Financial Markets Conduct (Todd Family Office Limited Financial Reporting) Exemption Notice 2024

The Financial Markets Conduct (Todd Family Office Limited Financial Reporting) Exemption Notice 2024 (Notice) exempts Todd Family Office Limited (TFO) from the obligation in section 461H(1) of the Financial Markets Conduct Act 2013 (Act) to ensure that copies of its financial statements that are required to be prepared under subpart 3 of part 7 of the Act, together with a copy of the auditor’s report on those statements, are delivered to the Registrar for lodgement. 

The Notice is subject to a number of conditions, including that TFO:

• can only provide discretionary investment management services (DIMS) to members of the Todd family and their associates, eligible staff members and TFO itself (Todd Clients);
• is an FMC reporting entity solely because it holds a market services licence to provide DIMS;
• must ensure that the audited financial statements and associated auditor’s report are made available to Todd Clients through an electronic facility maintained by TFO, within four months after its balance date; and
• must submit to the FMA a copy of TFO’s audited financial statements and associated auditor’s report for any accounting period requested by the FMA, as soon as reasonably practicable after receiving the request from the FMA.

The key reasons for granting the exemption (as set out in full in the Statement of Reasons in the Notice) are that:

• the conditions of the exemption and the conditions imposed on TFO’s DIMS licence, mean that all Todd Clients who receive DIMS from TFO will be entitled to obtain all of the information they would have been entitled to obtain had the information been provided to the Registrar in accordance with section 461H(1) of the Act, while maintaining the privacy of their personal financial information;
• it is desirable to grant the exemption in order to promote the purposes of the Act, specifically:
  • it provides for timely and accurate information to be provided to Todd Clients to assist those investors to make decisions relating to TFO’s provision of DIMS;
  • it promotes the confident and informed participation of those investors which might otherwise be undermined by the public disclosure of their personal financial information;
  • the conditions of the exemption also require TFO to provide its audited financial statements and auditor’s report to the FMA upon request by the FMA, thus ensuring effective monitoring of financial services; and
  • it promotes innovation and flexibility in the financial markets by allowing Todd Clients to have the access to the financial statements that they otherwise would if the financial statements were lodged with the Registrar, while recognising their right to privacy.  

Download the Financial Markets Conduct (Todd Family Office Limited Financial Reporting) Exemption Notice 2024