Unlike many countries that do not provide adequate protection for client funds, New Zealand has a strong regulatory framework that is strictly enforced. Client assets are protected by “Segregation” laws where client funds are deposited in segregated bank accounts. This ensures that client assets are never co-mingled.
Further asset protection is enforced in NZ by requiring regulated, licensed companies like WSD NZ to provide professional indemnity insurance coverage for the protection of client and company assets against unforeseeable events that if left uninsured, may result in the loss of client funds.