Consultation: Proposed exemptions for CREs in liquidation, receivership, or voluntary administration

UPDATE November 2023

After carefully considering submissions, the FMA has agreed in principle to grant a class exemption for five years for each Climate Reporting Entity (CRE) which is in liquidation, receivership or voluntary administration from the duties in Part 7A of the FMC Act, comprising: 

• full relief for a CRE which is in liquidation (solvent or insolvent) and for managers that are CREs in respect of a registered scheme (or fund within a scheme) that is in wind-up.
• deferral relief for up to two years for CREs in receivership or voluntary administration.

The effect of full relief is that the climate reporting duties are cancelled. The effect of deferral relief is that climate reporting duties are deferred but must still be complied with at a later date.

The relief will be from the whole of Part 7A (and any corresponding Regulations) including:

• record-keeping obligations
• the requirement to prepare and lodge climate statements or group climate statements
• the requirement to link to the climate statements in the annual report
• the requirement to obtain an assurance engagement in relation to the climate statements.

We may consult with interested stakeholders on the drafting of the exemption notice that will give effect to our decision. If you would like to be added to the list of stakeholders please email your request to us. 

We aim to have a notice in place to give effect to this decision before the end of January 2024.