a Financial Advice Provider's licence.
• What products can they advise on? Advice providers are only licensed to advise on areas they're competent in.
• How are they paid: fees from you, or commissions from product providers?
• If you're investing, where and how will your money be held?
• How can you complain, and which dispute resolution scheme are they part of?

If something goes wrong: where to complain

Businesses that offer financial services to retail customers must belong to an independent dispute resolution scheme. The FMA says to start by raising the matter with the provider through its complaints process. If you can't resolve it, contact the provider's scheme, which can help you make an effective complaint and then give a free, independent view on a fair outcome.

• Which scheme applies depends on which scheme the firm belongs to. The register entry shows it, or ask the firm in writing.
• Scheme names and memberships can change, so check the FSPR for the current one.
• The FMA can investigate and act where a provider is breaching its obligations, but it says it can't obtain remedies for individuals. You can report an ongoing issue that may affect others on its online complaints form.
• Free budgeting and legal help: MoneyTalks (0800 345 123), Citizens Advice Bureau and Community Law Centres.

Scams that target people after redundancy

Scammers know that a redundancy payment or a KiwiSaver balance can be a big lump sum, and that people under stress make quick decisions. The FMA's scam pages list these common types:

• Crypto-asset storage and 'alternative financial system' scams, including fake wallet-access and asset-protection services.
• Fake IPO or pre-IPO share offers and fraudulent investment websites.
• Fake news articles and endorsements impersonating politicians and business leaders.
• Romance scams, including fake banks that steal personal information.
• Recovery scams: someone offers to get back money you've already lost, for a fee. Once you pay, they typically disappear. The FMA's page also notes some recovery scams use phishing to reach your bank account.
• Advance-fee scams, including requests for crypto payments and fake payout offers.

Warning signs the FMA lists

• No returns are ever guaranteed. If someone says there's no risk, that's a red flag.
• Only licensed financial advice providers in New Zealand may cold call you, or send unsolicited emails, to sell a financial product. Check whether they're on the register.
• Little or no written information. A legitimate investment should come with clear documents such as a Product Disclosure Statement.
• Unusual payment methods: wire transfers, credit cards, cryptocurrency, an overseas account, or a personal account instead of the company's own.
• They say you've already made a profit before you've paid anything.
• They keep asking for more money for taxes, fees or extra purchases.
• They can't or won't return your money. Legitimate investments can usually be sold within hours or days.

Job offers can be scams too. See the job scams guide for fake recruiters and 'pay to start' offers.

If you think you've been scammed

1. Stop sending money, even if you're told more is needed to release returns.
2. Contact your bank straight away, using the number on your card or the official website, to ask whether payments can be stopped.
3. Report illegal investment offers to the FMA through its 'Report a scam' form. The FMA says to report other scam types to the Department of Internal Affairs (DIA), and text message scams can be forwarded to 7726.
4. Call the police on 105 for non-emergencies, or 111 if you or someone else is in immediate danger.
5. Be wary of anyone who then offers to recover your money for a fee.

If you're stressed or ashamed, you're not alone and it isn't your fault. MoneyTalks is free and confidential on 0800 345 123.

Is my money in the bank protected?

The Depositor Compensation Scheme (DCS) started on 1 July 2025 and applies automatically; you don't need to do anything. A bank that publishes the details (Heartland) describes protection of up to $100,000 of deposited funds per depositor, based on your total funds across the DCS-protected accounts at that bank. It lists savings, transactional and term deposit accounts as covered, and says investment products such as KiwiSaver, managed funds and bonds are not covered.

• The limit applies per depositor. How it applies across different banks is set out by the Reserve Bank; check rbnz.govt.nz before relying on it.
• Which products are covered depends on the deposit taker, so check your bank's own DCS page.
• The Reserve Bank of New Zealand (rbnz.govt.nz) runs the scheme. Check there for the current limit and rules, as they can change.
• DCS covers a bank failing. It does not cover you being tricked into sending money to a scammer.