Secondhand Dealers & Pawnbrokers Licensing Authority

Frequently Asked Questions

There will be many questions that you may wish to ask of the staff for the Licensing Authority.

Because this is a new function, a number of assumptions may have been made here, as to the nature of the sort of questions you might have.

Over time this section may be updated as more questions are received and responses given.

Getting Advice

Q: Where can I get advice on legal issues?

A: You can try a Citizens Advice Bureau, a Community Law Centre or a lawyer. Links to their websites can be found on the ‘Useful Links" page.

Q: Can staff at the Authority give me legal advice?

A: No. Staff may only advise you on procedural matters.

Filing an Application

Q: How long does will it take to get licensed under the new Act?

A: A straightforward application should take approximately five weeks to be processed. If the Police object to the grant of a licence or certificate however, then this period will be extended by how long it will take for a hearing to take place and for the Authority to make its decision.

Q: How much does it cost to apply for a licence or certificate?

A: The following fees will apply under the Act:

$350 for a licence for an individual

$350 for a company with one director

$350 for a company with more than one director and $150 for each additional director

$150 for a certificate

(All fees are GST inclusive)

Q: I have a criminal conviction that will prevent me from being granted a licence under the Act. Is there anything I can do about this?

A: You can apply for what is called a "waiver" and you should do this at the time you apply for a licence or certificate. In special circumstances, the Licensing Authority may waive what is normally an automatic disqualification.

Q: What costs could I incur when applying for a licence or certificate?

A: If you engage a lawyer, or some other professional to act for you, you will need to meet their costs up front. There is however no reason why you cannot apply for a licence or certificate yourself. If you need to ask for a hearing before the Authority and you are unsuccessful, the Police may seek costs against you or vice versa. More often than not however, parties will bear their own costs.

Q: Where can I get a form for applying on?

A: Go to the "Forms and Fees" page to download a copy in PDF format to use. Alternatively you can email or ring us and ask for a copy to be emailed, faxed or posted out to you. A fact sheet on how to complete the forms can also be requested. Take care that you complete the form(s) properly and accurately, that the correct fee (by way of a cheque) accompanies your application and a statutory declaration and properly authenticated pictures of you (if you are an individual applying) are included. Notes:

The forms on this website are not final, as they still need to be approved by the Licensing Authority. The exception to this is the form of pledge ticket (minimum requirements).

The Ministry of Justice is investigating enabling on-line applications and on-line payments to be made.

If your application is not completed properly and / or is not accompanied by the proper information, it may not be processed by the Authority and could be returned to you.

Q: How do I lodge my application?

A: You can lodge your application, with fee and accompanying documents, by posting it to the Authority.

Q : What happens next?

A: Provided your application is complete and all the information required has been provided, the first step will be for it to be registered and your details entered onto the Authority’s database by its staff. They will then, as required by the Act, carry out a check to ensure that you do not hold any convictions for offences specified under the Act, that would automatically exclude you from holding a licence or certificate.

Once this report has been obtained, a copy will be sent to you and the Police. If it shows a clean record, the Licensing Authority will then determine your application. However, the Police can still object if they believe you are not a ‘fit and proper person’ to hold a licence or certificate. They have three weeks in which to do this.

If the criminal record check shows a specified offence and you have not applied for a waiver against disqualification, your application must be refused automatically.

Q: The Police have objected against the grant to me of a licence or certificate. What can I do now? Do I need a lawyer to represent me?

A: You can ask the Licensing Authority for a hearing in person, on whether it should dismiss or uphold the Police objection. Staff at the Authority will then send you a notice of hearing, telling you when and where the hearing will take place. The Licensing Authority will generally sit as close to where you carry on business as practically possible. The Licensing Authority has the powers of a Commission of Inquiry under the relevant Parliamentary statute, the Commissions of Inquiry Act 1908. See the Legislation page.

Alternatively, you may make a written submission to the Authority. The Authority will determine the objection on the papers it has received, the application itself, Police objection, your submission and any final submission from the Police. It is anticipated that most objections would be dealt with in this way.

Either way, the Licensing Authority will give its decision with reasons, usually some time after the hearing has finished or having considered the written submissions. More rarely, it may make its decision immediately after hearing from you and the Police at a hearing.

You do not need a lawyer to represent you. It must be you who decides whether to seek legal or any other advice.

Q: What are the grounds for suspending or cancelling a licence or certificate?

A: The Licensing Authority may cancel or suspend a licence or certificate where it upholds a Police objection, or it is satisfied that a person is disqualified (due to a conviction) from holding a licence or certificate and a waiver has not been granted, or a waiver has been refused, or a licence or certificate was obtained by fraud or mistake.

Q: I have received the written decision of the Licensing Authority and I am dissatisfied with it. What can I do next?

A: An applicant for a licence or certificate may appeal to a District Court against a decision of the Licensing Authority relating to that applicant’s application.

The holder of a licence or certificate may appeal to a District Court against a decision by the Licensing Authority relating to the renewal, cancellation, or suspension of the holder’s licence or certificate.

You cannot appeal any decision relating to a decision on a waiver of disqualification.

Any appeal must be brought to a District Court within 20 days of the date of the decision being appealed against, or within such longer period that the District Court may allow on application made before or after the expiration of that period. Inquire with the District Court nearest to you as to the form to be used (if any) and any fees payable. A District Court may confirm or reverse the decision of the Licensing Authority. Its decision is final - there is no further right of appeal available.

General Questions

Q: How often do I have to renew my licence or certificate?

A: Any licence or certificate granted under the 2004 Act, will expire after 5 years, at which point you must effectively reapply. A full fee will be payable and a new full criminal history check will be carried out. The Authority will write to you just prior to the expiry date of your licence or certificate, to remind you of this requirement.

Q: I hold a current licence under the Secondhand Dealers Act 1963 or the Pawnbrokers Act 1908. Is it still valid as at 1 April 2005?

A: Yes it is. It becomes known as a "Transitional Licence" and continues to have effect for 1 year from the 1st of April 2005. If you wish to continue to operate after this period expires, you must apply for a new licence within the year because your licence will automatically expire at the end of the 12 months.

Q: I hold a current licence and employ staff that carry out transactions for me and supervise staff. Do I need to get them certificates immediately?

A: If you hold a transitional licence no. If you hold a licence under the new Act, then yes, but where the licence holder believes that their staff is not disqualified from holding a certificate, they need not apply for two months.

Q: I have misplaced my new licence. What do I do?

A: Contact the Licensing Authority in writing. A replacement licence can be provided.

Q: I propose selling some secondhand goods but I am not sure whether they are "articles" under the Act. Can you define them for me?

A: You will need to seek your own independent interpretation of what the articles (or goods) mean in the schedule to the Act.

Q: I applied for a secondhand dealers licence just prior to the new Act taking effect and it has not been processed. What happens to this application? Do I have to reapply and pay a new fee?

A: Any application like this will be forwarded to the Licensing Authority by the relevant District Court and will be treated as if it were an application made under the new 2004 Act. The Licensing Authority may require you to provide it with additional information however and decline to process it until this is supplied. No additional fees will be payable however.

Q: I need to apply for a secondhand dealer’s licence now, under the 1963 Act. How do I go about doing this, how much will it cost?

A: You can apply to the nearest District Court. Staff there can provide you with the application form on request. The fee payable is $150. If it is granted before 1 April, it will become a transitional licence under the new Act.

Q: The Licensing Authority has determined my application. I want to raise more issues or ask questions of the Authority. Can I do this?

A: No. Once the Licensing Authority has carried out its official duties, its authority is at an end. The staff at the Authority may answer inquiries you make, but they will be general responses in nature and only if they touch on procedural matters within their authority.

Q: Can a Ministry of Justice staff member interpret the Licensing Authority’s decision for me?

A: No, not under any circumstances.

Q: I want to get hold of a Licensing Authority decision. How can I do this?

A: You may contact the Licensing Authority and request one. A fee will apply. It will generally be posted out to you the same day

with an invoice.

Q: I want to complain about a Secondhand Dealer or Pawnbroker. How do I do this?

A: Contact the Police nearest to you. They will decide whether to apply to the Licensing Authority to have a licence cancelled or a certificate cancelled or suspended.

Q: I work for a licensed Secondhand Dealer and often carry out transactions on their behalf. Do I need to get licensed?

A: If the dealer holds a licence under the 1963 Act, then the answer is no, not until they apply and are granted a licence under the 2004 Act. In this case you would then need to apply for a certificate yourself.

If the dealer you work for is licensed under the 2004 Act however, you will need to hold a certificate – although a two month grace period generally applies.