Financial Markets Authority Financial Markets Authority http://www.fma.govt.nz 2014-10-24 13:26:21 http://www.fma.govt.nz/laws-we-enforce/policy/current-consultations/consultation-paper-update-of-guidance-note-effective-disclosure Consultation Paper: Update of Guidance Note: Effective Disclosure 2014-10-24 13:26:21 Financial Markets Authority <p>The Financial Markets Authority (FMA) is now consulting on the <a href="http://www.fma.govt.nz/assets/Report-and-Papers/Consultation-Guidance-Note-Effective-Disclosure-Guidance-FINAL.pdf" target="_blank">Update of Guidance Note: Effective Disclosure</a>.</p> <p><b>What is this consultation paper about?</b></p> <p>The FMA first produced a draft guidance note on Effective Disclosure in January 2012.  The original guidance was finalised in June 2012 following extensive market consultation.</p> <p>We have revised the guidance to reflect the Financial Markets Conduct Act 2013 (FMC Act), any recent changes to our approach and changes to market practice in preparing disclosure documents, since the original guidance was published.  We have tried to keep changes to a minimum and have explained this on page 1 of the guidance note.</p> <p>Although the guidance note is focused on offers being made under the Securities Act 1978 during the FMC Act’s transitional period, we have highlighted where parts of the guidance note will be relevant to offers under the FMC Act regime.</p> <p>We seek submissions on the content and approach taken in this updated guidance note.</p> <p><b>Submissions close on Friday 14 November 2014</b></p> <p><b>How do I make a submission?</b></p> <p>Please use this <a href="http://www.fma.govt.nz/assets/Report-and-Papers/Feedback-form-Update-of-Guidance-Note-Effective-Disclosure.docx" target="_blank">feedback form</a>. This is also on the final page of the consultation paper – this gives the details of what you need to do. Forms must be submitted electronically in both PDF and Word formats and emailed to <a href="mailto:consultation@fma.govt.nz">consultation@fma.govt.nz</a> – please put ‘Feedback: Update of Guidance Note: Effective Disclosure –’ in the subject line.</p> <p>Alternatively, you can make an online submission on our engagement site <a href="http://www.talktous.fma.govt.nz/">www.talktous.fma.govt.nz</a>. You need to register to be able to use the site.</p> <p><b>Where can I get more information?</b></p> <p>If you have questions about the consultation process, please get in touch.</p> <p><b>Colin Magee<br></b>Manager, Primary Markets<br><a href="mailto:colin.magee@fma.govt.nz">colin.magee@fma.govt.nz</a></p> http://www.fma.govt.nz/help-me-comply/issuers/financial-reporting-updates-and-guidance-notes/guidance-note-effective-disclosure/ Effective Disclosure 2014-10-24 12:27:03 Financial Markets Authority <table> <tbody> <tr> <td> <p>We are currently <a href="http://fma.govt.nz/laws-we-enforce/policy/current-consultations/consultation-paper-update-of-guidance-note-effective-disclosure" target="_blank">consulting</a> on an update to this guidance note. The update incorporates changes to reflect the Financial Markets Conduct Act 2013 (FMC Act), any recent changes to our approach and changes to market practice in preparing disclosure documents, since the original guidance was published.</p> </td> </tr> </tbody> </table> <p>This guidance note was released in June 2012 following a formal consultation process.  </p> <ul> <li>See <a href="http://www.fma.govt.nz/laws-we-enforce/policy/closed-consultations/submissions-on-the-second-consultation-proposed-guidance-note-effective-disclosure">submissions on second consultation draft</a> (issued April 2012) and our response to submissions</li> <li>See <a href="http://www.fma.govt.nz/laws-we-enforce/policy/closed-consultations/submissions-on-the-proposed-guidance-note-kiwisaver-performance-fees">submissions on first consultation round</a> (issued January 2012) and our response to submissions</li> </ul> http://www.fma.govt.nz/keep-updated/newsroom/media-releases/2014/fma-warns-consumers-about-cold-calling-investment-offers-and-big-win-scams FMA warns consumers about cold-calling investment offers and ‘big win’ scams 2014-10-24 12:19:35 Financial Markets Authority <p><b>Media release<br></b><b>MR No. 2014 – 035<br></b><b>23 October 2014</b></p> <p>The Financial Markets Authority (FMA) is warning New Zealand consumers and investors to be wary of cold-calls asking them to buy shares or put their money into offshore firms.</p> <p>The FMA is receiving an increasing number of complaints about suspicious offers that involve transferring funds overseas. The flow of complaints relates to firms or people making cold-calls and offering suspicious ‘big win’ products or services, including investment schemes and forex trading services.</p> <p>The FMA’s Director of Compliance, Elaine Campbell, said today’s warning is targeted at cold-calling ‘big win’ scams, most often from overseas or unknown locations. “There are some tell-tale signs to beware of that should cause consumers to take extra caution.”  These include:</p> <ul> <li>Requests to transfer funds overseas quickly to the account of a firm or person.</li> <li>Claims you must ‘act now or miss out’, putting your money in now to enjoy a big payoff.</li> <li>Discouraging or prohibiting customers from seeking independent professional advice about the product, service, or transaction.</li> <li>Offers involving software or so-called “trading systems” – often for forex trading – where consumers must buy a license or software, in order to participate.</li> </ul> <p>Ms Campbell said, “There’s one principle to keep in mind: if an offer sounds too good to be true, then it probably is. Our advice is simple. Don’t transfer funds offshore to firms, or people, making offers like this – hang up the phone.  If you don’t understand an investment or product, don’t put your money in.”</p> <p>“Transferring funds offshore – especially to firms that you don’t recognise or can’t fully verify – adds unnecessary risk for consumers.  Generally, the FMA cannot help consumers to recover funds once they have transferred sums offshore.“</p> <p>The FMA is aware of firms providing fake website URLs that appear to be for a big-brand firm.</p> <p>The FMA publishes names of firms and people where it has identified an entity or a person who is operating without registration or authorisation in New Zealand, or where the firm or person is not complying with New Zealand’s financial services law.</p> <p>There is also a similar international list on FMA’s website provided by the <a href="http://www.fma.govt.nz/keep-updated/warnings-alerts-and-scams/international-regulator-alerts/" target="_blank">International Organisation of Securities Commissions (IOSCO)</a>.  However, even where names or firms of cold-callers do not appear on these lists, consumers should not assume they are operating legitimately.</p> <p>Ms Campbell said checking that firms are licensed or regulated in other countries could help consumers verify that such a firm exists. “But the fact that a firm is licensed or registered is not a guarantee for your money,” she said.</p> <p>Ms Campbell said consumers could use resources provided by the FMA and Consumer Affairs New Zealand that are designed to alert people to common characteristics of dubious offers.</p> <p>“Consumers don’t need to be drawn into these dubious offers. They can participate in well-regulated, genuine offers made by firms operating in New Zealand.  There is plenty of choice in investment and financial services products that are provided by reliable firms and professionals.</p> <p>“Genuine financial products and services offer consumers the protection of New Zealand law. All financial services products and securities contain some element of risk, so it’s a good idea to seek some professional advice.”</p> <p>ENDS</p> <p>Links to regulator and consumer websites in New Zealand:</p> <p><a href="http://www.consumeraffairs.govt.nz/scams/scam-types/get-rich-quick-investment-scams">http://www.consumeraffairs.govt.nz/scams/scam-types/get-rich-quick-investment-scams</a></p> <p><a href="http://www.consumeraffairs.govt.nz/scams">http://www.consumeraffairs.govt.nz/scams</a></p> <p><a href="http://www.fma.govt.nz/keep-updated/warnings-alerts-and-scams/being-alert-to-scams/">http://www.fma.govt.nz/keep-updated/warnings-alerts-and-scams/being-alert-to-scams/</a></p> <p>Contact: <br>Andrew Park<br>09 967 1215<br>021 220 6770<br><a href="mailto:andrew.park@fma.govt.nz">andrew.park@fma.govt.nz</a></p> http://www.fma.govt.nz/help-me-comply/financial-advisers/who-needs-to-comply/who-is-not-covered-by-the-financial-advisers-act-2008/ Who Is Not Covered by the Financial Advisers Act 2008? 2014-10-23 17:31:14 Financial Markets Authority <p>The Act provides exemptions for specific groups of people who may provide financial adviser services as incidental to their job. Their adviser activities fall outside the scope of the regulatory regime.</p> <p>These people are not required to be registered or authorised. They are people who provide financial advice only as an incidental part of another business that is not a financial service, e.g. a sales assistant in a retail store giving advice to a consumer buying goods on hire purchase. See section 13 of the Act for further information.</p> <p>There are also exemptions from registration and authorisation for other occupations/parties/entities who provide services which are not considered to be financial adviser services under the Act.</p> <p>For a complete list of financial adviser services not covered by the Act, go to sections 13 and 14.</p> <h2>Does the Act apply to investment property consultants?</h2> <p>When referring to 'investment property consultant' or 'property consultant' we mean any person who advises clients on investing in property, whether through a seminar, website or through other means, and who may or may not be a licensed real estate agent.</p> <p>Direct ownership of property is not a financial product under the Financial Advisers Act, but in some cases the requirements of the Act will still apply to investment property consultants and property consultants.</p> <h3>Advertising and scope of services offered</h3> <p>If a property consultant offers to for example, 'design a comprehensive investment plan' or 'take care of all of your investment goals' the requirements of the Act may apply.  The offer might be in an advertisement, in a seminar, or to a potential customer.</p> <p>Only an Authorised Financial Adviser can provide an 'Investment Planning Service' under section 11 of the Act. This is where an adviser offers to design a plan that is based on an analysis of a person's current and future overall situation and identifies investment goals then provides recommendations on how to realise those goals. There is an offence of holding yourself out to be an investment planner without being an AFA who is specifically authorised to provide investment planning services.</p> <p>FMA will also look at advertising that suggests investments other than property will be considered by a property consultant. This type of misleading advertisement may give rise to an offence under the Act.</p> <h3>Type of property investment offered</h3> <p>Some property investments are category 1 products under the Act and generally require consultants to be authorised to provide advice to clients. These are investments that are more complex than where a person simply owns a house or a piece of land directly. Direct ownership in property is not a financial product under the Act.</p> <p>Securities like property investment funds and certain contributory mortgage schemes are category 1 products as are land investment products. Land investment products are essentially schemes that involve an interest in land, are not otherwise category 1 products, and where the investor has no day to day control over the land involved. See the legal definitions of <a href="http://www.legislation.govt.nz/act/public/2008/0091/latest/DLM1584508.html"> securities</a> and <a href="http://www.legislation.govt.nz/regulation/public/2011/0050/latest/DLM3598428.html"> land investment products.</a></p> <h3>Real Estate Agents</h3> <p>The exemption for real estate agents providing services in the ordinary course of business is only available to licensees under the Real Estate Agents Act. Real estate agents need to carefully consider whether any services they provide that include investment advice or planning could sensibly be considered as part of a real estate agent's job. Advice on complex property schemes or investment plans for example should be provided by AFAs who can conduct a proper suitability analysis for their clients.</p> <h3>Source of deposit and comparisons to financial products</h3> <p>Recommending or giving an opinion that a person should sell or vary a financial product, for example specific shares or KiwiSaver, to purchase a house is caught by the Act, as financial advice also includes advice on the disposal or variation of a financial product. FMA will look at situations where clients are being advised to dispose of financial products in order to invest in property.</p> <p>In addition where there is an analysis by a property consultant that compares the merits of financial products with property, it is likely to be financial advice.</p> <p>It is an offence for financial advice to be provided by entities other than registered entities, or personalised financial advice to be provided by individuals who are not personally registered as financial advisers (or are QFE advisers).</p> http://www.fma.govt.nz/help-me-invest/money-week/ Money Week 2014-10-23 15:22:42 Financial Markets Authority <p><a href="http://moneyweek.org.nz/event/money-week-fma-heavyweight-debate" target="_blank"><strong><img class="leftAlone" title="Click image for more information" alt="" src="http://www.fma.govt.nz/assets/Uploads/moneyweek.png" width="420" height="203"></strong></a></p> <p><strong>Money Week is a major nationwide initiative from the Commission for Financial Literacy and Retirement Income. Now in its third year, the week of activities is focused on raising awareness about personal money matters and motivating New Zealanders to assess their financial situation.</strong></p> <h2><strong>FMA Money Week 'Heavy Weight Debate'</strong></h2> <p><strong><strong>Click <a href="https://www.youtube.com/watch?v=T3t8ibOMAAA&amp;list=UUdEF_dWppJ_f-pmBLywABDA" target="_blank">here</a> to watch highlights of the event.</strong></strong></p> <p>On Thursday 16 October, FMA hosted a panel discussion to promote greater understanding of investment risk.</p> <p>The panel discussion asked whether New Zealanders are any good at understanding risk. The aim of the discussion was to help investors and consumers understand more about risk, a subject which many investors often find challenging.</p> <p>The panel featured:</p> <ul> <li><strong>Rob Everett</strong>, Chief Executive Financial Markets Authority.</li> <li><strong>Mary Holm</strong>, renowned author and investor advocate.</li> <li><strong>John Body</strong>, Managing Director ANZ Wealth, the nation’s largest KiwiSaver provider.</li> <li><strong>Martin Hawes</strong>, respected commentator and authorised financial adviser.</li> </ul> <p><strong>Chaired by broadcaster Wallace Chapman from TV’s 'Backbenches' programme and Radio New Zealand.</strong></p> <p>Click image to download.</p> <p><a href="http://www.fma.govt.nz/assets/images/Would-you-bet-the-house-Money-Week-poster.pdf" target="_blank"><img class="leftAlone" title="Click image to download" alt="" src="http://www.fma.govt.nz/assets/images/_resampled/ResizedImage230315-Would-you-bet-the-house-Money-Week-poster.png" width="230" height="315"></a></p> http://www.fma.govt.nz/keep-updated/newsroom/media-releases/2014/new-zealanders-underestimate-investment-risk-and-prefer-lower-risk-investment-options New Zealanders underestimate investment risk and prefer lower risk investment options 2014-10-23 08:23:24 Financial Markets Authority <p><b>Media release<br></b><b>MR No. 2014 – 034<br></b><b>14 October 2014</b></p> <p>Research conducted for the Financial Markets Authority (FMA) shows Kiwis are switched-on about straightforward, low-risk investment options. But when responding to questions about investments with more risk, people are far less confident.</p> <p>The FMA ran the survey as part of its contribution to this year’s Money Week, running from 13 – 17 October. Money Week encourages New Zealanders to think about their personal financial situation.</p> <p>The survey asked respondents to assign a risk-level to various investments, including shares, KiwiSaver funds, term deposits, bonds and residential property investment. People were also asked whether these investments came with a guarantee you would get all your money back.</p> <p>81 per cent of respondents said term deposits were low risk and 73 per cent said KiwiSaver conservative funds were low risk.</p> <p>But when it came to higher-risk investments such as shares and growth funds the results gave a mixed picture. 34 per cent said KiwiSaver growth funds were high risk, while 21 per cent identified growth funds as low risk. 44 per cent thought shares were medium or low risk. Most experts would accept that shares are a higher-risk investment choice, albeit with higher potential returns over the long term.</p> <p>Simone Robbers, FMA Head of Primary Markets and Investor Resources, said “People seem to understand that term deposits and fixed interest investments are lower risk investments but there was confusion around the levels of risk of growth focused investments.</p> <p>“We want to help people become comfortable about discussing all kinds of investment products so they can make more informed decisions. It’s important to understand what level of risk is most suitable for you and the mix of investments that will help you reach your financial goals.”</p> <p>There is also confusion about whether investments are guaranteed or not. 52 per cent of respondents said that term deposits came with a guarantee, and 42 per cent said KiwiSaver was guaranteed.   People holding these investments were more likely to think that they came with some form of guarantee.</p> <p>The government does not guarantee these investments and nor do providers<a title="" href="http://www.fma.govt.nz/#_ftn1">[1]</a>. Only 17 per cent of those surveyed thought that none of the investments included in the research came with a guarantee.</p> <p>“Every investment comes with some level of risk and we need to ensure people are reading the descriptions in the product disclosure documents as these should clearly spell out the risks and the returns associated with a product. This product disclosure should describe whether an investment is guaranteed or not,” said Ms Robbers.</p> <p>There are resources available on the FMA <a href="http://fma.govt.nz/help-me-invest/">website</a> where you can find out more about investing. The Sorted.org <a href="https://www.sorted.org.nz/">website</a> has resources and tools available to find out about your own investment risk profile. The Sorted <a href="http://fundfinder.sorted.org.nz/">Fundfinder</a> tool helps KiwiSaver members compare investment funds and find out more about how their funds are invested.</p> <p>Other key findings from the survey include:</p> <ul> <li>43 per cent thought residential property investment was a low risk option, while 48 per cent considered this medium risk.</li> <li>There were few noticeable differences between age groups in their understanding or approach to risk. However when it came to residential property investment, 13% of 18-24 year olds thought property was high risk  compared to 3% of 50-64 year olds.</li> <li>Almost two-thirds (62%) prefer steady investments offering a reliable return, compared to 39 per cent wanting the best return, even if the value of the investment went up and down.</li> <li>Men were more likely than women to want the best return for their investment (43% v 35%). Women were more likely to want to maintain all the money originally invested (53% v 45%).</li> <li>Aucklanders are more likely than the rest of the country to prefer the best return overall (46% for Auckland v 39% for all respondents). They are also more likely than average to want an investment which will double their money in 10 years (15% v 10%).</li> <li>Half (49%) of those surveyed would take a day or less to choose where to invest $10,000, and nearly one-in-five (17%) would take an hour or less.</li> <li>A third (34%) of those surveyed said they intend to seek financial advice in the next year.</li> </ul> <p>Full results of the survey <a href="http://www.fma.govt.nz/assets/Report-and-Papers/FMA-Money-Week-Survey-2014.pdf" target="_blank">here</a>.</p> <p>Colmar Brunton conducted the survey and interviewed 1,028 people between 27 August and 2 September 2014. The margin of error is +/- 3.1%.</p> <p>Find out more about Money Week <a href="http://moneyweek.org.nz/">here</a>.</p> <p>Come to FMA’s Heavy Weight Debate for Money Week in Auckland <a href="http://fma.govt.nz/help-me-invest/money-week/">here</a>.</p> <p> </p> <p>ENDS</p> <p>Contact: <br>Andrew Park<br>09 967 1215<br>021 220 6770<br><a href="mailto:andrew.park@fma.govt.nz">andrew.park@fma.govt.nz</a></p> <hr> <div> <div> <p><a title="" href="http://www.fma.govt.nz/#_ftnref1">[1]</a> Certain providers offer capital protection products not listed here</p> </div> </div> http://www.fma.govt.nz/help-me-comply/financial-advisers/exemptions/ Exemptions 2014-10-22 15:28:03 Financial Markets Authority <p>In certain circumstances it may be possible to obtain an exemption from being registered as a financial adviser or from any of the obligations under the Financial Advisers Act 2008 (FAA), regulations or the Code of Conduct. The Financial Markets Authority (FMA) will limit the use of its powers to cases that meet prescribed statutory criteria and are consistent with the policy of the FAA.</p> <ul> <li>Read the <a title="Guidance Note on Financial Advisers Act Exemptions" href="http://www.fma.govt.nz/help-me-comply/financial-advisers/exemptions/guidance-note-on-financial-advisers-act-exemptions/">Guidance note on Financial Advisers Act exemptions (November 2010)</a></li> <li>Find out about the <a href="http://www.legislation.govt.nz/regulation/public/2010/0423/latest/DLM3362949.html">exemption for sole adviser practices</a>.</li> <li>Find out the <a title="Information Requirements: Applications for Exemption Under the Financial Advisers Act 2008" href="http://www.fma.govt.nz/help-me-comply/financial-advisers/exemptions/information-requirements-applications-for-exemption-under-the-financial-advisers-act-2008/">information requirements when applying for an exemption</a></li> <li>Find out about <a title="Current Exemption Notices" href="http://www.fma.govt.nz/laws-we-enforce/legislation/exemption-notices/current-exemption-notices/">existing exemption notices</a></li> <li>Find out <a title="Financial Advisers Act Exemption Fees" href="http://www.fma.govt.nz/help-me-comply/financial-advisers/exemptions/financial-advisers-act-exemption-fees/">what fees are payable for an exemption application</a></li> </ul> <h2>Financial Advisers (Australian Licensees) Exemption Notice</h2> <p>The Financial Advisers (Australian Licensees) Exemption Notice came into force on 1 July 2011. Unless extended it will expire on 31 May 2018.</p> <p>This notice provides exemptions from certain provisions of the FAA and the Financial Service Providers (Registration and Dispute Resolution) Act 2008 (FSP Act) to enable  Australian-regulated financial services firms and their representatives to provide financial adviser services into New Zealand on an off-shore basis without obtaining authorisation as a New Zealand authorised financial adviser.  The notice can be found <a href="http://fma.govt.nz/laws-we-enforce/legislation/exemption-notices/current-exemption-notices/?Company=Australian+Licensees#tablehttp://fma.govt.nz/laws-we-enforce/legislation/exemption-notices/current-exemption-notices/?Company=Australian+Licensees" target="_blank">here</a>.</p> <p>The notice relates only to unsolicited services to New Zealand clients provided from offshore by an Australian licensee and its representatives. It can be relied on in circumstances such as where an Australian licensee wishes to continue to provide services to Australian based clients that have moved to New Zealand, New Zealand based clients that have been clients since prior to the introduction of the New Zealand financial adviser regime, and where clients have approached the Australian licensee without any solicitation from the licensee.</p> <p>An Australian licensee who wishes to rely on the notice must comply with a number of conditions including being a registered financial service provider in New Zealand and a member of a New Zealand dispute resolution scheme.  Australian licensees must also notify the FMA of their intention to rely on the notice and submit certain prescribed information to the FMA.  If you seek to rely on the notice you will need to understand the full scope of its conditions.</p> <p>Australian licensees currently relying on the notice include:</p> <ul> <li>Aon Hewitt Financial Advice Limited</li> <li>Harvest Financial Group Pty Limited</li> <li>Macquarie Equities Limited</li> <li>Morgans Financial Limited (previous RBS Morgans Limited)</li> <li>UBS Wealth Management Australia Limited</li> <li>WHK Financial Planning Pty Limited</li> </ul> <p> </p> <p><a href="http://www.fma.govt.nz/laws-we-enforce/legislation/exemption-notices/"><strong>See a full list of Exemption Notices</strong></a></p> http://www.fma.govt.nz/help-me-comply/financial-advisers/who-needs-to-comply/what-type-of-financial-adviser-am-i/personalised-or-class-services/ Personalised or Class Services 2014-10-22 15:20:15 Financial Markets Authority <p>The type of adviser you are, and what you need to do to comply, will partly depend on whether you offer a personalised service or a class service.</p> <h2>Personalised service - financial advice or an investment planning service</h2> <p>A personalised service is one that is given to a client who is readily identifiable by the adviser and, either the adviser has taken the person's individual situation into account, or the client would expect their individual situation to be taken into account. For more information see s15 of the <a href="http://www.legislation.govt.nz/act/public/2008/0091/latest/contents.html"> Financial Advisers Act 2008</a>.</p> <h2>Personalised service – discretionary investment management service (DIMS)</h2> <p>In the case of a discretionary investment management service, the service is a personalised service or a personalised DIMS if – </p> <p>a) the service is provided to a named client of a client who is otherwise readily identifiable by the financial adviser exercising the investment authority under that service; and</p> <p>b) the investment strategy implemented in, or to be applied under, the investment authority has been designed to take account of the client’s particular financial situation and goals or any 1 or more of them (rather than merely being customized from an investment strategy that applies to a class of clients, for example, by selecting options or making minor changes to the class strategy or authority).</p> <h2>Class service</h2> <p>A class service is anything that is not a personalised service, e.g. brochures, seminars and internet material targeted towards a wide class of people rather than an individual. For more information see s15 of the <a href="http://www.legislation.govt.nz/act/public/2008/0091/latest/DLM1584202.html">Act</a>.</p> <h2>Who can provide class services?</h2> <p>Authorised Financial Advisers, QFE Advisers and registered individuals or entities can all provide class service to retail clients, irrespective of which category of product the advice is about.</p> <p>Note that advice provided about a class of products is not financial advice and is outside the regulatory scope of the <a href="http://www.legislation.govt.nz/act/public/2008/0091/latest/DLM1584202.html">Act</a>. (See section 10.) This is a different concept than class service which is covered by the Act.</p> <p><a href="http://www.fma.govt.nz/help-me-comply/financial-advisers/who-needs-to-comply/what-type-of-financial-adviser-am-i/">See the flowchart to help decide what type of financial adviser you are</a>.</p> http://www.fma.govt.nz/help-me-comply/financial-advisers/your-obligations/advertising/ Advertising 2014-10-22 15:15:19 Financial Markets Authority <p> </p> <h2>RFAs</h2> <p><strong>How can registered advisers use the term RFA or registered financial adviser in advertising?</strong></p> <p>There is no prohibition in the FAA against advisers using the term registered financial adviser or RFA. FMA uses the term and its acronym to distinguish between the different types of advisers and the Disclosure Regulations require RFAs to tell clients they are 'a registered but not an authorised financial adviser'. Referring to these distinctions helps clients understand the type of adviser they are dealing with and the types of services the adviser is permitted to provide.</p> <p>However, advisers should not imply that being a registered financial adviser means FMA has licensed, approved or endorsed that adviser. To make or imply these connections could be misleading and confusing for clients.</p> <p>Advisers should also take care in the way they use the designation RFA, so they do not imply that RFA status is a professional qualification or that it has any minimum competence requirements attached to it. To make or imply these connections could also be misleading and confusing for clients.</p> <p>For example:</p> <ul> <li>a letterhead or advertisement that reads 'John Adviser, BCom, R.F.A, A.C.A' may imply to a client that RFA is a qualification or professional status the adviser has attained.</li> </ul> <h2><a id="AFA advertising" name="AFA%20advertising"></a>AFAs</h2> <p>AFAs have additional obligations relating to advertising. Under AFA <a href="http://www.fma.govt.nz/help-me-comply/financial-advisers/your-obligations/authorised-financial-advisers-obligations/terms-and-conditions-for-afas/standard-conditions-for-afas/">Standard Condition 7</a> AFAs must not at any time state or imply FMA has endorsed or approved the AFA's business, advice, or solvency, or any other agreements or business arrangements. </p> <p>However this does not prevent AFAs from factually disclosing or otherwise representing they are an AFA.  E.g. AFAs can display their AFA certificate on an office wall or website or state on business cards that they are an AFA.</p> <p>AFAs must also state on advertisements for financial adviser services that a disclosure statement is available on request and free of charge. (See section 30 of the FAA and the definition of advertisement at section 5).</p> <h2><a id="QFE advertising" name="QFE%20advertising"></a>QFEs</h2> <p>QFEs also have additional obligations relating to advertising.</p> <p>Under QFE <a href="http://www.fma.govt.nz/help-me-comply/financial-advisers/your-obligations/authorised-financial-advisers-obligations/terms-and-conditions-for-afas/standard-conditions-for-afas/">Standard Condition 5</a>, QFEs must not at any time state or imply FMA has endorsed or approved the AFA's business, advice, or solvency, or any other agreements or business arrangements.  However QFEs can factually disclose or otherwise represent that they are a QFE.</p> <p>QFEs also need to ensure their QFE advisers do not use that term in a way that is misleading. This could include, for example, representations that the QFE adviser is licensed or approved by FMA or that the QFE adviser is permitted to provide services that are not within the remit of the QFE's grant of status.</p> http://www.fma.govt.nz/help-me-comply/financial-advisers/your-obligations/authorised-financial-advisers-obligations/continuing-professional-development-cpd/ Continuing Professional Development (CPD) 2014-10-22 14:56:38 Financial Markets Authority <p> </p> <h3><a name="Summaryandinterpretation"></a>Summary and interpretation of principles</h3> <p>AFAs must have the competence, knowledge and skills to provide financial adviser service. Refer to the detail described in:</p> <ul> <li>Code Standards 6(a), 14-18</li> </ul> <p>In summary if you are an AFA you should:</p> <ul> <li>identify for yourself the areas you need to focus on to improve your own competence, knowledge and skills in relation to your particular financial adviser services.</li> <li>ensure the training you do is structured professional development which maintains your competence at a level appropriate for the financial adviser services you provide or intend to provide.</li> <li>ensure the training helps you keep up to date with developments relevant to your particular practice.</li> <li>complete no less than 30 hours of structured professional development over the course of every two CPD periods.</li> </ul> <p>In making these assessments, you should bear in mind:</p> <ul> <li>a variety of subjects may qualify as CPD - provided always that the training is relevant to your needs.</li> </ul> <ul> <li>the degree of difficulty that is acceptable can also vary, providing you are completing training relevant to your particular needs.</li> </ul> <h3><a name="ProfessionalDevelopmentPlan"></a>Professional Development Plan</h3> <p>An AFA must maintain and keep current a professional development plan for each CPD period.</p> <p><strong>CPD period</strong></p> <p>In most cases, an AFA's first CPD period will start on 1 January in the year following the AFA's date of authorisation (see Schedule H of the Code). There is currently no pro-rating of CPD periods.</p> <p>In line with the intent and spirit of the Code, you should not delay training identified as necessary or desirable if your CPD period has not yet begun.</p> <p>To satisfy Code Standard 18, AFAs must complete no less than 30 hours of structured professional development over the course of every two CPD periods. (Note that the term 'credits' is not used in the Code).  You can interpret an hour of training usually to equate to an hour of CPD.</p> <p>You should not include periods where no active learning is taking place e.g. lunch breaks at seminars would not count as part of your CPD hours.</p> <p><strong>Complete no less than 30 hours</strong></p> <p>It is important to note that 30 hours of structured professional development is a <strong>minimum requirement</strong>, irrespective of the range of financial adviser services provided. As a general guideline, the greater the range of services, the greater the likelihood that 30 hours will be insufficient for AFAs to continue to satisfy Code Standard 14.</p> <p><strong>What is structured professional development?</strong></p> <p>The Code defines structured professional development as <em>"training that has identifiable aims and with outcomes relevant to the learning needs identified in the AFA's professional development plan, and:</em></p> <p style="padding-left: 30px;"><em>a) is provided by a qualified educator or relevant subject matter expert; and</em></p> <p style="padding-left: 30px;"><em>b) provides for interaction and feedback; and</em></p> <p style="padding-left: 30px;"><em>c) participation is verifiable by documentation"</em></p> <p>Structured professional development may include technical product training but excludes training provided for the principal purpose of promoting a particular financial product.</p> <h3><a name="Additionaltraining"></a>Additional training</h3> <p>The Code requires AFAs to undertake such additional training as necessary to:</p> <ul> <li>maintain competence at the appropriate level for the financial adviser services the AFA provides or intends to provide,</li> <li>or to satisfy the AFA's professional development plan for that CPD period – whether in the form of structured professional development or some other form.</li> </ul> <p>AFAs will need to be able to demonstrate they are satisfying their professional development plan, so its important to record all relevant professional development activities undertaken, whether in the form of structured professional development" or some other form.</p> <h3><a name="ABS"></a>Addressing CPD in your Adviser Business Statements (ABS)</h3> <p>As part of your ABS, it should be clear how you are meeting the Code requirements relating to competence, knowledge and skills including continuing professional development.</p> http://www.fma.govt.nz/help-me-comply/financial-advisers/who-needs-to-comply/registered-financial-advisers/ Registered Financial Advisers 2014-10-22 14:04:13 Financial Markets Authority <p>Registered Financial Advisers (RFAs) are individual advisers who are required to be <a href="http://www.fma.govt.nz/help-me-comply/financial-service-providers/how-to-register/" target="_blank">registered</a> under the <a href="http://www.legislation.govt.nz/act/public/2008/0091/latest/DLM1584202.html?src=qs" target="_blank">Financial Advisers Act 2008</a> but who, because of the limited scope of their services and/or clients, do not need to become Authorised Financial Advisers.</p> <p>RFAs can provide financial advice in relation to a <a href="http://www.fma.govt.nz/help-me-comply/financial-advisers/who-needs-to-comply/what-type-of-financial-adviser-am-i/category-1-or-category-2-products/">category 2 product</a>.</p> <p>RFAs are permitted to provide a class service to a <a href="http://www.fma.govt.nz/help-me-comply/financial-advisers/who-needs-to-comply/what-type-of-financial-adviser-am-i/retail-or-wholesale-clients/">retail client, or a financial adviser service to a wholesale client</a>.</p> <ul> <li><a href="http://www.fma.govt.nz/help-me-comply/financial-advisers/your-obligations/registered-financial-advisers/"> Find out more about RFA obligations</a></li> </ul> http://www.fma.govt.nz/help-me-comply/futures-dealers/list-of-authorised-futures-dealers/ List of Authorised Futures Dealers 2014-10-22 14:00:28 Financial Markets Authority <p>The Financial Markets Authority (FMA) publishes this information for public use.  This list does not supersede the Authorised Futures Dealers Notices (Notices) published in the Gazette from time to time.  For full details of the authorisation granted to a particular entity, you should obtain a copy of the relevant Notice.  To access the Notices visit <a href="http://www.dia.govt.nz/Services-New-Zealand-Gazette-Index">New Zealand Gazette</a>.</p> <p>If you consider your firm ought to be added to this list and/or the description of your firm's authorisation requires updating please e-mail questions@fma.govt.nz.</p> <table class="advisers"> <thead> <tr><th>Authorised Futures Dealer</th><th>Gazette Notice Reference</th><th>Summary of Authorisation</th><th>Expiry Date</th></tr> </thead> <tbody> <tr> <td>Advanced Metering Assets Limited</td> <td>Authorised Futures Dealers (No.3) Notice 1997</td> <td>Dealing in electricity futures contracts on behalf of electricity wholesale clients</td> <td>N/A</td> </tr> <tr> <td>AMP Capital Investors (New Zealand) Limited</td> <td>Authorised Futures Dealers (No.9) Notice 1994</td> <td>Dealing in futures contracts as part of the ordinary course of  business as a funds manager or as part of the duties and functions of the company as a trustee of any managed funds</td> <td>N/A</td> </tr> <tr> <td>Arrowstreet Capital, Limited Partnership</td> <td>Authorised Futures Dealers (Wholesale Dealers) Notice 2012</td> <td>Advising on futures contracts to wholesale clients</td> <td>Aug-17</td> </tr> <tr> <td>BBY (NZ) Limited</td> <td>Authorised Futures Dealers (Edge Capital Markets Limited)Notice 2011</td> <td>Providing a futures adviser or introducingbroker or managed account service.</td> <td>28 Nov 14</td> </tr> <tr> <td>B T Funds Management (NZ) Limited</td> <td>Authorised Futures Dealers (No.5) Notice 1998</td> <td>Dealing in futures contracts as part of the ordinary course of  business as a fund manager or as part of the duties and functions of the company as a trustee of any managed funds</td> <td>N/A</td> </tr> <tr> <td>Bank of New York Mellon</td> <td>Authorised Futures Dealers (Bank of New York Mellon) Notice 2011</td> <td>Advising on futures contracts to wholesale clients</td> <td>Mar-16</td> </tr> <tr> <td>Barclays Bank PLC</td> <td>Authorised Futures Dealers (Barclay's Bank PLC) Notice 2011</td> <td>Dealing in futures contracts generally on behalf of wholesale clients</td> <td>Jul-16</td> </tr> <tr> <td>Centurion Finance Limited</td> <td>Authorised Futures Dealers (Centurion Finance Limited) Notice 2011</td> <td>Issuing foreign exchange futures contracts</td> <td>Oct-14</td> </tr> <tr> <td>CMC Markets NZ Limited</td> <td>Authorised Futures Dealers (CMC Markets NZ Limited) Notice 2011</td> <td>Issuing over the counter and foreign exchange futures contracts</td> <td>29 Nov 14</td> </tr> <tr> <td>Colchester Global Investors Limited</td> <td>Authorised Futures Dealers (Colchester Global Investors Limited) Notice 2012</td> <td>Advising on futures contracts to wholesale clients</td> <td>Aug-17</td> </tr> <tr> <td>Contact Energy Limited</td> <td>Authorised Futures Dealers (No.3) Notice 1997</td> <td>Dealing in electricity futures contracts on behalf of electricity wholesale clients</td> <td>N/A</td> </tr> <tr> <td>Cooperative Centrale Raiffeisen-Boerenleenbank B.A. (Rabobank Nederland)</td> <td>Authorised Futures Dealers (Rabobank Nederland) Notice 2010</td> <td>Dealing in futures contracts off exchange on behalf of wholesale clients</td> <td>Jul-15</td> </tr> <tr> <td>Direct FX Limited</td> <td>Authorised Futures Dealers (Direct FX Limited) Notice 2009</td> <td>Advising on futures contracts to wholesale clients</td> <td>Feb-14</td> </tr> <tr> <td>Electricity Corporation of New Zealand Limited</td> <td>Authorised Futures Dealers (No.3) Notice 1997</td> <td>Dealing in electricity futures contracts on behalf of electricity wholesale clients</td> <td>N/A</td> </tr> <tr> <td>Elementum (Bermuda) Limited</td> <td>Authorised Futures Dealers (Wholesale Dealers) Notice 2012</td> <td>Advising on futures contracts to wholesale clients</td> <td>Aug-17</td> </tr> <tr> <td>Elementum Advisors LLC</td> <td>Authorised Futures Dealers (Wholesale Dealers) Notice 2012</td> <td>Advising on futures contracts to wholesale clients</td> <td>Aug-17</td> </tr> <tr> <td>Energy Link Limited</td> <td>Authorised Futures Dealers (No.3) Notice 1997</td> <td>Dealing in electricity futures contracts on behalf of electricity wholesale clients</td> <td>N/A</td> </tr> <tr> <td>Energywise Solutions Limited</td> <td>Authorised Futures Dealers (No.3) Notice 1997 - as amended 31 March 2011</td> <td>Dealing in electricity futures contracts on behalf of electricity wholesale clients</td> <td>N/A</td> </tr> <tr> <td> <p>Fonterra Commodities Limited</p> </td> <td> <p>Authorised Futures Dealers (Fonterra Commodities Limited) Notice 2013</p> </td> <td> <p>Advising on futures contracts to wholesale clients</p> </td> <td>Feb-18</td> </tr> <tr> <td>Genesis Power Limited</td> <td>Authorised Futures Dealers (No.3) Notice 1997 - as amended 8 July 1999</td> <td>Dealing in electricity futures contracts on behalf of electricity wholesale clients</td> <td>N/A</td> </tr> <tr> <td>Global Brokers (NZ) Limited</td> <td>Authorised Futures Dealers (Global Brokers (NZ) Limited) Notice 2012</td> <td>Dealing in futures contracts generally</td> <td>Nov-14</td> </tr> <tr> <td>Harlow Butler (NZ) Limited</td> <td>Authorised Futures Dealers (No.3) Notice 1997</td> <td>Dealing in electricity futures contracts on behalf of electricity wholesale clients</td> <td>N/A</td> </tr> <tr> <td>HiFX Limited</td> <td>Authorised Futures Dealers (HiFX Limited) Notice 2013</td> <td>Issuing forward foreign exchange futures contracts; and advising on forward foreign exchange futures contracts to wholesale clients</td> <td>Mar-18</td> </tr> <tr> <td>ICAP Brokers Pty Limited</td> <td>Authorised Futures Dealers (ICAP Brokers Pty Limited) Notice 2013</td> <td>Advising on futures contracts to wholesale clients</td> <td>Sep-17</td> </tr> <tr> <td>ICAP New Zealand Limited</td> <td>Authorised Futures Dealers (ICAP New Zealand Limited) Notice 2011</td> <td>Advising on futures contracts to wholesale clients</td> <td>Aug-16</td> </tr> <tr> <td>IG Markets Limited</td> <td>Authorised Futures Dealers (IG Markets Limited) Notice 2009</td> <td>Issuing over-the-counter futures contracts</td> <td>28 Nov 14</td> </tr> <tr> <td>J.P. Morgan Australia Limited</td> <td>Authorised Futures Dealers (JPMorgan Chase Bank Limited, NA and J.P. Morgan Australia Limited) Notice 2013</td> <td>Advising on off exchange futures contracts to wholesale clients that JPMorgan Chase Bank Limited, National Association is a party to</td> <td>Nov-16</td> </tr> <tr> <td>J.P. Morgan Markets Australia PTY Limited</td> <td>Authorised Futures Dealers Notice 2006</td> <td>Dealing in future contracts generally on behalf of wholesale clients</td> <td>N/A</td> </tr> <tr> <td>J.P. Morgan Securities Australia Limtied</td> <td>Authorised Futures Dealers (J.P. Morgan Securities Australia Limtied) Notice 2010</td> <td>Dealing in futures contracts generally on behalf of wholesale clients</td> <td>Nov-15</td> </tr> <tr> <td>JPMorgan Chase Bank Limited, National Association</td> <td>Authorised Futures Dealers (JPMorgan Chase Bank Limited, NA and J.P. Morgan Australia Limited) Notice 2013</td> <td>Issuing futures contracts to wholesale clients</td> <td>Nov-16</td> </tr> <tr> <td>KVB Kunlun New Zealand Limited</td> <td>Authorised Futures Dealers (KVB Kunlun New Zealand Limited) Notice 2013</td> <td>Dealing in futures contracts generally</td> <td>Nov-16</td> </tr> <tr> <td>Macquarie Bank Limited</td> <td>Authorised Futures Dealers (Macquarie Bank Limited) Notice 2009</td> <td>Dealing in futures contracts generally on behalf of wholesale clients</td> <td>Nov-14</td> </tr> <tr> <td>MainPower New Zealand Limited</td> <td>Authorised Futures Dealers (No.3) Notice 1997</td> <td>Dealing in electricity futures contracts on behalf of electricity wholesale clients</td> <td>N/A</td> </tr> <tr> <td>MCI Markets Limited</td> <td>Authorised Futures Dealers (MCI Markets Limited) Notice 2012</td> <td>Issuing over-the-counter futures contracts</td> <td>Jul-14</td> </tr> <tr> <td>Meridian Energy Limited</td> <td>Authorised Futures Dealers (No.3) Notice 1997 - as amended 18 December 2003</td> <td>Dealing in electricity futures contracts on behalf of electricity wholesale clients</td> <td>N/A</td> </tr> <tr> <td>Mighty River Power Limited</td> <td>Authorised Futures Dealers (No.3) Notice 1997 - as amended 15 June 2000</td> <td>Dealing in electricity futures contracts on behalf of electricity wholesale clients</td> <td>N/A</td> </tr> <tr> <td>Millenium Capital Management (New Zealand)</td> <td>Authorised Futures Dealers (Millenium Capital Management (New Zealand)) Notice 2012</td> <td>Advising on futures contracts to wholesale clients as a fund manager or as an investment adviser or as an investment manager for a fund manager of a fund.</td> <td>Dec-17</td> </tr> <tr> <td>MS Capital Management Limited</td> <td>Authorised Futures Dealers (Wholesale Dealers) Notice 2012</td> <td>Advising on futures contracts to wholesale clients</td> <td>Aug-17</td> </tr> <tr> <td>New Zealand Assets Management Limited</td> <td>Authorised Futures Dealers (No.3) Notice 1998</td> <td>Advising in futures contracts  for the purpose of its investment portfolio management business</td> <td>N/A</td> </tr> <tr> <td>Onepath NZ Limited</td> <td>Authorised Futures Dealers Notice 1994</td> <td>Dealing in futures contracts as part of the ordinary course of  business as a funds manager or as part of the duties and functions of the company as a trustee of any managed funds</td> <td>N/A</td> </tr> <tr> <td>Orion New Zealand Limited</td> <td>Authorised Futures Dealers (No.3) Notice 1997</td> <td>Dealing in electricity futures contracts on behalf of electricity wholesale clients</td> <td>N/A</td> </tr> <tr> <td>Pacific Financial Derivatives Limited</td> <td>Authorised Futures Dealers (Pacific Financial Derivatives Limited) Notice 2011</td> <td>Dealing in futures contracts generally</td> <td>28 Nov 14</td> </tr> <tr> <td>PricewaterhouseCoopers</td> <td> <p><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;; font-size: 11pt; mso-fareast-font-family: Calibri; mso-fareast-theme-font: minor-latin; mso-ansi-language: EN-NZ; mso-fareast-language: EN-NZ; mso-bidi-language: AR-SA;">Authorised FuturesDealers PricewaterhouseCoopers) Notice 2013</span></p> </td> <td><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;; font-size: 11pt; mso-fareast-font-family: Calibri; mso-fareast-theme-font: minor-latin; mso-ansi-language: EN-NZ; mso-fareast-language: EN-NZ; mso-bidi-language: AR-SA;">Advising on futures contracts to wholesale clients</span></td> <td><span style="font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;; font-size: 11pt; mso-fareast-font-family: Calibri; mso-fareast-theme-font: minor-latin; mso-ansi-language: EN-NZ; mso-fareast-language: EN-NZ; mso-bidi-language: AR-SA;">Nov -16</span></td> </tr> <tr> <td>Pure Capital Limited</td> <td>Authorised Futures Dealers (Wholesale Dealers) Notice 2012</td> <td>Advising on futures contracts to wholesale clients</td> <td>Aug-17</td> </tr> <tr> <td>QS Investors LLC</td> <td>Authorised Futures Dealers (QS Investors LLC) Notice 2011</td> <td>Advising on futures contracts to wholesale clients</td> <td>Apr-16</td> </tr> <tr> <td>RMB Australia Limited</td> <td>Authorised Futures Dealers (No.3) Notice 1997</td> <td>Dealing in electricity futures contracts on behalf of electricity wholesale clients</td> <td>N/A</td> </tr> <tr> <td>Shell Eastern Trading Pte Limited</td> <td>Authorised Futures Dealers (Shell Eastern Trading Pte Limited) Notice 2011</td> <td>Issuing oil price futures contracts or carbon price futures contracts to wholeshale clients</td> <td>Jul-16</td> </tr> <tr> <td>Simply Energy Limited</td> <td>Authorised Futures Dealers (No.3) Notice 1997 - as amended 7 April 2011</td> <td>Dealing in electricity futures contracts on behalf of electricity wholesale clients</td> <td>N/A</td> </tr> <tr> <td>Strategic Capital Markets Limited</td> <td>Authorised Futures Dealers (Strategic Capital Markets Limited) Notice 2011</td> <td>Providing a futures adviser or introducing broker or managed account service</td> <td>Sep-14</td> </tr> <tr> <td>Tararua Wind Power Limited</td> <td>Authorised Futures Dealers (No.3) Notice 1997 - as amended 8 October 1998</td> <td>Dealing in electricity futures contracts on behalf of electricity wholesale clients</td> <td>N/A</td> </tr> <tr> <td>Total Utilities Management Group</td> <td>Authorised Futures Dealers (No.3) Notice 1997 - as amended 24 November 2011</td> <td>Dealing in electricity futures contracts on behalf of electricity wholesale clients</td> <td>N/A</td> </tr> <tr> <td>Tower Financial Services Group Limited</td> <td>Authorised Futures Dealers (No.12) Notice 1994</td> <td>Dealing in futures contracts as part of the ordinary course of  business as a funds manager or as part of the duties and functions of the company as a trustee of any managed funds</td> <td>N/A</td> </tr> <tr> <td>Trafalgar Copley Limited</td> <td>Authorised Futures Dealers (No.2) Notice 2007 - amended 31 May 2012</td> <td>Advising on futures contracts to wholesale clients as an investment adviser or as an investment manager for a fund manager of a fund.</td> <td>Apr-17</td> </tr> <tr> <td>TransPower New Zealand Limited</td> <td>Authorised Futures Dealers (No.3) Notice 1997</td> <td>Dealing in electricity futures contracts on behalf of electricity wholesale clients</td> <td>N/A</td> </tr> <tr> <td>TrustPower Limited</td> <td>Authorised Futures Dealers (No.3) Notice 1997 - as amended 8 July 1999</td> <td>Dealing in electricity futures contracts on behalf of electricity wholesale clients</td> <td>N/A</td> </tr> <tr> <td>Tyndall Investment Management New Zealand Limited</td> <td>Authorised Futures Dealers (No.2) Notice 1996</td> <td>Dealing in futures contracts as part of the ordinary course of  business as a funds manager or as part of the duties and functions of the company as a trustee of any managed funds</td> <td>N/A</td> </tr> </tbody> </table> <p><em>Note - should you try to access the Notices on the <a href="http://www.dia.govt.nz/Services-New-Zealand-Gazette-Index">New Zealand Gazette</a>, you should refine the search to the full name of the Notice and the year of publication; or if it is an amended Notice, the full name of the Notice and the year of the amendment.</em></p> <h2><strong>Authorised Futures Exchanges and Authorised Futures Dealers Notices which include more than one entity</strong></h2> <ul> <li><strong>Authorised Futures Exchanges</strong></li> </ul> <p>No person may carry on the business of dealing in futures contracts unless that person is authorised by the FMA, or has been approved under the rules of  an authorised futures exchange to carry on the business of dealing in futures contracts in accordance with the rules of that exchange.  The authorised futures exchanges include:</p> <ul> <li>NZX Limited (the NZX Derivatives Market)</li> <li>Australian Securities Exchange Limited (the ASX 24 Market)</li> <li>ICE Futures Europe</li> <li>ICE Futures U.S., Inc.</li> </ul> <p>Currently only NZX Derivative Market Participants would qualify as being approved under the rules of an authorised futures exchange to carry on the business of dealing in futures contracts.</p> <ul> <li><strong>Authorised Futures Dealers Notice (no.2) 2004</strong></li> </ul> <p>Every ASX24 Participant is authorised to carry on the business of dealing in futures contracts that are made on or effected through the ASX 24 Market.</p> <p>ASX 24 Participants would need to seek further authorisation from FMA in order to deal with New Zealand clients in over-the-counter futures contracts or contracts offered on other exchanges.</p> <ul> <li><strong>Authorised Futures Dealers (NZCDC Settlement System and NZX Derivatives Market) Notice 2010</strong></li> </ul> <p>New Zealand Clearing and Depository Corporation Limited's (NZCDC) wholly owned subsidiaries, NZ Clearing Limited, NZ Depository Limited and NZ Depository Nominees Limited are authorised to carry on the business of dealing in futures contracts generally for the purpose of, or in connection with, the operation of the NZCDC settlement system.</p> <p>Similarly, every person who is both a clearing participant and depository participant is authorised to carry on the business of dealing in futures contracts generally for the purpose of the NZCDC settlement system.</p> <ul> <li><strong>Authorised Futures Dealers (Financial Transmission Rights) Notice 2012</strong></li> </ul> <p>The Electricity Industry Participation of Code 2010 (the Code) allows for the creation and auctioning of financial transmission rights (FTRs) in an inter-island FTR market.  The Authorised Futures Dealers (Financial Transmission Rights) Notice 2012 authorises the FTR manager and Clearing Manager.  Energy Market Services (a commercial business group within Transpower NZ Ltd) and NZX Limited have been appointed by the Electricity Authority to perform the respective roles of FTR manager &amp; Clearing manager under the Code) to deal in futures contracts that are FTRs as part of their respective roles managing the FTR auctions and settlement of FTRs under the Code.</p> <ul> <li><strong>Authorised Future Dealers (iPredict Limited) Notice 2011</strong></li> </ul> <p>iPredict Limited operates a predictions market.  The contracts which may be traded on the market are contracts linked to political, economic or sociological events.  These contracts are declared to be futures contacts pursuant to the Futures Contracts (iPredict Limited) Declaration and Exemption Notice 2008.  iPredict is authorised to carry on the business of dealing in futures contract to which the market provider or clearing house, is or intends, to be a party and which are traded on its market.  A condition of its authorisation is that iPredict's website must contain, in a prominent place, a statement to the effect that the markets operated by the market provider are intended as research and educational facility, not as an investment market or a gambling facility, and the market provider has been authorised to act as a futures dealer, and the contracts traded are treated as futures contracts in New Zealand law, in order to provide certainty as to the legal treatment of the contracts.  iPredict's exemption also includes financial caps on the amounts participants can deposit into, and hold in, their accounts.</p> http://www.fma.govt.nz/laws-we-enforce/registers/list-of-authorised-futures-dealers/ List of Authorised Futures Dealers 2014-10-22 13:58:43 Financial Markets Authority <p>The Financial Markets Authority (FMA) publishes this information for public use.  This list does not supersede the Authorised Futures Dealers Notices (Notices) published in the Gazette from time to time.  For full details of the authorisation granted to a particular entity, you should obtain a copy of the relevant Notice.  To access the Notices visit <a href="http://www.dia.govt.nz/Services-New-Zealand-Gazette-Index">New Zealand Gazette</a>.</p> <p>If you consider your firm ought to be added to this list and/or the description of your firm's authorisation requires updating please e-mail questions@fma.govt.nz.</p> <table class="advisers"> <thead> <tr><th>Authorised Futures Dealer</th><th>Gazette Notice Reference</th><th>Summary of Authorisation</th><th>Expiry Date</th></tr> </thead> <tbody> <tr> <td>Advanced Metering Assets Limited</td> <td>Authorised Futures Dealers (No.3) Notice 1997</td> <td>Dealing in electricity futures contracts on behalf of electricity wholesale clients</td> <td>N/A</td> </tr> <tr> <td>AMP Capital Investors (New Zealand) Limited</td> <td>Authorised Futures Dealers (No.9) Notice 1994</td> <td>Dealing in futures contracts as part of the ordinary course of  business as a funds manager or as part of the duties and functions of the company as a trustee of any managed funds</td> <td>N/A</td> </tr> <tr> <td>Arrowstreet Capital, Limited Partnership</td> <td>Authorised Futures Dealers (Wholesale Dealers) Notice 2012</td> <td>Advising on futures contracts to wholesale clients</td> <td>Aug-17</td> </tr> <tr> <td>BBY (NZ) Limited</td> <td>Authorised Futures Dealers (Edge Capital Markets Limited)Notice 2011</td> <td>Providing a futures adviser or introducingbroker or managed account service.</td> <td>28 Nov 14</td> </tr> <tr> <td>B T Funds Management (NZ) Limited</td> <td>Authorised Futures Dealers (No.5) Notice 1998</td> <td>Dealing in futures contracts as part of the ordinary course of  business as a fund manager or as part of the duties and functions of the company as a trustee of any managed funds</td> <td>N/A</td> </tr> <tr> <td>Bank of New York Mellon</td> <td>Authorised Futures Dealers (Bank of New York Mellon) Notice 2011</td> <td>Advising on futures contracts to wholesale clients</td> <td>Mar-16</td> </tr> <tr> <td>Barclays Bank PLC</td> <td>Authorised Futures Dealers (Barclay's Bank PLC) Notice 2011</td> <td>Dealing in futures contracts generally on behalf of wholesale clients</td> <td>Jul-16</td> </tr> <tr> <td>Centurion Finance Limited</td> <td>Authorised Futures Dealers (Centurion Finance Limited) Notice 2011</td> <td>Issuing foreign exchange futures contracts</td> <td>Oct-14</td> </tr> <tr> <td>CMC Markets NZ Limited</td> <td>Authorised Futures Dealers (CMC Markets NZ Limited) Notice 2011</td> <td>Issuing over the counter and foreign exchange futures contracts</td> <td>29 Nov 14</td> </tr> <tr> <td>Colchester Global Investors Limited</td> <td>Authorised Futures Dealers (Colchester Global Investors Limited) Notice 2012</td> <td>Advising on futures contracts to wholesale clients</td> <td>Aug-17</td> </tr> <tr> <td>Contact Energy Limited</td> <td>Authorised Futures Dealers (No.3) Notice 1997</td> <td>Dealing in electricity futures contracts on behalf of electricity wholesale clients</td> <td>N/A</td> </tr> <tr> <td>Cooperative Centrale Raiffeisen-Boerenleenbank B.A. (Rabobank Nederland)</td> <td>Authorised Futures Dealers (Rabobank Nederland) Notice 2010</td> <td>Dealing in futures contracts off exchange on behalf of wholesale clients</td> <td>Jul-15</td> </tr> <tr> <td>Direct FX Limited</td> <td>Authorised Futures Dealers (Direct FX Limited) Notice 2009</td> <td>Advising on futures contracts to wholesale clients</td> <td>Feb-14</td> </tr> <tr> <td>Electricity Corporation of New Zealand Limited</td> <td>Authorised Futures Dealers (No.3) Notice 1997</td> <td>Dealing in electricity futures contracts on behalf of electricity wholesale clients</td> <td>N/A</td> </tr> <tr> <td>Elementum (Bermuda) Limited</td> <td>Authorised Futures Dealers (Wholesale Dealers) Notice 2012</td> <td>Advising on futures contracts to wholesale clients</td> <td>Aug-17</td> </tr> <tr> <td>Elementum Advisors LLC</td> <td>Authorised Futures Dealers (Wholesale Dealers) Notice 2012</td> <td>Advising on futures contracts to wholesale clients</td> <td>Aug-17</td> </tr> <tr> <td>Energy Link Limited</td> <td>Authorised Futures Dealers (No.3) Notice 1997</td> <td>Dealing in electricity futures contracts on behalf of electricity wholesale clients</td> <td>N/A</td> </tr> <tr> <td>Energywise Solutions Limited</td> <td>Authorised Futures Dealers (No.3) Notice 1997 - as amended 31 March 2011</td> <td>Dealing in electricity futures contracts on behalf of electricity wholesale clients</td> <td>N/A</td> </tr> <tr> <td> <p>Fonterra Commodities Limited</p> </td> <td> <p>Authorised Futures Dealers (Fonterra Commodities Limited) Notice 2013</p> </td> <td> <p>Advising on futures contracts to wholesale clients</p> </td> <td>Feb-18</td> </tr> <tr> <td>Genesis Power Limited</td> <td>Authorised Futures Dealers (No.3) Notice 1997 - as amended 8 July 1999</td> <td>Dealing in electricity futures contracts on behalf of electricity wholesale clients</td> <td>N/A</td> </tr> <tr> <td>Global Brokers (NZ) Limited</td> <td>Authorised Futures Dealers (Global Brokers (NZ) Limited) Notice 2012</td> <td>Dealing in futures contracts generally</td> <td>Nov-14</td> </tr> <tr> <td>Harlow Butler (NZ) Limited</td> <td>Authorised Futures Dealers (No.3) Notice 1997</td> <td>Dealing in electricity futures contracts on behalf of electricity wholesale clients</td> <td>N/A</td> </tr> <tr> <td>HiFX Limited</td> <td>Authorised Futures Dealers (HiFX Limited) Notice 2013</td> <td>Issuing forward foreign exchange futures contracts; and advising on forward foreign exchange futures contracts to wholesale clients</td> <td>Mar-18</td> </tr> <tr> <td>ICAP Brokers Pty Limited</td> <td>Authorised Futures Dealers (ICAP Brokers Pty Limited) Notice 2013</td> <td>Advising on futures contracts to wholesale clients</td> <td>Sep-17</td> </tr> <tr> <td>ICAP New Zealand Limited</td> <td>Authorised Futures Dealers (ICAP New Zealand Limited) Notice 2011</td> <td>Advising on futures contracts to wholesale clients</td> <td>Aug-16</td> </tr> <tr> <td>IG Markets Limited</td> <td>Authorised Futures Dealers (IG Markets Limited) Notice 2009</td> <td>Issuing over-the-counter futures contracts</td> <td>28 Nov 14</td> </tr> <tr> <td>J.P. Morgan Australia Limited</td> <td>Authorised Futures Dealers (JPMorgan Chase Bank Limited, NA and J.P. Morgan Australia Limited) Notice 2013</td> <td>Advising on off exchange futures contracts to wholesale clients that JPMorgan Chase Bank Limited, National Association is a party to</td> <td>Nov-16</td> </tr> <tr> <td>J.P. Morgan Markets Australia PTY Limited</td> <td>Authorised Futures Dealers Notice 2006</td> <td>Dealing in future contracts generally on behalf of wholesale clients</td> <td>N/A</td> </tr> <tr> <td>J.P. Morgan Securities Australia Limtied</td> <td>Authorised Futures Dealers (J.P. Morgan Securities Australia Limtied) Notice 2010</td> <td>Dealing in futures contracts generally on behalf of wholesale clients</td> <td>Nov-15</td> </tr> <tr> <td>JPMorgan Chase Bank Limited, National Association</td> <td>Authorised Futures Dealers (JPMorgan Chase Bank Limited, NA and J.P. Morgan Australia Limited) Notice 2013</td> <td>Issuing futures contracts to wholesale clients</td> <td>Nov-16</td> </tr> <tr> <td>KVB Kunlun New Zealand Limited</td> <td>Authorised Futures Dealers (KVB Kunlun New Zealand Limited) Notice 2013</td> <td>Dealing in futures contracts generally</td> <td>Nov-16</td> </tr> <tr> <td>Macquarie Bank Limited</td> <td>Authorised Futures Dealers (Macquarie Bank Limited) Notice 2009</td> <td>Dealing in futures contracts generally on behalf of wholesale clients</td> <td>Nov-14</td> </tr> <tr> <td>MainPower New Zealand Limited</td> <td>Authorised Futures Dealers (No.3) Notice 1997</td> <td>Dealing in electricity futures contracts on behalf of electricity wholesale clients</td> <td>N/A</td> </tr> <tr> <td>MCI Markets Limited</td> <td>Authorised Futures Dealers (MCI Markets Limited) Notice 2012</td> <td>Issuing over-the-counter futures contracts</td> <td>Jul-14</td> </tr> <tr> <td>Meridian Energy Limited</td> <td>Authorised Futures Dealers (No.3) Notice 1997 - as amended 18 December 2003</td> <td>Dealing in electricity futures contracts on behalf of electricity wholesale clients</td> <td>N/A</td> </tr> <tr> <td>Mighty River Power Limited</td> <td>Authorised Futures Dealers (No.3) Notice 1997 - as amended 15 June 2000</td> <td>Dealing in electricity futures contracts on behalf of electricity wholesale clients</td> <td>N/A</td> </tr> <tr> <td>Millenium Capital Management (New Zealand)</td> <td>Authorised Futures Dealers (Millenium Capital Management (New Zealand)) Notice 2012</td> <td>Advising on futures contracts to wholesale clients as a fund manager or as an investment adviser or as an investment manager for a fund manager of a fund.</td> <td>Dec-17</td> </tr> <tr> <td>MS Capital Management Limited</td> <td>Authorised Futures Dealers (Wholesale Dealers) Notice 2012</td> <td>Advising on futures contracts to wholesale clients</td> <td>Aug-17</td> </tr> <tr> <td>New Zealand Assets Management Limited</td> <td>Authorised Futures Dealers (No.3) Notice 1998</td> <td>Advising in futures contracts  for the purpose of its investment portfolio management business</td> <td>N/A</td> </tr> <tr> <td>Onepath NZ Limited</td> <td>Authorised Futures Dealers Notice 1994</td> <td>Dealing in futures contracts as part of the ordinary course of  business as a funds manager or as part of the duties and functions of the company as a trustee of any managed funds</td> <td>N/A</td> </tr> <tr> <td>Orion New Zealand Limited</td> <td>Authorised Futures Dealers (No.3) Notice 1997</td> <td>Dealing in electricity futures contracts on behalf of electricity wholesale clients</td> <td>N/A</td> </tr> <tr> <td>Pacific Financial Derivatives Limited</td> <td>Authorised Futures Dealers (Pacific Financial Derivatives Limited) Notice 2011</td> <td>Dealing in futures contracts generally</td> <td>28 Nov 14</td> </tr> <tr> <td>PricewaterhouseCoopers</td> <td> <p>Authorised FuturesDealers PricewaterhouseCoopers) Notice 2013</p> </td> <td>Advising on futures contracts to wholesale clients</td> <td>Nov -16</td> </tr> <tr> <td>Pure Capital Limited</td> <td>Authorised Futures Dealers (Wholesale Dealers) Notice 2012</td> <td>Advising on futures contracts to wholesale clients</td> <td>Aug-17</td> </tr> <tr> <td>QS Investors LLC</td> <td>Authorised Futures Dealers (QS Investors LLC) Notice 2011</td> <td>Advising on futures contracts to wholesale clients</td> <td>Apr-16</td> </tr> <tr> <td>RMB Australia Limited</td> <td>Authorised Futures Dealers (No.3) Notice 1997</td> <td>Dealing in electricity futures contracts on behalf of electricity wholesale clients</td> <td>N/A</td> </tr> <tr> <td>Shell Eastern Trading Pte Limited</td> <td>Authorised Futures Dealers (Shell Eastern Trading Pte Limited) Notice 2011</td> <td>Issuing oil price futures contracts or carbon price futures contracts to wholeshale clients</td> <td>Jul-16</td> </tr> <tr> <td>Simply Energy Limited</td> <td>Authorised Futures Dealers (No.3) Notice 1997 - as amended 7 April 2011</td> <td>Dealing in electricity futures contracts on behalf of electricity wholesale clients</td> <td>N/A</td> </tr> <tr> <td>Strategic Capital Markets Limited</td> <td>Authorised Futures Dealers (Strategic Capital Markets Limited) Notice 2011</td> <td>Providing a futures adviser or introducing broker or managed account service</td> <td>Sep-14</td> </tr> <tr> <td>Tararua Wind Power Limited</td> <td>Authorised Futures Dealers (No.3) Notice 1997 - as amended 8 October 1998</td> <td>Dealing in electricity futures contracts on behalf of electricity wholesale clients</td> <td>N/A</td> </tr> <tr> <td>Total Utilities Management Group</td> <td>Authorised Futures Dealers (No.3) Notice 1997 - as amended 24 November 2011</td> <td>Dealing in electricity futures contracts on behalf of electricity wholesale clients</td> <td>N/A</td> </tr> <tr> <td>Tower Financial Services Group Limited</td> <td>Authorised Futures Dealers (No.12) Notice 1994</td> <td>Dealing in futures contracts as part of the ordinary course of  business as a funds manager or as part of the duties and functions of the company as a trustee of any managed funds</td> <td>N/A</td> </tr> <tr> <td>Trafalgar Copley Limited</td> <td>Authorised Futures Dealers (No.2) Notice 2007 - amended 31 May 2012</td> <td>Advising on futures contracts to wholesale clients as an investment adviser or as an investment manager for a fund manager of a fund.</td> <td>Apr-17</td> </tr> <tr> <td>TransPower New Zealand Limited</td> <td>Authorised Futures Dealers (No.3) Notice 1997</td> <td>Dealing in electricity futures contracts on behalf of electricity wholesale clients</td> <td>N/A</td> </tr> <tr> <td>TrustPower Limited</td> <td>Authorised Futures Dealers (No.3) Notice 1997 - as amended 8 July 1999</td> <td>Dealing in electricity futures contracts on behalf of electricity wholesale clients</td> <td>N/A</td> </tr> <tr> <td>Tyndall Investment Management New Zealand Limited</td> <td>Authorised Futures Dealers (No.2) Notice 1996</td> <td>Dealing in futures contracts as part of the ordinary course of  business as a funds manager or as part of the duties and functions of the company as a trustee of any managed funds</td> <td>N/A</td> </tr> </tbody> </table> <p><em>Note - should you try to access the Notices on the <a href="http://www.dia.govt.nz/Services-New-Zealand-Gazette-Index">New Zealand Gazette</a>, you should refine the search to the full name of the Notice and the year of publication; or if it is an amended Notice, the full name of the Notice and the year of the amendment.</em></p> <h2><strong>Authorised Futures Exchanges and Authorised Futures Dealers Notices which include more than one entity</strong></h2> <ul> <li><strong>Authorised Futures Exchanges</strong></li> </ul> <p>No person may carry on the business of dealing in futures contracts unless that person is authorised by the FMA, or has been approved under the rules of  an authorised futures exchange to carry on the business of dealing in futures contracts in accordance with the rules of that exchange.  The authorised futures exchanges include:</p> <ul> <li>NZX Limited (the NZX Derivatives Market)</li> <li>Australian Securities Exchange Limited (the ASX 24 Market)</li> <li>ICE Futures Europe</li> <li>ICE Futures U.S., Inc.</li> </ul> <p>Currently only NZX Derivative Market Participants would qualify as being approved under the rules of an authorised futures exchange to carry on the business of dealing in futures contracts.</p> <ul> <li><strong>Authorised Futures Dealers Notice (no.2) 2004</strong></li> </ul> <p>Every ASX24 Participant is authorised to carry on the business of dealing in futures contracts that are made on or effected through the ASX 24 Market.</p> <p>ASX 24 Participants would need to seek further authorisation from FMA in order to deal with New Zealand clients in over-the-counter futures contracts or contracts offered on other exchanges.</p> <ul> <li><strong>Authorised Futures Dealers (NZCDC Settlement System and NZX Derivatives Market) Notice 2010</strong></li> </ul> <p>New Zealand Clearing and Depository Corporation Limited's (NZCDC) wholly owned subsidiaries, NZ Clearing Limited, NZ Depository Limited and NZ Depository Nominees Limited are authorised to carry on the business of dealing in futures contracts generally for the purpose of, or in connection with, the operation of the NZCDC settlement system.</p> <p>Similarly, every person who is both a clearing participant and depository participant is authorised to carry on the business of dealing in futures contracts generally for the purpose of the NZCDC settlement system.</p> <ul> <li><strong>Authorised Futures Dealers (Financial Transmission Rights) Notice 2012</strong></li> </ul> <p>The Electricity Industry Participation of Code 2010 (the Code) allows for the creation and auctioning of financial transmission rights (FTRs) in an inter-island FTR market.  The Authorised Futures Dealers (Financial Transmission Rights) Notice 2012 authorises the FTR manager and Clearing Manager.  Energy Market Services (a commercial business group within Transpower NZ Ltd) and NZX Limited have been appointed by the Electricity Authority to perform the respective roles of FTR manager &amp; Clearing manager under the Code) to deal in futures contracts that are FTRs as part of their respective roles managing the FTR auctions and settlement of FTRs under the Code.</p> <ul> <li><strong>Authorised Future Dealers (iPredict Limited) Notice 2011</strong></li> </ul> <p>iPredict Limited operates a predictions market.  The contracts which may be traded on the market are contracts linked to political, economic or sociological events.  These contracts are declared to be futures contacts pursuant to the Futures Contracts (iPredict Limited) Declaration and Exemption Notice 2008.  iPredict is authorised to carry on the business of dealing in futures contract to which the market provider or clearing house, is or intends, to be a party and which are traded on its market.  A condition of its authorisation is that iPredict's website must contain, in a prominent place, a statement to the effect that the markets operated by the market provider are intended as research and educational facility, not as an investment market or a gambling facility, and the market provider has been authorised to act as a futures dealer, and the contracts traded are treated as futures contracts in New Zealand law, in order to provide certainty as to the legal treatment of the contracts.  iPredict's exemption also includes financial caps on the amounts participants can deposit into, and hold in, their accounts.</p> http://www.fma.govt.nz/help-me-comply/auditors/fees-and-levies/ Fees and Levies 2014-10-17 16:35:51 Financial Markets Authority <p>Auditors will need to pay the following levies, fees and charges. Fees and charges are set by the Ministry of Business, Innovation and Employment (MBIE) and prescribed in the Auditor Regulations 2012 and Financial Markets Conduct (Changes to Financial Markets Authority Fees) Regulations 2014.</p> <p>In addition, New Zealand based auditors may need to pay fees or charges to their accredited body in accordance with the accredited body's rules.</p> <h2>Application fees</h2> <h3>New Zealand auditors and audit firms</h3> <p>For New Zealand auditors and audit firms, a registration application fee of $350 will be payable to the Registrar of Companies. Accredited bodies may also charge application fees to cover their time and costs.</p> <h3>Overseas auditors and audit firms</h3> <p>The fees in New Zealand dollars are as follows:</p> <ul> <li>Application fee $115</li> <li>Registration fee (which is passed on to the Registrar) $350</li> </ul> <div>You must pay these fees when submitting your application for a standard licence (auditors) or registration (audit firms). Payment details can be found on the relevant application form. Firms may pay the fees for a number of individuals' licence applications together.</div> <div>You will also need to pay an assessment fee. The assessment fee is based on time spent on assessing your application at the rates prescribed by Regulations as follows:</div> <ul> <li>$230 per hour for members</li> <li>$178.25 per hour for staff</li> </ul> <p>FMA will invoice you for your assessment fee. We may also recover any costs of external advice or assistance obtained.</p> <h2>Ongoing costs</h2> <p>An annual confirmation fee of $110 will be required for each New Zealand or overseas licence or registration that is confirmed. This covers maintenance of the Auditors Register. Licensed auditors and registered audit firms are also subject to annual FMA Levies of $2,000.</p> <h2>Quality review fee</h2> <p>Registered audit firms, and New Zealand based licensed auditors who are not a partner or employee of a registered audit firm, will be subject to a quality review at least once every four years.</p> <p>Fees and charges for this review are based on a prescribed rate for FMA members' and staff time as set out below.  FMA may recover costs incurred, such as fees for outsourcing and any other external advice.</p> <ul> <li>$230 per hour for members</li> <li>$178.25 per hour for staff</li> </ul> <h2>Levies</h2> <p>To view levies, click <a href="http://www.fma.govt.nz/help-me-comply/financial-service-providers/levies/">here</a>.</p> http://www.fma.govt.nz/help-me-comply/financial-advisers/who-needs-to-comply/what-type-of-financial-adviser-am-i/types-of-financial-adviser-services/ Types of Financial Adviser Services 2014-10-17 16:29:59 Financial Markets Authority <p>The type of financial advice an adviser offers affects the type of adviser they are, and what they need to do to comply. The types of advisory services are:</p> <h2>Giving financial advice</h2> <p>Making a recommendation, or giving an opinion about acquiring, holding or disposing of a financial product. Providing factual information only about a financial product, in the absence of any recommendation or opinion would not be considered financial advice.</p> <p>For more information see s10 of the <a href="http://www.legislation.govt.nz/act/public/2008/0091/latest/contents.html"> Financial Advisers Act 2008</a>.</p> <p>The <a href="http://www.fma.govt.nz/laws-we-enforce/policy/closed-consultations/consultation-request-for-feedback-guidance-note-sale-and-distribution-of-kiwisaver">Guidance Note: Sale and Distribution of KiwiSaver</a> focuses on factors FMA will take into account when considering whether advice is given on KiwiSaver, and, if so, whether the advice is class or personalised.</p> <h2>Providing an investment planning service</h2> <p>Designing or offering to design a plan that:</p> <ul> <li>is based on an analysis of an individual's current and future overall financial situation and</li> <li>identifies their investment goals and</li> <li>includes recommendations or opinions on how to realise those goals.</li> </ul> <p>The focus is on the investment nature of the service, rather than the product recommendations arrived at.</p> <p>For more information see s11 of the <a href="http://www.legislation.govt.nz/act/public/2008/0091/latest/DLM1584202.html"> Act</a>.</p> <h2>Providing a discretionary investment management service (DIMS)</h2> <p>Deciding which financial products to buy and/or sell on behalf of a client, e.g. you are authorised to manage a client's investment portfolio.</p> <p>For more information see s12 of the <a href="http://www.legislation.govt.nz/act/public/2008/0091/latest/DLM1584202.html">Act</a>.</p> <p><a href="http://www.fma.govt.nz/help-me-comply/financial-advisers/who-needs-to-comply/what-type-of-financial-adviser-am-i/">See the flowchart to help decide what type of financial adviser you are</a>.</p> http://www.fma.govt.nz/help-me-comply/anti-money-laundering-and-countering-financing-of-terrorism-reporting-entities/your-obligations/ Your Obligations 2014-10-17 16:26:42 Financial Markets Authority <p>In order to be ready for the implementation of the Anti-Money Laundering and Countering Financing of Terrorism Act, reporting entities must follow the information outlined in <a href="http://www.fma.govt.nz/help-me-comply/anti-money-laundering-and-countering-financing-of-terrorism-reporting-entities/how-to-get-ready/"> how to get ready</a>.</p> <p>Once in place, the Act imposes several obligations on reporting entities. If you operate a business that falls within the definition of reporting entity you will need:</p> <ul> <li>A written <em>Risk Assessment</em> of the money laundering and financing of terrorism that you could expect in the course of running your business</li> </ul> <ul> <li>An <em>Anti-Money Laundering and Countering Financing of Terrorism Programme</em> that includes procedures to detect, deter, manage and mitigate money laundering and the financing of terrorism</li> </ul> <ul> <li>A <em>Compliance Officer</em> appointed to administer and maintain your programme</li> </ul> <ul> <li><em>Customer Due Diligence</em> processes based on your risk assessment including customer identification and verification of identity</li> </ul> <ul> <li><em>Suspicious Transaction Reporting, Auditing and Annual Reporting</em> systems and processes.</li> </ul> <p>The Act takes a risk-based approach to compliance. Reporting entities will (within the limits set by the Act and regulations) have some flexibility to determine the way in which they meet their obligations based on their risk assessment.</p> <p>A reporting entity must ensure that its risk assessment and AML/CFT programme are audited every two years or at any other time at the request of FMA.</p> <p>For guidance on the obligations, including on risk assessments and programmes, see <a href="http://www.fma.govt.nz/help-me-comply/anti-money-laundering-and-countering-financing-of-terrorism-reporting-entities/guidelines-and-codes-of-practice/"> here</a>.</p> <p>You can read about FMA's risk assessment of the sectors we supervise. You can also read sector risk assessments prepared by the <a href="http://rbnz.govt.nz/news/2011/4344737.html">Reserve Bank</a>, <a href="http://www.dia.govt.nz/Services-Anti-Money-Laundering-Index?OpenDocument#SRA"> Department of Internal Affairs</a> for the sectors they supervise, and the <a href="http://www.justice.govt.nz/policy/criminal-justice/aml-cft/publications-and-consultation/national-risk-assessment-2010" target="_blank">national risk assessment</a>.</p> http://www.fma.govt.nz/help-me-comply/financial-advisers/your-obligations/registered-financial-adviser-entities-non-qfe/ Registered Financial Adviser Entities (non-QFE) 2014-10-17 16:22:52 Financial Markets Authority <p>Entities providing financial adviser services must:</p> <ul> <li>act with <a title="Your Obligations" href="http://www.fma.govt.nz/help-me-comply/financial-advisers/your-obligations/">care, diligence and skill (s33)</a></li> <li>not engage in misleading or deceptive conduct (section 34 of the <a href="http://www.legislation.govt.nz/act/public/2008/0091/latest/contents.html"> Financial Advisers Act 2008</a>)</li> <li>ensure the individual advisers providing advice on their behalf, follow <a title="Disclosure Obligations" href="http://www.fma.govt.nz/help-me-comply/financial-advisers/your-obligations/disclosure-obligations/">disclosure obligations</a> when providing personalised advice to retail clients.</li> </ul> <p>Entities providing financial adviser services need to be registered on the <a href="http://www.business.govt.nz/fsp/">Financial Service Providers Register</a>. <a title="How to Get Licensed" href="http://www.fma.govt.nz/help-me-comply/financial-advisers/how-to-get-licensed/">Find out how to register</a>.</p> <p>Entities need to annually renew their registration on the <a href="http://www.business.govt.nz/fsp/">Financial Service Providers Register</a> and notify the Registrar of changes. They must be a member of a dispute resolution scheme, if providing services to retail clients.</p> <p>Registered entities are generally subject to the same range of enforcement actions that may be taken by the FMA against individual RFAs under the Act. The Registrar may also deregister entities, or the FMA may give a direction to deregister a RFA, in certain circumstances. See Financial Service Providers (Registration and Dispute Resolution) Act 2008, sections 18A to 18C.</p> http://www.fma.govt.nz/help-me-comply/financial-advisers/how-to-get-licensed/afa-application-resources-and-templates/period-of-authorisation/ Period of Authorisation 2014-10-17 16:18:53 Financial Markets Authority <p>FMA authorises financial advisers for a term of 5 years from the date of authorisation, unless there is any information to indicate that a shorter or longer term may be appropriate. FMA will communicate with any applicant who may require a departure from a 5 year term.</p> <p>The 5 years applies from the date of authorisation stated on the authorisation certificate.</p> http://www.fma.govt.nz/help-me-comply/peer-to-peer-lending/obligations-for-borrowers/ Obligations for Borrowers 2014-10-17 16:17:06 Financial Markets Authority <p>Normally if you want to borrow money direct from the public, financial market laws require you to issue full disclosure information such as an investment statement and prospectus (or a product disclosure statement from 1 December).</p> <p>Under exemptions in financial market laws, you do not need to prepare these documents if you are using a licensed peer-to-peer lending provider. Instead you will provide information about your loan request to your provider so they can present your request for investors to read.</p> <p>Licensed providers are not obligated to accept you as a borrower. They will run some checks on you and if you've got a bad credit history they may decide they won't help you find money.</p> <p>If you are accepted, you will become a client of the peer-to-peer lending service. The provider will ask you to sign a client agreement. The agreement will detail what you need to do so the provider can monitor and check you.</p> <p>You will need to comply with <a href="http://www.fma.govt.nz/about-us/contact-us/make-a-complaint/the-range-of-complaints-we-deal-with/fair-dealing/">the general fair dealing provisions</a> in Part 2 of the FMC Act. The basic obligations you will have are:</p> <ul> <li>Being who you say you are</li> <li>Not providing inaccurate address and contact details</li> <li>Being honest about what you are going to use the money for </li> </ul> <p>The service provider can charge for their services.</p> http://www.fma.govt.nz/help-me-comply/financial-advisers/your-obligations/registered-financial-advisers/ Registered Financial Advisers 2014-10-17 16:09:42 Financial Markets Authority <p>Registered Financial Advisers (RFAs) must, when providing financial adviser services:</p> <ul> <li>act with <a href="http://www.fma.govt.nz/help-me-comply/financial-advisers/your-obligations/">care, diligence and skill</a> (see <a href="http://www.fma.govt.nz/help-me-comply/financial-advisers/your-obligations/care-diligence-and-skill-examples/">insurance and credit examples</a>) (section 33 of the <a href="http://www.legislation.govt.nz/act/public/2008/0091/latest/DLM1584202.html">Financial Advisers Act 2008</a>)</li> <li>not engage in misleading or deceptive conduct (section 34)</li> <li>ensure <a href="http://www.fma.govt.nz/help-me-comply/financial-advisers/your-obligations/advertising/">advertisements</a> are not misleading, deceptive or confusing (section 35)</li> <li>comply with <a href="http://www.fma.govt.nz/help-me-comply/financial-advisers/your-obligations/disclosure-obligations/">disclosure obligations</a> when providing personalised services to retail clients</li> </ul> <p>RFAs need to annually renew their registration on the <a href="http://www.business.govt.nz/fsp/">Financial Service Providers Register</a> and notify the Registrar of changes.  They must be a member of a dispute resolution scheme, if providing services to retail clients.</p> <p>Any person can <a href="http://www.fma.govt.nz/about-us/contact-us/make-a-complaint/financial-adviser-complaints/">complain </a>to the FMA about the activities of an RFA and FMA can investigate that complaint and take appropriate action. RFAs are not subject to disciplinary committee proceedings under the Act but FMA has a range of enforcement actions it can take in relation to RFAs under the Act. The Registrar may also deregister RFAs, or the FMA may give a direction to deregister a RFA, in certain circumstances. See Financial Service Providers (Registration and Dispute Resolution) Act 2008, sections 18A to 18C.</p> http://www.fma.govt.nz/help-me-invest/getting-financial-advice/find-an-adviser/ Find an Adviser 2014-10-17 16:08:23 Financial Markets Authority <h2>Is the adviser on the register?</h2> <p>You can find out more about the Registered Financial Adviser (RFA) or Authorised Financial Adviser (AFA) you are dealing with on the public register at <a title="Financial Service Providers Register" href="http://www.fspr.govt.nz">www.fspr.govt.nz</a></p> <p>The register will tell you their business address and list the financial services they can provide. It will tell you whether they are just registered and/or licensed as an Authorised Financial Adviser (this will be in the list of financial services).</p> <p>Qualifying Financial Entity (QFE) advisers don't have to be listed individually on the register but the financial service company they work for must be there.</p> <p>If a person giving you financial advice is not on the register when they should be then don't deal with them. And let us know.</p> <h2>Finding an AFA in your area</h2> <p>If you don't have an AFA and want to find the names of AFAs in your area, you can use our <a href="http://fma.govt.nz/help-me-comply/financial-advisers/how-to-get-licensed/afa-application-resources-and-templates/list-of-authorised-financial-advisers-afa/">searchable list</a>.</p> <h2>Which organisations are QFEs?</h2> <p>Your adviser may tell you they work for a Qualifying Financial Entity (QFE). You can check whether their organisation is a QFE on our <a href="http://www.fma.govt.nz/laws-we-enforce/registers/list-of-qualifying-financial-entities-qfe/">QFE list</a>.</p> http://www.fma.govt.nz/help-me-comply/financial-advisers/monitoring-and-surveillance/ Monitoring and Surveillance 2014-10-17 16:05:16 Financial Markets Authority <p>FMA monitors that financial advisers are complying with their <a href="http://www.fma.govt.nz/help-me-comply/financial-advisers/your-obligations/">obligations</a>.  We also monitor the activities of providers on the financial services 'perimeter' to ensure they are not providing services that should only be provided by financial advisers.  </p> <p>Monitoring and surveillance activities encourage compliance by all advisers.  They help to ensure a level playing field for advisers and will inform our development of policy and guidance.</p> <p>We look at whether the actions of advisers are achieving the objectives of the <a href="http://www.legislation.govt.nz/act/public/2008/0091/latest/DLM1584202.html?src=qs" target="_blank">Financial Advisers Act 2008</a> and the <a href="http://www.legislation.govt.nz/act/public/2008/0097/latest/DLM1109427.html?search=ad_act__financial+service+providers+(registration+and+dispute+resolution)+Act____25_ac%40bn%40rn%40dn%40apub%40aloc%40apri%40apro%40aimp%40bgov%40bloc%40bpri%40bmem%40rpub%40rimp_ac%40ainf%40anif%40bcur%40rinf%40rnif_h_aw_se&amp;p=1" target="_blank">Financial Service Providers (Registration and Dispute Resolution) Act</a>.</p> <p>We are particularly interested in the outcomes for customers and the approach taken to providing financial adviser services - processes, materials and how financial advisers operate.</p> <p>If we do encounter a problem, we will generally work directly with the adviser to help them meet the required standard. However, we may also take action including enforcement action when standards fall below the required level.</p> <p>Find out about our current monitoring and surveillance activities for:</p> <ul> <li><a href="http://www.fma.govt.nz/help-me-comply/financial-advisers/monitoring-and-surveillance/monitoring-the-perimeter-of-the-financial-adviser-regime/"> the perimeter of financial adviser services</a></li> </ul> <ul> <li><a href="http://www.fma.govt.nz/help-me-comply/financial-advisers/monitoring-and-surveillance/financial-adviser-businesses-non-qfes/"> Financial Adviser businesses (non-QFEs)</a></li> </ul> <ul> <li><a href="http://www.fma.govt.nz/help-me-comply/financial-advisers/monitoring-and-surveillance/registered-financial-advisers/"> Registered Financial Advisers</a></li> </ul> <ul> <li><a href="http://www.fma.govt.nz/help-me-comply/financial-advisers/monitoring-and-surveillance/authorised-financial-advisers/"> Authorised Financial Advisers</a></li> </ul> <ul> <li><a href="http://www.fma.govt.nz/help-me-comply/financial-advisers/monitoring-and-surveillance/qualifying-financial-entities/"> Qualifying Financial Entities and QFE advisers</a>.</li> </ul> http://www.fma.govt.nz/help-me-invest/kiwisaver/compare-kiwisaver-information/ Compare KiwiSaver information 2014-10-17 11:54:52 Financial Markets Authority <p>KiwiSaver quarterly and annual disclosure statements are required by law under the <a href="http://www.legislation.govt.nz/regulation/public/2013/0047/latest/DLM5094156.html?src=qs">KiwiSaver (Periodic Disclosure) Regulations 2013</a>.  Each quarterly and annual disclosure statement and data file must be submitted to the FMA. They must also be made publicly available on the manager's KiwiSaver scheme website and in hard copy on request.</p> <p align="left">The purpose of the KiwiSaver quarterly and annual disclosure statements is to ensure consistent and comparable information about KiwiSaver funds is publicly available on a regular basis, to enable investors to make more informed investment decisions.</p> <p align="left">Each disclosure statement for a KiwiSaver fund must include a link to a data file containing information specified in the <a href="http://www.legislation.govt.nz/regulation/public/2013/0047/latest/DLM5094156.html?src=qs">Regulations</a> that is downloadable and reusable.</p> <h3 class="MERWPara" align="left">Compare the information</h3> <p class="MERWPara" align="left">If you are looking to compare KiwiSaver funds' performance, fees and service, we recommend you visit <a href="http://fundfinder.sorted.org.nz/">Sorted's KiwiSaver Fund Finder calculator</a>. This easy tool not only provides a comparison of KiwiSaver funds and schemes but there is additional information about KiwiSaver which you may find useful.</p> <p class="MERWPara" align="left">If you are looking for KiwiSaver information that is <strong>more comprehensive in detail,</strong> FMA consolidates KiwiSaver managers' data files into a single electronic file. We do this to support further analysis of this information and to better enable third parties to develop resources for the public.</p> <p class="MERWPara" align="left">This information may be <strong>especially useful for market researchers, academics and students and market participants.</strong> To understand the data structure used in the consolidated data files, you may find this document helpful. Click <a href="http://www.fma.govt.nz/assets/media/1054639/kiwisaver-qds-consolidated-data-file-explanation-document.pdf" target="_blank">here</a> to download.</p> <table> <tbody> <tr> <td> <h3 class="MERWPara" align="center">We do not give any assurance of the quality or accuracy of managers' data</h3> </td> </tr> </tbody> </table> <p class="AgendaHeadingLevel1" align="left">As FMA consolidates the data files submitted by KiwiSaver managers, it's important to note we do not make any representation or give any assurance of the accuracy, quality or completeness of the consolidated data. KiwiSaver managers are each responsible for the accuracy, quality and completeness of their individual data.</p> <p class="AgendaHeadingLevel1" align="left"><strong>We provide the consolidated data file for public use on the following basis:</strong></p> <ul> <li>The information contained in the consolidated data file is sourced exclusively from the data files prepared by the manager of each relevant KiwiSaver scheme.</li> <li>The information contained in the consolidated data file is publicly available information that can otherwise be obtained from each manager's KiwiSaver scheme website or in hard copy on request to the relevant manager.</li> <li>Other than to consolidate each manager's data files into one file and to exclude any data that is in an incompatible format, FMA will not change or modify the information in any way. </li> <li>FMA disclaims all liability that may arise from any losses incurred by any person from the use of the information contained in the consolidated data file.</li> </ul> <h2 align="left">Quarterly Disclosure Statement files</h2> <table> <tbody> <tr> <td colspan="4"> <h3>2013</h3> </td> </tr> <tr> <td colspan="4"> <p class="AgendaHeadingLevel1" align="left"><a href="http://www.fma.govt.nz/assets/media/1054639/fma-kds-web-quarterly-20130930.xlsb" target="_blank">30 September 2013</a></p> <p><strong>Last updated 22/09/14</strong></p> </td> </tr> <tr> <td colspan="4"> <p class="AgendaHeadingLevel1" align="left"><a href="http://www.fma.govt.nz/assets/media/1054639/fma-kds-web-quarterly-20131231-december-2013.xlsb" target="_blank">December 2013</a></p> <p class="AgendaHeadingLevel1" align="left"><strong>Last updated 22/09/14</strong></p> </td> </tr> </tbody> </table> <table> <tbody> <tr> <td> <h3>2014</h3> </td> </tr> <tr> <td> <p><a href="http://www.fma.govt.nz/assets/media/1054639/fma-kds-web-quarterly-20140331-march-2014.xlsb" target="_blank">March 2014</a></p> <p><strong>Last updated 22/09/14</strong></p> </td> </tr> <tr> <td> <p><a href="http://www.fma.govt.nz/assets/KiwiSaver-Consolidated-Data-files/FMA-KDS-WEB-Quarterly-20140630-June-2014.xlsb" target="_blank">June 2014</a></p> <p><strong>Last updated 17/10/14</strong></p> </td> </tr> </tbody> </table> <h2 class="AgendaHeadingLevel1" align="left"><strong>Annual Disclosure Statement files</strong></h2> <table> <tbody> <tr> <td> <h3>2014</h3> </td> </tr> <tr> <td> <p><a href="http://www.fma.govt.nz/assets/Uploads/FMA-KDS-WEB-Annual-20140331-March-2013.xlsb" target="_blank">March 2014</a></p> <p><strong>Last updated 09/09/2014</strong></p> </td> </tr> </tbody> </table> <p class="AgendaHeadingLevel1" align="left"><strong>How often are the data files uploaded?</strong></p> <ul> <li><strong>Quarterly disclosure consolidated data files</strong> - Approximately 35 - 45 working days after each quarter end. So for example, for the quarter end, 30 June, the corresponding files will be uploaded to our website approximately mid to late August.</li> <li><strong>Annual disclosure consolidated data files</strong> - 80 working days after the end of the disclosure year (31 March), so the corresponding files will be uploaded on our website approximately late July.</li> </ul> <p>Outside of these timeframes, FMA will update the files when we receive updates from managers. We update these each Monday so we recommend you check this page each Monday afternoon for the latest updates.</p> http://www.fma.govt.nz/laws-we-enforce/enforcement/prosecutions-and-proceedings/finance-company-cases-before-the-court/ Finance Company cases before the Court 2014-10-16 14:29:20 Financial Markets Authority <ul> <li><a href="http://www.fma.govt.nz/laws-we-enforce/enforcement/prosecutions-and-proceedings/finance-company-cases-before-the-court/#ViaductandMutual">Viaduct Capital Limited and Mutual Finance Limited</a></li> <li><a href="http://www.fma.govt.nz/laws-we-enforce/enforcement/prosecutions-and-proceedings/finance-company-cases-before-the-court/#OPIFinanceLimited">OPI Finance Limited</a></li> <li><a href="http://www.fma.govt.nz/laws-we-enforce/enforcement/prosecutions-and-proceedings/finance-company-cases-before-the-court/#Five Star Consumer Finance And Five Star Finance Group">Five Star Consumer Finance and Five Star Finance</a></li> <li><a href="http://www.fma.govt.nz/laws-we-enforce/enforcement/prosecutions-and-proceedings/finance-company-cases-before-the-court/#Nathans Finance">Nathans Finance</a></li> <li><a href="http://www.fma.govt.nz/laws-we-enforce/enforcement/prosecutions-and-proceedings/finance-company-cases-before-the-court/#Bridgecorp and Bridgecorp Investments (BIL)">Bridgecorp and Bridgecorp Investments (BIL)</a></li> <li><a href="http://www.fma.govt.nz/laws-we-enforce/enforcement/prosecutions-and-proceedings/finance-company-cases-before-the-court/#Lombard Finance &amp; Investments">Lombard Finance &amp; Investments</a></li> <li><a href="http://www.fma.govt.nz/laws-we-enforce/enforcement/prosecutions-and-proceedings/finance-company-cases-before-the-court/#Capital + Merchant Finance">Capital + Merchant Finance</a></li> <li><a href="http://www.fma.govt.nz/laws-we-enforce/enforcement/prosecutions-and-proceedings/finance-company-cases-before-the-court/#Dominion Finance Group and North South Finance">Dominion Finance Group and North South Finance</a></li> <li><a href="http://www.fma.govt.nz/laws-we-enforce/enforcement/prosecutions-and-proceedings/finance-company-cases-before-the-court/#Belgrave Finance">Belgrave Finance</a></li> <li><a href="http://www.fma.govt.nz/laws-we-enforce/enforcement/prosecutions-and-proceedings/finance-company-cases-before-the-court/#Hanover Finance, Hanover Capital &amp; United Finance">Hanover Finance, United Finance and Hanover Capital</a></li> <li><a href="http://www.fma.govt.nz/laws-we-enforce/enforcement/prosecutions-and-proceedings/finance-company-cases-before-the-court/#National Finance 2">National Finance</a></li> <li><a href="http://www.fma.govt.nz/laws-we-enforce/enforcement/prosecutions-and-proceedings/finance-company-cases-before-the-court/#South Canterbury Finance">South Canterbury Finance</a></li> </ul> <h2 id="h02"><a id="Five Star Consumer Finance And Five Star Finance Group" name="Five%20Star%20Consumer%20Finance%20And%20Five%20Star%20Finance%20Group"></a>Five Star Consumer Finance And Five Star Finance Group</h2> <p><strong> </strong></p> <table> <tbody> <tr> <td><strong>Defendants</strong></td> <td>Marcus Macdonald, Nicholas Kirk, Anthony Bowden, Neill Williams</td> </tr> <tr> <td> <p><strong>Charges</strong></p> </td> <td> <p>FMA alleged that the Defendants:</p> <p>- <strong>Five Star Consumer Finance Limited (FSCF) charges:</strong> made untrue statements in the investment statements and registered prospectuses of that company dated 20 September 2006.</p> <p>It is also alleged that the directors made further untrue statements when they signed a prospectus extension certificate on 21 December 2006.</p> <p>- <strong>Five Star Finance and Five Star Debenture Nominee (FSF and FSDN) charges:</strong> offered securities in contravention of the Securities Act and did so without having registered a prospectus or provided investors with an investment statement. Furthermore, they offered investments in FSF and FSDN in advertisements that were not authorised advertisements for purposes of the Securities Act.</p> <p>The SFO also laid charges against all four directors of FSCF.</p> </td> </tr> <tr> <td><strong>Penalties</strong></td> <td> <p>The FSCF charges were laid indictably under section 58 of the Securities Act and carry a maximum penalty of five years imprisonment or fines of up to $300,000.</p> <p>The FSF and FSDN charges were laid summarily under section 59 of the Securities Act and carry a maximum penalty fine not exceeding $300,000. Under section 60E of the Securities Act there is an automatic five year management ban if a person is convicted of an offence under section 58.</p> </td> </tr> <tr> <td><strong>Date filed</strong></td> <td> <p>4 August 2008 in the District Court at Auckland (FSF and FSDN).</p> <p>30 November 2009 in the District Court at Auckland (FSCF).</p> </td> </tr> <tr> <td> <p><strong>Current status</strong></p> </td> <td> <p>All defendants pleaded guilty. Mr Kirk and Mr Macdonald were sentenced to over two years imprisonment on these charges on 22 December 2010. Mr Bowden was sentenced to home detention. The convicted directors are all subject to automatic five year management bans under s60E of the Securities Act. Mr Kirk is banned until 12 August 2015. Mr MacDonald is banned until 5 October 2015. Mr Bowden is banned until 17 September 2017.</p> <p>Mr Williams applied to vacate his plea of guilty. On 23 March 2012 the Court declined Mr Williams' application. He then applied for a judicial review of that decision and other matters. That was heard on 4 February 2013 and declined. His disputed facts sentencing hearing was heard from 25 February 2013 and the Crown's view of the facts was largely upheld. Mr Williams was sentenced to three years seven months imprisonment on 19 April 2013. He is also subject to a management ban until 5 October 2015, being five years from the date of his 2010 conviction. On 22 August 2013, Neil Wiliams was sentenced to five years imprisonment in respect of the SFO charges. This sentence is to be served concurrently with the sentence given for the Securities Act offending.</p> </td> </tr> </tbody> </table> <h2 id="h03"><a id="Nathans Finance" name="Nathans%20Finance"></a>Nathans Finance</h2> <table> <tbody> <tr> <td><strong>Defendants</strong></td> <td> <p><span>John Hotchin, Donald Young, Kenneth Moses and Mervyn Doolan</span></p> </td> </tr> <tr> <td><strong>Charges</strong></td> <td> <p>FMA alleged that the directors made untrue statements in the registered prospectus and investment statement of Nathans Finance NZ Limited (in receivership) dated 13 December 2006.</p> <p>FMA also alleged that the directors made further untrue statements when they signed a prospectus extension certificate on 30 March 2007.</p> <p>In addition FMA alleged that letters sent to members of the public advertising Nathans Finance debenture stock contained untrue statements about some of the matters referred to above. These claims do not apply to Mr Hotchin who had resigned his directorship by the time the advertisements were sent out.</p> <p>The defendants denied the charges.</p> </td> </tr> <tr> <td><strong>Penalties</strong></td> <td> <p><em>Criminal charges</em> - These charges were laid indictably under section 58 of the Securities Act and carry a maximum penalty of five years imprisonment or fines of up to $300,000 plus $10,000 for every day the offence is continued. Under section 60E of the Securities Act there is an automatic five year management ban if a person is convicted of an offence under section 58.</p> <p><em>Civil proceedings</em> - The proceedings were issued under section 55C and related sections of the Securities Act. FMA applied for declarations of civil liability and civil pecuniary penalties of up to $500,000 against each of the five directors.</p> </td> </tr> <tr> <td><strong>Date filed</strong></td> <td> <p><em>Criminal charges</em> - filed on 12 December 2008 in the District Court at Auckland.</p> <p><em>Civil proceedings</em> - filed on 12 December 2008 in the High Court at Auckland.</p> </td> </tr> <tr> <td><strong>Current status</strong></td> <td> <p><em>Criminal charges -</em> High Court trial began on 21 March 2011 and concluded on 17 June 2011.</p> <p>Mr Hotchin entered a guilty plea and was sentenced on 4 March 2011 to eleven months' home detention and 200 hours community service, and was ordered to pay reparation of $200,000.<br><br><span>The verdict was delivered on 8 July 2011. Messrs Moses, Doolan, and Young were each found guilty on five out of the six counts in the indictment. Sentencing was held on 2 September 2011. Mr Doolan was sentenced to two years four months imprisonment and ordered to pay reparation of $150,000, Mr Moses for two years two months imprisonment and ordered to pay reparation of $425,000 and Mr Young nine months home detention, 300 hours community service and ordered to pay reparation of $310,000. Appeals by Messrs Moses and Doolan against imprisonment on 27 September 2011 were dismissed.<br><br>The convicted directors are all subject to automatic five year management bans under s60E of the Securities Act. Mr Hotchin is banned until 25 February 2016. Mr Moses, Mr Young and Mr Doolan are each banned until 8 July 2018.<br><br></span><em>Civil proceedings</em> - discontinued on 5 March 2013.</p> </td> </tr> </tbody> </table> <h2 id="h04"><a id="Bridgecorp and Bridgecorp Investments (BIL)" name="Bridgecorp%20and%20Bridgecorp%20Investments%20(BIL)"></a>Bridgecorp and Bridgecorp Investments (BIL)</h2> <table> <tbody> <tr> <td><strong>Defendants</strong></td> <td> <p><span>Rodney Petricevic, Robert Roest, Bruce Davidson, Gary Urwin and Peter Steigrad</span></p> </td> </tr> <tr> <td><strong>Charges</strong></td> <td> <p>FMA alleged the directors made untrue statements in the investment statements and registered prospectuses of Bridgecorp and BIL dated 21 December 2006.</p> <p>FMA also alleged that the directors made further untrue statements when they signed prospectus extension certificates for Bridgecorp and BIL on 30 March 2007.<br><br><span>The Crown also laid charges under the Crimes Act 1961 and Companies Act 1993 against Mr Petricevic and Mr Roest.<br><br></span>The defendants denied the charges.</p> <p>The SFO has also laid charges relating to these companies.</p> </td> </tr> <tr> <td><strong>Penalties</strong></td> <td> <p><em>Criminal charges</em><span> - these charges were laid indictably under section 58 of the Act and carry a maximum penalty of five years imprisonment or fines of up to $300,000. Under section 60E of the Securities Act there is an automatic five year management ban if a person is convicted of an offence under section 58.</span><br><br><span>The Crimes Act charges against Mr Petricevic and Mr Roest were laid indictably under section 242 of that Act and carry a maximum penalty of ten years imprisonment.<br><br></span><span>The Companies Act charges against Mr Petricevic and Mr Roest were laid indictably under section 377 of that Act and carry a maximum penalty <span>of five years imprisonment or fines of up to $200,000</span>. Under section 382 of the Companies Act there is an automatic five year management ban if a person is convicted of an offence under section 377.<br><br></span><em>Civil proceedings</em><span> - The proceedings are issued under section 55C and related sections of the Securities Act. FMA has applied for declarations of civil liability and civil pecuniary penalties of up to $500,000 against each of the five directors.</span></p> </td> </tr> <tr> <td><strong>Date filed</strong></td> <td> <p><em>Criminal charges</em> -12 December 2008 (non-executive directors), 11 May 2009 (executive directors) in the District Court at Auckland.</p> <p><em>Civil proceedings</em> -12 December 2008 at the High Court in Auckland.</p> </td> </tr> <tr> <td><strong>Current status</strong></td> <td> <p><em>Criminal charges</em><span> - High Court trial commenced 25 October 2011.</span><br><br><span>Mr Davidson entered a guilty plea and was sentenced on 7 October 2011 to nine months' home detention, 200 hours community work and ordered to pay reparation of $500,000.</span><br><br><span>Mr Urwin pleaded guilty on 9 November, 2011. On 17 April 2012 he was sentenced to two years imprisonment.<br><br>On 5 April 2012 Mr Petricevic and Mr Roest were found guilty on charges of breaching the Crimes Act 1961, the Companies Act 1993, and the Securities Act 1978. Mr Steigrad was found guilty on charges of breaching the Securities Act 1978. Mr Steigrad was found guilty on charges of breaching the Securities Act 1978 for the period after 7 February 2007.<br><br></span><span>Mr Petricevic was sentenced on 26 April 2012 to six and a half years imprisonment on all charges. Mr Roest and Mr Steigrad were sentenced on 18 May 2012. Mr Roest was sentenced to six years six months imprisonment. He has appealed his sentence and conviction. His appeal was heard in the Court of Appeal on 10-11 September 2013. On 8 November 2013, the Court delivered its decision rejecting Mr Roest's appeal. Mr Steigrad was sentenced to nine months home detention, 200 hours community service and $350,000 reparation. He appealed his sentence and this was dismissed on 24 August 2012.</span><br><br><span>The convicted directors are all subject to automatic five year management bans under s60E of the Securities Act. Mr Davidson is banned until 2 September 2016. Mr Urwin is banned until 9 November 2016. Mr Petricevic, Mr Steigrad and Mr Roest are banned until 5 April 2017.</span><br><br><em>Civil proceedings</em><span> - stayed pending resolution of the criminal case.</span><br><br><span>FMA has consented to a settlement of civil proceedings between the receiver of Bridgecorp, the Bridgecorp directors, and their liability insurers resulting in a settlement payment of $18.9m. As part of that settlement, FMA has agreed to discontinue its own civil proceedings against the Bridgecorp directors once the settlement sum has been paid.</span></p> </td> </tr> </tbody> </table> <h2 id="h07"><a id="Lombard Finance &amp; Investments" name="Lombard%20Finance%20&amp;%20Investments"></a>Lombard Finance &amp; Investments</h2> <table> <tbody> <tr> <td><strong>Defendants</strong></td> <td><span>Sir Douglas Graham, Michael Reeves, William Jeffries and Lawrence Bryant.</span></td> </tr> <tr> <td><strong>Charges</strong></td> <td> <p>FMA alleged that Lombard Finance &amp; Investments' offer documents and advertisements misled investors.</p> <p>FMA alleged that the directors made false statements in the registered prospectus dated 7 September 2007, as amended by a memorandum of amendments dated 24 December 2007, and investment statements dated 28 December 2007.</p> <p>In addition, FMA alleged that a DVD advertisement distributed during 2007 and 2008 contained similar untrue statements.</p> <p>The defendants denied the charges.</p> </td> </tr> <tr> <td><strong>Penalties</strong></td> <td> <p><em>Criminal charges</em> - these charges were laid indictably under section 58 of the Securities Act and carry a maximum penalty of five years imprisonment or fines of up to $300,000 plus $10,000 for every day the offence is continued. Under section 60E of the Securities Act there is an automatic five year management ban if a person is convicted of an offence under section 58.</p> <p><em>Civil proceedings</em> - the proceedings were issued under section 55C and related sections of the Securities Act. FMA has applied for declarations of civil liability and civil pecuniary penalties of up to $500,000 against each of the four directors.</p> </td> </tr> <tr> <td><strong>Date filed</strong></td> <td> <p><em>Criminal charges</em> -14 April 2010 in the District Court at Wellington.</p> <p><em>Civil proceedings</em> -1 April 2010 in the High Court at Wellington.</p> </td> </tr> <tr> <td><strong>Current status</strong></td> <td> <p><em>Criminal charges</em> - High Court trial commenced 17 October 2011. On 23 February 2012 the accused were each found guilty on four out of five counts in the indictment.</p> <p>Sentencing was on 29 March 2012. Sir Douglas Graham and Mr Bryant were each sentenced to 300 hours community service and ordered to pay reparation of $100,000. Mr Jeffries and Mr Reeves were each sentenced to 400 hours community service. The convicted directors are each subject to automatic five year management bans under section 60E of the Securities Act until 29 March 2017. <br><br>The defendants all appealed their convictions. The Solicitor General appealed their sentences. On 30 May 2013 the Court of Appeal rejected the defendants' appeals against conviction and accepted FMA's appeal that the original sentences were inadequate. On 2 July 2013, the Court of Appeal substituted sentences of home detention for the community work sentences imposed in the High Court. Mr Jeffries was sentenced to 8 months home detention and 250 hours community work. Mr Reeves was sentenced to 9 months home detention and 250 hours community work.  Mr Graham was sentenced to 6 months home detention and 200 hours community work. Mr Bryant was sentenced to 6 months home detention.  The reparation payments ordered against Messrs Graham and Bryant still stand.<br><br>On 2 July 2013, the defendants applied to the Supreme Court for leave to appeal the Court of Appeal’s decision regarding their convictions and sentences.<br><br>On 25 October 2013, the Supreme Court declined leave in relation to the conviction appeal, but granted leave on the sentence appeal. The appeal in relation to sentence was heard in February 2014.</p> <p>On 7 May 2014, the Supreme Court allowed the appeal against sentence and restored the sentence orginally imposed by the High Court.</p> <p><em>Civil proceedings</em> -</p> <p>FMA has consented to the settlement of civil claims that were made by the Receivers against Lombard's Directors for breach of directors' duties under the Companies Act 1993. As a condition of the agreement, and following receipt of the settlement payment by the Receivers, FMA has now discontinued its own civil proceedings against the directors of Lombard.</p> </td> </tr> </tbody> </table> <h2 id="h08"><a id="Capital + Merchant Finance" name="Capital%20+%20Merchant%20Finance"></a>Capital + Merchant Finance</h2> <table> <tbody> <tr> <td><strong>Defendants</strong></td> <td> <p>Civil and criminal proceedings - Neal Nicholls, Owen Tallentire, Colin Ryan and Robert Sutherland</p> <p><br>Criminal charges only - Wayne Douglas, Executive Director (resigned as a director in February 2007)</p> </td> </tr> <tr> <td> <p><strong>Charges</strong></p> <p><strong> </strong></p> <p><strong> </strong></p> <p><strong> </strong></p> </td> <td> <p>FMA alleged that Capital + Merchant Finance's offer documents and advertisements misled investors.<br><br>FMA alleged that the directors made untrue statements in the registered prospectus and investment statement dated 15 August 2006 and  that the current four directors made similar untrue statements in the registered prospectus and investment statement dated 10 September 2007.<br><br>FMA alleged that five advertisements distributed during 2007 contained untrue statements. These claims do not apply to Mr Douglas who had resigned his directorship by then.<br> <br>The defendants denied the charges.</p> </td> </tr> <tr> <td><strong>Penalties</strong></td> <td> <p><span>Criminal charges - most of the criminal charges are laid indictably under section 58 of the Securities Act and carry a maximum penalty of five years imprisonment or fines of up to $300,000. Under section 60E of the Securities Act there is an automatic five year management ban if a person is convicted of an offence under section 58.</span><br><br><span>Civil proceedings - the proceedings are issued under section 55C and related sections of the Securities Act. FMA has applied for declarations of civil liability and civil pecuniary penalties of up to $500,000 against each of the current four directors.</span></p> </td> </tr> <tr> <td><strong>Date filed</strong></td> <td> <p><em>Criminal charges - 17 December 2009 in the District Court at Auckland</em></p> <p><em><em>Civil Proceedings - 30 November 2009 in the High Court at Auckland</em></em></p> <p> </p> </td> </tr> <tr> <td><strong>Current status</strong></td> <td> <p><span>Criminal charges - In early 2013 all five directors separately pled guilty to the charges under section 58 of the Securities Act. Messrs Ryan, Sutherland and Tallentire were sentenced on 15 March 2013. Mr Tallentire was sentenced to 12 months' imprisonment. Mr Ryan was sentenced to seven months' home detention, 300 hours community work and ordered to pay $100,000 reparation. Mr Sutherland was sentenced to six months' home detention, 300 hours community work and ordered to pay $60,000 reparation. On 28 June 2013, Mr Douglas and Mr Nicholls were sentenced to an additional eight months’ and 12 months’ imprisonment respectively for offences under section 58 of the Securities Act. They are each already serving 7 ½ years’ imprisonment on fraud charges laid by the Serious Fraud Office.</span><br><span>Civil proceedings - stayed pending resolution of the criminal case.</span></p> </td> </tr> </tbody> </table> <h2><a id="Dominion Finance Group and North South Finance" name="Dominion%20Finance%20Group%20and%20North%20South%20Finance"></a>Dominion Finance Group and North South Finance</h2> <table> <tbody> <tr> <td><strong>Defendants</strong></td> <td> <p><span>Vance Arkinstall, Richard Bettle, Terence Butler, Ann Butler, Paul Forsyth and Robert Barry Whale</span></p> </td> </tr> <tr> <td><strong>Charges</strong></td> <td> <p>FMA alleges that Dominion Finance Group's offer documents and advertisements misled investors.</p> <p>FMA alleges that the directors made false statements in the Dominion Finance Group registered prospectus dated 13 September 2007, as amended by an extension certificate 20 December 2007 and the North South Finance registered prospectus dated 11 September 2007, as amended by an extension certificate 20 December 2007.</p> <p>In addition, FMA alleges that a quarterly newsletter of Dominion Finance Group and a letter to the investors of both Dominion Finance Group and North South Finance distributed during 2008 contained similar untrue statements.</p> <p>The defendants deny the charges.</p> </td> </tr> <tr> <td><strong>Penalties</strong></td> <td> <p><em>Criminal charges</em> - these charges are laid indictably under section 58 of the Securities Act and carry a maximum penalty of five years imprisonment or fines of up to $300,000 plus $10,000 for every day the offence is continued. Under section 60E of the Securities Act there is an automatic five year management ban if a person is convicted of an offence under section58.</p> <p><em>Civil proceedings</em> - The proceedings are issued under section 55C and related sections of the Securities Act. FMA has applied for declarations of civil liability and civil pecuniary penalties of up to $500,000 against each of the directors.</p> </td> </tr> <tr> <td><strong>Date filed</strong></td> <td> <p><em>Criminal charges</em> - filed on 22 June 2010 in the District Court at Auckland.</p> <p><em>Civil proceedings</em> - filed on 4 June 2010 in the High Court at Auckland.</p> </td> </tr> <tr> <td> <p><strong>Current status</strong></p> </td> <td> <p><em>Criminal charges</em> - High Court trial commences 1 July 2013.</p> <p>Mr Butler passed away on 28 March 2013 and, accordingly, the prosecution against him has been permanently stayed.</p> <p>In May 2013, Mr Whale and Mrs Butler pleaded guilty.<br><br>On 14 June 2013 Mr Whale was sentenced to 12 months’ home detention, 250 hours community work and $75,000 reparation.  Mrs Butler was sentenced to nine months’ home detention, 80 hours’ community work, and $300,000 reparation.<br><br>On 26 June 2013, Mr Arkinstall, Mr Forsyth and Mr Bettle each entered guilty pleas. On 16 August 2013 Mr Arkinstall, Mr Forsyth and Mr Bettle were sentenced. Mr Arkinstall was sentenced to 10 months home detention and 200 hours community work. Mr Bettle was sentenced to 10 months home detention and 200 hours community work and $90,000 reparation. Mr Forsyth  was sentenced to 11 months home detention, 200 hours community work and $50,000 reparation.</p> <p><em>Civil proceedings</em> - stayed pending resolution of the criminal case.</p> </td> </tr> </tbody> </table> <h2 id="h09"><a id="Belgrave Finance" name="Belgrave%20Finance"></a>Belgrave Finance</h2> <table> <tbody> <tr> <td><strong>Defendants</strong></td> <td> <p><span>Stephen Charles Smith, Shane Joseph Buckley, Raymond Tasman Schofield and Hugh Edward Staples Hamilton</span></p> </td> </tr> <tr> <td><strong>Charges</strong></td> <td> <p>FMA alleges the directors breached section 58 of the Securities Act by making untrue statements in documents offering securities to the public. FMA alleges that in substance Mr Schofield acted as a director of Belgrave. Mr Hamilton, a former barrister and solicitor, was a legal advisor to the other individuals charged in relation to Belgrave. It is alleged that Mr Hamilton was a party to the conduct of the Belgrave directors.</p> <p>FMA further alleges the defendants breached section 377 of the Companies Act 1993 by making a false or misleading statement to the trustee appointed to safeguard the interests of investors in Belgrave secured debenture stock.</p> <p>The SFO has also laid charges against the men under the Crimes Act 1961. The SFO and FMA charges will be tried together. The defendants deny the charges.</p> </td> </tr> <tr> <td><strong>Penalties</strong></td> <td> <p><em>Criminal charges</em> - these charges are laid indictably under section 58 of the Securities Act and carry a maximum penalty of five years imprisonment or fines of up to $300,000 plus $10,000 for every day the offence is continued. Under section 60E of the Securities Act there is an automatic five year management ban if a person is convicted of an offence under section 58.</p> <p>The maximum penalty for a breach of section 377 of the Companies Act is five years imprisonment or a $200,000 fine</p> </td> </tr> <tr> <td><strong>Date filed</strong></td> <td> <p><em>Criminal charges</em><span> - filed against Mr Smith, Mr Buckley, and Mr Schofield on 14 September 2011 in the District Court at Auckland. Charges were filed against Mr Hamilton on 23 November 2012 in the District Court.</span></p> </td> </tr> <tr> <td><strong>Current status</strong></td> <td> <p><em>Criminal charges</em> - High Court trial commences 29 April 2013. Mr Buckley pled guilty to 25 charges on 25 May 2012. On 30 August 2012 he was sentenced to 3 years' imprisonment. He is subject to an automatic five year management ban under s60E of the Securities Act until 25 May 2017.<br><br>On 17 December 2012 the High Court at Auckland granted Mr Schofield a conditional stay of the criminal proceeding on the grounds that he has a terminal illness. The conditional stay was granted in relation to the charges brought against him by the SFO and FMA regarding his alleged role in the affairs of Belgrave Finance Limited. On 17 April 2013 Mr Stephen Smith pleaded guilty to 25 charges under the Crimes Act, Securities Act and Companies Act. On 7 June 2013, Mr Smith was sentenced to 4 years imprisonment. The proceeding against Mr Hamilton commenced on 3 March 2014. Mr Hamilton was found guilty of 14 charges of theft. He was found not guilty of 25 charges, these included 11 charges of false statement by a promoter, 11 Companies Act charges of making a false statement to a trustee and three theft charges.<br><br>Mr Hamilton was sentenced to 4 years and 9 months imprisonment on 4 July 2014.</p> <p>Mr Hamilton has filed an appeal of his sentence, but a date for the appeal is yet to be allocated.</p> </td> </tr> </tbody> </table> <h2><a id="Hanover Finance, Hanover Capital &amp; United Finance" name="Hanover%20Finance,%20Hanover%20Capital%20&amp;%20United%20Finance"></a>Hanover Finance, Hanover Capital &amp; United Finance</h2> <table> <tbody> <tr> <td><strong>Defendants</strong></td> <td> <p><span>Mark Hotchin,  Gregory Muir, Sir Tipene O'Regan, Bruce Gordon, Eric Watson and Dennis Broit</span></p> </td> </tr> <tr> <td><strong>Charges</strong></td> <td> <p><span>FMA alleges that the directors and promoters made untrue statements in the registered prospectuses and investment statements of Hanover Finance, Hanover Capital and United Finance dated 7 December 2007.</span><br><br><span>FMA also alleges that the directors made further untrue statements when they signed prospectus extension certificates on 31 March 2008.</span><br><br><span>In addition FMA alleges that certain advertisements contained untrue statements about some of the matters referred to above.</span></p> </td> </tr> <tr> <td><strong>Penalties</strong></td> <td> <p><span>Civil proceedings - The proceedings were issued under sections 55B, 55C, 55G and related sections of the Securities Act 1978. FMA has applied for compensation, declarations of civil liability, civil pecuniary penalties of up to $500,000 against each of the five directors and promoters. Under section 60E of the Securities Act there is an automatic five year management ban if a pecuniary penalty order is made against a person under the Act.</span></p> </td> </tr> <tr> <td><strong>Date filed</strong></td> <td> <p><span>Civil proceedings - filed on 30 March 2012 in the High Court, Auckland Registry.</span></p> </td> </tr> <tr> <td><strong>Current status</strong></td> <td> <p><span>Defences and Statements in Reply filed. A hearing of 12 weeks has been allocated commencing on 20 July 2015.</span></p> </td> </tr> <tr> <td><strong>Other orders</strong></td> <td> <p><span>In December 2010, the Securities Commission secured interim asset preservation orders over the assets of Mr Hotchin and the KA4 Trust Limited (KA4) which includes Mr Hotchin’s interest in a Paritai Drive property owned by KA4. These orders (now maintained by FMA) were upheld by the High Court in December 2011 and continue to be in place.</span></p> </td> </tr> </tbody> </table> <h2><a id="National Finance" name="National%20Finance"></a>National Finance</h2> <table> <tbody> <tr> <td><strong>Defendants</strong></td> <td> <p><span>Trevor Allan Ludlow, Carol Braithwaite, Anthony Banbrook,</span></p> </td> </tr> <tr> <td><strong>Charges</strong></td> <td> <p><span>FMA alleged that the directors made untrue statements in the registered prospectus for National Finance 2000 Limited, dated 22 September 2005. These statements included those relating to National's provisioning for bad debts, the loans made by National to related parties, including the purpose for which those loans were made, the security provided for them and their amount relative to National's total tangible assets, the security provided by borrowers for the loans made by National.</span><br><br><span>The directors denied the charges.</span><br><br><span>The SFO also laid charges against Mr Ludlow and National Finance's accountant John Gray.  Mr Gray pleaded guilty and was sentenced to 18 months' imprisonment on 26 November 2010.  Mr Ludlow was found guilty of all charges on 26 July 2011.  He was sentenced on 20 October 2011 to five years and seven months imprisonment.</span></p> </td> </tr> <tr> <td><strong>Penalties</strong></td> <td> <p><span>Criminal charges - these charges are laid indictably under section 58 of the Securities Act and carry a maximum penalty of five years imprisonment or fines of up to $300,000. Under section 60E of the Securities Act there is an automatic five year management ban if a person is convicted of an offence under section 58.</span></p> </td> </tr> <tr> <td><strong>Date filed</strong></td> <td> <p><span>8 September 2008</span><span> </span><span>in the District Court at Auckland.<br><br>Mr Ludlow pleaded guilty to the FMA charges and was sentenced on 26 January 2012 to serve an additional nine months imprisonment cumulative on the existing SFO sentence. Accordingly he has received a total sentence of six years four months imprisonment. Mr Ludlow has since appealed his SFO and FMA sentence. The appeal of his FMA sentence was heard on 2 May 2013. The Court of Appeal dismissed the appeal on 7 June 2013. Mrs Braithwaite's jury trial commenced on 9 July 2012. She was found guilty on 27 July 2012. On 18 September 2012 she was sentenced to 10 months' home detention and 300 hours of community work.</span></p> </td> </tr> <tr> <td><strong>Current status</strong></td> <td> <p><span>Mr Banbrook pleaded guilty on 22 June 2012. He sought a disputed facts sentencing hearing, that was adjourned until 2013 but he then abandoned that on 15 February 2013. On 12 March 2013 he was sentenced to eight and a half months' home detention and ordered to pay $75,000 in reparation. He filed an appeal against conviction on 12 March 2013. The appeal was heard on 21 October 2013 and was dismissed on 30 October 2013. Mr Banbrook has applied for leave to appeal this decision to the Supreme Court. This application was rejected by the Supreme Court on 18 December 2013. Mr Banbrook has now paid his reparations.</span><br><span> </span><br><span>The convicted directors are all subject to automatic five year management bans under s60E of the Securities Act. Mr Ludlow is banned until 13 December 2016. Mrs Braithwaite is banned until 27 July 2017. Mr Banbrook is banned until 24 August 2017.</span></p> </td> </tr> </tbody> </table> <h2><a id="South Canterbury Finance" name="South%20Canterbury%20Finance"></a>South Canterbury Finance</h2> <table> <tbody> <tr> <td><strong>Defendants</strong></td> <td><span>Edward Sullivan, Robert White, Lachie McLeod, Terrence Hutton, Graham Brown </span></td> </tr> <tr> <td><strong>Charges</strong></td> <td> <p><span>The SFO is the informant. The prosecution is led by the SFO, with FMA's involvement and assistance. The accused are the former directors, former CEO, and company accountants of South Canterbury Finance (SCF). The SFO has laid 21 charges in total with FMA's assistance. The charges are laid under provisions of the Crimes Act: sections 220 (theft by person in special relationship), 240 (inducing by deception), 260 (false accounting) and 242 (false statement by promoter).</span><br><span>The defendants deny the charges.</span></p> </td> </tr> <tr> <td><strong>Penalties</strong></td> <td><em>Criminal charges -</em><span> The charges under sections 220 and 242 of the Crimes Act carry a maximum penalty of seven years imprisonment, and the charges under sections 242 and 260 of the Crimes Act carry a maximum penalty of 10 years imprisonment. Under section 382 of the Companies Act there is an automatic five year management ban if a person is convicted of a crime involving dishonesty.</span></td> </tr> <tr> <td><strong>Date filed</strong></td> <td> <p><em>Criminal charges -</em><span> 7 December 2011 in the District Court of Timaru.</span><br><em>Civil proceedings - </em><span> None filed to date</span></p> </td> </tr> <tr> <td><strong>Current status</strong></td> <td><span>The case was committed on 31 October 2012. On 11 March 2013 it was transferred to the High Court in Timaru. A pre-trial hearing took place on 5 August 2013 at which the Crown withdrew its charges against Mr Brown and Mr Hutton. The trial commenced on 12 March 2014 in front of a Judge alone and concluded on 18 August 2014. A decision was delivered on October 14 2014.  Messrs White and McLeod were found not guilty on all counts.  Mr Sullivan was found guilty on 5 charges being 4 charges of false statement as a promoter under s242 of the Crimes Act and 1 charge of obtaining by deception under s240 of the Crimes Act.  Mr Sullivan will be sentenced on 12 December 2014.</span></td> </tr> </tbody> </table> <h2><a name="OPIFinanceLimited"></a>OPI Finance Limited</h2> <table> <tbody> <tr> <td><strong>Defendants</strong></td> <td><span>Craig White, Jason Maywald, Mark Lacy, David Anderson</span></td> </tr> <tr> <td><strong>Charges</strong></td> <td><span>Charges have been laid under section 58 of the Securities Act whereby FMA alleges that Mark Lawrence Lacy, Jason Robert Duncan Maywald, David Mark Anderson and Craig Robert White made untrue statements in the 2007 OPI offer documents.</span></td> </tr> <tr> <td><strong>Penalties</strong></td> <td><span>Criminal charges - The charges under section 58 of the Securities Act 1978 carry a five year maximum term of imprisonment or a $300,000 fine.</span></td> </tr> <tr> <td><strong>Date filed</strong></td> <td><span>Criminal charges – Filed on 5 November 2013 in the District Court of Auckland.</span></td> </tr> <tr> <td><strong>Current status</strong></td> <td> <p><span>Messrs Lacy, White and Anderson entered not guilty pleas on 12 June 2014. The matter has now been transferred to the High Court and the next appearance date is 11 February 2015.</span></p> </td> </tr> </tbody> </table> <h2><a name="ViaductandMutual"></a>Viaduct Capital Limited and Mutual Finance Limited</h2> <table> <tbody> <tr> <td> <p><strong>Defendants</strong></p> </td> <td><span>Paul Neville Bublitz (Viaduct and Mutual); Bruce Alexander McKay (Viaduct and Mutual); Richard Timothy Blackwood (Viaduct and Mutual); Lance David Morrison (Mutual only), Peter Louis Chevin (Mutual only)</span></td> </tr> <tr> <td> <p><strong>Charges</strong></p> </td> <td><span>The defendants have been charged with theft in a special relationship under section 220 of the Crimes Act and making false statements in a prospectus under section 242 of the Crimes Act. With respect to Viaduct only, charges have also been filed under section 377 of the Companies Act in respect of false statements made to Viaduct's trustee.</span></td> </tr> <tr> <td> <p><strong>Penalties</strong></p> </td> <td><span>The Crimes Act charges carry maximum sentences of 7 and 10 years' imprisonment. The charges under the Companies Act carries a maximum sentence of 5 years' imprisonment or a $200,000 fine.</span></td> </tr> <tr> <td> <p><strong>Date filed</strong></p> </td> <td><span>Criminal charges – Filed on 11 March  2014 in the District Court of Auckland.</span></td> </tr> <tr> <td> <p><strong>Current status</strong></p> </td> <td> <p><span>The defendants made their first appearance on 7 May 2014. No pleas were entered. Guilty pleas were entered by each of the defendants on 29 September 2014.</span></p> <p><span>The next appearance is due to occur on 10 December 2014.</span></p> </td> </tr> </tbody> </table> http://www.fma.govt.nz/laws-we-enforce/enforcement/prosecutions-and-proceedings/fma-cases-before-the-court/ FMA cases before the Court 2014-10-16 14:11:30 Financial Markets Authority <p> </p> <table> <tbody> <tr> <td colspan="2"> <h2>Murray Alcock and Allister Knight</h2> <p><strong>This criminal proceeding relates to  allegations that Murray Alcock and Allister Knight, as Directors of SPI Capital Limited and SPI Property Limited, failed to deliver financial statements to the Registrar of Companies under ss 18(1) &amp; 38(b) Financial Reporting Act 1993.</strong></p> </td> </tr> <tr> <td><strong>17 October 2014</strong></td> <td>Messrs Alock and Knight will make a further appearance in the Auckland District Court</td> </tr> <tr> <td><strong>12 September 2014</strong></td> <td>Messrs Alcock and Knight will make their second appearance and will be required to enter a plea.</td> </tr> <tr> <td><strong>30 July 2014</strong></td> <td>Messrs Alcock and Knight will make their first appearance in the Auckland District Court on 30 July 2014.</td> </tr> </tbody> </table> <p> </p> <table> <tbody> <tr> <td colspan="2"> <h2>Archer Capital and Healthcare Industry</h2> </td> </tr> <tr> <td colspan="2"><strong>This civil proceeding relates to allegations of breaches of the substantial shareholder disclosure obligations contained in the Securities Markets Act 1988.</strong></td> </tr> <tr> <td><strong>1 October 2014</strong></td> <td>The Financial Markets Authority (FMA) has filed and served civil proceedings against Archer Capital (Pty) Limited (Archer) and Healthcare Industry Limited (HIL). The proceedings are for alleged breaches of the substantial shareholder disclosure obligations contained in the Securities Markets Act 1988, in relation to shares in Abano Healthcare Group Limited (Abano).</td> </tr> </tbody> </table> <p> </p> <table> <tbody> <tr> <td colspan="2"> <h2>Ross Collins</h2> <p><strong>This criminal proceeding relates to  allegations that Ross Collins, as a Director of Prosper Hills (2004) Limited, Prosper Hills (2006) Limited NZFIL 3, failed to deliver financial statements to the Registrar of Companies under ss 18(1) &amp; 38(b) Financial Reporting Act 1993.</strong></p> </td> </tr> <tr> <td><strong>10 July 2014</strong></td> <td>Mr Collins was sentenced in the Tauranga District Court and ordered to pay a fine of $30,000 for breaches of the Financial Reporting Act 1993 (FRA). See <a href="http://www.fma.govt.nz/keep-updated/newsroom/media-releases/2014/director-pays-the-penalty-for-failing-to-file-financial-statements-on-time">FMA’s press release of 11 July 2014</a> for further details.</td> </tr> <tr> <td><strong>12 June 2014</strong></td> <td>Mr Collins appeared in the Tauranga District Court on 29 May 2014 and pleaded guilty to all charges. He will next appear before the Court on 10 July 2014 for sentencing.</td> </tr> </tbody> </table> <p> </p> <table> <tbody> <tr> <td colspan="2"> <h2><a name="FirstMortgageInvestmentsLimited"></a>First Mortgage Investments Limited</h2> <strong>This criminal proceeding relates to an alleged failure to deliver an annual report to the Registrar of Companies in accordance with the requirements of Regulation 12 of the Securities Act (Contributory Mortgage) Regulations.</strong></td> </tr> <tr> <td><strong>5 March 2014</strong></td> <td><span>First Mortgage has been convicted and fined $4,000 plus court costs for failing to deliver its annual report to the Registrar of Companies by 30 June 2013. First Mortgage pleaded guilty to the charge laid by the FMA and the conviction was entered in the Auckland District Court on 20 March 2014.</span></td> </tr> <tr> <td><strong>30 January 2014</strong></td> <td><span>First Mortgage appeared in the Auckland District Court on 30 January 2014 and is scheduled to reappear on 20 March 2014.</span></td> </tr> <tr> <td><strong>17 December 2013</strong></td> <td><span>First Mortgage Investments Limited has been charged with failing to deliver an annual report to the Registrar of Companies for the period 1 April 2012 to 31 March 2013 by 30 June 2013. The charges have been laid under the Securities Act (Contributory Mortgage) Regulations and carry a maximum fine of $5000.</span></td> </tr> </tbody> </table> <p> </p> <table> <tbody> <tr> <td colspan="2"> <h2>Brian Henry</h2> <p><strong>This civil proceeding relates to allegations of market manipulation in breach of the Securities Markets Act.</strong></p> </td> </tr> <tr> <td><strong>6 August 2014</strong></td> <td>At the Auckland High Court Mr Henry admitted his trading contravened section 11B of the Securities Markets Act 1988, and a pecuniary penalty of $130,000 was imposed by the Court. See FMA’s <a href="http://www.fma.govt.nz/keep-updated/newsroom/media-releases/2014/brian-henry-admits-market-manipulation">press release of 7 August 2014</a> for further detail.</td> </tr> <tr> <td><strong>July 2014</strong></td> <td>Mr Henry’s application to strikeout FMA’s claim was withdrawn.  The matter will next be before the High Court on 6 August 2014.</td> </tr> <tr> <td><strong>May 2014</strong></td> <td>The High Court will hear an application by Mr Henry to strike out the claim of FMA on 20 June 2014.</td> </tr> <tr> <td><strong>6 November 2013                      </strong></td> <td>The High Court allocated a two week hearing for the hearing of the claim commencing on 15 September 2014.</td> </tr> <tr> <td><strong>5 August 2013</strong></td> <td>Mr Henry filed his statement of defence to the FMA’s claim.</td> </tr> <tr> <td><strong>13 June 2013</strong></td> <td> <p>FMA filed civil proceedings against Brian Peter Henry alleging market manipulation of shares in the NZX-listed Diligent Board Member Services.</p> <p>The proceedings contain six claims alleging certain orders and trades made by Mr Henry in 2010 breached the market manipulation provisions of the Securities Markets Act. FMA’s investigation followed a referral from NZX.</p> <p>Brian Henry was a founding member of Diligent. He left the company in March 2009.</p> </td> </tr> </tbody> </table> <p> </p> <table> <tbody> <tr> <td colspan="2"> <h2>Hayden and George Jones</h2> <p><strong>This criminal proceeding relates to  allegations that Hayden and George Jones, as Directors of Heritage Park Taupo Limited and Heritage Park Investments Limited, failed to deliver financial statements to the Registrar of Companies under ss 18(1) &amp; 38(b) Financial Reporting Act 1993.</strong></p> </td> </tr> <tr> <td><strong>11 September 2014</strong></td> <td>Hayden and George Jones appeared in the Christchurch District Court and were fined $35,000 each for breaches of the Financial Reporting Act 1993.</td> </tr> <tr> <td><strong>24 July 2014</strong></td> <td>Hayden and George Jones pleaded guilty to all charges. A sentencing hearing is scheduled to take place in the Christchurch District Court on 11 September 2014.</td> </tr> <tr> <td><strong>26 June 2014</strong></td> <td>Hayden and George Jones requested a further adjournment to allow instructed counsel to review disclosure.  They will next appear before the Court on 24 July 2014 when they will be expected to enter pleas.</td> </tr> <tr> <td><strong>12 June 2014</strong></td> <td>Hayden and George Jones appeared in the Christchurch District Court and requested an adjournment to 26 June 2014 to allow disclosure to be considered.</td> </tr> </tbody> </table> <p> </p> <table> <tbody> <tr> <td colspan="2"> <h2>Justin Prain and Mark Schroeder</h2> <p><strong>This criminal proceeding relates to  allegations that Messrs Prain and Schoeder, as Directors of Applefields Limited failed to deliver financial statements to the Registrar of Companies under ss 18(1) &amp; 38(b) Financial Reporting Act 1993.</strong></p> </td> </tr> <tr> <td><strong>24 July 2014</strong></td> <td>A hearing date has been allocated for this matter in the Christchurch District Court on 20 November 2014.</td> </tr> <tr> <td><strong>12 June 2014</strong></td> <td>Messrs Prain and Schroder appeared in the Christchurch District Court on 12 June 2014 and each pleaded not guilty to all charges.  The matter has been allocated a Case Review Hearing on 24 July 2014.</td> </tr> </tbody> </table> <table> <tbody> <tr> <td colspan="2"> <h2>Prince and Partners Trustee Company Limited</h2> </td> </tr> <tr> <td colspan="2"><strong>This civil proceeding against Prince and Partners Trustee Company Limited (Prince), has been brought by FMA under section 34 of the Financial Markets Authority Act. In bringing the claim, FMA is exercising the rights of action of investors not covered by the Retail Deposit Crown Guarantee and the New Zealand Treasury.  Prince was the trustee for finance company Viaduct Capital Limited (Viaduct).  Viaduct collapsed in 2009. FMA alleges that Prince breached the obligations it owed to Viaduct investors and to the Treasury (the Crown) under the Retail Deposit Crown Guarantee.</strong></td> </tr> <tr> <td><strong>3 September 2014</strong></td> <td>The Court made orders confirming that FMA may control these proceedings. </td> </tr> <tr> <td><strong>18 August 2014</strong></td> <td>FMA served civil proceedings on Prince.</td> </tr> </tbody> </table> <table> <tbody> <tr> <td colspan="2"> <h2><a name="PrudentialMortgageLimited"></a>Prudential Mortgage Limited</h2> <strong>This criminal proceeding relates to an alleged failure to deliver an annual report to the Registrar of Companies in accordance with the requirements of Regulation 12 of the Securities Act (Contributory Mortgage) Regulations.</strong></td> </tr> <tr> <td><strong>5 March 2014</strong></td> <td>Prudential Mortgage Limited has been convicted and fined $2,000 for failing to deliver its annual report to the Registrar of Companies by 30 June 2013. Prudential pleaded guilty to the charge laid by the Financial Markets Authority (FMA) and the conviction was entered in the Christchurch District Court on 5 March 2014.</td> </tr> <tr> <td><strong>17 December 2013</strong></td> <td>Prudential Mortgage Limited has been charged with failing to deliver an annual report to the Registrar of Companies for the period 1 April 2012 to 31 March 2013 by 30 June 2013. Prudential is due to appear in the Christchurch District Court on 5 March 2014. The charges have been laid under the Securities Act (Contributory Mortgage) Regulations and carry a maximum fine of $5000.</td> </tr> </tbody> </table> <p> </p> <table> <tbody> <tr> <td colspan="2"> <h2>Andrew Robinson and Mark Turnock</h2> <p><strong>The criminal proceeding brought by FMA relates to allegations of breaches of the Financial Reporting Act, Financial Advisers Act and Financial Service Providers (Registration and Dispute Resolution) Act.  The Serious Fraud Office has also laid separate charges under the Crimes Act against Mr Robinson.</strong></p> </td> </tr> <tr> <td><strong>17 September 2014</strong></td> <td> <p>Mr Turnock and Mr Robinson are due to appear in the High Court for a case review hearing.</p> </td> </tr> <tr> <td><strong>9 July 2014</strong></td> <td> <p>A 2 week trial on the FMA charges has been scheduled for April 2015.</p> </td> </tr> <tr> <td><strong>2 July 2014</strong></td> <td> <p>FMA’s prosection of both Mr Turnock and Mr Robinson has been transferred to the High Court. A two week trial has been allocated for April 2015. Mr Turnock will next appear before the court on 9 July 2014.</p> </td> </tr> <tr> <td><strong>2 April 2014</strong></td> <td> <p>Mr Turnock and Mr Robinson have both been remanded on residential bail conditions and will next appear before the Court on 24 June 2014.</p> </td> </tr> <tr> <td><strong>4 March 2014</strong></td> <td> <p>Mr Turnock has been remanded on residential bail conditions until a further call over hearing on 15 April 2014.  Mr Robinson will now next appear before the Court on 2 April 2014.</p> </td> </tr> <tr> <td><strong>4 December 2013                     </strong></td> <td> <p>Mr Robinson and Mr Turnock attended a Case Review Hearing on 4 December 2013.  Mr Turnock has been remanded on residential bail conditions until a further call over hearing on 4 March 2014 and Mr Robinson will next appear before the Court on 20 March 2014.</p> </td> </tr> <tr> <td><strong>26 September 2013</strong></td> <td> <p>Mr Robinson and Mr Turnock pleaded not guilty to all SFO and FMA charges and opted for trial in front of a jury.  Both were remanded on residential bail conditions until their Case Review Hearing on 4 December 2013.</p> </td> </tr> <tr> <td><strong>5 September 2013</strong></td> <td> <p>Following a joint investigation into the activities of Auckland based company Strategic Planning Group Limited (SPG), the Serious Fraud Office (SFO) and the Financial Markets Authority (FMA) have laid charges against former financial adviser Andrew Hrothgar Robinson (40).</p> <p>Mr Robinson was a director of Strategic Planning Group Limited (SPG) and is a current director of SPG Investment Company No.1 Limited (SPGI).</p> <p>Mr Robinson appeared in the Auckland District Court to face five charges laid by SFO under the Crimes Act of theft by person in a special relationship and one charge of dishonestly using a document.</p> <p>It is alleged that Mr Robinson stole investor funds of approximately $3 million to repay the investments of other investors and to pay for some business and personal expenses between 2010 and 2012. It is further alleged Mr Robinson made false statements in various investment reports.</p> <p>FMA has laid one charge against Mr Robinson under the Financial Service Providers Act for providing a broking service without being registered, and one charge of knowingly making a false statement in his application to become an Authorised Financial Adviser (AFA) under the Financial Advisers Act.</p> <p>FMA has laid additional charges against Mr Robinson and a co-director of SPGI, Mark Andrew Turnock. They each face two charges under the Financial Reporting Act of making false statements in the SPGI financial documents. SFO has not laid charges against Mr Turnock.</p> </td> </tr> </tbody> </table> <table> <tbody> <tr> <td colspan="2"> <h2><a name="RossAssetManagementInvestigation"></a>Ross Asset Management Investigation</h2> <p><strong>The criminal proceeding brought against Mr Ross by FMA relates to allegations of breaches of the Financial Markets Act, Financial Advisers Act and Financial Service Providers (Registration and Dispute Resolution) Act. The Serious Fraud Office has also laid four Crimes Act charges of false accounting and one charge of theft by person in special relationship against Mr Ross.</strong></p> <p><strong>The FMA and SFO charges are being heard together.</strong></p> </td> </tr> <tr> <td><strong>June 2014</strong></td> <td><span>Court of Appeal dismissed Mr Ross’ appeal against sentence.</span></td> </tr> <tr> <td><strong>April 2014</strong></td> <td><span>David Ross’s appeal against the minimum non-parole period ordered by the District Court will be heard by the Court of Appeal in Wellington on 11 June 2014.</span></td> </tr> <tr> <td> <h4><strong>25 June 2014</strong></h4> </td> <td> <p>David Ross's appeal was declined by the Court of Appeal.</p> </td> </tr> <tr> <td> <h4><strong>10 February 2014</strong></h4> </td> <td> <p>The Financial Markets Disciplinary Committee today dismissed FMA's complaint against David Ross after FMA informed the Committee that it did not consider that it was in the public interest for the complaint to proceed. The complaint (for breaches of the Code of Professional Conduct for AFAs) was adjourned in August last year pending the completion of the criminal proceedings against Mr Ross, after criminal charges were laid by FMA and the Serious Fraud Office. Mr Ross pleaded guilty to the charges and in November 2013 he was sentenced to 10 years and 10 months imprisonment.</p> <p>FMA's decision not to proceed with its complaint was made on the basis that Mr Ross' conduct had been firmly censured through the judgment of the District Court which recorded the dishonesty and breach of trust by Mr Ross and the harm and suffering which his conduct had caused and because Mr Ross' AFA status has also been terminated. FMA advised the FADC that a determination by the Committee would not provide any further protection, deterrence or punishment beyond what has been delivered through the criminal justice process. Consistent with its position in the criminal proceeding, FMA did not seek a fine as it considers any funds that may be available should be paid to investors through the receivership. While FMA was of the view that there has been a clear breach of the Code, it did not consider it was in the public interest to continue with this case for these reasons. FMA will continue to support investors' interests by working with the receivers and liquidators to achieve recoveries for investors where possible.</p> </td> </tr> <tr> <td> <h4><strong>13 December 2013                   </strong></h4> </td> <td> <p>David Ross has filed an appeal against the minimum non-parole period ordered by the Court on the basis that it was manifestly excessive and/or inappropriate.  No date has yet been allocated for the appeal hearing.</p> </td> </tr> <tr> <td> <h4><strong>15 November 2013</strong></h4> </td> <td> <p>David Robert Gilmour Ross (63) was sentenced in the Wellington District Court today to 10 years and 10 months of imprisonment.</p> <p>This follows Mr Ross having pleaded guilty in August to four Crimes Act charges of false accounting and one charge of theft by person in special relationship laid by the SFO, and charges laid by FMA for providing a financial service without being registered for that service, knowingly making a false declaration to FMA for the purposes of obtaining authorisation as an Authorised Financial Adviser (AFA) and producing documents to FMA which he knew to be false or misleading.</p> <p>The Court directed that Mr Ross serve a minimum non-parole period of 5 years and 5 months and also ordered that reparation be paid from Mr Ross' personal assets through the Receivership.</p> </td> </tr> <tr> <td> <h4><strong>8 November 2013</strong></h4> </td> <td> <p>A hearing took place in the Wellington High Court on 4 November, in relation to the asset preservation orders which FMA has obtained over the assets of David Ross, Ross Asset Management and related entities.</p> <p>The asset preservation orders have now been extended to the assets of the DRG Ross Family Trust, also known as the David Robert Gilmour Ross Family Trust. John Fisk and David Bridgman have also been appointed as receivers over this trust, on the condition that the receivers cannot sell any assets of this trust without further Court order. The existing asset preservation orders remain in place.</p> </td> </tr> <tr> <td> <h4><strong>24 October 2013</strong></h4> </td> <td>Mr Ross appeared at the Wellington District Court today and was remanded in custody to reappear on 15 November for sentencing.</td> </tr> <tr> <td><strong>29 August 2013</strong></td> <td> <p>David Ross today pleaded guilty in the Wellington District Court to charges laid by the Serious Fraud Office (SFO) and the Financial Markets Authority (FMA).</p> <p>Mr Ross has been remanded in custody to reappear on 24 October to set a sentencing date.</p> </td> </tr> <tr> <td><strong>22 August 2013</strong></td> <td> <p>David Ross appeared in the Wellington District Court this morning for a case review hearing.</p> <p>He was remanded on bail until 10.00am on 29 August when he will reappear in the Wellington District Court.</p> </td> </tr> <tr> <td><strong>5 July 2013</strong></td> <td>David Ross appeared at the Wellington District Court today. Mr Ross was remanded without plea to reappear on 22 August 2013 at 10am for a case review.</td> </tr> <tr> <td><strong>28 June 2013</strong></td> <td> <p>The Financial Markets Authority (FMA) has today laid three charges against Mr Ross in the Wellington District Court under financial markets legislation.</p> <p>Mr Ross next appears before the Court on 5 July 2013.</p> <p>FMA has issued a <a href="http://www.fma.govt.nz/keep-updated/newsroom/media-releases/2013/more-charges-laid-against-david-ross">press release</a> and will not be making any further comment regarding these charges while the matter is before the Courts. Asset preservation orders obtained by FMA under the Financial Advisers Act with respect to Mr Ross and his related entities remain in place and work by the liquidators (PwC) continues.</p> </td> </tr> <tr> <td><strong>13 June 2013</strong></td> <td> <p>PwC has just released the third Liquidation Committee report. A copy of this can be found <a href="http://www.pwc.co.nz/rossassetmanagement/">here</a> on PwC's website.</p> <p>Charges have today been laid by the Serious Fraud Office (SFO) against Mr Ross in the Wellington District Court today. The charges follow a joint agency investigation between SFO and the Financial Markets Authority (FMA).</p> <p>Mr Ross appeared in the Wellington District Court this morning and has been remanded on bail to appear again on 4 July 2013.</p> <p>As criminal charges have now been laid with the Courts, FMA will not be making any further additional comments in relation to these charges.</p> <p>FMA's investigation under the Financial Advisers Act continues. Asset preservation orders obtained under the Financial Advisers Act by FMA with respect to Mr Ross and his related entities remain in place.</p> <p>The liquidators (PwC) have released the third Liquidation Committee report. A copy of this can be found <a href="http://www.pwc.co.nz/rossassetmanagement/">here</a> on PwC's website.</p> <p>A copy of a joint press release between SFO and FMA can be found <a href="http://www.fma.govt.nz/keep-updated/newsroom/media-releases/2013/charges-laid-today-against-david-ross">here</a>.</p> </td> </tr> <tr> <td><strong>30 April 2013</strong></td> <td>PwC has released the results of the second Liquidation Committee report. A copy of this can be found <a href="http://www.pwc.co.nz/rossassetmanagement/">here</a> on PwC's website.</td> </tr> <tr> <td><strong>25 March 2013</strong></td> <td> <p>A hearing took place in the Wellington High Court today, before Justice Kós, in relation to the asset preservation orders which FMA has obtained over the assets of David Ross, Ross Asset Management and related entities.</p> <p>The parties have agreed that now the liquidators (Messrs Fisk and Bridgeman) have been appointed over the Ross companies, the receiver is no longer required. Although orders were sought to remove Mr Fisk and Mr Bridgman as receivers over the Ross related companies, they will both remain as liquidators over these companies. All other aspects of the asset preservation orders remain in place, including the freeze over assets.</p> <p>The receivers will shortly file their final receivers' report with the Court.</p> <p>Information regarding the liquidations can be found on PWC's <a href="http://www.pwc.co.nz/ross-group/">website</a>.</p> <p>While the liquidation process continues, there is no immediate need for a future Court date and Justice Kós has agreed to adjourn the matter until further notice. FMA or the named defendants can request a hearing if required, on five working days' notice.</p> <p>The investigation being conducted by FMA and SFO is on-going and Mr Ross is continuing to co-operate with inquiries.</p> <p>FMA will issue a questionnaire to all investors seeking further information, relevant to the investigations and asks that all investors complete this questionnaire to assist with the on-going investigation.</p> </td> </tr> <tr> <td><strong>Last update 21 December 2012</strong></td> <td>Yesterday, PwC released its first liquidators report. A copy of this can be found <a href="http://www.pwc.co.nz/rossassetmanagement/">here</a> on PwC's website.</td> </tr> <tr> <td colspan="2"> <h3>Background Information</h3> </td> </tr> <tr> <td><strong>17 December 2012</strong></td> <td> <p>The Court ordered the liquidation of four of the Ross Group entities today:</p> <ul> <li>Ross Asset Management Limited (RAM)</li> </ul> <ul> <li>Bevis Marks Corporation Limited</li> </ul> <ul> <li>Mercury Asset Management Limited</li> </ul> <ul> <li>McIntosh Asset Management Limited</li> </ul> <p>Remuneration rates for John Fisk and David Bridgman as appointed liquidators, were also approved by the Court. FMA supported the liquidation applications and the appointment of the liquidators.The liquidators intend to release their first report on 21 December 2012 and this will be posted on PwC's website and sent out to investors who have provided their contact details to PwC.</p> </td> </tr> <tr> <td><strong>11 December 2012</strong></td> <td> <p>On 3 December 2012 PwC, the Receivers and Managers of the Ross Group, submitted liquidation applications to the High Court for a number of the companies currently in receivership. A High Court hearing date for the liquidation applications has now been set for Monday, 17 December 2012.</p> <p>Last Friday, a memorandum was filed by the parties, requesting the Court hearing scheduled for this morning regarding the asset preservation orders be adjourned until early 2013, after the first hearing of the liquidation applications. That will allow FMA to update the Court then on the outcome of those liquidation applications. The Court agreed to the adjournment and the asset preservation orders will continue and will now be heard on 4 February 2013.</p> </td> </tr> <tr> <td><strong>6 December 2012</strong></td> <td> <p>FMA's investigation into David Ross and Ross Asset Management and related entities (in Receivership) is continuing and is being co-ordinated with SFO's investigation.</p> <p>FMA is investigating possible breaches of financial markets legislation. To date, we have received some information from investors and we have requested further information from the Receivers, PwC, which is relevant to our investigation.</p> <p>We will shortly be writing to all investors to ask for more specific information about their investments with Ross Asset Management. It is important that investors assist FMA in its inquiries. The investigation into Ross Asset Management is large and complex and will take time to complete.</p> <p>FMA and SFO will continue to work together to ensure the investigation is progressed as quickly as possible.</p> <p>In the meantime, if any investor invested with Ross Asset Management on the recommendation of an Authorised Financial Adviser, or on the recommendation of a lawyer or accountant, we would be grateful if they could provide details to us. We ask that they contact FMA on <a href="http://www.fma.govt.nz/about-us/contact-us/">http://www.fma.govt.nz/about-us/contact-us</a><a href="http://www.fma.govt.nz/about-us/contact-us"></a>.</p> <p>Any inquiries with respect to FMA's investigation should be directed to <a href="http://www.fma.govt.nz/about-us/contact-us/">http://www.fma.govt.nz/about-us/contact-us</a>.</p> <p>Background: Following the receipt of complaints from investors, on 25 October FMA commenced an investigation into the affairs of David Ross, Ross Asset Management Limited and related entities (the "Ross Entities") and specifically, compliance with the Financial Advisers Act 2008. As a result of information obtained by FMA on 2 and 6 November, FMA obtained court orders freezing the assets of the Ross Entities and appointing a receiver over the Ross Entities in order to preserve assets for investors while the investigation continues. The Receivers activities, including the proposed liquidation are focused on identifying and preserving assets.</p> </td> </tr> <tr> <td><strong>3 December 2012</strong></td> <td> <p>PwC, the Receivers and Managers of the Ross Group, today submitted liquidation applications to the High Court of New Zealand for a number of the companies currently in receivership. A High Court hearing date of Monday, 17 December 2012 has been allocated.</p> <p>This is consistent with PwC's Report and Memorandum of Counsel submitted and presented to the High Court of New Zealand for review (respectively on 15 November and 23 November 2012).</p> <p>Today, FMA provided Bruce Tichbon, representative of the RAM Investor Group, with an update. A copy of that letter can be found <a href="http://www.fma.govt.nz/assets/letter-to-mr-tichbon.pdf" target="_blank">here</a>.</p> </td> </tr> <tr> <td><strong>26 November 2012</strong></td> <td> <p>The Financial Markets Authority has today provided the High Court in Wellington with an update on progress on Ross Asset Management Limited and related entities (in Receivership).</p> <p>The Court was advised by FMA and PwC that they consider liquidation of some of the companies to be the next step. An application to put some of the companies in liquidation will be made shortly. It is likely that this will be made by PwC. The application will be publicly notified and investors will be able to be heard during the liquidation process.</p> <p>Receivership over Mr Ross, his trusts and other related entities and freezing orders continue to be in place.</p> <p>PwC's inquiries are continuing. Further information about this can be found <a href="http://www.pwc.co.nz/rossassetmanagement/">here</a>.</p> <p>All parties are aware of the importance of managing these next steps in a cost effective way. FMA has today responded to concerns raised by Bruce Tichbon for the RAM investor group.</p> <p>A copy of the letter can be found <a href="http://www.fma.govt.nz/assets/letter-to-bruce-tichbon-26.11.12.pdf" target="_blank">here</a>.</p> <p>The matter will be called before the Court again on 10 December so that FMA can provide a further update.</p> <p>FMA's investigation continues.</p> </td> </tr> <tr> <td><strong>5:00pm, 22 November 2012</strong></td> <td> <p>FMA and the Receivers attended a meeting with David Ross and his lawyer today. Mr Ross cooperated throughout and responded to enquiries made by the Receiver.</p> <p>Mr Ross has confirmed that he will cooperate fully with FMA and SFO's investigation.</p> <p>FMA will now liaise with Mr Ross' lawyer to make arrangements on proposed next steps.</p> </td> </tr> <tr> <td><strong>2:00pm, 22 November 2012</strong></td> <td> <p>Today Receivers PwC will issue an update to investors outlining further progress on their inquiries. This letter will be posted on PwC's website.</p> <p>On Monday 26 November, FMA will provide the High Court in Wellington with an update of its case. At that hearing FMA will recommend that some of the Ross Entities, which are insolvent, should be placed in liquidation as recommended by the Receivers, while Mr Ross, his trusts and other related entities will remain in receivership.</p> <p>Liquidation will ensure that greater recovery powers can be used and some distribution to investors can then be made. Investors' interests will be heard in that process. Further details regarding this recommendation and the liquidation process are set out in the letter to investors on PwC's website.</p> <p>FMA has responded to inquiries received from Bruce Tichbon of the RAM Investors Group. A copy of our written response can be found <a href="http://www.fma.govt.nz/assets/20121122121547856.pdf" target="_blank">here</a>.</p> <p>FMA has today been advised that Mr Ross is now available to assist FMA and PwC with their inquiries. Through his lawyers we have been advised that he intends to co-operate with these inquiries.</p> FMA's investigation continues and we are working with SFO on a joint investigation.</td> </tr> <tr> <td><strong>21 November 2012</strong></td> <td> <p>PwC's report into Ross Asset Management Ltd and related entities indicated that it considered the liquidation of certain of the Ross Entities to be the next step. Liquidation and the process through which it would occur and whether this will maximise investor interests, is currently being explored.</p> <p>The matter will be heard in the Wellington High Court on 26 November, at which time FMA and PwC will advise the Court of their proposed next steps during the hearing. PwC is preparing a further letter to investors which will be sent out over the coming days.</p> <p>If any investor has information relating to the location of assets of Ross Asset Management, please provide it to FMA and PWC urgently.</p> </td> </tr> <tr> <td><strong>15 November 2012</strong></td> <td> <p>The report, prepared by John Fisk and David Bridgman of PwC, with the assistance of brokers from First NZ Capital, explains that Ross Asset Management's records show purported investments of $449.6 million, held on behalf of more than 900 investors across 1720 accounts. This figure represents the portfolio values reported by Ross Asset Management to investors, not their actual capital contributions, or the current value of those contributions. The latter figures are yet to be determined.</p> <p>The Receivers and Managers' focus over the first five days of their appointment has been to identify and secure investment assets. After searching the custody accounts identified by Mr Ross and through wider searches in international investment markets, they have so far located investments of only $10.2 million. The search continues.</p> <p>Read full media release <a href="http://www.fma.govt.nz/keep-updated/newsroom/media-releases/2012/release-of-pwc-report-into-ross-asset-management">here</a>.</p> <p>A copy of the report and appendices can be viewed on PwC's <a href="http://www.pwc.co.nz/rossassetmanagement/">website</a>.</p> </td> </tr> <tr> <td><strong>12 November 2012</strong></td> <td> <p>The focus of work for the appointed receivers from PwC and brokers from NZ First Capital to date, has been identifying and preserving assets on behalf of investors, as per the orders obtained by FMA.</p> <p>As directed by the Court on November 6, PwC will provide a report to the Court on Tuesday 13 November.</p> <p>FMA is seeking a court hearing for Wednesday 14 November, after which both PwC and FMA will be able to give investors a further update. The hearing date is still to be confirmed.</p> <p>The report is likely to be held by the Court as confidential until the hearing, when orders regarding disclosure of the report will be made.</p> <p>If you have any questions, please contact PwC directly on 04 462 7040.</p> </td> </tr> <tr> <td><strong>9 November 2012</strong></td> <td> <p>As previously advised, John Fisk and David Bridgman of PwC have been appointed receivers and managers, to manage the business of David Ross and Ross Asset Management, and related entities. Their inquiries are continuing with assistance from First NZ Capital and FMA.</p> <p>The receivers sent out letters yesterday to investors. If you do not receive a letter within the next couple of days, please contact PwC directly on 04 462 7040.</p> <p>A copy of the letter can be viewed <a href="http://www.fma.govt.nz/assets/letter-to-investors-081112-protected.pdf" target="_blank">here</a>.</p> </td> </tr> <tr> <td><strong>6 November 2012</strong></td> <td> <p>The High Court in Wellington has today granted FMA's application for John Fisk and David Bridgman of PwC to be appointed as receivers and managers, along with experienced brokers from First NZ Capital, to manage the business of David Ross and Ross Asset Management. The decision follows the freezing of the assets of Mr Ross last Friday after FMA received a number of complaints regarding the delayed or non-payment of investors. Mr Fisk and Mr Bridgman have now stepped in to manage the business and to identify the assets held, the names of clients and the value of the portfolios held. FMA's inquiries to date have identified that assets are held in New Zealand, Australia, the UK and the USA, and FMA and PwC's inquiries to locate and value the assets continues.</p> <p>The receivers will provide a report updating the Court and FMA next week on the steps they have taken and the current status of their work. They will be in touch with known investors within the next two days.</p> <p>If you are an investor, we ask that you contact the receivers at PwC and provide them with details of your investment on 04 462 7040 or <a href="http://www.pwc.co.nz/">http://www.pwc.co.nz/</a>.</p> </td> </tr> <tr> <td><strong>2 November 2012</strong></td> <td> <p>On Friday 2 November, the High Court in Wellington froze the assets of David Ross of Ross Asset Management Limited and the following related entities:</p> <ul> <li>Ross Asset Management Limited</li> <li>Bevis Marks Corporation Limited</li> <li>Dagger Nominees Limited</li> <li>Mercury Asset Management Limited</li> <li>Ross Investment Management Limited</li> <li>Ross Unit Trusts Management Limited</li> <li>United Asset Management Limited</li> <li>McIntosh Asset Management Limited</li> <li>Chapman Ross Trust</li> <li>Woburn Ross Trust</li> </ul> </td> </tr> </tbody> </table> http://www.fma.govt.nz/laws-we-enforce/enforcement/status-of-fma-investigations-into-failed-finance-companies-non-bank-deposit-takers/ Status of Investigations into Failed Finance Companies (Non-Bank Deposit Takers) 2014-10-16 13:58:53 Financial Markets Authority <p>Current at 16 October 2014</p> <table class="investigation"> <thead> <tr><th> </th><th>Company</th><th>Event</th><th>Date of event</th><th>Current status of investigation</th></tr> </thead> <caption>Continuing FMA investigations</caption> <tbody> <tr><th>1.</th> <td>South Canterbury Finance</td> <td>Receivership</td> <td>August 2010</td> <td>FMA inquiry into civil claims. FMA supporting SFO criminal proceedings filed December 2011. Criminal decision delivered on 14 October 2014. Guilty verdict in relation to 1 defendant on 5 of 9 charges. Two other defendants found not guilty on all charges.</td> </tr> </tbody> </table> <table class="investigation"> <thead> <tr><th> </th><th>Company</th><th>Event</th><th>Date of event</th><th>Current status of investigation</th></tr> </thead> <caption>FMA Proceedings Commenced</caption> <tbody> <tr><th>1.</th> <td>Belgrave</td> <td>Receivership</td> <td>May 2008</td> <td>Charges laid awaiting trial, two guilty pleas, one stay, trial commenced 3 March 2014 and guilty verdict delivered on 16 May 2014 and sentencing occurred on 4 July 2014. Appeal against sentence filed but hearing date not yet allocated.</td> </tr> <tr><th>2.</th> <td>Bridgecorp</td> <td>Receivership</td> <td>July 2007</td> <td>Charges laid, two guilty pleas, three guilty verdicts, all sentenced, two appeals dismissed. Civil proceedings to be discontinued.</td> </tr> <tr><th>3.</th> <td>Bridgecorp Investments</td> <td>Liquidation</td> <td>July 2007</td> <td>Charges laid, two guilty pleas, three guilty verdicts, all sentenced, one appeal dismissed</td> </tr> <tr><th>4.</th> <td>Capital &amp; Merchant</td> <td>Liquidation</td> <td>November 2007</td> <td>Charges laid - five guilty pleas all sentenced. Civil proceeding stayed.</td> </tr> <tr><th>5.</th> <td>Dominion Finance</td> <td>Receivership</td> <td>September 2008</td> <td>Charges laid, one permanent stay, five guilty pleas all sentenced. Civil proceedings stayed.</td> </tr> <tr><th>6.</th> <td>Five Star Consumer Finance</td> <td>Receivership</td> <td>August 2007</td> <td>Charges laid - four guilty pleas; all defendants sentenced</td> </tr> <tr><th>7.</th> <td>Five Star Finance</td> <td>Receivership</td> <td>September 2007</td> <td>Charges laid - four guilty pleas; all defendants sentenced</td> </tr> <tr><th>8.</th> <td>Hanover Capital</td> <td>Moratorium</td> <td>July 2008</td> <td>Civil proceedings filed March 2012. Liability trial scheduled for July 2015.</td> </tr> <tr><th>9.</th> <td>Lombard Finance</td> <td>Receivership</td> <td>April 2008</td> <td>Charges laid, all guilty verdicts and sentenced. Appeal dismissed. Leave to appeal sentence to the Supreme Court granted and Supreme Court allowed an appeal of restoring the High Court sentence. Civil proceedings discontinued.</td> </tr> <tr><th>10.</th> <td>Nathans Finance</td> <td>Receivership</td> <td>August 2007</td> <td>Charges laid, one guilty plea, all remaining defendants found guilty, all sentenced. Sentences upheld on appeal. Civil proceedings discontinued.</td> </tr> <tr><th>11.</th> <td>National Finance</td> <td>Receivership</td> <td>May 2006</td> <td>Charges laid, two guilty pleas, one guilty verdict, all sentenced, one appeal dismissed.</td> </tr> <tr><th>12.</th> <td>North South Finance</td> <td>Moratorium</td> <td>December 2008</td> <td>Charges laid, see 5 above.</td> </tr> <tr><th>13.</th> <td>South Canterbury Finance</td> <td>Receivership</td> <td>August 2010</td> <td>FMA supports charges laid by SFO December 2011, trial commenced 12 March 2014. Decision delivered on 14 October 2014. Guilty verdict in relation to 1 defendant on 5 of 9 charges. Two other defendants found not guilty on all charges.</td> </tr> <tr><th>14.</th> <td>United Finance</td> <td>Moratorium</td> <td>July 2008</td> <td>Civil proceedings filed March 2012 see 8 and 9 above.</td> </tr> <tr><th>17.</th> <td>OPI Pacific Finance (formerly MFS Pacific Finance)</td> <td>Moratorium</td> <td>March 2008</td> <td>Charges filed. Matter transferred to High Court. Defendant's next appearance scheduled for 11 February 2015.</td> </tr> <tr><th>18.</th> <td>Mutual Finance</td> <td>Receivership</td> <td>July 2010</td> <td>Charges filed (together with charges in respect of Viaduct Capital).  Defendants' next appearance on 10 December 2014.</td> </tr> <tr><th>19.</th> <td>Viaduct Capital</td> <td>Receivership</td> <td>May 2010</td> <td>See note 18 above.</td> </tr> </tbody> </table> <table class="investigation"> <thead> <tr><th> </th><th>Company</th><th>Event</th><th>Date of event</th><th>Current status of investigation</th></tr> </thead> <caption>Referred to another regulator, concluded with another enforcement option or closed</caption> <tbody> <tr><th>1.</th> <td>Allied Nationwide Finance</td> <td>Receivership</td> <td>August 2010</td> <td>Closed, warning letter issued to directors</td> </tr> <tr><th>2.</th> <td>Antares</td> <td>Liquidation</td> <td>May 2008</td> <td>Referred to other regulator *#</td> </tr> <tr><th>3.</th> <td>Equitable Mortgages</td> <td>Receivership</td> <td>November 2010</td> <td>Closed ##</td> </tr> <tr><th>4.</th> <td>Irongate Property Limited</td> <td>Receivership</td> <td>May 2011</td> <td>Closed ##</td> </tr> <tr><th>5.</th> <td>Provincial Finance</td> <td>Receivership</td> <td>May 2006</td> <td>Referred to other regulator *</td> </tr> <tr><th>6.</th> <td>Western Bay Finance</td> <td>Receivership</td> <td>August 2006</td> <td>Referred to other regulator *</td> </tr> <tr><th>7.</th> <td>Finance &amp; Investments</td> <td>Receivership</td> <td>September 2007</td> <td>Concluded (enforceable undertakings) ##</td> </tr> <tr><th>8.</th> <td>Beneficial Finance</td> <td>Moratorium</td> <td>October 2007</td> <td>Closed ##</td> </tr> <tr><th>9.</th> <td>Capital &amp; Merchant Investments</td> <td>Receivership</td> <td>November 2007</td> <td>Closed ##</td> </tr> <tr><th>10.</th> <td>Chancery Finance</td> <td>Liquidation</td> <td>November 2008</td> <td>Closed ##</td> </tr> <tr><th>11.</th> <td>Compass Capital</td> <td>Receivership</td> <td>June 2009</td> <td>Closed ##</td> </tr> <tr><th>12.</th> <td>Cymbis/Fairview</td> <td>Receivership</td> <td>May 2008</td> <td>Closed ##</td> </tr> <tr><th>13.</th> <td>Dorchester Finance</td> <td>Moratorium</td> <td>June 2008</td> <td>Closed ##</td> </tr> <tr><th>14.</th> <td>LDC Finance</td> <td>Receivership</td> <td>September 2007</td> <td>Closed ##</td> </tr> <tr><th>15.</th> <td>Numeria Finance</td> <td>Receivership</td> <td>December 2007</td> <td>Closed ##</td> </tr> <tr><th>16.</th> <td>Orange Finance</td> <td>Moratorium</td> <td>August 2008</td> <td>Closed ##</td> </tr> <tr><th>17.</th> <td>Aorangi Securities (including Hubbard Management Funds)</td> <td>Complaint</td> <td>June 2010</td> <td>Referred to other regulator**</td> </tr> <tr><th>18.</th> <td>Rockforte Finance</td> <td>Receivership</td> <td>May 2010</td> <td>Referred to other regulator**##</td> </tr> <tr><th>19.</th> <td>Waipawa Finance</td> <td>Liquidation</td> <td>August 2008</td> <td>Referred to other regulator** (charges laid - guilty plea and sentenced)</td> </tr> <tr><th>20.</th> <td>QED</td> <td>Liquidation</td> <td>March 2008</td> <td>Referred to other regulator* (charges laid - sentenced)</td> </tr> <tr><th>21.</th> <td>Fendal Finance</td> <td>Complaint</td> <td>March 2009</td> <td>Referred to other regulator* (charges laid - guilty plea)</td> </tr> <tr><th>22.</th> <td>Clegg &amp; Co</td> <td>Receivership</td> <td>October 2007</td> <td>Referred to other regulator* (charges laid - guilty plea and sentenced)</td> </tr> <tr><th>23.</th> <td>All Purpose Finance (trading as St Kilda)</td> <td>Receivership</td> <td>November 2008</td> <td>Closed##</td> </tr> <tr><th>24.</th> <td>Direct Property St Laurence Investments (No.6) (part of St Laurence Group)</td> <td>Moratorium</td> <td>June 2008</td> <td>Closed##</td> </tr> <tr><th>25.</th> <td>Finance &amp; Leasing</td> <td>Receivership</td> <td>January 2011</td> <td>Closed##</td> </tr> <tr><th>26.</th> <td>Geneva Finance</td> <td>Moratorium</td> <td>October 2007</td> <td>Closed##</td> </tr> <tr><th>27.</th> <td>Mascot Finance</td> <td>Receivership</td> <td>March 2009</td> <td>Closed##</td> </tr> <tr><th>28.</th> <td>Strata Finance</td> <td>Receivership</td> <td>April 2009</td> <td>Closed##</td> </tr> <tr><th>29.</th> <td>Kiwi Finance</td> <td>Receivership</td> <td>April 2008</td> <td>Completed December 2011, with repayment of investors.</td> </tr> <tr><th>30.</th> <td>Boston Finance</td> <td>Moratorium</td> <td>March 2008</td> <td>Closed October 2012 ##</td> </tr> <tr><th>31.</th> <td>Structured Finance (NZ)</td> <td>Moratorium</td> <td>May 2009</td> <td>Closed October 2012 ##</td> </tr> <tr><th>32.</th> <td>Vision Securities</td> <td>Receivership</td> <td>April 2010</td> <td>Closed October 2012 ##</td> </tr> <tr><th>33.</th> <td>Propertyfinance Securities</td> <td>Receivership</td> <td>August 2007</td> <td>Closed October 2012 ##</td> </tr> <tr><th>34.</th> <td>Strategic Finance (including Strategic Nominees)</td> <td>Moratorium</td> <td>August 2008</td> <td>Investigation concluded February 2013. FMA notified directors that it considered that the Directors had likely breached their disclosure obligations required by the Securities Act. Settlement reached. Details available in FMA press release dated 5 June 2014.</td> </tr> <tr><th>35.</th> <td>St Laurence</td> <td>Moratorium</td> <td>June 2008</td> <td>Investigation complete. Warning letter issued to Directors.</td> </tr> </tbody> </table> <table class="notes plain"> <tbody> <tr><th>*</th> <td>National Enforcement Unit of the Ministry of Economic Development</td> </tr> <tr><th>**</th> <td>Serious Fraud Office</td> </tr> <tr><th>#</th> <td>Relates to Five Star prosecution</td> </tr> <tr><th>##</th> <td>On the basis of information we currently have FMA will continue to include these issuers within its general surveillance. Our decision can and will be reviewed, and our investigation be reopened, if new information comes to light.</td> </tr> </tbody> </table> http://www.fma.govt.nz/keep-updated/the-future-of-financial-markets/latest-news/ Latest News 2014-10-16 13:51:16 Financial Markets Authority <h2><b>FMC Act into action – Understanding the transition for fund managers</b></h2> <p><b>16 October 2014</b></p> <p>The FMA is facilitating two seminars to help fund managers understand transitional requirements under the Financial Markets Conduct (FMC) Act 2013.</p> <p><b>About the sessions:</b></p> <ul> <li>The sessions in Auckland and Wellington will help attendees get a better understanding of the steps and activities to transition to the FMC Act.</li> <li>Topics discussed will include business readiness, licensing, the new governance and offers framework and practical aspects of opting into the FMC regime.</li> <li>Representatives from FMA will be on hand to answer questions throughout the sessions.</li> </ul> <p><b>Who should attend:</b></p> <p>Any fund manager or managed Investment scheme managers. This includes superannuation, KiwiSaver, unit trusts and other MIS managers.</p> <p><b>Dates and venues </b></p> <h4><b>Auckland</b></h4> <p><b>Date: </b>Wednesday 19 November<br><strong>Time:</strong> 9:30 – 11:30<br><strong>Venue:</strong> The Maritime Room, 149 Quay Street, Viaduct Harbour</p> <p><b>Wellington <br>Date: </b>Wednesday 26 November<br><strong>Time:</strong> 9:30 – 11:30<br><strong>Venue:</strong> Chapman Tripp, 17/10 Customhouse Quay</p> <p><b>Registration</b></p> <p>Numbers are limited so to ensure you don’t miss out please send your RSVP to <a href="mailto:events@fma.govt.nz">events@fma.govt.nz</a> by 5pm on Friday, 14 November 2014.</p> <table> <tbody> <tr> <td colspan="2"> <h3><strong>Session programme</strong></h3> </td> </tr> <tr> <td> <p>9:15 AM Arrival<br>9:30 AM Start</p> </td> <td><span style="line-height: 115%; font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;; font-size: 11pt; mso-ascii-theme-font: minor-latin; mso-fareast-font-family: Calibri; mso-fareast-theme-font: minor-latin; mso-hansi-theme-font: minor-latin; mso-bidi-font-family: &quot;Times New Roman&quot;; mso-bidi-theme-font: minor-bidi; mso-fareast-language: EN-US; mso-ansi-language: EN-NZ; mso-bidi-language: AR-SA;">Tea and coffee on arrival</span></td> </tr> <tr> <td><span style="line-height: 115%; font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;; font-size: 11pt; mso-ascii-theme-font: minor-latin; mso-fareast-font-family: Calibri; mso-fareast-theme-font: minor-latin; mso-hansi-theme-font: minor-latin; mso-bidi-font-family: &quot;Times New Roman&quot;; mso-bidi-theme-font: minor-bidi; mso-fareast-language: EN-US; mso-ansi-language: EN-NZ; mso-bidi-language: AR-SA;">9:30 AM</span></td> <td><span style="line-height: 115%; font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;; font-size: 11pt; mso-ascii-theme-font: minor-latin; mso-fareast-font-family: Calibri; mso-fareast-theme-font: minor-latin; mso-hansi-theme-font: minor-latin; mso-bidi-font-family: &quot;Times New Roman&quot;; mso-bidi-theme-font: minor-bidi; mso-fareast-language: EN-US; mso-ansi-language: EN-NZ; mso-bidi-language: AR-SA;">Short introduction </span></td> </tr> <tr> <td> <p>9:35 AM to<br>11:00 AM</p> </td> <td><span style="line-height: 115%; font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;; font-size: 11pt; mso-ascii-theme-font: minor-latin; mso-fareast-font-family: Calibri; mso-fareast-theme-font: minor-latin; mso-hansi-theme-font: minor-latin; mso-bidi-font-family: &quot;Times New Roman&quot;; mso-bidi-theme-font: minor-bidi; mso-fareast-language: EN-US; mso-ansi-language: EN-NZ; mso-bidi-language: AR-SA;">Breakdown of FMC Act transition for fund managers </span></td> </tr> <tr> <td>11:00 AM to<br>11:30 Finish</td> <td><span style="line-height: 115%; font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;; font-size: 11pt; mso-ascii-theme-font: minor-latin; mso-fareast-font-family: Calibri; mso-fareast-theme-font: minor-latin; mso-hansi-theme-font: minor-latin; mso-bidi-font-family: &quot;Times New Roman&quot;; mso-bidi-theme-font: minor-bidi; mso-fareast-language: EN-US; mso-ansi-language: EN-NZ; mso-bidi-language: AR-SA;">Questions</span></td> </tr> </tbody> </table> <h2><b><br>New guidance note: Governance under Part 4 of the FMC Act</b></h2> <p><b>30 September 2014</b></p> <p>The Financial Markets Authority (FMA) has released a new <a href="http://financialmarketsauthority.cmail1.com/t/r-l-mkkalk-jhhkklvlj-i/">guidance note on governance under Part 4 of the FMC Act</a>.<br><br>Targeted at issuers of debt securities, managers of managed investment schemes and their supervisors, it outlines our expectations for the governance responsibilities and accountabilities that apply under Part 4 of the Financial Markets Conduct 2013 Act (FMC Act).<br><br>The guidance note incorporates feedback from a market consultation we ran in June 2014. You can read a summary of submissions on our <a href="http://financialmarketsauthority.cmail1.com/t/r-l-mkkalk-jhhkklvlj-d/">consultation pages</a>.</p> <ul> <li><a href="http://financialmarketsauthority.cmail1.com/t/r-l-mkkalk-jhhkklvlj-h/">Guidance note</a></li> <li><a href="http://financialmarketsauthority.cmail1.com/t/r-l-mkkalk-jhhkklvlj-k/">Summary of consultation responses</a><br><br></li> </ul> <h2><b>MBIE releases unofficial full draft of FMC Act regulations</b></h2> <p><b>29 September 2014</b></p> <p>The Ministry of Business Innovation and Employment (MBIE) has released a <a href="http://www.med.govt.nz/business/business-law/current-business-law-work/financial-markets-conduct-act/pdf-and-document-library/unofficial-draft-of-the-fmc-regulations.pdf">full draft set of FMC regulations</a> for phase 2 implementation on 1 December 2014. These regulations will replace those made to allow phase 1 of the FMC Act to come into force on 1 April.</p> <p>The unofficial draft is intended to assist planning by industry, with the final regulations to be made ahead of phase 2 implementation of the FMC Act from 1 December 2014.</p> <p>See MBIE’s website for their <a href="http://www.med.govt.nz/business/business-law/current-business-law-work/financial-markets-conduct-act/regulations-progress-update">progress update on Financial Markets Conduct Regulations</a>. Here you can find an overview of the draft regulations, key changes and next steps for implementing and if necessary amending the final regulations.</p> <p>If you have any questions or comments about implementing the FMC Act, please '<a href="http://www.talktous.fma.govt.nz/talk-to-us">Talk to Us</a>' and we'll get back to you as soon as we can.</p> <h2>Companies Office step closer to new financial product register</h2> <p><strong>8 August 2014</strong></p> <p>As part of a wider programme to support the Financial Markets Conduct Act (FMCA) and the disclosure of information, the New Zealand Companies Office is developing an online register for use from 1 December 2014 as mandated.</p> <p>The online register will provide the market with information about investment products and will be set up for financial products (split into debt, equity, managed investment and derivative products) and managed investment schemes.</p> <p>See the <a href="http://www.business.govt.nz/companies/news-updates/news/companies-office-step-closer-to-new-financial-product-register">latest update</a> from the Companies Office for more details.</p> <h2>Cabinet signs off simplified debt capital raising rules</h2> <p><strong>6 August 2014</strong></p> <p>Commerce Minister Craig Foss today announced further steps to simplify and encourage participation in New Zealand's capital markets.</p> <p>"Cabinet this week signed off on a number of policy decisions to come into force under the Financial Market Conduct Act on December 1," Mr Foss says.</p> <p>"The decisions include new disclosure requirements to improve investor literacy, confidence and participation in financial markets.</p> <p>"Disclosure will be standardised, simplified and tailored for retail investors – enabling easier comparison of managed funds across providers.  This means material unlikely to be read and understood by investors will be removed and made available online."</p> <p>Mr Foss says Cabinet also decided to extend the same-class debt exemption to offers of debt securities with different terms.</p> <p>"I am confident these changes will further reduce compliance costs for debt issuers and expand the availability of debt investments on the retail market."</p> <p>To help existing market participants comply with the new law, operators of unregistered markets will have until 1 December 2015 to obtain a financial market product license.</p> <p>"The Financial Markets Conduct Act is a key pillar in the Government's Business Growth Agenda. It will introduce a new era of financial market regulation that ensures investors are better informed and offered better protections," Mr Foss says.</p> <p>For more information: <a href="http://www.med.govt.nz/business/business-law/current-business-law-work/financial-markets-conduct-act" target="_blank">www.med.govt.nz/business/business-law/current-business-law-work/financial-markets-conduct-act</a></p> <h2>FMA together with INFINZ, supported by NZFMA, present 'FMC Act into action'</h2> <p><strong>24 July 2014</strong></p> <p><img style="width: 177px; height: 47px;" title="FMA Logo" alt="FMA Logo" src="http://www.fma.govt.nz/assets/media/2002912/fma-master-logo-40mm-171x47.jpg"><img style="width: 79px; height: 85px;" title="NZFMA" alt="NZFMA" src="http://www.fma.govt.nz/assets/media/2002902/nzfma-89x97.jpg"> <img title="INFINZ" alt="INFINZ" src="http://www.fma.govt.nz/assets/media/2002907/infinz-153x28.jpg"></p> <p><strong>About the sessions:</strong></p> <ul> <li>The sessions in Auckland and Wellington will help attendees understand what the Financial Markets Conduct Act 2013 means for their business.</li> <li>Each session will break into two facilitated streams. Attendees can elect to join a session for Issuers of Debt and Equity or Issuer of derivatives.</li> <li>Representatives from FMA will be on hand to answer questions throughout each session.</li> </ul> <p><strong>Who should attend:</strong></p> <p>Directors, Senior Managers, line staff and compliance professionals in corporates and banks issuing securities or offering derivative products</p> <p>Legal Investment Bankers and other advisors assisting clients in issuing securities or offering derivative products</p> <p><strong>Venues and costs:</strong></p> <ul> <li><strong>Auckland: Tuesday 12 August 2014</strong> - Cliftons Auckland Training Facility, Level 4, 45 Queen Street, Auckland</li> <li><strong>Wellington: Thursday 21 August 2014</strong> - Cliftons, Level 28, The Majestic Centre, 100 Willis Street, Wellington</li> <li>Registration: contact Iona Gibbs on <a href="mailto:admin@infinz.com">admin@infinz.com</a></li> <li>2 CPD Hours</li> </ul> <p>Further details on these sessions can be found <a href="http://www.infinz.com/Site/Events_and_Awards/Current/FMC_Act_into_Action.aspx">here</a>.</p> <h2>Consultation Paper: The new accountability framework - Governance under Part 4 of the FMC Act</h2> <p><strong>9 June 2014</strong></p> <p>FMA is now consulting on the new governance and accountability framework under Part 4 of the FMC Act.</p> <p>See our '<a href="http://www.fma.govt.nz/laws-we-enforce/policy/current-consultations/">Current Consultations</a>' section for more details.</p> <h2>New FMC Act factsheets</h2> <p><strong>26 May 2014</strong></p> <p>Part 4 of the Financial Markets Conduct Act 2013 changes the governance and accountability framework for financial products. Our new factsheets outline what this means for:</p> <ul> <li><a href="http://www.fma.govt.nz/assets/media/new-governance-and-accountability-framework-for-mis-managers-and-their-licensed-supervisors.pdf" target="_blank">MIS managers and their licensed supervisors</a></li> <li><a href="http://www.fma.govt.nz/assets/media/new-governance-and-accountability-framework-for-debt-issuers-and-their-licensed-supervisors.pdf" target="_blank">Debt issuers and their licensed supervisors</a></li> <li><a href="http://www.fma.govt.nz/assets/media/100/new-governance-and-accountability-framework-for-restricted-schemes-and-their-trustees.pdf" target="_blank">Restricted schemes and their trustees.</a></li> </ul> <p>A further factsheet on <a href="http://www.fma.govt.nz/assets/media/1054639/preparing-for-the-fmc-act-transition-for-managed-investment-schemes.pdf" target="_blank">transition for Managed Investment Schemes</a> summarises the transition dates and process.</p> <p>Shortly we will be consulting on our proposals for the new governance and accountability framework.  In the meantime, you can find more general background information on the <a href="http://www.fma.govt.nz/help-me-comply/new-accountability-framework-for-financial-products/">new accountability framework for financial products</a> section of our website. </p> <p>If you have any questions or comments about the new governance and accountability framework, please '<a href="http://www.talktous.fma.govt.nz/talk-to-us">Talk to Us</a>' and we'll get back to you as soon as we can.</p> <h2>Feedback sought on disclosure statements</h2> <p><strong>20 May 2014</strong></p> <p>The Government is seeking feedback on plans to make financial information more simple, meaningful and accessible for investors.</p> <p>In a <a href="http://beehive.govt.nz/release/feedback-sought-disclosure-statements">media release</a> today, Minister Craig Foss has welcomed feedback on the content of financial product disclosure statements.</p> <p>FMA's own <a href="http://www.fma.govt.nz/keep-updated/newsroom/media-releases/2014/middle-income-earners-much-more-confident-in-new-zealands-financial-markets">survey of investors</a>, has found that investors want clear and simple materials, in plain English, to help them make more informed decisions.</p> <p>FMA will be issuing its own consultation document within the next few weeks. Targeted at industry, FMA's consultation will seek feedback on the frameworks and methodologies, exemptions and guidance that we can issue to support market participants operating under the new offers regime.</p> <h2>Complying with new financial reporting requirements</h2> <p><strong>29 April 2014</strong></p> <p>The Financial Markets Conduct Act 2013 introduces new financial reporting obligations for 'FMC reporting entities'. The new requirements will apply to different entities at different points in time.</p> <p>To help these reporting entities prepare for these changes – and understand when they will need to comply – we have added some extra background information to our <a href="http://www.fma.govt.nz/help-me-comply/new-financial-reporting-requirements/when-will-you-need-to-comply/">website</a>.</p> <p>You can also find details about <a href="http://www.fma.govt.nz/help-me-comply/new-financial-reporting-requirements/who-needs-to-comply/">who needs to comply</a> on our website, as well as some <a href="http://www.fma.govt.nz/help-me-comply/new-financial-reporting-requirements/frequently-asked-questions/">frequently asked questions</a>.</p> <p>If you have any questions or comments about the new financial reporting obligations, please <a href="http://mandrillapp.com/track/click.php?u=255209&amp;id=ece25ffd35e54ae3817c9dd39811f3e7&amp;url=http%3A%2F%2Fwww.talktous.fma.govt.nz%2Ftalk-to-us&amp;url_id=c97c6ab5093d11b9c82cf9fe75a7ee22b65ad15f">'Talk to Us'</a> and we'll get back to you as soon as we can.</p> <h2>Come and learn about our new online licensing portal</h2> <p><strong>22 April 2014</strong></p> <p>FMA is holding a series of tutorials to talk about our new online application portal for licences under Part 6 of the Financial Markets Conduct Act.</p> <p>Each tutorial will include an example of an application and questions that appear in the online application.</p> <p>The example will look the same as your actual application and will take you through each step of the online process. Questions will vary depending on the type of licence or licences you are applying for.</p> <p><strong>The tutorials will cover:</strong></p> <ul> <li>How the application is structured;</li> <li>Home page menu options – overview, how to progress between screens;</li> <li>Completing the licence application – a step-by-step walk through and discussion about what documents may be required;</li> <li>How to submit your application; and</li> <li>Next steps.</li> </ul> <p>Each session will cover the application process for a specific licence type and will usually be held on the second and fourth Tuesday of each month, from 2:00PM to 4:00PM.</p> <p><strong>Scheduled tutorials and licence type:</strong></p> <table> <tbody> <tr> <td> <h4>Managed Investment Scheme</h4> </td> <td> <h4>Discretionary Investment Management Service</h4> </td> </tr> <tr> <td><em>Auckland 6 May</em></td> <td><em>Auckland 10 June</em></td> </tr> <tr> <td> </td> <td><em>Wellington 24 June</em></td> </tr> <tr> <td> </td> <td><em>Christchurch 8 July</em></td> </tr> <tr> <td> <h4>Derivatives Issuers</h4> </td> <td> <h4> </h4> </td> </tr> <tr> <td><em>Auckland 20 May</em></td> <td> </td> </tr> </tbody> </table> <table> <tbody> <tr> <td colspan="3"> <h4>Venues</h4> </td> </tr> <tr> <td> <p><strong>Auckland</strong></p> <p>Auckland Office:</p> <p>Level 5, Ernst &amp; Young Building2 Takutai Square, Britomart</p> </td> <td> <p><strong>Wellington</strong></p> <p>Wellington Office:</p> <p>Level 2, 1 Grey Street</p> </td> <td> <p><strong>Christchurch</strong></p> <p>The Chateau on The Park</p> <p>Cnr Deans Avenue and Kilmarnock Street, Riccarton</p> </td> </tr> </tbody> </table> <h4><strong>How to register?</strong></h4> <p>To register please email <a href="mailto:diane.petterd@fma.govt.nz">diane.petterd@fma.govt.nz</a> including the licence type and date.</p> <p>For more information, please contact John Botica 09 300 0448 or <a href="mailto:john.botica@fma.govt.nz">john.botica@fma.govt.nz</a></p> <h2>New era for New Zealand financial markets – FMC Act comes into effect</h2> <p><strong>1 April 2014</strong></p> <p>April 2014 marks the start of a new era for New Zealand's financial markets with Phase 1 of the Financial Markets Conduct Act 2013 (FMC Act) coming into effect. This is an ambitious and exciting period of change for market participants and for investors.</p> <h4>What is involved with Phase 1?</h4> <p>The FMC Act is being introduced in <a href="http://www.fma.govt.nz/keep-updated/the-future-of-financial-markets/timeline-for-change/">two phases</a>. One of the key parts of the Act now coming into effect in Phase 1 is being able to apply for licences under the new licensing regime, including for the exciting new services of peer-to-peer lending and crowd funding. You can find more details about the new licences and how to apply in our '<a href="http://www.fma.govt.nz/help-me-comply/new-licences-for-financial-market-services/quick-links/">Help Me Comply</a>' section.</p> <p>Another key change is FMA becoming the primary regulator of conduct in relation to financial products and financial services in place of the Commerce Commission. Responsibility for matters relating to credit contracts, including products and services related to loans and mortgages, remains with the Commission.</p> <p>To ensure a robust and efficient complaints process, as well as the protection of consumers' interests, FMA and the Commission have signed a <a href="http://www.fma.govt.nz/assets/media/1948891/mou-commerce-commission.pdf" target="_blank">Memorandum of Understanding (MOU)</a>. We have also published a <a href="http://www.fma.govt.nz/assets/fmas-new-role-as-regulator-of-conduct-april-2014.pdf" target="_blank">factsheet</a> to help consumers and market participants understand the changes.</p> <h4>What's next?</h4> <p>The rest of the Act (Phase 2) will come into force on 1 December 2014, which is when new disclosure requirements and licensing obligations will begin to take effect. The new online registers system will also be up and running, ensuring information on financial products and managed investment schemes is easily accessible and comparable.</p> <p>Over the next few months there will be more opportunities to join the conversation and to help shape the future, so keep an eye on this website and register online to get regular updates.</p> <p>If you have any questions or comments about implementing the FMC Act, please '<a href="http://www.talktous.fma.govt.nz/talk-to-us">Talk to Us</a>' and we'll get back to you as soon as we can.</p> <h2> </h2> <h2>Application guides for new FMC Act licences now available</h2> <p><strong>1 April 2014</strong></p> <p>You can now find the application guides for all six new licence types under the Financial Markets Conduct Act 2013 in our '<a href="http://www.fma.govt.nz/help-me-comply/new-licences-for-financial-market-services/quick-links/">Help Me Comply</a>' section.</p> <p>The guides consist of two parts:</p> <ul> <li><strong>PART A:</strong>  Gives general guidance about the licensing process. This includes how to log in to the application portal (and how to create a RealMe identity)</li> <li><strong>PART B:</strong>  Gives specific information on the type of licence you're applying for. It outlines the minimum standards for the licence, sets out questions you'll be asked, and gives guidance on what you might need to tell us and the types of documents you'll need to provide.</li> </ul> <p>Applicants need to read both parts when applying for a licence.</p> <p>These guides may be updated from time to time, so please check for the latest version before you apply.</p> <p>If you have any comments or feedback about the application guides for the new licences please share them with us. You can do this <a href="http://www.talktous.fma.govt.nz/talk-to-us?tool=survey_tool&amp;tool_id=new-licensing-applications-guides-tell-us-what-you-think#tool_tab">online</a> – just tell us which licence guide (and what part) you're commenting on. </p> <p>If you have any other questions or comments, please '<a href="http://www.talktous.fma.govt.nz/projects/talk-to-us?tool=survey_tool#tool_tab">Talk to us</a>' and we'll get back to you as soon as we can.</p> <h2> </h2> <h2>Come and learn about our new online licensing portal</h2> <p><strong>25 March 2014</strong></p> <p>FMA is holding a series of tutorials to talk about our new online application portal for licences under Part 6 of the Financial Markets Conduct Act.</p> <p>Our online system tailors the application to your business, and questions will vary depending on the type of licence or licences you apply for.</p> <p>Our first session will cover the licence application process for peer-to-peer lending and crowd funding.</p> <p>The tutorial will include an example of an application and questions that appear in the online application. The example will look the same as your actual application and include the series of screens you will see through each step of the application process.</p> <p><strong>The tutorial will cover:</strong></p> <ul> <li>How to create an account – calling us to get going and browser requirements</li> <li>How to log in <span>–</span> FSP Number</li> <li>Home page menu options <span>–</span> overview, how to progress between screens, how to save</li> <li>Applying for a licence <span>–</span> multiple licence types; authority to apply; separate or related body</li> <li>Application skeleton <span>–</span> how the application form is structured</li> <li>Completing the licence application <span>–</span> a step-by-step walk through and a discussion about what proofs may be required</li> <li>How to submit your application</li> <li>Next steps.</li> </ul> <p><strong>The tutorial will be held on:</strong></p> <p>Monday 7 April from 2pm to 4:30pmFMA Auckland OfficeLevel 5, Ernst &amp; Young Building2 Takutai Square, Britomart</p> <p>Please register by Friday 4 April 2014 to <a href="mailto:raksha.magan@fma.govt.nz">raksha.magan@fma.govt.nz</a></p> <p>For more information, please contact John Botica 09 300 0448 or <a href="mailto:john.botica@fma.govt.nz">john.botica@fma.govt.nz</a></p> <h2> </h2> <h2>Understand the regulation of DIMS</h2> <p><strong>20 March 2014</strong></p> <p>To help you understand and prepare for the change in the way DIMS will be regulated in the future we have published some <a href="http://www.fma.govt.nz/assets/media/1054639/understanding-the-regulation-of-dims-frequently-asked-questions.pdf" target="_blank">frequently asked questions</a>.</p> <p>You should read this if you plan to apply for a DIMS licence under the Financial Markets Conduct Act 2013 (FMC Act) or you are an Authorised Financial Adviser (AFA) who plans to provide personalised DIMS under the Financial Advisers Act 2008 (FA Act).</p> <p>For a quick guide to the changes, AFAs may prefer to read the factsheet '<a href="http://www.fma.govt.nz/assets/changes-ahead-for-afas-who-provide-dims-update-2.pdf" target="_blank">Changes ahead for AFAs who provide DIMS – Update #2</a>'.</p> <p>If you have any questions or comments about this then please '<a href="http://www.talktous.fma.govt.nz/projects/talk-to-us?tool=survey_tool#tool_tab">Talk to us</a>' and we'll get back to you as soon as we can.</p> <h2> </h2> <h2>Cabinet approves Phase 1 regulations for FMC Act</h2> <p><strong>27 February 2014</strong></p> <p>Commerce Minister Craig Foss today (Thursday, 27 February) announced Cabinet has approved regulations for Phase 1 of the Financial Markets Conduct Act 2013 as part of the Government's financial market overhaul. This includes the approval of the regulations for crowd funding and peer-to-peer lending.</p> <p>'This is an exciting development for both start-up businesses and investors. With the regulations coming into force on 1 April, New Zealand will lead the Asia-Pacific region in the development of crowd-funding regulation,' says Mr Foss.</p> <p>For more details read the Minister's <a href="http://www.beehive.govt.nz/release/crowd-funding-gets-green-light">full statement</a>.</p> <p><strong>Details of Phase 1 Regulations</strong></p> <p>Phase 1 Regulations introduce a number of changes that will support confident and informed participation by businesses, investors and consumers in New Zealand's financial markets, including:</p> <ul> <li>enabling market participants to start applying for new licences under the new licensing regime, bringing New Zealand in line with international standards for financial market regulation</li> <li>establishing the Financial Markets Authority as the primary regulator of fair dealing conduct in financial markets</li> <li>making changes to the Financial Advisers Act 2008 to strengthen protections and increase transparency for investor assets held by custodians</li> <li>introducing new exemption rules to increase opportunities for companies to raise capital from a wider range of investors without the need to produce full disclosure documents.</li> </ul> <p>For more details of Phase One see our '<a href="http://www.fma.govt.nz/keep-updated/the-future-of-financial-markets/timeline-for-change/">Timeline for Change</a>'.</p> <p><strong>Update on licensing application process</strong></p> <p>In early March we will publish the application guides for these new licence types. This will include the minimum standards and conditions that the applicant must meet to be granted the licence.If you have any questions or comments about this then please talk to us and we'll get back to you as soon as we can.</p> <h2>Planning to apply for a peer-to-peer lending or crowd funding licence? Then let us know.</h2> <p><strong>17 February 2014</strong></p> <p>Peer-to-Peer Lending and Crowd Funding are the first of the new market services licences to be operative under the Financial Markets Conduct Act 2013 (FMC Act).</p> <p>To help us prepare for 1 April we want to get an idea of how many people plan to apply for a licence for peer-to-peer lending or crowd funding.</p> <p>So, if you're planning to apply for either of these licences, please email <a href="mailto:raksha.magan@fma.govt.nz">raksha.magan@fma.govt.nz</a> and also indicate when you plan to do this. We will then contact you if we need any further information ahead of receiving your formal licence application.</p> <p>You can find more details about the FMC Act and the <a href="http://fma-fadc-uat.cwp.govt.nz/help-me-comply/new-licences-under-fmc-act/">new licences</a> in our 'Help Me Comply' section.</p> <h2 class="Default"> </h2> <h2 class="Default">New financial reporting webpages</h2> <p><strong>4 February 2014</strong></p> <p>We have just published a new section on our main website to help you understand and prepare for the new financial reporting requirements.</p> <p>You can find the new pages under the '<a href="http://www.fma.govt.nz/help-me-comply/new-financial-reporting-requirements/">Help me Comply</a>' tab.</p> <p>If you have any questions or comments about this please talk to us and we'll get back to you as soon as we can.</p> <h2 class="Default"> </h2> <h2 class="Default">We are now consulting on new financial reporting requirements</h2> <p><strong>31 January 2014</strong></p> <p>We are now seeking feedback on how we intend to apply our new financial reporting powers under the FMC Act, and the immediate changes we propose to make to both designations and exemptions under these powers.</p> <p>You can find our proposals and details on how to make a submission on the '<a href="http://www.talktous.fma.govt.nz/talk-to-us?tool=survey_tool&amp;tool_id=consultation-financial-reporting-regulatory-policy-for-financial-reporting-designations-and-exemptions#tool_tab">Open Consultations</a>' section on this site.</p> <p><strong>Submissions close on 28 February 2014.</strong></p> <p>We invite you to review our proposals and share your feedback with us. This is our chance to work together to shape the future of our financial markets.</p> <p>If you have any questions or comments about this then please talk to us and we'll get back to you as soon as we can.</p> <h2 class="Default"> </h2> <h2 class="Default">Consultation on new licensing standards now closed</h2> <p><strong>9 January 2014</strong></p> <p>Our consultation on the draft minimum standards and conditions for new licences under the FMC Act 2013 closed on 12 December 2013.</p> <p>However, you can still view the draft documents on our website in the '<a href="http://www.fma.govt.nz/laws-we-enforce/policy/closed-consultations/consultation-papers-on-draft-minimum-standards-and-conditions-for-new-licenses">Closed Consultations</a>' section.</p> <p>If you have any questions or comments about this please talk to us and we'll get back to you as soon as we can.</p> <h2 class="Default">MBIE asks for feedback on governance</h2> <p><strong>17 December 2013</strong></p> <p>Commerce Minister Craig Foss has today (Tuesday 17 December) released for comment the second set of draft regulations to bring the Financial Markets Conduct (FMC) Act 2013 into effect.</p> <p>These draft regulations relate to Phase 2 of the implementation and cover the governance of financial products, dealing in financial products on licenced markets such as NZX, and the conduct obligations for Discretionary Investment Management Services.</p> <p>Submissions are due by 14 March 2014. To view the draft regulations and make a submission, visit MBIE's <a href="http://www.med.govt.nz/business/business-law/current-business-law-work/financial-markets-conduct-act/consultation-regulations-stage-2">website</a>.</p> <h2 class="Default"> </h2> <h2 class="Default">Q&amp;A sessions on proposed DIMS and MIS licence requirements</h2> <p><strong>3 December 2013</strong></p> <div class="WordSection1"> <p class="Default">FMA is hosting two informal Q&amp;A sessions on the proposed licensing requirements for Managed Investment Schemes (MIS) managers and Discretionary Investment Management Services (DIMS). These sessions will provide you with an opportunity to ask questions about our proposals that are now <a href="http://www.fma.govt.nz/laws-we-enforce/policy/current-consultations/consultation-papers-on-draft-minimum-standards-and-conditions-for-new-licenses/">open for consultation</a>.</p> <p class="Default">The Financial Markets Conduct Act 2013 (FMC Act) introduces licensing for providers offering certain types of financial services. In future, you will need a licence if you want to act as a manager of a non-restricted and registered MIS or a DIMS provider – and will need to meet and maintain minimum standards across key areas of your business.</p> <p class="Default"><strong>Auckland session (FULL):</strong></p> <p class="Default">Date: Monday 9 December 2013</p> <p class="Default">Time: 9.00am to 11.00amVenue: FMA</p> <p class="Default"><strong>Location:</strong></p> <p class="Default">Level 5, Ernst &amp; Young Building</p> <p class="Default">2 Takutai Square, Britomart </p> </div> <div class="WordSection3"> <p><strong>Wellington session (FULL):</strong></p> <p>Date: Thursday 12 December 2013</p> <p>Time: 10.00am to 11.30am</p> <p>Venue: FMA</p> <p><strong>Location:</strong></p> <p>Level 2, 1 Grey Street </p> <p>Wellington </p> </div> <p><strong>Keen to attend?</strong></p> <p>If you would like to attend one of these sessions please RSVP as soon as possible to <a href="mailto:raksha.magan@fma.govt.nz">raksha.magan@fma.govt.nz</a> – please state the session you would like to attend (Wellington or Auckland).</p> <p><strong>Where can I get more information?</strong></p> <p>You'll find more information about the changes in our 'Future of Financial Markets' section.</p> <p>If you have any other questions or comments please get in touch through our engagement site <a href="http://www.talktous.fma.govt.nz">talktous</a> </p> <h2> </h2> <h2>Changes ahead for AFAs who provide DIMS</h2> <p><strong>20 November 2013</strong></p> <p>The Financial Markets Conduct Act 2013 (FMC Act) changes both the way Discretionary Investment Management Services (DIMS) are provided and requirements for AFAs. Check out this <a href="http://www.fma.govt.nz/assets/changes-ahead-for-afas-who-provide-dims.pdf" target="_blank">factsheet</a> for more details.</p> <h2> </h2> <h2><span class="btn-group-seperators">Changes ahead for financial reporting</span></h2> <p><strong><span class="btn-group-seperators">18 November 2013</span></strong></p> <p>The Financial Reporting Bill currently before Parliament is going to change the reporting requirements for all 'Financial Markets Conduct (FMC) Reporting Entities'. Check out this <a href="http://www.fma.govt.nz/assets/Changes-ahead-for-Financial-Reporting-FMA-Factsheet-Nov-2013.pdf" target="_blank">factsheet</a> for more details.</p> <h2> </h2> <h2><span class="btn-group-seperators">We are now consulting on standards and conditions for new licences</span></h2> <p><strong><span class="btn-group-seperators">18 November 2013</span></strong></p> <p><span class="btn-group-seperators">On Wednesday 13 November we released our first consultation papers for the FMC Act. We released six documents that outline our proposals for the draft minimum standards and conditions for the new licences under the Act. All of the details are available <a href="http://www.fma.govt.nz/laws-we-enforce/policy/current-consultations/consultation-papers-on-draft-minimum-standards-and-conditions-for-new-licenses/">here</a>.</span></p> <p><span class="btn-group-seperators">We have also published the documents on our engagement site <a href="http://www.talktous.fma.govt.nz/projects/talk-to-us?tool=survey_tool#tool_tab">talktous</a> giving you the option to submit your comments online.</span></p> <h2><span class="btn-group-seperators">MBIE releases first set of draft regulations</span></h2> <p><strong>31 October 2013</strong></p> <p>Commerce Minister Craig Foss today (Thursday 31 October) released for consultation the first set of draft regulations to bring the Financial Markets Conduct Act 2013 (FMC Act) into effect. To view the documents and commentary visit MBIE's <a href="http://www.med.govt.nz/business/business-law/current-business-law-work/financial-markets-conduct-act/consultation-regulations">website</a>.</p> <p>Submissions on the consultation documents are due by 5 December 2013.</p> <p>The FMC Act will be implemented in two phases with the first phase coming into effect on 1 April 2014 and the second phase on 1 December 2014. For more information on the timeline for the two phases for the Act's implementation, visit our '<a href="http://www.fma.govt.nz/keep-updated/the-future-of-financial-markets/timeline-for-change/">Timeline for Change</a>' section.</p> <p>If you have any questions or comments about this please '<a href="http://www.talktous.fma.govt.nz/projects/talk-to-us?tool=survey_tool#tool_tab">Talk to us</a>' and we'll get back to you as soon as we can.</p> <h2> </h2> <h2><span class="btn-group-seperators">Update on consultation timetable</span></h2> <p><strong>15 October 2013</strong>To help market participants provide feedback on the draft regulations, the consultation process will be in three stages. This will give market participants time to consider and provide feedback on individual parts of the draft regulations. You can find more details in our <a href="http://www.fma.govt.nz/keep-updated/the-future-of-financial-markets/timeline-for-change/">Timeline for Change</a>' section.</p> <p>If you have any questions or comments about this please '<a href="http://www.talktous.fma.govt.nz/projects/talk-to-us?tool=survey_tool#tool_tab">Talk to us</a>' and we'll get back to you as soon as we can.</p> http://www.fma.govt.nz/keep-updated/the-future-of-financial-markets/how-can-i-get-involved/ How Can I Get Involved? 2014-10-16 12:38:33 Financial Markets Authority <h3>Consultation, Guidance, Frameworks and Methodologies</h3> <p>Our indicative publication timeline is subject to the rollout of Regulations. In addition to the planned items below, we regularly publish information sheets about specific topics.</p> <table> <tbody> <tr> <td><strong>Indicative date</strong></td> <td><strong>Item</strong></td> </tr> <tr> <td>October 2014</td> <td>Guidance note: Governance under Part 4 of the FMC Act</td> </tr> <tr> <td> </td> <td>Guidance note: AFAs and DIMS licensing</td> </tr> <tr> <td> </td> <td> <p>Consultation papers: Offers related</p> <ul> <li>Effective disclosure (updated)</li> <li>Content and form of register entries</li> </ul> </td> </tr> <tr> <td> </td> <td>Consultation paper: Section 224 discretion</td> </tr> <tr> <td>November 2014</td> <td>Consultation paper: Policy for financial product offer frameworks and methodologies, exemptions and guidance</td> </tr> <tr> <td> </td> <td>Schedule 1 exclusions guide</td> </tr> <tr> <td> </td> <td>Guidance note: SIPOs</td> </tr> <tr> <td> </td> <td>Framework and Methodology: Limit breaks</td> </tr> <tr> <td> </td> <td>The FMA is facilitating two seminars on Wednesday 19 November (AKL) and Wednesday 26 November (WGTN) to help fund managers understand transitional requirements under the Financial Markets Conduct (FMC) Act 2013.<br><br>Find out more information <a href="http://www.fma.govt.nz/keep-updated/the-future-of-financial-markets/latest-news/" target="_blank">here</a>.</td> </tr> </tbody> </table> <p> </p> <p> </p> <h2><strong>What else can I do now?</strong></h2> <p>Take the time now to familiarise yourself with the legislation. You can find all the key documents and reports in our '<a href="http://www.fma.govt.nz/keep-updated/the-future-of-financial-markets/useful-links/">Useful Links</a>' section.</p> <p>You need to think about the new requirements and 'readiness' of your own operations, such as whether you will need to be licensed, and for what services, how you might need to address new disclosure rules or new governance requirements and, crucially, by when. </p> <h2> </h2> <h2><a href="http://www.talktous.fma.govt.nz/">Talk to us</a></h2> <p>Our website <a href="http://www.talktous.fma.govt.nz/">talktous</a> gives New Zealanders the opportunity to share your thoughts and tell us what you think is important for the future of New Zealand's financial markets.</p> <p>On the site we ask for feedback on our proposals from time to time, but you can also ask us questions about any of the future changes.</p> <h2> </h2> <h2><strong>Find out more</strong></h2> <p>To receive regular news on consultations and guidance you can subscribe to our email '<a href="http://www.fma.govt.nz/keep-updated/subscribe-to-updates/">Updates</a>'.</p> <p>You can also <a href="http://www.fma.govt.nz/about-us/contact-us/">contact us</a>. If you're emailing a comment or question, please refer to FMC in your message heading.</p> http://www.fma.govt.nz/help-me-comply/financial-advisers/how-to-get-licensed/afa-application-resources-and-templates/afa-authorisation-guide/ AFA Authorisation Guide 2014-10-14 17:00:44 Financial Markets Authority <p><strong>The <a href="http://www.fma.govt.nz/assets/Report-and-Papers/AFA-Guide-December-2013.pdf" target="_blank">AFA Authorisation Guide</a> is a full reference guide to the process of becoming authorised.</strong></p> <p>Please also see the <a href="http://www.fma.govt.nz/help-me-comply/financial-advisers/guidance-notes/good-character-and-criminal-convictions/">Guidance Note: Good Character and Criminal Convictions guidance note</a> for full details of FMA's criteria and requirements for assessment of  good character of AFA applicants.</p> http://www.fma.govt.nz/keep-updated/newsroom/fma-updates/fma-update-13-october-2014 FMA Update - 13 October 2014 2014-10-14 08:28:50 Financial Markets Authority <h2><b>Money Week ‘Heavy Weight Debate’</b></h2> <p>It’s Money Week and the perfect time to get your money fighting fit! The FMA will be hosting a panel discussion to promote greater understanding of investment risk at St Matthew in the City, on Thursday 16 October. The event is free and open to everyone.<br><br><a href="http://financialmarketsauthority.cmail1.com/t/r-l-clrhkjt-wbtdddg-i/">Find out more</a></p> <h2><b>New guidance on Governance</b></h2> <p>At the end of September we released our <a href="http://financialmarketsauthority.cmail1.com/t/r-l-clrhkjt-wbtdddg-d/">Guidance Note: Governance under Part 4 of the FMC Act</a>.<br><br>Part 4 introduces new reporting duties for debt issuers, MIS managers/trustees of restricted schemes, supervisors, auditors, custodians, actuaries, investment managers and administration managers. Our new <a href="http://financialmarketsauthority.cmail1.com/t/r-l-clrhkjt-wbtdddg-h/">Information Sheet: Reporting duties under Part 4 of the FMC Act</a>, outlines the new duties for each party.</p> <h2><b>Save the date – FMC Act transition workshop for fund managers</b></h2> <p>In November the FMA is hosting two sessions to discuss the steps and activities managed investment scheme (MIS) managers need to take to transition to the FMC Act. The sessions will appeal to managers of KiwiSaver, superannuation, unit trusts and other MIS.<br><br><strong>Times &amp; Dates:</strong></p> <ul> <li>9:30 – 11:30am 19 November, Auckland (Venue TBC)</li> <li>9:30 – 11:30am 26 November, Wellington (Venue TBC)</li> </ul> <p>More details will be published on our website soon, but in the meantime pencil the date in your diary.</p> <h2><b>KiwiSaver Report and Superannuation Schemes Report released</b></h2> <p>The FMA’s KiwiSaver and Superannuation Schemes reports for 2014 were released on 30 September.  The reports provide a general overview of our activities relating to KiwiSaver and New Zealand’s superannuation schemes and set out the statistical highlights for the year ending 30 June 2014.<br><br><a href="http://financialmarketsauthority.cmail1.com/t/r-l-clrhkjt-wbtdddg-k/">KiwiSaver Report 2014</a><br><br><a href="http://financialmarketsauthority.cmail1.com/t/r-l-clrhkjt-wbtdddg-u/">Superannuation Schemes Report 2014</a></p> <h2><b>Upcoming FMC Act related consultations</b></h2> <p>We’ll be consulting on several aspects of the new offers framework (including an update to our existing guidance on effective disclosure), and on our discretion to use s224 (FMA discretion to authorise the issuer to decline a request for a copy of a register).<br><br>Our ‘<a href="http://financialmarketsauthority.cmail1.com/t/r-l-clrhkjt-wbtdddg-o/">How can I get involved</a>’ webpages provide more detail on our indicative publication timeline.</p> <h2><b>FMA media releases issued over the last month</b></h2> <ul> <li><a href="http://financialmarketsauthority.cmail1.com/t/r-l-clrhkjt-wbtdddg-b/">FMA files civil proceedings against Archer Capital and Healthcare Industry</a></li> <li><a href="http://financialmarketsauthority.cmail1.com/t/r-l-clrhkjt-wbtdddg-n/">Competition between providers for customers’ KiwiSaver funds increases rapidly</a></li> <li><a href="http://financialmarketsauthority.cmail1.com/t/r-l-clrhkjt-wbtdddg-p/">FMA issues warning about General Equity</a></li> <li><a href="http://financialmarketsauthority.cmail1.com/t/r-l-clrhkjt-wbtdddg-x/">FMA releases 2014 Investigations and Enforcement Report</a></li> </ul> <h2><b>Previous FMA news updates</b></h2> <ul> <li><a href="http://financialmarketsauthority.cmail1.com/t/r-l-clrhkjt-wbtdddg-m/">Financial Markets Authority AFA Update Issue No. 32</a></li> <li><a href="http://financialmarketsauthority.cmail1.com/t/r-l-clrhkjt-wbtdddg-c/">Financial Markets Authority AFA Update Issue No. 31</a></li> <li><a href="http://financialmarketsauthority.cmail1.com/t/r-l-clrhkjt-wbtdddg-q/">Financial Markets Authority AFA Update Issue No. 30</a></li> </ul> http://www.fma.govt.nz/keep-updated/the-future-of-financial-markets/timeline-for-change/ Timeline for Change 2014-10-13 16:56:12 Financial Markets Authority <p>This page has information on the timeline for development of the FMC regulations. This will give you time to consider and provide feedback on individual parts of the draft regulations.</p> <p><span style="color: rgb(51, 51, 51); line-height: 115%; font-family: &quot;Helvetica&quot;,&quot;sans-serif&quot;; font-size: 10.5pt; mso-fareast-font-family: &quot;Times New Roman&quot;; mso-fareast-language: EN-NZ; mso-ansi-language: EN-NZ; mso-bidi-language: AR-SA;">You should also look at</span><span style="color: rgb(51, 51, 51); line-height: 115%; font-family: &quot;Helvetica&quot;,&quot;sans-serif&quot;; font-size: 11pt; mso-fareast-font-family: Calibri; mso-fareast-theme-font: minor-latin; mso-fareast-language: EN-US; mso-ansi-language: EN-NZ; mso-bidi-language: AR-SA;"> our </span><a href="http://www.fma.govt.nz/keep-updated/the-future-of-financial-markets/how-can-i-get-involved/" target="_blank">'How Can I Get Involved?'</a> section for information on how FMA will support the new regime through Consultation, Guidance, Exemptions and Frameworks and Methodologies. Our '<a href="http://www.fma.govt.nz/keep-updated/the-future-of-financial-markets/when-will-you-need-to-comply/">When You Will Need to Comply</a>' section has information on when you will need to comply with the FMC regime and transition.<br><br>The timeline below may change as the FMC regulations are developed. However the indicative timeline is as follows<br><br><em>Updated 8 October 2014</em></p> <table> <tbody> <tr> <td style="width: 4cm;"><strong>13 September 2013  <br></strong></td> <td>Financial Markets Conduct Act 2013 (<strong>FMC Act</strong>) and Financial Markets (Repeals and Amendments) Act (<strong>FM (RA) Act</strong>) passed into law on Royal assent</td> </tr> <tr> <td><strong>October to December 2013</strong></td> <td> <p>Ministry of Business, Innovation and Employment (<strong>MBIE</strong>) consulted on draft regulations – Stage 1:</p> <ul> <li>Exposure draft of regulations for Phase 1 of FMC Act (Licensing and conduct)</li> </ul> <ul> <li>Detailed proposals for disclosure document content and process</li> </ul> </td> </tr> <tr> <td><strong>December 2013 to March 2014<br></strong></td> <td> <p>MBIE consulted on draft regulations – Stage 2:</p> <ul> <li>Exposure draft of regulations for Phase 2 of FMC Act (governance, DIMS provider conduct obligations and financial product markets regime)</li> </ul> </td> </tr> <tr> <td><strong>1 April 2014            </strong></td> <td><a href="http://legislation.govt.nz/act/public/2013/0069/latest/DLM4090578.html?search=ad_act__financial+markets+conduct____25_ac%40bn%40rn%40dn%40apub%40aloc%40apri%40apro%40aimp%40bgov%40bloc%40bpri%40bmem%40rpub%40rimp_ac%40ainf%40anif%40bcur%40rinf%40rnif_h_aw_se&amp;p=1">Phase 1 FMC Act</a> and <a href="http://legislation.govt.nz/regulation/public/2014/0050/latest/DLM5956701.html?search=ad_regulation_phase+one+regulations_____25_an%40bn%40rc%40dn%40apub%40aloc%40apri%40apro%40aimp%40bgov%40bloc%40bpri%40bmem%40rpub%40rimp_rc%40ainf%40anif%40bcur%40rinf%40rnif_h_aw_se&amp;p=1&amp;sr=1">Financial Markets Conduct (Phase 1) Regulations 2014 (<strong>FMC Phase 1 regs</strong>)</a> came into effect (see <a href="http://legislation.govt.nz/regulation/public/2014/0051/latest/DLM5945611.html?search=ts_act%40bill%40regulation%40deemedreg_phase+1_resel_25_a&amp;p=1">Financial Markets Legislation (Phase 1) Commencement Order 2014</a> and implementation timetable below).</td> </tr> <tr> <td><strong>May  to July 2014</strong></td> <td> <p>MBIE consulted on draft regulations – Stage 3:</p> <p>Release of exposure drafts of regulations for disclosure documents (Phase 2)</p> </td> </tr> <tr> <td><strong>September 2014</strong></td> <td> <p>MBIE released unofficial full draft of the FMC Regulations - see MBIE’s Progress update on Financial Markets Conduct Regulations for more details.</p> </td> </tr> <tr> <td><strong>October - December 2014 </strong></td> <td> <p>MBIE to finalise full FMC regulations</p> </td> </tr> <tr> <td><strong>1 December 2014</strong></td> <td>Phase 2 of FMC Act and full FMC Act Regulations come into effect (<a href="http://legislation.govt.nz/regulation/public/2014/0050/latest/DLM5956701.html?search=ad_regulation_phase+one+regulations_____25_an%40bn%40rc%40dn%40apub%40aloc%40apri%40apro%40aimp%40bgov%40bloc%40bpri%40bmem%40rpub%40rimp_rc%40ainf%40anif%40bcur%40rinf%40rnif_h_aw_se&amp;p=1&amp;sr=1">FMC Phase 1 Regs</a> revoked - see implementation timetable below). Transition periods apply for some market participants/activities.</td> </tr> <tr> <td><strong>Post 1 December</strong></td> <td> <p>MBIE has indicated we can expect further regulations to address:</p> <ul> <li>short-form disclosures for offers of shares or other products that rank equally or in priority to existing quoted financial products (other than the ‘same class’ disclosure requirements that will be in place on 1 December 2014)</li> <li>specific offer document rules for convertible      financial products</li> <li>an alternative version of the managed fund      product disclosure statement which incorporates, or allows use of, fund updates</li> <li>a version of the fund update for non-fund investment options</li> </ul> </td> </tr> </tbody> </table> <h3><strong>Implementation timetable</strong></h3> <p align="left">The table below outlines the timings for the phased implementation of the FMC Act and regulations in the related repeals and amendments under the Financial Markets (Repeals and Amendments) Act 2013. Details may change as the regulations are developed.</p> <p align="left"><em>Updated 8 October 2014</em></p> <table> <tbody> <tr> <td colspan="3"> <h3>FMC Act and FM (RA) Act passed into law on Royal assent</h3> </td> </tr> <tr> <td style="width: 4cm;"><strong>September 2013</strong></td> <td><strong>What comes into effect?</strong></td> <td><strong>FMC Act reference</strong></td> </tr> <tr> <td> </td> <td>Regulation-making and FMA exemption/designation powers</td> <td>Part <a href="http://www.legislation.govt.nz/act/public/2013/0069/latest/DLM4091802.html">9</a></td> </tr> <tr> <td> </td> <td>Minor changes to KiwiSaver scheme rules (these changes are technical corrections to the lock-in date for complying superannuation fund members and for payment mechanisms for first home purchase withdrawals)</td> <td>Certain KiwiSaver Act changes in the FM (RA) Act</td> </tr> <tr> <td colspan="3"> <h3><a href="http://www.legislation.govt.nz/regulation/public/2014/0050/latest/DLM5956701.html?src=qs">Phase 1</a></h3> </td> </tr> <tr> <td> <p><strong>1 April 2014<br></strong></p> </td> <td> <p><strong>What comes into effect?</strong></p> <p>(see the <a href="http://legislation.govt.nz/regulation/public/2014/0051/latest/DLM5945611.html?search=ts_act%40bill%40regulation%40deemedreg_phase+1_resel_25_a&amp;p=1">Financial Markets Legislation (Phase 1) Commencement Order 2014</a> for a detailed list of particular sections of the FMC Act and FM (RA) Act that come into effect on this date)</p> </td> <td><strong>FMC Act reference</strong></td> </tr> <tr> <td> </td> <td>Preliminary provisions, including definitions</td> <td>Part <a href="http://www.legislation.govt.nz/act/public/2013/0069/latest/DLM4090583.html">1</a></td> </tr> <tr> <td> </td> <td> <ul> <li>General fair dealing provisions (excluding prohibitions on unsubstantiated representations and offers in the course of unsolicited meetings)</li> <li>Prohibitions on unsubstantiated representations to come into force on 17 June 2014</li> </ul> </td> <td>Part <a href="http://www.legislation.govt.nz/act/public/2013/0069/latest/DLM4090947.html">2</a></td> </tr> <tr> <td> </td> <td>Provisions to allow FMA to accept licence applications (excluding the mandatory requirement to license and certain requirements in relation to DIMS and derivatives issuers)</td> <td>Subparts of Part <a href="http://www.legislation.govt.nz/act/public/2013/0069/latest/DLM4091561.html">6</a></td> </tr> <tr> <td> </td> <td>Financial reporting requirements</td> <td>Part <a href="http://www.legislation.govt.nz/act/public/2013/0069/latest/DLM4702238.html">7</a> (to be replaced by Financial Reporting (Amendments to Other Enactments) Act)</td> </tr> <tr> <td> </td> <td>The enforcement and liability regime (for Phase 1)</td> <td>Part <a href="http://www.legislation.govt.nz/act/public/2013/0069/latest/DLM4091662.html">8</a> and changes to FMA Act and Companies Act/Takeovers Act in FM (RA) Act</td> </tr> <tr> <td> </td> <td>Amendments to Fair Trading Act to bring in the dual regulator regime for fair dealing</td> <td>Changes to FTA in FM (RA) Act</td> </tr> <tr> <td> </td> <td>Certain disclosure exclusions (for example employee share schemes, prescribed intermediaries such as crowd funding, peer-to-peer lending, small offers and quoted securities of the same class) are incorporated into the Securities Act 1978 until 1 December 2014</td> <td>Schedule <a href="http://www.legislation.govt.nz/act/public/2013/0069/latest/DLM4092365.html">1</a> and clause <a href="http://www.legislation.govt.nz/act/public/2013/0069/latest/DLM5566412.html">59</a> of Schedule 4 (see the list in regulation <a href="http://www.legislation.govt.nz/regulation/public/2014/0050/latest/DLM5946261.html?search=ta_regulation_F_rc%40rinf%40rnif_an%40bn%40rn_25_a&amp;p=2">12</a> of the Financial Markets Conduct (Phase 1) Regulations 2014)</td> </tr> <tr> <td> </td> <td>Conduct obligations for  custodians (for example client reporting, assurance, etc.) in amendments to Financial Advisers (<strong>FA</strong>) Act</td> <td>Certain FA Act changes in Financial Markets (Repeals and Amendments) Act 2013</td> </tr> <tr> <td> </td> <td> <p>Associated transitional provisions</p> </td> <td>Subpart <a href="http://www.legislation.govt.nz/act/public/2013/0069/latest/DLM4091803.html">1</a> of Part 9</td> </tr> <tr> <td> </td> <td> <p><a href="http://www.legislation.govt.nz/regulation/public/2014/0050/latest/DLM5956701.html?src=qs">FMC Phase 1 Regs</a></p> </td> <td>FMC Act</td> </tr> <tr> <td> </td> <td> <p><a href="http://legislation.govt.nz/regulation/public/2014/0048/latest/DLM5946801.html?src=qs">Financial Advisers (Custodians of FMC Act Financial Products) Regulations 2014</a></p> </td> <td>FA Act</td> </tr> <tr> <td colspan="3"> <h3>Phase 2</h3> </td> </tr> <tr> <td><strong>1 December 2014</strong></td> <td><strong>What comes into effect?</strong></td> <td><strong>FMC Act reference</strong></td> </tr> <tr> <td> </td> <td>Disclosure regime</td> <td>Part <a href="http://www.legislation.govt.nz/act/public/2013/0069/latest/DLM4090967.html">3</a></td> </tr> <tr> <td> </td> <td>Offer and scheme registers operational</td> <td>Schedule <a href="http://www.legislation.govt.nz/act/public/2013/0069/latest/DLM4092497.html">2</a></td> </tr> <tr> <td> </td> <td>Governance/accountability regime</td> <td>Part <a href="http://www.legislation.govt.nz/act/public/2013/0069/latest/DLM4091073.html">4</a></td> </tr> <tr> <td> </td> <td>Financial product markets regime</td> <td>Part <a href="http://www.legislation.govt.nz/act/public/2013/0069/latest/DLM4091279.html">5</a></td> </tr> <tr> <td> </td> <td>Requirement to be licensed and all associated conduct requirements for licensees (with some transitional exclusions)</td> <td>Subparts of Part <a href="http://www.legislation.govt.nz/act/public/2013/0069/latest/DLM4091561.html">6</a></td> </tr> <tr> <td> </td> <td>Remaining disclosure exclusions in Schedule 1</td> <td>Schedule <a href="http://www.legislation.govt.nz/act/public/2013/0069/latest/DLM4092365.html">1</a></td> </tr> <tr> <td> </td> <td>Remaining amendments to FA Act (including discretionary investment management services)</td> <td>Changes to FA Act in FM (RA) Act</td> </tr> <tr> <td> </td> <td>Regulation of Schedule 3 schemes</td> <td>Schedule <a href="http://www.legislation.govt.nz/act/public/2013/0069/latest/DLM4092522.html">3</a></td> </tr> <tr> <td> </td> <td>Repeals, Schedule 4 amendments and remaining transitional provisions</td> <td>FM (RA) Act and Schedule <a href="http://www.legislation.govt.nz/act/public/2013/0069/latest/DLM4702346.html">4</a></td> </tr> <tr> <td> </td> <td> <p>Any remaining provisions of the Act</p> <p>FMC Phase 1 Regs replaced by full FMC Regulations (these will cover all core regulations consulted on by MBIE in First, Second and Third Exposure Drafts).  See <a href="http://www.med.govt.nz/business/business-law/current-business-law-work/financial-markets-conduct-act/regulations-progress-update">MBIE’s Progress update </a>on Financial Markets Conduct Regulations for details on what the regulations will cover.</p> <p>Transition periods apply for some market participants/activities.</p> </td> <td> </td> </tr> </tbody> </table> <p align="left">For more details and guidance on what the timeline for change means for different groups of market participants see our '<a href="http://www.fma.govt.nz/keep-updated/the-future-of-financial-markets/when-will-you-need-to-comply/">When will You Need to Comply</a>' section.</p> http://www.fma.govt.nz/help-me-comply/new-accountability-framework-for-financial-products/guidance/ Guidance 2014-10-13 10:39:13 Financial Markets Authority <p><a href="http://www.fma.govt.nz/assets/Report-and-Papers/Guidance-Note-Governance-under-Part-4-of-the-FMC-Act.pdf" target="_blank"><b>Guidance note: Governance under Part 4 of the FMC Act</b></a></p> <p>This guidance note outlines our expectations for how issuers of debt securities, managers of managed investment schemes and their supervisors should approach their governance accountabilities and responsibilities.</p> <p>It describes how the overarching duties of care, acting in the best interests of clients, and fair dealing set the scene for how each participant meet their governance responsibilities. It also describes how participants must interact with each other and with the FMA.</p> <p>The guidance note also addresses the need for governing documents to be effective and fit for purpose. More detailed guidance on SIPOs will be available later in 2014.</p> <p>This guidance note was published in September 2014, following a consultation in June 2014. You can read a summary of the feedback received on our <a href="http://www.fma.govt.nz/laws-we-enforce/policy/closed-consultations/consultation-paper-the-new-accountability-framework-governance-under-part-4-of-the-fmc-act">consultation page</a>.</p> <p><a href="http://www.fma.govt.nz/assets/Report-and-Papers/Reporting-duties-under-Part-4-of-the-FMC-Act-Information-Sheet-and-Table.pdf" target="_blank"><b>Information sheet: Reporting duties under Part 4 of the FMC Act</b></a></p> <p>This information sheet outlines new reporting duties under Part 4 of the FMC Act. It includes a table showing the reporting requirements for debt issuers, MIS managers / trustees of restricted schemes, supervisors, auditors, custodians, actuaries, investment managers and administration managers.</p> http://www.fma.govt.nz/help-me-comply/financial-advisers/who-needs-to-comply/what-type-of-financial-adviser-am-i/category-1-or-category-2-products/ Category 1 or Category 2 Products 2014-10-10 15:30:44 Financial Markets Authority <p>The type of adviser you are, and what you need to do to comply, will partly depend on whether you offer category 1 or category 2 products.</p> <p>Category 1 and 2 products are described in s5 of the <a href="http://www.legislation.govt.nz/act/public/2008/0091/latest/contents.html"> Financial Advisers Act 2008</a>. Some category 1 and category 2 products are <a href="http://www.legislation.govt.nz/regulation/public/2011/0050/latest/DLM3598401.html">defined further in regulations</a>. Additional products may be added to each category in the future, by regulations. You can see a summary of these definitions in our <a href="http://www.fma.govt.nz/assets/media/375829/173844-do-i-deal-with-category-1-or-category-2-products-2.pdf" target="_blank">category 1 and category 2 product definition guide</a>.</p> <p>You can see a summary of these definitions in our <a href="http://www.fma.govt.nz/media/375829/173844_do_i_deal_with_category_1_or_category_2_products_2.pdf">category 1 and category 2 product definition guide</a>.</p> <p>Only Authorised Financial Advisers and QFE advisers can give personalised advice to retail clients on category 1 products. QFE advisers are limited to advice on category 1 products promoted or issued by their QFE.</p> <p>Personalised advice on category 2 products can be given by Registered Financial Advisers and QFE Advisers. However, if advice on category 2 products is given as part of providing an investment planning service, then the adviser must be authorised as well as registered.</p> <p><a href="http://www.fma.govt.nz/help-me-comply/financial-advisers/who-needs-to-comply/what-type-of-financial-adviser-am-i/">See the flowchart to help decide what type of financial adviser you are</a>.</p> http://www.fma.govt.nz/help-me-comply/new-licences-for-financial-market-services/derivatives-issuer/who-needs-to-comply/ Who needs to comply? 2014-10-08 16:41:09 Financial Markets Authority <p>Under the Financial Markets Conduct Act, a derivatives issuer must be licensed to make a regulated offer of derivatives. You are a derivatives issuer if you are in the business of entering into derivatives. See <a href="http://www.legislation.govt.nz/act/public/2013/0069/latest/whole.html#DLM4091564">section 388</a> of the Act for more details.</p> <h3>What is a derivative?</h3> <p>The Act contains a wide definition of a derivative, which includes:</p> <ul> <li>Futures contracts and forwards</li> <li>Options (except options to acquire an equity security, a debt security, or a managed investment product by way of issue)</li> <li>Swaps</li> <li>Contracts for difference, margin contracts and rolling spot contracts</li> <li>Caps, collars, floors and spreads.</li> </ul> <p>The definition is also wide enough to catch new derivatives products as they are developed.</p> <p>See <a href="http://www.legislation.govt.nz/act/public/2013/0069/latest/whole.html#DLM4090911">section 8 (4)</a> for the full definition.</p> <h3>What is a regulated offer?</h3> <p>A regulated offer includes any offer of derivatives when disclosure must be made to one or more investors, for example, because an investor is a retail investor. See <a href="http://www.legislation.govt.nz/act/public/2013/0069/latest/whole.html#DLM4090971">section 41</a>.</p> <h3>Will you need a licence?</h3> <p>You will need a licence if you want to make a regulated offer of derivatives, as defined in the Act. Our flowchart, <a href="http://www.fma.govt.nz/assets/media/1054639/do-you-need-a-derivative-issuer-licence-from-1-december-2014.pdf" target="_blank">do you need a derivative issuer licence from 1 December 2014</a> will help you decide.</p> <h3 class="typography"><b>I offer </b><b>derivatives services to overseas clients only, do I need a licence?</b></h3> <p>Under section 47 of the Financial Markets Conduct Act, a derivatives issuer is required to be licensed if it is making a regulated offer.  A regulated offer includes any offer of derivatives when disclosure must be made to one or more investors, for example, because an investor is a retail investor.   However disclosure is only required for offers of financial products in New Zealand.  So if offers are not made to NZ residents, the entity does not need to be licensed.</p> <p>You should be aware that a <em><strong>registered</strong></em> but not licensed issuer falls within the FMA jurisdiction, for example under the Fair Dealing provisions of the FMC Act.  The FMA also now has the power to direct the Registrar of Financial Service Providers to deregister a provider from the FSPR. This action would be taken where registration is likely to create a false or misleading impression that the provider is regulated in NZ or providing services from or in NZ, or where it is otherwise likely to damage the integrity or reputation of NZ’s financial markets or regulatory arrangements.</p> http://www.fma.govt.nz/keep-updated/warnings-alerts-and-scams/international-regulator-alerts/ International Regulator Alerts 2014-10-08 14:12:14 Financial Markets Authority http://www.fma.govt.nz/keep-updated/newsroom/fma-updates/fma-update-11-december-2012 FMA Update - 11 December 2012 2014-10-08 10:00:23 Financial Markets Authority <h2>Consultation Paper: Class exemption review</h2> <p>FMA has published a consultation paper on 17 Securities Act and Financial Reporting Act class exemption notices currently under review.  Fourteen of these notices are notices on which FMA has already received and considered submissions.  FMA's consultation paper proposes advanced policy positions on these notices, which were extended until 31 March 2013 to enable this further consultation.  Three additional notices have been added to FMA's review because they are due to expire in 2013.  FMA also provides proposals for consultation on these additional notices.<br><br>The consultation paper is available on our website www.fma.govt.nz at 'Laws we enforce', 'Policy', 'Current consultations', or by clicking <a href="http://www.fma.govt.nz/laws-we-enforce/policy/closed-consultations/consultation-paper-class-exemption-review">here</a>.<br><br>We seek submissions on the proposals in the paper to assist with this review process.  Submissions should be sent by email to exemptions@fma.govt.nz.  The deadline for submissions is 14 January 2013.<br><br>You can contact Natalie Muir, Manager Exemptions, with any questions.<br><br></p> <h2>Guideline for audits of risk assessments and AML/CFT programmes</h2> <p>AML/CFT supervisors have jointly published their 'Guideline for audits of risk assessments and AML/CFT programmes'. The guideline is available <a href="http://www.fma.govt.nz/keep-updated/reports-and-papers/guideline-for-audits-of-risk-assessments-and-amlcft-programmes">here</a>.<br><br></p> <h2>Requirements for Reporting Entities</h2> <p>The Anti-Money Laundering and Countering Financing of Terrorism Act 2009 (AML/CFT Act 2009) requires Reporting Entities to electronically report Suspicious Transaction Reports (STRs) to the New Zealand Financial Intelligence Unit (FIU). When the relevant portions of this legislation take effect on June 30, 2013, the FIU will no longer accept manual STR submissions. The "secure web" reporting platform currently being used to report STRs electronically will also be turned off at this time.<br><br>Continue reading <a href="http://www.fma.govt.nz/assets/requirements-for-reporting-entities.pdf" target="_blank">here</a>.</p> http://www.fma.govt.nz/help-me-comply/financial-advisers/your-obligations/regulatory-reporting-guide/frequently-asked-questions/ Frequently Asked Questions 2014-10-08 09:58:32 Financial Markets Authority <h2>Regulatory Reporting Guide and AFA Information Return</h2> <table> <tbody> <tr> <td><a href="http://www.fma.govt.nz/#Section1"><strong>Section 1 General information</strong></a></td> <td> <ul> <li><strong>What</strong> is the Regulatory Reporting Guide and the Information Return</li> <li><strong>Who</strong> needs to complete an Information Return?</li> </ul> </td> </tr> <tr> <td><a href="http://www.fma.govt.nz/#Section2"><strong>Section 2 Timing</strong></a></td> <td> <ul> <li><strong>When</strong> do I need to complete the Information Return?</li> </ul> </td> </tr> <tr> <td><a href="http://www.fma.govt.nz/#Section3"><strong>Section 3 Completing your Return</strong></a></td> <td> <ul> <li><strong>How</strong> do I complete the Information Return?</li> <li><strong>How</strong> can I get help?</li> </ul> </td> </tr> <tr> <td><a href="http://www.fma.govt.nz/#Section4"><strong>Section 4 IT questions</strong></a></td> <td> <ul> <li><strong>Answers</strong> to questions about the online Information Return system.</li> </ul> </td> </tr> <tr> <td><a href="http://www.fma.govt.nz/#Section5"><strong>Section 5 Extra guidance for specific questions</strong></a></td> <td> <p><strong>Question 5</strong></p> <p><strong>Question 6</strong></p> <p><strong>Question 10</strong></p> <p><strong>Question 14</strong></p> <p><strong>Question 19</strong></p> <p><strong>Question 24</strong></p> <p><strong>Question 25</strong></p> </td> </tr> </tbody> </table> <h2><a name="Section1"></a>Section 1</h2> <h2>General information</h2> <p><strong>1. What is the Regulatory Reporting Guide and what is the Information Return? </strong></p> <p>The <a href="http://www.fma.govt.nz/help-me-comply/financial-advisers/your-obligations/regulatory-reporting-guide/">Regulatory Reporting Guide (RRG)</a> sets out the periodic and other reporting, accounting and notification requirements for Authorised Financial Advisers (AFAs) as required under the <a href="http://www.fma.govt.nz/help-me-comply/financial-advisers/your-obligations/authorised-financial-advisers-obligations/terms-and-conditions-for-afas/standard-conditions-for-afas/">Standard Conditions</a> for AFAs.  The RRG also contains explanatory notes to assist AFA's in understanding and complying with the reporting requirements.  At present the only reporting requirement contained in the RRG is the Information Return.</p> <p>The Information Return is an online tool that each AFA must complete and submit annually.  It consists of a series of <a href="http://www.fma.govt.nz/assets/media/1993803/afa-information-return-questions-final.pdf" target="_blank">questions</a> about AFAs, their business, their compliance approach and their approach to continuing professional development.  While the Information Return is new, it does not replace the requirement for each AFA to maintain and keep a current written Adviser Business Statement (ABS).</p> <p><strong>2. Do I have to complete all the questions?</strong></p> <p class="default">The Information Return is in sections, with each section represented by tabs along the top of the screen. You only need to complete the sections that relate to the financial adviser services you provide. Therefore, depending on the categories you select, the Information Return will automatically select the appropriate questions. Refer to the <a href="http://www.fma.govt.nz/assets/media/1993803/afa-information-return-questions-final.pdf" target="_blank">questions</a> to see which ones you will need to provide information for.<br><br>We may ask you about the information you have provided. Therefore when answering the questions, it's important you ensure the information is accurate, complete and the answers are true and correct. However, we understand you may need to give your best estimate where a question has not been asked before and you were not aware you needed to collect that information during the period to answer the question.</p> <p class="default"><strong>3. I'm an AFA but don't provide financial adviser services - do I still need to complete an Information Return?</strong></p> <p>If you <strong>do not</strong> provide financial adviser services to clients, you will still need to complete an Information Return however the questions you will need to answer are reduced.  As a guide you will only need to answer questions 1, 4, 5 and 40.</p> <p><strong>4. I'm an employee or nominated representative of a QFE - are there any questions that do not apply to me?</strong></p> <p>If you are an employee or nominated representative of a QFE, then depending on the categories you select, some questions will not be relevant. As a guide, the questions 19, 33-35 and 39 will not be relevant.</p> <p><strong>5. What will FMA do with the information?</strong></p> <p>The purpose of the Information Return is so FMA can collect information from AFAs to help us better understand AFA profiles, businesses and characteristics and the market as a whole.  It will also help us to prioritise our future monitoring activities and thematic surveillance work and to focus our resources effectively. Read our <a href="http://www.fma.govt.nz/assets/media/1105037/regulatory-impact-statement-regulatory-reporting-requirements-for-afas.pdf" target="_blank">Regulatory Impact Statement</a> to find out more. </p> <p><strong>6. Do all advisers have to do it? </strong></p> <p>Only AFAs have to complete it.  Please note AFAs can receive assistance in collating the information, however, each AFA must ensure they have personally read and checked the information before submitting it. We strongly recommend that you do not share your 'RealMe' login details.  If you need help to collect the information we suggest you print the <a href="http://www.fma.govt.nz/assets/media/1993803/afa-information-return-questions-final.pdf" target="_blank">questions</a> and give them to the appropriate person(s) to help you complete it manually.  After you have checked the answers in the manual copy you can then, with your 'RealMe' login details, complete the Information Return online by inputting those approved manual responses yourself.</p> <p><strong>7. Did FMA consult about the RRG and Information Return?</strong></p> <p>Yes, we ran two consultations in <a href="http://www.fma.govt.nz/laws-we-enforce/policy/closed-consultations/consultation-paper-regulatory-reporting-guide-for-authorised-financial-advisers">September 2013</a> and in <a href="http://www.fma.govt.nz/laws-we-enforce/policy/closed-consultations/second-consultation-paper-regulatory-reporting-guide-for-authorised-financial-advisers">April 2014</a>. In both consultations we received detailed and constructive <a href="http://www.fma.govt.nz/laws-we-enforce/policy/closed-consultations/second-consultation-paper-regulatory-reporting-guide-for-authorised-financial-advisers">submissions</a> about the questions and the online Information Return tool which was very helpful.  We have also published a <a href="http://www.fma.govt.nz/assets/media/1105037/regulatory-impact-statement-regulatory-reporting-requirements-for-afas.pdf" target="_blank">Regulatory Impact Statement</a> which provides more details about the consultations and the options we considered before proceeding with the RRG and the Information Return.</p> <p><strong>8. Does the Information Return replace the current process for providing my annual confirmation to FMA that my ABS is current?</strong></p> <p>Yes, question 40 in the Information Return has been designed for this purpose.</p> <p>Under the <a href="http://www.fma.govt.nz/help-me-comply/financial-advisers/your-obligations/authorised-financial-advisers-obligations/terms-and-conditions-for-afas/standard-conditions-for-afas/">Standard Conditions</a> of authorisation Authorised Financial Advisers must maintain a current written Adviser Business Statement (ABS). Each year, you must confirm to us that your ABS is current.Previously you were required to send FMA confirmation by email, which was due on the anniversary of your authorisation.  To make it easier for you in future, this annual confirmation is no longer due by the anniversary of your authorisation and instead you now provide your annual confirmation via the annual AFA Information Return each year.</p> <p>If you have already provided your annual confirmation this year, you do need to this again via the Information Return as part of the change over to the new reporting system.</p> <h2><a name="Section2"></a>Section 2</h2> <h2>Timing</h2> <table> <tbody> <tr> <td> <div> <p><strong><strong>The Information Return is now open to complete. You can access it by clicking on <a href="https://www.e-services.fma.govt.nz/">www.e-services.fma.govt.nz/</a></strong></strong></p> </div> </td> </tr> </tbody> </table> <p><strong>9. When do we have to complete the first Information Return?</strong></p> <p><strong>9. When do AFAs have to complete the first Information Return?</strong></p> <p>The first Information Return is now open and must be completed by <strong>Tuesday 30 September 2014. You can access it by clicking on </strong><strong><a href="https://www.e-services.fma.govt.nz/">www.e-services.fma.govt.nz/</a></strong></p> <p><strong>10. How often will AFA's have to complete it?</strong></p> <p>The Information Return will need be completed annually by each AFA.  For the first Information Return, each AFA must complete an Information Return that relates to their business as at 30 June 2014. AFAs have until<strong> 30 September 2014</strong> to submit their first Information Return.  Subsequent Information Returns will follow the same timeframe.</p> <p><strong>11. What if I changed employers during the 12 month period that this Information Return relates to?</strong></p> <p>If you have worked for or provided financial adviser services through more than one entity during this period, please complete your Information Return with information that pertains to your current employer.</p> <p>We realise that for some questions you may be unable to provide answers that reflect the past 12 months.  Your answers can instead reflect a lesser period that relates to your current employer(s) or entity(s).</p> <p>However, a change of employer during the past 12 months would <strong>not</strong> affect your answers to the following questions:</p> <ul> <li>Questions 1-6</li> <li>Question 9</li> <li>Question 15</li> <li>Question 36</li> <li>Question 39</li> <li>Question 40</li> </ul> <p><strong>12.</strong> <strong>What if I changed my sole adviser practice during the 12 month period that this Information Return relates to?</strong></p> <p>If you have provided financial adviser services through a sole adviser practice and you have in the past 12 months changed the sole adviser practice(s) through which you provide financial adviser services, please complete your Information Return with information that pertains to all those sole adviser practices.</p> <p><strong>13. What happens if I cannot submit my return during the six week period (18 August - 30 September 2014)?</strong></p> <p>If for some reason you cannot submit your return within this timeframe please contact FMA as soon as possible at <a href="mailto:questions@fma.govt.nz">questions@fma.govt.nz</a> or call us on 0800 434 567.</p> <h2><a name="Section3"></a>Section 3</h2> <h2>Completing your Information Return online</h2> <table> <tbody> <tr> <td> <div> <p><strong>TIP: To make it easier and save you time, we strongly recommend you review the <a href="http://www.fma.govt.nz/media/1993803/afa-information-return-questions-final.pdf">questions</a> now before you are required to login and complete your Information Return online. </strong></p> </div> </td> </tr> </tbody> </table> <p><strong>14. I can't complete this as I haven't collected this information over the last year?</strong></p> <p>FMA recognises that accurate information may not be readily available to answer some of the <a href="http://www.fma.govt.nz/media/1993803/afa-information-return-questions-final.pdf">questions</a> for the year ending 30 June 2014. Where applicable we are happy to accept best estimates, i.e. submissions can be based on an approximate calculation or judgement of the value or number, rather than necessarily being an exact count of transactions and/or values. </p> <p><strong>15. Can I create my own Information Return, based on the User Guide or some other template?</strong></p> <p>No, FMA cannot accept Information Returns based on individually designed templates. The Information Return must be completed and submitted using our online system.</p> <p><strong>16. What if I have question?</strong></p> <p>Contained within the Information Return is guidance for many questions.  You can see this easily by clicking on the <strong>blue question icon</strong> located at the end of each question. Remember, you only need to include services that you actually provide yourself. Don't include services if you refer the client to another person to provide that service. Please check the guidance first or refer to these FAQs. If you still cannot find an answer to your question please contact us either by email <a href="mailto:questions@fma.govt.nz">questions@fma.govt.nz</a> or call us on 0800 434 567.</p> <p><strong>17. What 12 month period does the information I need to provide pertain to?</strong></p> <p>Where a question states, <em>'In the last 12 months'</em> it refers to the dates between 1 July 2013 - 30 June 2014 for the first year.  For subsequent years it refers to the period from 1 July of the previous year to 30 June of the current.</p> <p><strong>18. Can I attach files?</strong></p> <p>The questions are designed to provide specific information so there is no reason to attach files.  If however you wanted to provide extra information please let us know by emailing us at <a href="mailto:questions@fma.govt.nz">questions@fma.govt.nz</a></p> <p><strong>19. What if I make a mistake on my Information Return? Can I resubmit?</strong></p> <p>If you make a mistake you can resubmit your Information Return however we encourage you to take the time to ensure your responses are correct prior to clicking on the submit button. If you have any queries please see the online user guide or these FAQs, or alternatively contact us at <a href="mailto:questions@fma.govt.nz">questions@fma.govt.nz</a>.</p> <p><strong>20. After I've submitted it, will I get a confirmation email?</strong></p> <p>When you submit your completed Information Return, you will be automatically emailed a PDF copy for your records. This also confirms that FMA has received your Information Return. If you do not receive your PDF copy within 24 hours please contact us at <a href="mailto:questions@fma.govt.nz">questions@fma.govt.nz</a></p> <p>Please note: A copy of your Information Return will be emailed to the <strong>same email address that you have recorded on the FSPR.</strong></p> <p>It is important to ensure your email address is correct before submitting your Return. Here are some simple steps to follow if your email address is incorrect:</p> <ol> <li>If it is incorrect, the Information Return allows you to change the email address to which a copy of the Return is sent.</li> <li>To correct your email address for the future, simply log onto the <a href="http://www.business.govt.nz/fsp/about-the-fspr/how-do-i-register-an-fsp">FSPR</a> to update your FSP/change details.</li> </ol> <p><strong>21. I haven't received my PDF copy?</strong></p> <p>Check what email address you gave us at the time you submitted your Information Return as that is the one we will use to send your PDF copy.  If you made a mistake when inputting your email address or you have not received your PDF copy within 24 hours please contact us at <a href="mailto:questions@fma.govt.nz">questions@fma.govt.nz</a> </p> <p><strong>22. What should I do now?</strong></p> <p style="padding-left: 30px;">a. Review the <a href="http://www.fma.govt.nz/assets/media/1993803/afa-information-return-questions-final.pdf" target="_blank">questions</a> you will need to answer that relate to the financial adviser services you offer.</p> <p style="padding-left: 30px;">b. Start collecting that information so you can complete and submit your Information Return on time.</p> <p style="padding-left: 30px;">c. Refer to these FAQs if you would like more information.</p> <p style="padding-left: 30px;">d. Check you have your RealMe login password and your FSP number and if applicable your <a href="http://www.fma.govt.nz/laws-we-enforce/registers/list-of-qualifying-financial-entities-qfe/">QFE FSP number</a>.</p> <h2><a name="Section4"></a>Section 4</h2> <h2>IT Questions</h2> <table> <tbody> <tr> <td> <p><strong><strong>The Information Return is now open to complete. You can access it by clicking on <a href="https://www.e-services.fma.govt.nz/">www.e-services.fma.govt.nz/</a>. Please note, only responses received online are acceptable.</strong></strong></p> </td> </tr> </tbody> </table> <p><strong>23. How do I login?</strong></p> <p><strong>To login please follow the steps below:</strong></p> <ol> <li>Click on this link <a href="https://www.e-services.fma.govt.nz/">www.e-services.fma.govt.nz/</a>. If clicking on the link does not take you to the website please copy or type the link on your browser and open it.</li> <li>Click on "<strong>Login</strong>" at the <strong>top right corner</strong> of the screen.</li> <li>On the next screen in the <strong>white box</strong>, type in your RealMe login details.</li> <li>On the next screen click on "<strong>file AFA Information Return</strong>".</li> <li>A box will appear for you to enter your FSP number. <strong>PLEASE NOTE: you will need to enter the letters "FSP" followed by your number - e.g. FSP1234</strong>, then click on the green button "validate FSP number".</li> <li>Click "<strong>continue</strong>" at the next prompt then this will take you through to the start of the questions.</li> </ol> <table> <tbody> <tr> <td> <p><strong>Selecting your financial adviser service categories<br><br></strong>Please ensure you select the correct categories before completing your Return <strong>because you cannot edit these categories once you have started</strong>. However, if you do need to change these categories then you will have to start your Return again.  To do this follow these steps:</p> <ol> <li><strong>Save</strong> your partially completed Return as a PDF  (if you want to use it as a reference)</li> <li><strong>Cancel</strong> and begin again.</li> </ol> <p>Please note, when you are reviewing your Return note that a “yes” or “no” answer is recorded when you select your service categories.</p> <p>So for example; when you are reviewing your Return and you see, a “no” against the category “I did not provide financial adviser services to clients in the past 12 months”, it means you did not select that category and therefore <strong>you have</strong> provided financial adviser services in the last 12 months.</p> </td> </tr> </tbody> </table> <p>FMA uses the All-Of-Government shared login service, known as ‘RealMe’ (provided by the Department of Internal Affairs and formerly igovt). If you had an igovt login, your username and password will work here. This is a personal and individual login, not a shared one. You’ll have used or created a ‘RealMe’ login at the time you originally applied for registration as an AFA on the Financial Services Provider Register (FSPR).</p> <p><strong>24. I don't know my RealMe Login - where do I get it?</strong></p> <p>You'll have used or created a 'RealMe' login at the time you originally applied for registration as an AFA on the Financial Services Provider Register (FSPR). If you don't have a 'RealMe' login, please go to <a href="https://www.realme.govt.nz/getting-started/setting-up-a-verified-realme-account/">Create your RealMe</a> login now and follow the instructions. Please keep a note of the 'RealMe' login details you use as you'll need to re-use this each time you login.</p> <p>If you've forgotten your 'RealMe' login or password, you can ask for it to be emailed to you by <a href="https://www1.logon.realme.govt.nz/cls/logon.logon?cid=611955">clicking here.</a></p> <p><strong>25. Can I save my return and go back to it later?</strong></p> <table> <tbody> <tr> <td><strong>TIP: We recommend you regularly save your Information Return as the form does not save automatically. To do this see please read the steps below.</strong></td> </tr> </tbody> </table> <p class="default">Yes. You can save your Information Return at any time during the course of completing it, meaning you can log in and out if you need to - <strong>as long as you click the save button before you exit</strong>. When completing the Information Return, we recommend you regularly save your responses as it 'times out' after 30 minutes of inactivity. You will also be able to go back during the answering process to amend an earlier response. There's only one way to save the form, which is to use the 'Save &amp; Exit' button - there's one at the bottom of each screen. After saving the form you can safely log out and later resume where you left off.</p> <p class="default">After you've saved your application form it's listed under the 'My Unfinished Business' tab on your dashboard - to resume your work you simply click on its link.</p> <p>Because the form doesn't save itself automatically, it can only be recovered up to the point you last saved it. If there's no activity detected for 30 minutes a warning that the session will end is displayed on your screen. If no activity is detected for a further 30 minutes, the session ends automatically - and your work is only saved up to the point you last clicked the 'Save &amp; Exit' button. So if you're intending to move away from your work we recommend you save first so you don't lose any of it.<br><br></p> <p><strong>You can also save and print your Information Return to your desktop at any time. To do this, follow these steps below:</strong></p> <ol> <li>Click on the black button at the bottom of the Information Return, "Download pending information return".</li> <li>A box will appear asking you to open or save your file. To save it, click "open".</li> <li>A PDF of your Information Return will appear. From there click File, Save As then proceed to save on your computer.</li> </ol> <p><strong>26. Can I print my return?</strong></p> <p>Yes. When you submit your completed Information Return, you will be automatically emailed a PDF copy for your records.   If you do not receive your PDF copy within 24 hours please contact us at <a href="mailto:questions@fma.govt.nz">questions@fma.govt.nz</a></p> <p><strong>27. Is the system secure?</strong></p> <p>Yes.  When an AFA submits the annual Information Return through FMA's online services portal the data is retained securely and confidentially within our records management infrastructure. The system is built on a registry-grade, high-integrity software solution also selected by MBIE for the Future Schemes and Offers Registers. The system complies with security and privacy risk assessment and recommendations reports carried out by Department of Internal Affairs, and is regularly subjected to rigorous independent security tests.</p> <p><strong>28. I'm having trouble logging in or the system is locked out.</strong></p> <p>Please contact us if the system is not working or you cannot access it on 0800 434 567.  Please note, the <a href="http://www.fma.govt.nz/assets/media/1993803/afa-information-return-questions-final.pdf" target="_blank">questions</a> are still available to look at so you can continue collating information ready for inputting.  <strong>Note: if you have put the incorrect password in three times you will be locked out of the system for 30 minutes, please try again after that timeframe.</strong></p> <p><strong>29. The system down / system not working - e.g. data not saving</strong></p> <p>Please contact us if the system is not working or you cannot access it on 0800 434 567.  Please note, the <a href="http://www.fma.govt.nz/assets/media/1993803/afa-information-return-questions-final.pdf" target="_blank">questions</a> are still available to look at so you can continue collating information ready for inputting.<br><br>Please note for Question 5: if your FSP individual or entity number does not appear after typing it into the FSP Number box, please continue on with the questionnaire and submit as we will still receive it. We have had a few isolated instances where FSP numbers and name(s) did not appear after typing it into those fields but were still able to successfully complete and file their Return. This minor issue has since been resolved and we will continue to monitor this.</p> <h2><a name="Section5"></a>Section 5</h2> <h2>Extra guidance for specific questions</h2> <table> <tbody> <tr> <td> <p><strong>Selecting your financial adviser service categories<br></strong>Please ensure you select the correct categories before completing your Return <strong>because you cannot edit these categories once you have started</strong>. However, if you do need to change these categories then you will have to start your Return again.  To do this follow these steps:</p> <ol> <li><strong>Save</strong> your partially completed Return as a PDF  (if you want to use it as a reference)</li> <li><strong>Cancel</strong> and begin again.</li> </ol> <p>Please note, when you are reviewing your Return note that a “yes” or “no” answer is recorded when you select your service categories.</p> <p>So for example; when you are reviewing your Return and you see, a “no” against the category “I did not provide financial adviser services to clients in the past 12 months”, it means you did not select that category and therefore <strong>you have</strong> provided financial adviser services in the last 12 months.</p> </td> </tr> </tbody> </table> <p><b>Question 5: <strong>“</strong>What is your legal and trading names of the entity you work for, or provide financial adviser services through?”</b></p> <p>Please note for Question 5:  if your FSP individual or entity  number does not appear after typing it into the  FSP Number box, please continue on with the questionnaire and submit as we will still receive it. We have had a few isolated instances where FSP numbers and name(s) did not appear after typing it into those fields but were still able to successfully complete and filetheir Return. This minor issue has since been resolved and we will continue to monitor this.</p> <p><strong><br>Question 6: “Are you  a member of a producer or aggregator group or network? Do you share a common brand with other individuals providing financial adviser services? (Select all that apply).”</strong></p> <p><strong>Do I need to select the “common brand” option where that same employer’s name has been provided in responding to question 5?</strong></p> <p>The intent of question 6 is to capture information that is not already been provided by responding to question 5.  Where employees of a firm operate under a brand of their employer, then they do not need to select the “common brand” option where that same employer’s name has been provided in responding to question 5.</p> <p><strong>Question 10: “What payment types apply to your financial adviser services?”</strong></p> <p><strong>I receive revenue that is generated based on a percentage of assets under advice.  Is the intent of this question to capture that scenario?</strong></p> <p>It is not the intention of this question to capture situations where:</p> <ul> <li>revenue is generated based on a  percentage of assets under advice, or</li> <li>revenue is based on a percentage of a transaction (which may or may not be subject to a minimum charge).</li> </ul> <p><strong><br>Question 14: "What is the total value of all client portfolios or client money invested, under advice and under discretionary investment management services (DIMS), for which you have provided financial adviser services? (Please select all categories that apply)."</strong></p> <p><strong>Does the total value include financial adviser services relating to assets held in the client's own name?</strong></p> <p>No, we are not seeking values that include situations where you have provided financial adviser services relating to assets that are held in the client's own name.</p> <p><strong>Question 19: "How do your clients receive or have access to client portfolio reporting? (Select all that apply)."</strong></p> <p><strong>How do you define "third party"?</strong></p> <p>"Third party" means a party that is separate from the advisory business, legally and operationally.  A related party (e.g. a related company) in that case could be a "third party" but only where it is operationally separate from the advisory business.  A related third party won"t be operationally separate where, for example, there are shared systems and personnel.</p> <p><strong>Question 24: “How many distribution or agency agreements do you or your producer/aggregator group or network have with insurance product providers / manufacturers?”</strong></p> <p><strong>How should we answer this question where, as a company, we have agencies with a number of companies for those advisers that do insurance work?</strong></p> <p>Please record your answer and note in the explanation box that it is the entity that you work for that has the distribution or agency agreements.</p> <p><strong>Question 25: ”During the past 12 months, what is the largest insurance commission debt outstanding to any one provider for more than 60 days, that you or your business was responsible for?”</strong></p> <p><strong>How do we interpret “your business”? It is intended that the employee include their own stats as well as those of the employer?</strong></p> <p>The reference to “your business” should be interpreted as relating to self-employed AFAs.  Employee advisers need only include their own information and <span>no</span>t information relating to their employer.</p> http://www.fma.govt.nz/laws-we-enforce/policy/closed-consultations/project-update-100912-class-exemption-review Project update: Class exemption review 2014-10-08 09:35:41 Financial Markets Authority <div id="file-attachments"> <ul> <li> <p>The Financial Markets Authority (FMA) is currently undertaking a review of 44 class exemption notices expiring this year.  It has completed an initial round of public consultation on the expiring class exemption notices. The original consultation paper can be found <a href="http://www.fma.govt.nz/laws-we-enforce/policy/closed-consultations/consultation-request-for-feedback-class-exemption-review">here</a>.</p> <p>We would like to update interested parties on decisions made, the continuing work on notices, and the further feedback we are seeking.</p> <div id="file-attachments"> <h2>File Attachments</h2> <ul> <li><a href="http://www.fma.govt.nz/assets/media/100/project-update-class-exemption-review.pdf" target="_blank">Project Update Class Exemption Review (261 kB pdf)</a></li> <li><a href="http://www.fma.govt.nz/assets/media/100/spread-sheet-on-the-exemption-review-project-2012.pdf" target="_blank">Spread sheet on the exemption review project 2012 (47 kB pdf)</a></li> </ul> </div> </li> </ul> </div> http://www.fma.govt.nz/laws-we-enforce/policy/closed-consultations/project-update-260912-class-exemption-review Project update: Class exemption review 2014-10-08 09:33:54 Financial Markets Authority <p>FMA has published a project update on its review of 44 class exemption notices expiring this year.<br> <br> FMA has made decisions on all of the 44 class exemption notices under review that were scheduled to expire in 2012, and finalised the drafting of exemption notices to put into effect these decisions. In this Project Update we provide information on where you can access the amendments to the notices reviewed which are of interest to you. <br> <br> <a href="http://www.fma.govt.nz/laws-we-enforce/policy/current-consultations/project-update-260912-class-exemption-review/">View the update</a><br> <br> Further questions can be addressed to Natalie Muir, Manager Exemptions, by email:<br> <a href="mailto:exemptions@fma.govt.nz">exemptions@fma.govt.nz</a> or telephone: 04 471 4616.                               </p> http://www.fma.govt.nz/keep-updated/newsroom/afa-updates/financial-markets-authority-afa-update-issue-32 Financial Markets Authority AFA Update: Issue # 32 2014-10-07 14:24:14 Financial Markets Authority <h2><b>Planning to offer DIMS?</b></h2> <p>While some of the regulations for Discretionary Investment Management Services (DIMS) are still to be finalised there are steps you can take now to start preparing for the changes ahead. For further background on these changes see our most <a href="http://financialmarketsauthority.cmail2.com/t/r-l-mutjdkd-ijljtijtid-t/">recent update</a>.<br><br><strong>What can you do now?</strong><br>We understand that until the final regulations are published it is difficult to make a decision on what type of DIMS you or your business will offer, if any.<br><br>However, as part of our monitoring work we’ve found a number of AFA’s include DIMS in their authorisation but don’t provide DIMS in practice. If this is you, then there are steps you can take now to update your authorisation.<br><br><strong>I plan to provide Class DIMS</strong><br>If you think you or your employer will be applying for a DIMS licence you should leave your DIMS authorisation as is. If you want to apply for a DIMS licence see our <a href="http://financialmarketsauthority.cmail2.com/t/r-l-mutjdkd-ijljtijtid-k/">DIMS licence application guide</a>. The sooner you apply, the sooner we can process your application.<br><br><strong>I plan to provide Personalised DIMS<br></strong>If you think you will continue to provide personalised DIMS then you should leave your DIMS authorisation as is for the time being.<br><br><strong>I don’t plan to provide any type of DIMS</strong><br>If you don’t intend to provide any type of DIMS then we recommend you remove the DIMS scope from your authorisation now.<br><br>Removing the DIMS scope from your authorisation is easy, just follow these steps:<br><br>a) email us at <a href="mailto:afaapplications@fma.govt.nz">afaapplications@fma.govt.nz</a> and state that under Standard Condition 3 you do not provide DIMS as part of your service,  and request cancellation of your authorisation to provide DIMS; and<br><br>b) update your AFA disclosure statement and Adviser Business Statement (ABS) to show that the adviser services that you are licensed to provide do not include DIMS. <br><br><strong>Remember, if you’ve cancelled your authorisation to provide DIMS but decide to provide these services in the future, you’ll need to reapply under the requirements of either the Financial Markets Conduct Act 2013 or the Financial Advisers Act 2008.</strong></p> <h2><b>Helping investors understand risk with our Money Week 'Heavy Weight Debate'</b></h2> <p>To support <a href="http://financialmarketsauthority.cmail2.com/t/r-l-mutjdkd-ijljtijtid-o/">Money Week</a> FMA is hosting a panel discussion to promote greater understanding of investment risk. The event is in Auckland on <strong>Thursday 16 October </strong>and is free and open to everyone. The panel aims to help investors and consumers understand more about risk, a subject which many investors often find challenging.<br><br>If you’re based in Auckland and you think you or your clients would be interested, then check out the <a href="http://financialmarketsauthority.cmail2.com/t/r-l-mutjdkd-ijljtijtid-b/">event details on our website</a>.</p> <h2><b>AFA Information Return</b></h2> <p>We would like to thank everyone who submitted their AFA Information Return on time and for the great response. In the meantime the portal remains <a href="http://financialmarketsauthority.cmail2.com/t/r-l-mutjdkd-ijljtijtid-n/">open</a> for any late Returns.<br><br>If you have any questions on any of these topics please contact us at <a href="mailto:questions@fma.govt.nz">questions@fma.govt.nz</a></p> http://www.fma.govt.nz/laws-we-enforce/policy/closed-consultations/project-update-270313-class-exemption-review Project Update: Class Exemption Review 2014-10-07 13:05:29 Financial Markets Authority <p>The Financial Markets Authority (FMA) is currently undertaking a review of 44 class exemption notices expiring this year.  It has completed an initial round of public consultation on the expiring class exemption notices. The original consultation paper can be found <a href="http://fma-fadc-uat.cwp.govt.nz/laws-we-enforce/policy/closed-consultations/consultation-request-for-feedback-class-exemption-review">here</a>.</p> <p>We would like to update interested parties on decisions made, the continuing work on notices, and the further feedback we are seeking.</p> <div id="file-attachments"> <h2>File Attachments</h2> <ul> <li><a href="http://fma-fadc-uat.cwp.govt.nz/assets/media/100/project-update-class-exemption-review.pdf" target="_blank">Project Update Class Exemption Review (261 kB pdf)</a></li> <li><a href="http://fma-fadc-uat.cwp.govt.nz/assets/media/100/spread-sheet-on-the-exemption-review-project-2012.pdf" target="_blank">Spread sheet on the exemption review project 2012 (47 kB pdf)</a></li> </ul> </div> http://www.fma.govt.nz/laws-we-enforce/policy/closed-consultations/project-update-040712-class-exemption-review Project Update: Class Exemption Review 2014-10-07 13:04:32 Financial Markets Authority <p> </p> <p>The Financial Markets Authority (FMA) is currently undertaking a review of 44 class exemption notices expiring this year.  It has completed an initial round of public consultation on the expiring class exemption notices. The original consultation paper can be found <a href="http://www.fma.govt.nz/laws-we-enforce/policy/closed-consultations/consultation-request-for-feedback-class-exemption-review">here</a>.</p> <p>We would like to update interested parties on decisions made, the continuing work on notices, and the further feedback we are seeking.</p> <div id="file-attachments"> <h2>File Attachments</h2> <ul> <li><a href="http://www.fma.govt.nz/assets/media/100/project-update-class-exemption-review.pdf" target="_blank">Project Update Class Exemption Review (261 kB pdf)</a></li> <li><a href="http://www.fma.govt.nz/assets/media/100/spread-sheet-on-the-exemption-review-project-2012.pdf" target="_blank">Spread sheet on the exemption review project 2012 (47 kB pdf)</a></li> </ul> </div> http://www.fma.govt.nz/help-me-comply/anti-money-laundering-and-countering-financing-of-terrorism-reporting-entities/ Anti-Money Laundering and Countering Financing of Terrorism Reporting Entities 2014-10-06 16:55:09 Financial Markets Authority <p>The <a href="http://www.legislation.govt.nz/act/public/2009/0035/latest/DLM2140720.html?search=ts_act_anti+money+laundering_resel&amp;p=1"> Anti-Money Laundering and Countering Financing of Terrorism Act</a> (AML/CFT Act) 2009 and its <a href="http://www.legislation.govt.nz/regulation/results.aspx?search=ts_regulation_Anti+Money+Laundering_resel&amp;p=1"> Regulations</a> place obligations on New Zealand's financial institutions to detect and deter money laundering and terrorism financing.</p> <p>FMA is one of three supervisors under the Act, along with the Reserve Bank of New Zealand and Department of Internal Affairs. For more information about the role of the supervisors click <a href="http://www.fma.govt.nz/about-us/what-we-do/anti-money-laundering-and-countering-financing-of-terrorism/role-of-the-supervisors/">here</a>.</p> <p>Money laundering is how criminals disguise the illegal origins of their money. Financers of terrorism use similar techniques to money launderers to avoid detection by authorities and to protect the identity of those providing and receiving the funds.</p> <p><strong>Provision of Annual Reports to AML/CFT supervisors</strong></p> <p>All reporting entities are required by the Act to prepare an annual report on their risk assessment and AML/CFT programme.</p> <p>The format of the AML/CFT annual report can be viewed here in <a href="http://www.legislation.govt.nz/regulation/public/2011/0225/latest/DLM5314937.html">Schedule 2</a> of the Anti-Money Laundering and Countering Financing of Terrorism (Requirements and Compliance) Regulations 2011.</p> <p>Reporting entities must provide the annual report for the period 1 July 2013 to 30 June 2014 by 30 August 2014 in accordance with section 60(3) of the AML/CFT Act 2009.</p> <p><strong><a href="http://www.fma.govt.nz/help-me-comply/anti-money-laundering-and-countering-financing-of-terrorism-reporting-entities/annual-amlcft-reporting/">See our section on Annual AML/CFT reporting</a>.</strong></p> <p><strong>To view list of reporting entities, click <a href="http://www.fma.govt.nz/laws-we-enforce/registers/list-of-aml-reporting-entities/">here</a>.</strong></p> http://www.fma.govt.nz/keep-updated/newsroom/media-releases/2014/fma-files-civil-proceedings-against-archer-capital-and-healthcare-industry FMA files civil proceedings against Archer Capital and Healthcare Industry 2014-10-03 13:13:00 Financial Markets Authority <p><b>Media Release<br></b><b>MR No. 2014 - 033<br>3 October 2014</b></p> <p>The Financial Markets Authority (FMA) has filed and served civil proceedings against Archer Capital (Pty) Limited (Archer) and Healthcare Industry Limited (HIL).  The proceedings are for alleged breaches of the substantial shareholder disclosure obligations contained in the Securities Markets Act 1988 (the Act), in relation to shares in Abano Healthcare Group Limited (Abano).</p> <p>On 16 September 2013, Archer and HIL filed substantial shareholder notices under the Act in relation to substantial holdings in Abano.  The FMA alleges that an agreement, arrangement or understanding to act in concert in relation to Abano shares existed between the parties prior to 16 September 2013, and therefore the notices should have been filed earlier.</p> <p>The substantial shareholder disclosure regime in securities markets is designed to ensure that the market has sufficient information. The purpose of the obligations under the Act is to ensure that participants in New Zealand’s securities markets have access to information concerning the identity and trading activities of persons who are, or may at any time be, entitled to control or influence the exercise of significant voting rights in a public issuer.</p> <p>Belinda Moffat, Director of Enforcement and Investigations said “Timely and accurate disclosure is central to the promotion of a well–informed and transparent market.  A fully informed market leads to a fair and transparent market.</p> <p>“Immediate disclosure is particularly important in the case of understandings or arrangements among shareholders that may lead to a takeover proposal or a stand in the market.”</p> <p>The FMA is seeking declarations of contravention and pecuniary penalties.  The maximum pecuniary penalty for a contravention of the event disclosure provisions of the Act is $1,000,000.</p> <p>ENDS</p> <p>Contact: Andrew Park<br>09 967 1215<br>021 220 6770<br><a href="mailto:andrew.park@fma.govt.nz">andrew.park@fma.govt.nz</a></p> <p><b><br></b><b>Background</b><b> </b></p> <ul> <li>The purposes of the SSH disclosure requirements are set out in Section 20 of the Act:</li> </ul> <p>To promote an informed market; and to deter insider conduct, market manipulation, and secret dealings in potential takeover bids, by ensuring that information is made available to the market concerning the identity and trading activity of persons who may be in a position to control or influence the exercise of significant voting rights in a public issuer.</p> <p>Relevant Provisions of the Securities Markets Act can be found in the links here:</p> <p><a href="http://www.legislation.govt.nz/act/public/1988/0234/latest/DLM139987.html">Section 5B SMA</a></p> <p><a href="http://www.legislation.govt.nz/act/public/1988/0234/latest/DLM140965.html">S22 SMA</a></p> <p><a href="http://www.legislation.govt.nz/act/public/1988/0234/latest/DLM140967.html">S23 SMA</a></p> <p><a href="http://www.legislation.govt.nz/act/public/1988/0234/latest/DLM140968.html">S24 SMA</a></p> http://www.fma.govt.nz/keep-updated/reports-and-papers/kiwisaver-report-2014 KiwiSaver Report 2014 2014-10-01 16:20:42 Financial Markets Authority http://www.fma.govt.nz/keep-updated/newsroom/media-releases/2014/competition-between-providers-for-customers-kiwisaver-funds-increases-rapidly Competition between providers for customers’ KiwiSaver funds increases rapidly 2014-10-01 16:20:42 Financial Markets Authority <p><b>Media Release<br></b><strong>MR No. 2014 – 032</strong><b><br></b><b>1 October 2014</b></p> <p>The Financial Markets Authority (FMA) is calling on KiwiSaver providers to put the interests of customers first, as the amount of money transferred, by customers changing their KiwiSaver scheme, has almost doubled in a year<a title="" href="http://www.fma.govt.nz/#_ftn1">[1]</a>.</p> <p>The FMA today released its KiwiSaver report for the twelve months to 30 June 2014, as part of its statutory obligations under the KiwiSaver Act 2006. The report shows that total funds have grown 29 per cent to $21.4 billion up to 30 June 2014.</p> <p>$10.1 billion, or 47 per cent, of total KiwiSaver funds is in low risk, conservative or cash funds, compared to 50% in 2013.</p> <p>235,730 new members joined during the June 2013-2014 year. Total member numbers grew by ten per cent to 2.3 million; growth in KiwiSaver members has slowed from 14% two years ago, in 2012 </p> <p>Elaine Campbell, FMA Director of Compliance said, “KiwiSaver is an increasingly important focus for the FMA, as peoples’ retirement savings continue to grow and funds invested become a larger part of the national economy.”</p> <p>In the year to 30 June 2014, $3.57 billion was transferred into schemes from other schemes. This is up 333 per cent from $825 million in the 2013 report. The year on year growth in transfers of members’ money from 2012 - 2013 was 11 per cent.</p> <p>A large proportion of this growth can be explained by the merger activities at two of the largest providers, comprising transfers of approximately $2.2 billion of funds. Apart from these two mergers, approximately $1.4 billion was transferred between schemes as members changed provider.  </p> <p>Elaine Campbell said “The year on year growth in transfers is huge and demonstrates the rise in competition between providers for market share and funds under management. The FMA’s concern is that this competition should not be at the expense of KiwiSaver members’ experience, or providers focusing on supporting individual investors to more fully understand how to maximise their retirement savings potential.”</p> <p>460,000 members transferred their KiwiSaver scheme this year compared to 127,000 in 2013, with about 290,000 members involved in transfers as part of corporate mergers, there were still 33 per cent more member scheme transfers in this reporting period.</p> <p>Within individual accounts, KiwiSavers made 55,000 switches to their investment fund options this year, with approximately $573 million dollars moving into different funds. This was up from 39,000 investment fund switches in 2013 report.</p> <p>“As well as our obligations under the KiwiSaver Act, the FMA has responsibility for the Financial Advisers Act and we have provided clear guidance to the industry about our expectations for the sales and distribution practices providers must use for KiwiSaver.</p> <p>“It is critical that members receive appropriate advice and support when they are encouraged to transfer their KiwiSaver scheme. We are concerned that some of the sales practices we have discovered through our monitoring activity do not put the customer’s interest first and this reflects poorly on some providers’ attitude towards their customers.”</p> <p>Standardised reporting by all providers about their KiwiSaver fees and performance was introduced during the reporting year. These Quarterly Disclosure Statements must be available online for investors to read. They make it easier for investors to compare and contrast how their fund is performing, where their money is invested and help people to make more informed decisions about their retirement savings.</p> <p>“The introduction of these reports is a major step forward in providing transparency and better information about KiwiSaver. We will be paying close attention to these reports in the future to ensure that fees and performance are being reported consistently across the board,” said Elaine Campbell.</p> <p>Click <a href="http://fma.govt.nz/keep-updated/reports-and-papers/kiwisaver-report-2014">here</a> to view the 2014 KiwiSaver Report.</p> <p>Ends</p> <p><b>Contact:<br> </b>Andrew Park<br>09 967 1215<br>021 220 6770<br><a href="mailto:Andrew.park@fma.govt.nz">Andrew.park@fma.govt.nz</a></p> <div><br><hr> <div> <p><a title="" href="http://www.fma.govt.nz/#_ftnref1">[1]</a> Based on figures in Appendix 1 of report- excluding compulsory transfers resulting from mergers.</p> </div> </div> http://www.fma.govt.nz/keep-updated/reports-and-papers/superannuation-schemes-report-2014 Superannuation Schemes Report 2014 2014-10-01 11:09:24 Financial Markets Authority http://www.fma.govt.nz/help-me-comply/supervisors/guidance-notes/ Guidance Notes 2014-09-30 16:30:32 Financial Markets Authority <table> <tbody> <tr> <td>From 1 December 2014, offers of financial products can be made under the new Financial Markets Conduct Act (FMC Act) regime. If you are supervising offers made under the FMC Act regime, additional obligations apply. See <a href="http://fma.govt.nz/help-me-comply/new-accountability-framework-for-financial-products/guidance/">here</a> for guidance relating to governance under the FMC Act.</td> </tr> </tbody> </table> <h3>Guidance Note: Monitoring by Securities Trustees and Statutory Supervisors</h3> <p>This <a href="http://www.fma.govt.nz/assets/guidance-note-monitoring-by-securities-trustees-and-statutory-supervisors-final.pdf" target="_blank">guidance note</a> is for licensed securities trustees and statutory supervisors.  It sets out the Financial Market Authority's (FMA) expectations of how they will carry out their monitoring functions effectively.</p> <h3>Guidance Note: Securities Trustees and Statutory Supervisors</h3> <p>This <a href="http://www.fma.govt.nz/assets/media/382290/guidance-note-securities-trustees-and-statutory-supervisor-licencing.pdf" target="_blank">guidance note</a> is for persons wishing to apply to FMA for licences under the Act. It explains the key steps involved in licensing and the licensing timetable. It also specifies the licensing criteria and describes the information FMA requires to determine whether an applicant is capable of effectively performing the functions of a trustee or statutory supervisor for the security or retirement village covered by the licence for which it is applying.</p> <h4><a href="http://www.fma.govt.nz/help-me-comply/kiwisaver/guidance-notes/guidance-note-monitoring-investment-risk-in-kiwisaver-schemes/">Guidance Note: Monitoring Investment Risk in KiwiSaver Schemes (March 2014)</a></h4> http://www.fma.govt.nz/laws-we-enforce/policy/closed-consultations/consultation-paper-the-new-accountability-framework-governance-under-part-4-of-the-fmc-act Consultation Paper: The new accountability framework - Governance under Part 4 of the FMC Act 2014-09-30 16:24:09 Financial Markets Authority <p><strong>30 September 2014</strong></p> <p>In June 2014, the FMA consulted on the <a href="http://www.fma.govt.nz/assets/media/1984324/governance-consultation-paper.pdf" target="_blank">new governance and accountability framework under Part 4 of the FMC Act</a>.</p> <p>10 submissions were received. A summary of the submission feedback can be downloaded below.</p> <p>Many of the comments were incorporated into a <a href="http://www.fma.govt.nz/assets/Report-and-Papers/Guidance-Note-Governance-under-Part-4-of-the-FMC-Act.pdf" target="_blank">guidance note</a>, outlining our expectations for governance under Part 4 of the FMC Act. Other comments will be considered as part of the development of guidance on specific governance aspects.</p> <div id="file-attachments"> <h2>File Attachments</h2> <ul> <li><a href="http://www.fma.govt.nz/assets/media/1984324/governance-consultation-paper.pdf" target="_blank">Consultation Paper: The new accountability framework - Governance under Part 4 of the FMC Act</a> </li> <li><a style="font: 14px/20px &quot;Helvetica Neue&quot;, Helvetica, Arial, sans-serif; color: rgb(0, 174, 240); text-transform: none; text-indent: 0px; letter-spacing: normal; padding-right: 0px; padding-left: 0px; text-decoration: underline; word-spacing: 0px; white-space: normal; font-size-adjust: none; font-stretch: normal; background-color: rgb(255, 255, 255); -webkit-text-stroke-width: 0px;" href="http://fma.govt.nz/assets/Report-and-Papers/Response-to-submissions-Consultation-paper-The-new-accountability-framework-Governance-under-Part-4-of-the-FMC-Act.pdf" target="_blank">Response to submissions -Consultation paper: The new accountability framework – Governance under Part 4 of the FMC Act</a></li> </ul> </div> http://www.fma.govt.nz/help-me-comply/new-accountability-framework-for-financial-products/whats-changing/ What's Changing? 2014-09-30 15:57:13 Financial Markets Authority <p>Part 4 of the FMC Act resets the accountability framework for managed investment schemes and debt securities from 1 December 2014.<br><br>It imposes statutory duties of care on Licensed Supervisors and on Managers of managed investments schemes.  Managers of managed investment schemes must also act in the best interests of investors.  These general good conduct duties set the tone for the overall accountability framework and apply in addition to the more specific duties relating to particular circumstances.<br><br>Ensuring that Managers and Supervisors have a clear understanding of their respective roles, and holding them to account, is central to building investor trust.<br><br>Detailed transitional provisions for moving across to the new regime are contained in Schedule 4 of the FMC Act.</p> <p>Key changes include:</p> <ul> <li>New requirements and obligations for Licensed Supervisors and Managers of managed investment schemes, as well as Issuers of debt securities and Trustees of restricted schemes.</li> <li>New requirements for schemes to be registered and new custody obligations for registered schemes.</li> <li>New licence requirements for Managers. (Read more about the licensing of Managers <a href="http://www.fma.govt.nz/help-me-comply/new-licences-for-financial-market-services/managed-investment-scheme-manager/">here</a>).</li> <li>New requirements for restricted schemes to have a Licensed Independent Trustee.  (Read more about the licensing of independent trustees <a href="http://www.fma.govt.nz/help-me-comply/new-licences-for-financial-market-services/independent-trustee/">here</a>).</li> <li>New powers of intervention for Supervisors and FMA, as well as ongoing register and record-keeping duties for Issuers of all regulated products.</li> </ul> <p>Our governance and accountability information factsheets summarise the key accountabilities and responsibilities under the FMC Act for:</p> <ul> <li><a href="http://www.fma.govt.nz/assets/media/1054639/new-governance-and-accountability-framework-for-mis-managers-and-their-licensed-supervisors.pdf" target="_blank">MIS managers and their licensed supervisors</a></li> <li><a href="http://www.fma.govt.nz/assets/media/100/new-governance-and-accountability-framework-for-debt-issuers-and-their-licensed-supervisors.pdf" target="_blank">Debt issuers and their licensed supervisors</a></li> <li><a href="http://www.fma.govt.nz/assets/media/100/new-governance-and-accountability-framework-for-restricted-schemes-and-their-trustees.pdf" target="_blank">Restricted schemes and their trustees</a>.</li> </ul> <p>Our guidance note, <a href="http://www.fma.govt.nz/assets/Report-and-Papers/Guidance-Note-Governance-under-Part-4-of-the-FMC-Act.pdf" target="_blank">Governance under Part 4 of the FMC Act</a> outlines our expectations for how issuers of debt securities, managers of managed investment schemes and their supervisors should approach their governance responsibilities and accountabilities.</p> <p>The new FMC Act governance requirements come into effect from 1 December 2014. However, there is a two year transition period for entities to comply with the new regime. See the <a href="http://www.fma.govt.nz/help-me-comply/new-accountability-framework-for-financial-products/timeline-for-change/">timeline for change</a> for more details.</p> <p>As Regulations are developed we will update these pages with more details on any new obligations.</p> http://www.fma.govt.nz/help-me-comply/new-accountability-framework-for-financial-products/timeline-for-change/ Timeline for Change 2014-09-30 15:16:20 Financial Markets Authority <p>The new FMC Act Part 4 accountability requirements come into effect from 1 December 2014. However, there is a two year transition period to comply with the regime.</p> <h3>Transition period for Managed Investment Schemes (MIS)</h3> <p>The table below sets out the key dates for Managers of MIS and Trustees of restricted schemes.</p> <p><img class="leftAlone" title="Transition Timeline" alt="Transition Timeline" src="http://www.fma.govt.nz/assets/media/1948743/transition-timeline-493x110.jpg"></p> <ul> <li>Manager can select an 'Effective Date' any time between 1 December 2014 and 1 December 2016 to come into the new regime.</li> <li>Manager must give 20 working days notification of Effective Date to the Registrar.</li> <li>Former enactments continue to apply until Effective Date.  After Effective Date FMC Act applies to the securities.</li> <li>Copy of governing document (FMC Act compliant) must be lodged with Registrar before Effective Date.</li> <li>Issuer must give specified information to Registrar and FMA before Effective Date.</li> <li>Subject to compliance with registration requirements, on/after Effective Date the Registrar amends the register to include the MIS.</li> <li>Must not make regulated offer / accept contributions if transitional requirements not complied with.</li> </ul> <p>Our information sheet factsheet on <a href="http://www.fma.govt.nz/assets/media/1054639/preparing-for-the-fmc-act-transition-for-managed-investment-schemes.pdf" target="_blank">transition for Managed Investment Schemes</a>  summarises what needs to be in place by the effective date, and the transitional registration arrangements.</p> <p>For more details on timings for the FMC Act, see the full <a href="http://www.fma.govt.nz/keep-updated/the-future-of-financial-markets/timeline-for-change/">implementation timetable</a><a href="http://www.fma.govt.nz/keep-updated/the-future-of-financial-markets/timeline-for-change/"></a>.</p> http://www.fma.govt.nz/keep-updated/newsroom/media-releases/2014/fma-issues-warning-about-general-equity FMA issues warning about General Equity 2014-09-30 11:43:42 Financial Markets Authority <p><b>Media Release<br></b><strong>MR No. 2014 – 031</strong><b><br></b><b>30 September 2014</b></p> <p><b>FMA issues warning about General Equity</b></p> <p>The Financial Markets Authority (<b>FMA</b>) has issued a warning about General Equity (previously named General Equity Building Society), a New Zealand registered building society.  The warning recommends that the public exercises extreme caution when dealing with General Equity, the full warning is available <a href="http://fma.govt.nz/keep-updated/warnings-alerts-and-scams/fmas-latest-warnings-and-alerts/2014/warning-exercise-extreme-caution-when-dealing-with-general-equity">here</a>.</p> <p>FMA considers that General Equity has engaged in misleading and deceptive conduct, including the way it has represented how it is regulated in New Zealand. </p> <p>Although General Equity is registered as a building society, it does not carry on business as a deposit taker in NZ, and is not subject to Reserve Bank or trustee oversight.  General Equity has not issued shares to the public.  Most of General Equity’s business is conducted off-shore. The FMA is not aware that any New Zealanders have suffered a loss at this time.  However, given General Equity’s past conduct, we consider that anyone dealing with General Equity should exercise extreme caution.</p> <p>FMA has ordered General Equity to include the FMA warning prominently on the main page of any website operated by, or on behalf of, General Equity under section 49 Financial Markets Authority Act 2011 (a <b>warning disclosure order</b>).</p> <p>The warning disclosure order can be found at <a href="http://fma.govt.nz/keep-updated/warnings-alerts-and-scams/fmas-latest-warnings-and-alerts/2014/general-equity-warning-disclosure-order-under-section-49-of-the-financial-markets-authority-act-2011"><span style="text-decoration: underline;">Warning Disclosure Order under Section 49 of the Financial Markets Authority Act 2011</span></a>.</p> <p>Ends</p> <p><b>Contact:<br></b>Andrew Park<br>09 967 1215<br>021 220 6770<br><a href="mailto:Andrew.park@fma.govt.nz">Andrew.park@fma.govt.nz</a></p> http://www.fma.govt.nz/keep-updated/warnings-alerts-and-scams/fmas-latest-warnings-and-alerts/2014/general-equity-warning-disclosure-order-under-section-49-of-the-financial-markets-authority-act-2011 General Equity: Warning Disclosure Order under section 49 of the Financial Markets Authority Act 2011 2014-09-30 11:20:07 Financial Markets Authority <h3><b>Order</b></h3> <p><b>TO:</b>  General Equity, Level 4, General Equity House, 17 Albert Street, Auckland 1010, New Zealand.</p> <p><b>AND TO:</b>  all associated persons of General Equity (including any associated person that may be incorporated or formed after the date of this Order)</p> <p>The Financial Markets Authority (<b>FMA</b>) makes the following Order under section 49(1) of the Financial Markets Authority Act 2011 against General Equity and associated persons of General Equity:</p> <p style="padding-left: 30px;">1. Any website operated by or on behalf of General Equity and each associated person of General Equity must contain, on the main page of the website, a warning statement in the form attached as Annexure A to this Order (<b>Warning Statement</b>).<br>2. The Warning Statement is required to be displayed:</p> <p style="padding-left: 60px;">(a)   Prominently;<br>(b)   In black font no smaller than the font contained in Annexure A to this Order; and<br>(c)   In the same layout as the layout used in Annexure A to this Order.</p> <p style="padding-left: 30px;">3. General Equity must provide a copy of this order to each associated person of General Equity.<br>4. In this Order, pursuant to<b> </b>section 49(7)(d) of the Financial Markets Authority Act 2011, <b>associated person</b> has the same meaning as section 6(1) of the Financial Markets Conduct Act 2013, with the full meaning being set out in section 12 of that Act.</p> <p>Note that a person who contravenes an Order made by FMA under Section 49 of the Financial Markets Authority Act 2011 commits an offence and is liable on summary conviction to a fine not exceeding $300,000.</p> <p class="labelledlabel-para">This Order is made subject to any further Orders of FMA.</p> <p><b>Dated at Wellington this 29<sup>th</sup> day of September 2014.</b></p> <h3><b>Copy of order</b></h3> <p><a href="http://www.fma.govt.nz/assets/Warnings/General-Equity-Warning-Disclosure-Order-under-Section-49-of-the-Financial-Markets-Authority-Act-2011.pdf" target="_blank">General Equity: Warning Disclosure Order under Section 49 of the Financial Markets Authority Act 2011</a></p> <h3>Reasons for making the order</h3> <p>Following issue of the <a href="http://fma.govt.nz/keep-updated/warnings-alerts-and-scams/fmas-latest-warnings-and-alerts/2014/warning-exercise-extreme-caution-when-dealing-with-general-equity" target="_blank">warning about General Equity</a> FMA made an Order under section 49(1) of the Financial Markets Authority Act 2011 against General Equity and associated persons of General Equity, requiring them to prominently disclose a copy of the warning on 1 or more Internet sites maintained by or on behalf of the those persons (a <b>warning disclosure order</b>).  FMA made the warning disclosure order for the following reasons:</p> <ol start="1"> <li>It is important that those dealing with General Equity are made aware of FMA’s concerns as expressed in the warning.</li> <li>A disclosure order under section 49 ensures that the warning is disseminated directly by General Equity, which will result in a wider and more targeted and relevant distribution than might otherwise be the case if FMA relied solely on publishing the warning on      the FMA website.</li> <li>In particular, individuals and entities from overseas who might be dealing with General Equity are more likely to be made aware of the warning if it is published by General Equity.</li> </ol> http://www.fma.govt.nz/keep-updated/warnings-alerts-and-scams/fmas-latest-warnings-and-alerts/2014/warning-exercise-extreme-caution-when-dealing-with-general-equity Warning: Exercise extreme caution when dealing with General Equity 2014-09-30 11:19:43 Financial Markets Authority <p>The Financial Markets Authority (<b>FMA</b>) has issued a warning to the public about <b>General Equity</b> (previously named <b>General Equity Building Society</b>), a New Zealand building society.</p> <p><b>FMA warns any persons dealing with General Equity to exercise extreme caution before obtaining any financial services, or acquiring any financial products, from General Equity.</b>  In particular, FMA warns those persons to take into account that:</p> <ul> <li>In FMA’s view, General Equity has engaged in conduct and has made statements that are misleading and deceptive in connection with its status as a financial markets participant and how it is regulated in New Zealand. </li> <li>General Equity is not a licensed financial markets participant in New Zealand, does not have to meet any prudential requirements (including minimum capital requirements) in New Zealand and is not a New Zealand bank or a non-bank deposit taker. </li> <li>In FMA’s view, General Equity has engaged in conduct and has made statements that are misleading and deceptive in connection with The General Equity Asset Builder Fund No 1 (<b>ABF1</b>).  In FMA’s view, the ABF1 does not hold the assets General Equity claims it holds and was used by General Equity to give a misleading impression of adequate asset backing to support the issuance of letters of credit by General Equity. </li> <li>Most of General Equity’s business is conducted outside of New Zealand.   That business is subject to the laws of, and oversight of financial markets regulators, of those places where it conducts that business.  FMA has limited ability at law to take action in connection with financial services provided by New Zealand entities outside of New Zealand.</li> </ul> <p>FMA regulates New Zealand's financial markets.  Our main objective is to promote fair, efficient and transparent financial markets.  To find out more about us and for help with investing see <a href="http://www.fma.govt.nz">www.fma.govt.nz</a>.</p> http://www.fma.govt.nz/keep-updated/newsroom/afa-updates/financial-markets-authority-afa-update-issue-31 Financial Markets Authority AFA Update: Issue # 31 2014-09-30 11:02:16 Financial Markets Authority <h2><b>Time is nearly up to submit your AFA Information Return</b></h2> <p>Thank you to all the AFAs who have submitted their Information Return.  We’ve had a great response so far and we’re looking forward to receiving the remaining ones soon.<br> <br> For those that haven’t begun theirs yet, we recommend <a href="http://financialmarketsauthority.cmail2.com/t/r-l-mkddrn-ijljtijtid-t/">starting now </a>as it’s due by <strong>5pm tomorrow (Tuesday 30 September)</strong>.<br> <br> If you do not submit your Information Return by <strong>5pm tomorrow </strong>it will be <strong>recorded as overdue </strong>and you will be failing to comply with your regulatory obligations.  If we have not received your Return or heard from you, you can expect us to be in touch in due course.<br> <br> Please note: we have received some Returns we cannot identify back to the individual AFA. Please check your PDF and if it is in the name of an entity you will need to resubmit your Return under your own name.<br> <br> If you have any questions when completing your Return please check our <a href="http://financialmarketsauthority.cmail2.com/t/r-l-mkddrn-ijljtijtid-k/">FAQs</a>. Otherwise email your question to <a href="mailto:questions@fma.govt.nz">questions@fma.govt.nz</a> or call us on 0800 434 567.</p> http://www.fma.govt.nz/help-me-comply/new-licences-for-financial-market-services/derivatives-issuer/ Derivatives Issuer 2014-09-30 10:13:15 Financial Markets Authority <p>Under the Financial Markets Conduct (FMC) Act you must be licensed to make a regulated offer of derivatives.</p> <p>Here you can find out how to apply for a licence, what your obligations are and details about fees and levies.</p> http://www.fma.govt.nz/help-me-comply/new-licences-for-financial-market-services/peer-to-peer-lending-services/ Peer-to-Peer Lending Services 2014-09-30 10:09:28 Financial Markets Authority <p>The Financial Markets Conduct Act introduces a licence for peer-to-peer lending services.</p> <p>Here you can find out how to apply for a licence, what your obligations are and details about fees and levies.</p> http://www.fma.govt.nz/keep-updated/the-future-of-financial-markets/ FMC Act Implementation 2014-09-29 18:06:39 Financial Markets Authority <p>1 April 2014 marked the start of a new era for New Zealand's financial markets with Phase 1 of the Financial Markets Conduct (FMC) Act coming into effect. Phase 2 begins on 1 December 2014 and will require significant change for many market participants.</p> <p>On these pages you can find all the key details of what's changing, including the latest news, useful links and when you will need to comply.</p> http://www.fma.govt.nz/laws-we-enforce/policy/closed-consultations/consultation-paper-derivatives-issuer-standard-condition-on-suitability Consultation Paper: Derivatives Issuer Standard Condition on Suitability 2014-09-29 17:41:16 Financial Markets Authority <p><br>FMA is now consulting on the <a href="http://www.fma.govt.nz/assets/consultation-paper-derivatives-issuer-standard-condition-on-suitability.pdf" target="_blank">Derivatives Issuer Standard Condition on Suitability</a>.</p> <p><strong>What is this consultation paper about?</strong></p> <p>In November 2013 the Financial Markets Authority consulted on the minimum standards and conditions for derivatives issuers wishing to be licensed under the Financial Markets Conduct Act 2013 (the Act).</p> <p>As part of that consultation we sought responses on a condition relating to the assessment of suitability of products for clients.  Two options were provided, one being disclosure based and the other an assessment by the issuer. </p> <p>Submitters noted this standard should focus on assessing suitability for retail investors. They noted the potential for overlap with other regulatory requirements and sought greater clarification on what the requirement would be.</p> <p>We have reviewed this feedback and developed a draft suitability condition based on an assessment by the issuer. Because processes may need to be put in place by some issuers, we propose this standard condition will come into effect on 1 December 2015.</p> <p>This paper outlines our proposed suitability standard condition. We invite you to review this and share your feedback with us.  Other derivatives issuer standard conditions are now final and have been published on our website.</p> <h3>Submissions on this standard condition close on Monday 29 September 2014.</h3> <p><strong>How do I make a submission?</strong></p> <p>Please use this <a href="http://www.fma.govt.nz/assets/derivatives-issuer-standard-condition-on-suitability-feedback-form.docx" target="_blank">feedback form</a>. This is also on the final page of the consultation paper – this gives the details of what you need to do. Forms must be submitted electronically in both PDF and Word formats and emailed to <a href="mailto:consultation@fma.govt.nz">consultation@fma.govt.nz</a> – please put ‘Feedback – Derivatives Issuer Standard Condition on Suitability’ in the subject line.</p> <p>Alternatively, you can make an online submission on our engagement site <a href="http://www.talktous.fma.govt.nz/">www.talktous.fma.govt.nz</a>. You need to register to be able to use the site.</p> <p><strong>Where can I get more information?</strong></p> <p>You’ll find more information about the new accountability framework for financial products on our website <a href="http://www.fma.govt.nz/help-me-comply/new-licences-for-financial-market-services/derivatives-issuer/">www.fma.govt.nz</a> or at the Ministry of Business Innovation and Employment site <a href="http://www.mbie.govt.nz/">www.mbie.govt.nz</a>.</p> <p>If you have questions about the consultation process, please get in touch.</p> <p><strong>Simon Smith<br></strong>Manager Compliance Monitoring Framework<br><a href="mailto:simon.smith@fma.govt.nz">simon.smith@fma.govt.nz</a><br>04 474 2440</p> <div id="file-attachments"> <h2>File Attachments</h2> <ul> <li><a href="http://www.fma.govt.nz/assets/consultation-paper-derivatives-issuer-standard-condition-on-suitability.pdf" target="_blank">Consultation Paper: Derivatives Issuer Standard Condition on Suitability (365 kB pdf)</a></li> <li><a href="http://www.fma.govt.nz/assets/derivatives-issuer-standard-condition-on-suitability-feedback-form.docx" target="_blank">Feedback: Derivatives Issuer Standard Condition on Suitability (16 kB docx)</a></li> </ul> </div> http://www.fma.govt.nz/keep-updated/warnings-alerts-and-scams/fmas-latest-warnings-and-alerts/2014/ 2014 2014-09-29 16:53:43 Financial Markets Authority http://www.fma.govt.nz/laws-we-enforce/legislation/notices/ Notices 2014-09-29 16:10:50 Financial Markets Authority <ul> <li><a href="http://www.fma.govt.nz/laws-we-enforce/legislation/notices/electronic-securities-transfer-systems/">Electronic Securities Transfer Systems</a><a title="Electronic Securities Transfer Systems" href="http://www.fma.govt.nz/laws-we-enforce/legislation/notices/electronic-securities-transfer-systems/"></a></li> <li><a href="http://www.fma.govt.nz/laws-we-enforce/legislation/notices/designated-settlement-systems/">Designated Settlement Systems</a></li> <li><a href="http://www.fma.govt.nz/assets/media/1025995/notice-of-market-registration-fonterra-shareholders-market-.pdf" target="_blank"> Notice of Market Registration (Fonterra Shareholders' Market)</a></li> <li><a href="http://www.fma.govt.nz/laws-we-enforce/legislation/notices/nzsxnzdx-listing-rules/"> Securities Markets Act (NZSX NZDX Listing Rules) Approval of Market Rules Notice 2012</a></li> <li><a href="http://www.fma.govt.nz/laws-we-enforce/legislation/notices/nz-markets-disciplinary-tribunal-rules/">Securities Markets Act (NZ Markets Disciplinary Tribunal Rules) Approval of Market Rules Notice 2013</a></li> <li><a href="http://www.fma.govt.nz/laws-we-enforce/legislation/notices/fsm-rules/">Securities Markets Act (FSM Rules) Approval of Market Rules Notice 2013</a></li> <li><a href="http://www.fma.govt.nz/laws-we-enforce/legislation/notices/main-boarddebt-market-listing-rules/">Securities Markets Act (Main Board/Debt Market Listing Rules) Approval of Market Rules Notice 2013</a></li> <li><a href="http://www.fma.govt.nz/laws-we-enforce/legislation/notices/nzx-participant-rules/">Securities Markets Act (NZX Participant Rules) Approval of Market Rules Notice 2013</a></li> <li><a href="http://www.fma.govt.nz/laws-we-enforce/legislation/notices/securities-markets-act-nxt-notice-of-market-registration-2014/">Securities Markets Act (NXT) Notice of Market Registration 2014</a></li> </ul> http://www.fma.govt.nz/laws-we-enforce/legislation/notices/securities-markets-act-nxt-notice-of-market-registration-2014/ Securities Markets Act (NXT) Notice of Market Registration 2014 2014-09-29 16:08:27 Financial Markets Authority <p><a href="http://www.fma.govt.nz/assets/Notices/Securities-Markets-Act-NXT-Notice-of-Market-Registration-2014.pdf" target="_blank">Securities Markets Act (NXT) Notice of Market Registration 2014</a></p> http://www.fma.govt.nz/help-me-comply/new-licences-for-financial-market-services/quick-links/ Quick Links 2014-09-29 15:29:29 Financial Markets Authority <p>Here you'll find links to each of the different licensing application guides and key forms. We'll update this page and add additional content or forms as and when required.</p> <h3><strong>Application guides:</strong></h3> <p><em><strong>Guides updated 20 June 2014</strong></em></p> <p><a href="http://www.fma.govt.nz/assets/media/1105046/part-a-how-do-i-apply-for-a-licence-an-overview.pdf" target="_blank">PART A: How do I apply for a licence - an overview</a></p> <p><a href="http://www.fma.govt.nz/assets/media/part-b1-how-do-i-apply-for-licence-to-provide-crowd-funding-services.pdf" target="_blank">PART B1: How do I apply for licence to provide crowd funding services?</a></p> <p><a href="http://www.fma.govt.nz/assets/media/1105046/part-b2-how-do-i-apply-for-a-licence-to-provide-peer-to-peer-services.pdf" target="_blank">PART B2: How do I apply for a licence to provide peer-to-peer services?</a></p> <p><a href="http://www.fma.govt.nz/assets/media/1105046/part-b3-how-do-i-apply-for-a-mis-manager-licence.pdf" target="_blank">PART B3: How do I apply for a MIS manager licence?</a></p> <p><a href="http://www.fma.govt.nz/assets/media/1105046/part-b4-how-do-i-apply-for-a-dims-provider-licence.pdf" target="_blank">PART B4: How do I apply for a DIMS provider licence?</a></p> <p><a href="http://www.fma.govt.nz/assets/media/1105046/part-b5-how-do-i-apply-for-a-licence-to-issue-derivatives-licence.pdf" target="_blank">PART B5: How do I apply for a licence to issue derivatives licence?</a></p> <p><a href="http://www.fma.govt.nz/assets/media/1105046/part-b6-how-do-i-apply-for-a-licence-to-be-an-independent-trustee.pdf" target="_blank">PART B6: How do I apply for a licence to be an independent trustee?</a></p> <h3>Standard conditions</h3> <p><a href="http://www.fma.govt.nz/assets/media/1105046/standard-conditions-for-crowd-funding-service-licences.pdf" target="_blank">Standard conditions for crowd-funding services</a></p> <p><a href="http://www.fma.govt.nz/assets/media/1105046/standard-conditions-for-peer-to-peer-lending-service-licences.pdf" target="_blank">Standard conditions for peer-to-peer lending services</a></p> <p><a href="http://www.fma.govt.nz/assets/media/1105046/standard-conditions-for-managed-investment-scheme-service-licences.pdf" target="_blank">Standard conditions for managed investment schemes</a></p> <p><a href="http://www.fma.govt.nz/assets/media/1105046/standard-conditions-for-dims-licences.pdf" target="_blank">Standard conditions for discretionary investment management service (DIMS) services</a></p> <p><a href="http://www.fma.govt.nz/assets/media/1105046/ind-trustee-standard-conditions.pdf" target="_blank">Standard conditions for independent trustee licences (for individuals)</a></p> <p><a href="http://www.fma.govt.nz/assets/Report-and-Papers/Licencing-Guides/Standard-Conditions-for-derivatives-issuer-licences.pdf" target="_blank">Standard conditions for derivatives issuers</a></p> <h3>Licensing declarations and certificates</h3> <p><strong>For applicants</strong></p> <p><a href="http://www.fma.govt.nz/assets/media/1105046/sd10-certificate-of-compliance-and-authority-to-apply-applicant-or-their-authorised-person-.docx" target="_blank">SD1.0  Certificate of compliance and authority to apply (applicant or their authorised person)</a></p> <p><a href="http://www.fma.govt.nz/assets/media/1105046/sd11-declaration-by-current-proposed-director-of-licence-applicant.docx" target="_blank">SD1.1  Declaration by current/proposed director of licence applicant</a></p> <p><a href="http://www.fma.govt.nz/assets/media/1105046/sd12-declaration-by-current-proposed-senior-manager-of-licence-applicant.docx" target="_blank">SD1.2  Declaration by current/proposed senior manager of licence applicant</a></p> <p><a href="http://www.fma.govt.nz/assets/media/1105046/sd13-curriculum-vitae-of-management-team-member-of-licence-applicant.docx" target="_blank">SD1.3  Curriculum vitae of management team member of licence applicant</a></p> <p><a href="http://www.fma.govt.nz/assets/media/1105046/sd14-declaration-by-independent-trustee-individual-a-combined-certificate-and-declaration.docx" target="_blank">SD1.4  Declaration  by Independent trustee (individual) -  a combined certificate and declaration</a></p> <p><strong>For related bodies of the applicant</strong></p> <p><a href="http://www.fma.govt.nz/assets/media/1105046/sd21-declaration-by-executive-director-of-related-body-to-licence-applicant.docx" target="_blank">SD2.1  Declaration by executive director of related body to licence applicant</a></p> <p><a href="http://www.fma.govt.nz/assets/media/1105046/sd22-declaration-by-senior-manager-of-related-body-to-licence-applicant.docx" target="_blank">SD2.2  Declaration by senior manager of related body to licence applicant</a></p> <p><strong>For relevant parties to the applicant</strong></p> <p><a href="http://www.fma.govt.nz/assets/media/1105046/sd31-declaration-by-director-of-relevant-party-to-licence-applicant.docx" target="_blank">SD3.1  Declaration by director of relevant party to licence applicant</a></p> <p><a href="http://www.fma.govt.nz/assets/media/1105046/sd32-declaration-by-senior-manager-of-relevant-party-to-licence-applicant.docx" target="_blank">SD3.2  Declaration by senior manager of relevant party to licence applicant</a></p> <p><a href="http://www.fma.govt.nz/assets/media/1105046/sd33-declaration-by-individual-relevant-party-to-licence-applicant-such-as-owner-.docx" target="_blank">SD3.3  Declaration by individual relevant party to licence applicant (such as owner)</a></p> http://www.fma.govt.nz/help-me-comply/new-licences-for-financial-market-services/derivatives-issuer/your-obligations/ Your obligations 2014-09-29 15:28:09 Financial Markets Authority <h3>Minimum standards</h3> <p>To become a licensed derivatives issuer you'll have to meet and maintain certain minimum standards. The key standards in the Act (<a href="http://www.legislation.govt.nz/act/public/2013/0069/latest/whole.html#DLM4091574">section 396</a>) include:</p> <ul> <li>Your directors and senior managers (current or proposed) must be fit and proper for their positions</li> <li>Your business must be capable of performing the service effectively and in keeping with your licence conditions</li> <li>We must have no reason to think you're likely to contravene your licensee obligations.</li> </ul> <p>There will also be other important requirements. You can find out more about the minimum licensing standards and conditions in our <a href="http://www.fma.govt.nz/assets/media/1105046/part-b5-how-do-i-apply-for-a-licence-to-issue-derivatives-licence.pdf" target="_blank">licensing guide</a>.</p> <h3>Other obligations</h3> <p>As a licensed derivatives issuer you will have on-going obligations. For example you must:</p> <ul> <li>Prepare, keep updated, and provide your clients with product disclosure statements (PDS) and other disclosure materials for regulated offers of derivatives</li> <li>Comply with regulations about handling client funds</li> <li>Monitor your compliance, identify material changes of circumstance, and meet reporting obligations.</li> </ul> <p>There will also be a number of other important on-going obligations.</p> <h3><span>Standard conditions</span></h3> <p>If we grant you a licence it will contain conditions that support your market services licensee obligations. These will include conditions imposed by the FMC Act and regulations, as well as conditions imposed by FMA. Find out more about the <a href="http://www.fma.govt.nz/assets/Report-and-Papers/Licencing-Guides/Standard-Conditions-for-derivatives-issuer-licences.pdf" target="_blank">conditions for derivative issuers</a>.</p> <p>In your application you’ll need to demonstrate that you can meet these conditions – or ask us for a limit or variation in your licence.</p> http://www.fma.govt.nz/help-me-comply/new-licences-for-financial-market-services/derivatives-issuer/applying-for-a-licence/ Applying for a licence 2014-09-29 15:26:10 Financial Markets Authority <p>Here you can find out more details on how to apply for a licence.</p> <p>We have provided a two-part licensing application guide to help you fill out your application. You need to read both PART A and PART B.</p> <p><strong style="color: rgb(0, 121, 135); line-height: 30px; font-family: inherit; font-size: 18px;">To begin the application process please call us on 0800 434 567</strong></p> <p><a href="http://www.fma.govt.nz/assets/media/1105046/part-a-how-do-i-apply-for-a-licence-an-overview.pdf" target="_blank"><strong>PART A:</strong></a> <strong>Gives general guidance about the licensing process.</strong> This includes how to log in to the application portal (and how to create a RealMe identity, if you don't already have one - you'll need one before you can apply, and to save and re-access your work).</p> <p><a href="http://www.fma.govt.nz/assets/media/1105046/part-b5-how-do-i-apply-for-a-licence-to-issue-derivatives-licence.pdf" target="_blank"><strong>PART B:</strong></a> <strong>Gives specific information for the type of licence you're applying for.</strong> It outlines the minimum standards for the licence, sets out questions you'll be asked, and gives guidance on what you might need to tell us and the types of documents you'll need to provide. Your application can only be made online and you'll need to upload your supporting documents.</p> <p>Please note these guides may be updated from time to time, so please check back here for the latest version before you apply.</p> <h3>Standard conditions</h3> <p>If we grant you a licence it will contain conditions that support your market services licensee obligations. These will include conditions imposed by the FMC Act and regulations, as well as conditions imposed by FMA. Find out more about the <a href="http://www.fma.govt.nz/assets/Report-and-Papers/Licencing-Guides/Standard-Conditions-for-derivatives-issuer-licences.pdf" target="_blank">conditions for derivative issuers</a>.</p> <p>In your application you’ll need to demonstrate that you can meet these conditions – or ask us for a limit or variation in your licence.</p> <p><span>Please note these guides may be updated from time to time, so please check back here for the latest version before you apply.</span></p> http://www.fma.govt.nz/help-me-comply/new-financial-reporting-requirements/frequently-asked-questions/ Frequently Asked Questions 2014-09-29 11:13:24 Financial Markets Authority <h2>General</h2> <h3>Do I have to comply?</h3> <p class="Body">Except in the early part of the transitional period, all FMC reporting entities must comply with the reporting requirements in Part <a href="http://www.legislation.govt.nz/act/public/2013/0069/latest/DLM4702238.html">7 of the FMC Act</a>. It is your responsibility to determine whether you are an FMC reporting entity.</p> <h3 class="Body">How do I determine if I am an FMC reporting entity?</h3> <p class="Body">The concept of 'FMC reporting entity' is broader than 'issuer' under the Financial Reporting Act 1993, but doesn't include all financial market participants. 'FMC reporting entity' is defined in <a href="http://legislation.govt.nz/act/public/2013/0069/latest/DLM4702241.html">section 451 of the FMC Act</a>.  You can find an overview of who is an FMC reporting entity on our '<a href="http://www.fma.govt.nz/help-me-comply/new-financial-reporting-requirements/who-needs-to-comply/">Who needs to comply?</a>' page.</p> <h3 class="Body">What has changed from the requirements in the Financial Reporting Act 1993?</h3> <p class="Body">Please see our '<a href="http://www.fma.govt.nz/help-me-comply/new-financial-reporting-requirements/whats-changing/">What's changing</a>' page.</p> <h3 class="Body">When will I have to comply with the new requirements?</h3> <p class="Body">Entities will become FMC reporting entities, and have to transition to the new requirements, at different times.  Most FMC reporting entities will not prepare financial statements under the FMC Act for any full accounting period ending in 2014. The main transitional provisions are in <a href="http://legislation.govt.nz/act/public/2013/0101/latest/DLM4632829.html?search=ts_act%40bill%40regulation%40deemedreg_financial+reporting+act_resel_25_a&amp;p=1">sections 55 to 57 of the Financial Reporting Act 2013</a> and <a href="http://legislation.govt.nz/act/public/2013/0069/latest/DLM4090578.html?src=qs">Part 2 of Schedule 4 of the FMC Act</a>.  For more guidance see '<a href="http://www.fma.govt.nz/help-me-comply/new-financial-reporting-requirements/when-will-you-need-to-comply/">When will you need to comply?</a>'.</p> <h3>How do the financial reporting requirements for FMC reporting entities relate to the reporting requirements in other Acts?</h3> <p class="Body">If you are required to produce financial statements under the FMC Act, then these requirements will take precedence over any other New Zealand law. For example the Companies Act specifically notes that the financial reporting requirements in the Companies Act do not apply where the company needs to comply with the FMC Act's requirements.</p> <h3>What is 'higher public accountability' and how does it affect me?</h3> <p class="Body">All FMC reporting entities have a designated level of public accountability. This influences which tier of the External Reporting Board Accounting Standards Framework you are in and, in turn, whether you will have to use full accounting standards (e.g. NZ IFRS) or reduced accounting standards (e.g. NZ RDR) when preparing your financial statements.</p> <p class="Body">The <a href="http://legislation.govt.nz/act/public/2013/0069/latest/DLM4090578.html?src=qs">FMC Act</a> identifies classes of entities it deems to have higher public accountability - all other classes of entities have lower public accountability. These are default designations - under the FMC Act we can vary designations for either individual FMC reporting entities, or classes of FMC reporting entities.</p> <p class="Body">We have recently consulted on our proposed changes to the initial designations and on our policies for varying designations. Our proposals are set out in the <a href="http://www.fma.govt.nz/laws-we-enforce/policy/closed-consultations/consultation-financial-reporting-regulatory-policy-for-financial-reporting-designations-and-exemptions">consultation paper</a>.</p> <h3>Can I prepare my financial statements using the disclosure concessions of the reduced disclosure regime (RDR)?</h3> <p class="Body">Most FMC reporting entities with lower public accountability can report using a reduced disclosure regime (e.g. NZ IFRS RDR or PBE Standards with disclosure concession). Entities with higher public accountability must comply with full NZ IFRS or PBE accounting standards.</p> <h3>Can I apply the differential reporting framework?</h3> <p class="Body">No. The differential reporting framework cannot be used for any accounting period beginning on or after 1 April 2014. Differential reporting has been replaced by the reduced disclosure regimes of the External Reporting Board - only FMC reporting entities with lower public accountability can apply the disclosure concessions allowed by the reduced disclosure regime.</p> <h3>Can I use financial statements prepared in accordance with overseas financial reporting standards?</h3> <p class="Body">You can only use overseas financial reporting standards for ongoing reporting if we have granted you an exemption to do so. We have recently consulted on our exemptions policy. Please refer to the <a href="http://www.fma.govt.nz/help-me-comply/new-financial-reporting-requirements/exemptions/">consultation paper</a>.</p> <h3>What financial information will be required in offer documents for financial products?</h3> <p class="Body">FMA is currently working with the Ministry of Business, Innovation and Employment (MBIE) to develop the regulations that will prescribe the content of documents entities will need to lodge when making regulated offers. This will include financial information. We expect MBIE to release additional consultation papers in May 2014.</p> <h3>During the transitional period, can I use FMC financial statements for capital raising under the Securities Act?</h3> <p>Yes - but only if you are permitted to use the Securities Act for offers. FMA will issue guidance on offers during the transitional period prior to the period beginning on 1 December 2014.</p> <h2>Transition</h2> <h3>How do I opt-in to reporting under the FMC Act?</h3> <p>You can opt-in to reporting under the Financial Markets Conduct Act 2013 early by choosing an 'effective date' and giving FMA and the Companies Office Registrar at least 20 working days' notice that you are opting-in. The earliest you can opt-in is 1 December 2014.</p> <h3>Am I still a FMC reporting entity if I haven't issued anything to the public?</h3> <p>The concept of a FMC reporting entity is wider than the previous definition of an 'issuer' under the Financial Reporting Act. There are a number of entities who are FMC reporting entities irrespective of whether or not they have issued financial products - for example banks, insurers, licensed fund managers and licensed supervisors.</p> <h3>Do I become a FMC reporting entity if I relied on a Securities Act exemption?</h3> <p>If you relied on an Securities Act exemption issued by FMA (or our predecessor the Securities Commission), you'll become a FMC reporting entity on 1 December 2016 - or earlier if any of the '<a href="http://www.fma.govt.nz/assets/media/1105046/trigger-events-when-do-you-become-an-fmc-reporting-entity.pdf" target="_blank">trigger events</a>' apply. You might also want to read our proposed financial reporting <a href="http://www.fma.govt.nz/help-me-comply/new-financial-reporting-requirements/exemptions/">exemptions</a> for FMC reporting entities.</p> <h3>Do I still have to prepare parent entity financial statements after 1 April 2014?</h3> <p>Yes. The Financial Reporting Act 2013, states that the Financial Reporting Act 1993 still applies to most issuers as if it had not been repealed, until the time you have to prepare your financial statements under the FMC Act. This includes having to produce financial statements for the parent entity.</p> <h3>How do the transitional provisions apply to derivatives issuers?</h3> <p><strong>New issuers</strong></p> <p>Derivative issuers must have a licence under the Financial Markets Conduct Act to issue offers.</p> <ul> <li><strong>If you're licensed before 31 March 2015:</strong> you'll only have an FMC balance date before 31 March 2015 if you're licensed <em>and</em> issue financial products before then.</li> <li><strong>If you're licensed on or after 31 March 2015:</strong> you must produce your financial statements under the FMC Act, regardless of whether or not you have issued financial products.</li> </ul> <p><strong>Futures dealers</strong></p> <p>Futures dealers authorised or approved under the Securities Markets Act 1988 will automatically get a transitional licence on 1 December 2014 if their business prior to 1 December would require a derivatives licence under the FMC Act (for example, you are issuing forward foreign exchange contracts, interest rate swaps and contracts for difference). Assuming you issue derivatives before your next balance date, your financial statements for your first balance date after 1 December will need to be under the FMC Act.</p> <h2 class="Body">Financial Reporting Exemptions</h2> <h3>What if I cannot comply with the financial reporting requirements?</h3> <p class="Body">If appropriate, FMA can exempt you from your financial reporting obligations. Please refer to our <a href="http://www.fma.govt.nz/help-me-comply/new-financial-reporting-requirements/exemptions/">exemptions page</a> for further guidance.</p> <h3 class="Body">Do I qualify for an exemption?</h3> <p class="Body">Please refer to the <a href="http://www.fma.govt.nz/help-me-comply/new-financial-reporting-requirements/exemptions/">exemptions page</a> for more information on qualifying for an exemption.</p> <h3 class="Body">How do I apply for an exemption?</h3> <p class="Body">Please refer to the <a href="http://www.fma.govt.nz/help-me-comply/new-financial-reporting-requirements/exemptions/">exemptions page</a> for more information on how to apply for an <a href="http://www.fma.govt.nz/help-me-comply/new-financial-reporting-requirements/exemptions/">exemption</a>.</p> <h2 class="Body">Auditors and auditing</h2> <h3 class="Body">Who can audit my financial statements?</h3> <p class="Body">In general only licensed auditors or registered audit firms can audit financial statements of FMC reporting entities. However, the Auditor General can audit FMC reporting entities that are public entities. [<a href="http://legislation.govt.nz/act/public/2013/0069/latest/DLM6027074.html">Section 461E of the Act</a>]</p> <p class="Body">Where appropriate, FMA can grant an exemption to enable entities to use another auditor. Please refer to our policies for granting <a href="http://www.fma.govt.nz/help-me-comply/new-financial-reporting-requirements/exemptions/">exemptions</a>.</p> <h3>Where can I find a list of licensed auditors or registered audit firms?</h3> <p class="Body">The <a href="http://www.business.govt.nz/companies/auditors-register">register of licensed auditors</a> is maintained by the Ministry of Business, Innovation and Employment.</p> <h3>What happens if I have a qualified audit report?</h3> <p class="Body">Not all qualified audit reports indicate that you have breached your financial reporting obligations. However, if your auditor's report indicates that you have breached your obligations, your auditor must notify us, and we will take appropriate action.</p> <h3>Can I use an auditor from another jurisdiction?</h3> <p>You can use an overseas auditor if:</p> <p>-    The auditor is licensed by FMA, or<br>-    We have permitted you to do so by an exemption. </p> <p>We have recently consulted on our exemptions policy. Please refer to the <a href="http://www.fma.govt.nz/help-me-comply/new-financial-reporting-requirements/exemptions/">consultation paper</a>.</p> <h2 class="Body">Lodging your financial statements</h2> <h3>When do I have to lodge my financial statements?</h3> <p>You have four months after your balance date to lodge your financial statements with the Companies Office.</p> <h3>How do I lodge my financial statements?</h3> <p>Please lodge your financial statements using the Companies Office <a href="http://www.business.govt.nz/companies/app/ui/pages/companies/fileAnnualReturn">online services</a>.</p> <h3>Do I have to lodge my financial statements with FMA?</h3> <p>Generally, no. However, you do need to send financial statements to FMA that are prepared as part of a <a href="http://www.legislation.govt.nz/act/public/2013/0069/latest/whole.html#DLM4091233">wind up report</a> for a managed investment scheme. </p> <h3>What happens if I am late lodging?</h3> <p class="Body">We take failure to lodge financial statements on time seriously and may fine or prosecute entities for failing to comply. The infringement fee for late filing is $7500.</p> <p class="Body">If you anticipate that you will be late filing, you should <a href="http://www.fma.govt.nz/about-us/contact-us/ask-a-question/ask-a-question/">contact us</a>, outlining why, how you have communicated your financial performance to your investors, when you do intend to file and how you will avoid late filing in the future. In any situation, we reserve our right to take action we consider appropriate.</p> <p class="Body">The Companies Office will continue to send you reminders as long as your financial statements remain outstanding.</p> <h2 class="Body">Enforcement</h2> <h3 class="Body">What enforcement powers does FMA have in respect of financial reporting?</h3> <p class="Body">Under the Act, FMA has a wide range of tools to promote compliance with financial reporting requirements. These are included in Part 7 and 8 of the Act. This includes the ability for FMA to:</p> <ul> <li>issue <strong>infringement notices</strong> for failure to:</li> </ul> <p style="padding-left: 30px;">- keep accounting records in English (infringement fee: $7,500);</p> <p style="padding-left: 30px;">- permit the entity's directors, Supervisors, FMA, or any other person permitted by an enactment  to inspect of accounting records (infringement fee: $12,500);</p> <p style="padding-left: 30px;">- lodge financial statements within 4 months of the balance date (infringement fee: $7,500)</p> <p style="padding-left: 30px;">FMA can also take summary proceedings in respect of the above infringement offences (entity liable on conviction to a fine not exceeding $50,000).</p> <ul> <li>make a <strong>direction order</strong> that requires reporting entities to comply with requirements to keep and retain accounting records and prepare, have audited and lodge financial statements.  Failure to comply with a direction order could result in civil or criminal proceedings.</li> <li>apply to the High Court for <strong>civil remedies</strong> for contraventions of requirements to keep and retain accounting records and prepare, have audited and lodge financial statements as well as for failing to complying with a FMA direction order.</li> <li>take <strong>criminal</strong> proceedings against entities and their directors if they knowingly fail to comply with financial reporting standards.</li> </ul> <h2>Winding Up</h2> <h3>Do I have to prepare financial statements if I wind up my business or stop being an issuer or otherwise cease to be an FMA reporting entity during the year?</h3> <p class="Body">If you cease to be a FMC reporting entity during an accounting period, for example by repaying outstanding financial products or your license expires, you will still need to prepare and lodge financial statements for the period up until your next balance date. For example, if you are an issuer with a 31 March balance date and you repay all outstanding debt products on 1 January 2015, you will still need to comply for the period ending 31 March 2015.</p> http://www.fma.govt.nz/laws-we-enforce/policy/closed-consultations/consultation-paper-sipos-and-limit-breaks Consultation Paper: SIPOs and Limit Breaks 2014-09-29 09:55:28 Financial Markets Authority <p><br><strong>28 August 2014</strong></p> <p>FMA is now consulting on <a href="http://www.fma.govt.nz/assets/consultation-paper-sipos-and-limit-breaks.pdf" target="_blank">SIPOs and Limit Breaks</a></p> <p><strong>What is this consultation paper about?</strong></p> <p>Under the Financial Markets Conduct Act 2013 (FMC Act), the manager of a registered managed investment scheme (MIS) is required to put in place a statement of investment policy and objectives (SIPO).  The FMC Act also specifies a number of factors to be set out in the SIPO. A key requirement is that a material breach of any specified SIPO limits (a ‘limit break’) must be reported to the supervisor, or FMA where required.</p> <p>This paper is for MIS managers and their supervisors. It provides a brief description of SIPOs and outlines our thinking on the principles behind developing one. It explains the key components of a SIPO and what we would expect to see. We propose to issue guidance on this following this consultation.</p> <p>We also propose to issue a framework and methodology prescribing elements that constitute a material limit break. This paper outlines our current thinking about what these elements might be.</p> <p>We invite you to review our proposals and share your feedback on them with us.  We welcome general comment and have also included a number of questions seeking specific feedback. Responses to these specific questions will help shape the guidance and framework and methodology we intend to issue.</p> <p><strong>Submissions close on 26 September 2014.</strong></p> <p><strong>How do I make a submission?</strong></p> <p>Please use this <a href="http://www.fma.govt.nz/assets/feedback-sipos-and-limit-breaks.docx" target="_blank">feedback form</a>. This is also on the final page of the consultation paper – this gives the details of what you need to do. Forms must be submitted electronically in both PDF and Word formats and emailed to <a href="mailto:consultation@fma.govt.nz">consultation@fma.govt.nz</a> – please put ‘Feedback – SIPOs and Limit Breaks’ in the subject line.</p> <p>Alternatively, you can make an online submission on our engagement site <a href="http://www.talktous.fma.govt.nz/">www.talktous.fma.govt.nz</a>. You need to register to be able to use the site.</p> <p><strong>Submissions close on 26 September 2014.</strong></p> <p><strong>Where can I get more information?</strong></p> <p>You’ll find more information about the new accountability framework for financial products on our website <a href="http://www.fma.govt.nz/help-me-comply/new-accountability-framework-for-financial-products/">www.fma.govt.nz</a> or at the Ministry of Business Innovation and Employment site <a href="http://www.mbie.govt.nz/">www.mbie.govt.nz</a>.</p> <p>If you have questions about the SIPO and Limit Breaks consultation process, please get in touch.</p> <p><strong>Peter Nielsen</strong><br>Manager, Compliance Legal<br><a href="mailto:peter.nielsen@fma.govt.nz">peter.nielsen@fma.govt.nz</a>        <br>04 495 1684 </p> <p><strong>Garry Mason</strong><br>Senior Solicitor, Compliance Lega<br><a href="mailto:garry.mason@fma.govt.nz">garry.mason@fma.govt.nz</a> <br>09 300 0416</p> <h2>File Attachments</h2> <ul> <li><a href="http://www.fma.govt.nz/assets/consultation-paper-sipos-and-limit-breaks.pdf" target="_blank">Consultation Paper: SIPOs and Limit Breaks (504 kB pdf)</a></li> <li><a href="http://www.fma.govt.nz/assets/feedback-sipos-and-limit-breaks.docx" target="_blank">Feedback: SIPOs and Limit Breaks (16 kB docx)</a></li> </ul> http://www.fma.govt.nz/keep-updated/the-future-of-financial-markets/useful-links/ Useful Links 2014-09-26 16:27:02 Financial Markets Authority <h2>FMA Guides</h2> <ul> <li><a href="http://www.fma.govt.nz/assets/Code-of-Professional-Conduct-for-AFAs/guide-to-licensing-small-dims-businesses.pdf" target="_blank">Quick guide to licence applications for small businesses providing DIMS</a> (June 2014)</li> <li><a href="http://www.fma.govt.nz/assets/fmas-new-role-as-regulator-of-conduct-april-2014.pdf" target="_blank">FMA's new role as regulator of conduct</a> (April 2014)</li> <li><a href="http://www.fma.govt.nz/assets/changes-ahead-for-afas-who-provide-dims-update-2.pdf" target="_blank">Changes ahead for AFAs who provide DIMS Update #2</a> (March 2014)</li> <li><a href="http://www.fma.govt.nz/assets/media/1054639/understanding-the-regulation-of-dims-frequently-asked-questions.pdf" target="_blank">Understanding the regulation of DIMS - frequently asked questions</a> (March 2014)</li> <li><a href="http://www.fma.govt.nz/assets/changes-ahead-for-afas-who-provide-dims.pdf" target="_blank">Changes ahead for AFAs who provide DIMS - FMA Fact Sheet</a> (November 2013)</li> <li><a href="http://www.fma.govt.nz/assets/Changes-ahead-for-Financial-Reporting-FMA-Factsheet-Nov-2013.pdf" target="_blank">Changes ahead for Financial Reporting - FMA Fact Sheet</a> (November 2013)</li> <li><a href="http://www.fma.govt.nz/assets/a-guide-to-the-financial-markets-conduct-act-reforms-november-2013.pdf" target="_blank">A Guide to the Financial Markets Conduct Act Reforms</a> (November 2013)</li> <li><a href="http://www.fma.govt.nz/assets/the-future-of-financial-markets-nov-13.pdf" target="_blank">The Future of Financial Markets - FMA Market Update</a> (November 2013)</li> </ul> <h2>Key documents and reports from the Government's review of securities law</h2> <ul> <li><a href="http://www.legislation.govt.nz/act/public/2013/0069/latest/DLM4090578.html?search=ts_act%40bill%40regulation%40deemedreg_financial+markets+conduct_resel_25_a&amp;p=1" target="_blank">Financial Markets Conduct Act</a> (September 2013)</li> <li><a href="http://www.beehive.govt.nz/release/new-regulations-financial-markets" target="_blank">Financial Market Conduct Regulations decisions</a> (June 2013)</li> <li><a href="http://www.med.govt.nz/business/business-law/pdf-docs-library/current-business-law-work/securities-law-review/fmc-regulations/Financial%20Markets%20Conduct%20Bill%20Approval%20of%20Supplementary%20Order%20Paper.pdf" target="_blank">Cabinet paper approving release of a supplementary order paper</a> (April 2013)</li> <li><a href="http://www.med.govt.nz/business/business-law/pdf-docs-library/current-business-law-work/securities-law-review/fmc-regulations/Financial%20Markets%20Conduct%20Regulations%202013%20Discussion%20Paper.pdf" target="_blank">Discussion paper on the Financial Markets Conduct Regulations</a> (December 2012)</li> <li><a href="http://www.med.govt.nz/business/business-law/current-business-law-work/review-of-securities-law/exposure-draft-bill" target="_blank">Submissions on the exposure draft of the FMC Bill</a> (October 2011)</li> <li><a href="http://www.med.govt.nz/business/business-law/pdf-docs-library/current-business-law-work/securities-law-review/financial-markets-conduct-bill-consultation-draft-2-mb-pdf.pdf" target="_blank">Financial Markets Conduct Bill - exposure draft Bill</a> (August 2011)</li> <li><a href="http://www.med.govt.nz/business/business-law/pdf-docs-library/current-business-law-work/securities-law-review/May%202011%20Cabinet%20paper%20and%20RIS.pdf" target="_blank">Cabinet Paper – Subsequent additional Cabinet decisions</a> (May 2911)</li> <li><a href="http://www.med.govt.nz/business/business-law/pdf-docs-library/current-business-law-work/securities-law-review/review-of-securities-law-cabinet-paper-feb-2011483-kb-pdf.pdf" target="_blank">Cabinet Paper – Cabinet decisions as to the general shape of the Bill</a> (February 2011)</li> <li><a href="http://www.med.govt.nz/business/business-law/current-business-law-work/review-of-securities-law/submissions-on-June-2010-discussion-document" target="_blank">Submissions made on the June 2010 Discussion Paper</a> (August 2010)</li> <li><a href="http://www.med.govt.nz/business/business-law/pdf-docs-library/current-business-law-work/securities-law-review/review-of-secuities-law-dicsussion-document-1625-kb-pdf.pdf" target="_blank">Discussion Paper on the Review of Securities Law</a> (June 2010)</li> <li><a href="http://www.med.govt.nz/business/economic-development/pdf-docs-library/cmd-capital-markets-matter-full-report.pdf" target="_blank">Report of the Capital Markets Development Taskforce</a> (December 2009)</li> </ul> <h2>Find out more</h2> <p>You can find more details about the Government's review of securities law on the <a href="http://www.med.govt.nz/business/business-law/current-business-law-work/financial-markets-conduct-act">Ministry of Business, Innovation and Employment's website</a>.</p> <p>You can also <a href="http://www.fma.govt.nz/about-us/contact-us/">contact us</a>. If you're emailing a comment or question, please refer to FMC in your message heading.</p> http://www.fma.govt.nz/help-me-comply/futures-dealers/how-to-become-authorised/ How to Become Authorised 2014-09-26 15:56:27 Financial Markets Authority <p>Dealers can become authorised or approved to deal in futures contracts in one of the following ways:</p> <ul> <li>be approved by an authorised futures exchange under its market rules to deal in futures in line with the rules of that exchange</li> <li>be able to rely on a class authorisation notice granted by FMA</li> <li>individual authorisation by FMA.</li> </ul> <p>Futures dealers may also need to be registered on the <a href="http://www.fma.govt.nz/help-me-comply/financial-service-providers/">financial service providers register</a>.</p> <table> <tbody> <tr> <td> <p><b>Regulatory change coming soon:</b></p> <p>The Securities Markets Act 1988 is due to be repealed on 1 December 2014 as part of the implementation of the Financial Markets Conduct Act 2013 (FMCA). This will mean that futures dealers will cease to be authorised from 1 December 2014.  Some authorised futures dealers will need a Derivatives Issuer licence from that date.  There are provisions for certain futures dealers to obtain a deemed Derivatives Issuer licence under the FMCA.  For further information on what these changes means for you, see the <a href="http://www.fma.govt.nz/help-me-comply/new-licences-for-financial-market-services/derivatives-issuer/">Derivatives Issuer</a> section of our website.  Our flowchart <a href="http://www.fma.govt.nz/media/2003537/do-you-need-a-derivative-issuer-licence-from-1-december-2014.pdf">do you need a derivative issuer licence from 1 December 2014</a> will help you decide whether you need a licence.</p> </td> </tr> </tbody> </table> <h3>Approval by an exchange</h3> <p>A futures dealer approved by an exchange may only deal in futures contracts to the extent that dealing is regulated and overseen by that exchange, and must comply with the obligations imposed by the rules of that exchange.</p> <p>The derivatives market operated by NZX is an authorised futures exchange. NZX approves futures dealers in this market, in line with its derivatives market rules. NZX acts as front line regulator of futures dealers on its derivatives market, but must keep FMA informed of any disciplinary action or suspected significant breaches of the market rules.</p> <p>Australian Securities Exchange Limited (operator of the ASX 24 Market), ICE Futures Europe and ICE Futures US are also authorised futures exchanges. The rules of these exchanges do not provide for approval of their participants to deal in futures contracts in New Zealand.</p> <h3>Reliance on a class exemption notice</h3> <p>There are currently two class authorisation notices:</p> <ul> <li>the Authorised Futures Dealers Notice (No 2) 2004, which authorises ASX 24 participants to deal in futures contracts traded on the ASX 24 market on behalf of New Zealand clients</li> <li>the Authorised Futures Dealers (Registered Banks Futures Contracts) Notice 2012, which authorises registered banks to deal in over-the-counter futures contracts.</li> </ul> <p><strong>Australian Securities Exchange participants</strong></p> <p>This method of authorisation is available to accreditied participants of the ASX 24 Market (formerly Sydney Futures Exchange) who have a current Australian Financial Services Licence. New Zealand authorisation is only effective for futures contracts made on or effected through the ASX 24 Market itself. A participant dealing in futures contracts in New Zealand that are not made on, or effected through, the ASX 24 Market needs to obtain one of the other forms of authorisation.</p> <p><strong>Registered Banks</strong></p> <p>This method of authorisation is available to registered banks (within the meaning of the Reserve Bank of New Zealand Act 1989). The authorisation permits registered banks to offer any futures contract (both as principal and as an intermediary), except a contract which is traded on an authorised futures exchange or a futures exchange regulated overseas. The main condition is that, where a registered bank offers a contract as principal, the bank must provide the disclosure document required under the Securities Act (Registered Banks Futures Contracts) Exemption Notice 2007.</p> <h3>Individual entity authorisation by FMA</h3> <p>Applicants who don't fall into one of the classes above must seek individual authorisation from FMA.</p> <p>The Act does not specify matters that FMA should consider in authorising a futures dealer. FMA's policy is to consider criteria relevant to the transparency of the arrangements for the client and the applicant's ability to perform the contracts, supporting a fair and efficient market. The criteria include that an applicant:</p> <ul> <li>is fit and proper, with fit and proper owners, directors and senior managers</li> <li>has directors and senior managers with appropriate skills and experience</li> <li>has appropriate financial resources</li> <li>has the necessary systems, policies, procedures and controls to carry out the futures dealing activities it seeks to offer.</li> </ul> <p>See the application resources and templates on '<a href="http://www.fma.govt.nz/help-me-comply/futures-dealers/how-to-become-authorised/how-to-apply-for-authorisation-by-fma/">How to apply for authorisation by FMA</a>', including the <a href="http://www.fma.govt.nz/assets/media/1027578/application-guide-authorisation-of-futures-dealers-final.pdf" target="_blank">Application Guide</a> which explains the information which should be provided to FMA.</p> <p><strong>Duration and conditions of authorisation</strong></p> <p>Authorisations are subject to conditions. FMA sets similar conditions for dealers with similar businesses, although FMA may include specific conditions to address particular issues. Example conditions, and how they apply to different types of futures dealers business, are set out in Appendix A of the <a href="http://www.fma.govt.nz/assets/media/1027578/application-guide-authorisation-of-futures-dealers-final.pdf" target="_blank">Application Guide</a>.</p> <p>Authorisations will generally be for a period of up to five years. The actual period will be determined on a case by case basis.</p> <p>Authorised futures dealers who intend to apply to be re-authorised when their current period of authorisation expires should contact FMA at least 6 months in advance of the expiry. Dealers should be prepared to provide the information indicated under 'Individual entity authorisation by FMA' above. Subsequent authorisation periods may vary from the initial period, based on FMA's approach at the time of application.</p> http://www.fma.govt.nz/help-me-comply/futures-dealers/ Futures Dealers 2014-09-26 15:53:14 Financial Markets Authority <p>All futures dealers must be authorised or approved and comply with the requirements set under the Securities Markets Act 1988.</p> <table> <tbody> <tr> <td> <p><b>Regulatory change coming soon:</b></p> <p>The Securities Markets Act 1988 is due to be repealed on 1 December 2014 as part of the implementation of the Financial Markets Conduct Act 2013 (FMCA). This will mean that futures dealers will cease to be authorised from 1 December 2014.  Some authorised futures dealers will need a Derivatives Issuer licence from that date.  There are provisions for certain futures dealers to obtain a deemed Derivatives Issuer licence under the FMCA.  For further information on what these changes means for you, see the <a href="http://www.fma.govt.nz/help-me-comply/new-licences-for-financial-market-services/derivatives-issuer/">Derivatives Issuer</a> section of our website.  Our flowchart <a href="http://www.fma.govt.nz/media/2003537/do-you-need-a-derivative-issuer-licence-from-1-december-2014.pdf">do you need a derivative issuer licence from 1 December 2014</a> will help you decide whether you need a licence.</p> </td> </tr> </tbody> </table> <p> </p> http://www.fma.govt.nz/keep-updated/reports-and-papers/afa-monitoring-reports AFA Monitoring Reports 2014-09-25 12:33:48 Financial Markets Authority <p><a href="http://fma.govt.nz/keep-updated/reports-and-papers/authorised-financial-advisers-monitoring-report-2014" target="_blank">Authorised Financial Advisers Monitoring Report 2014</a></p> <p><a href="http://www.fma.govt.nz/assets/media/1942667/afa-monitoring-report-july-to-december-2013.pdf" target="_blank">AFA Monitoring Report July 2013 - December 2013</a></p> <p><a href="http://www.fma.govt.nz/assets/media/1886257/afa-monitoring-report-thematic-review-nzx-adviser-afas-april-june.pdf" target="_blank">AFA Monitoring Report April 2013 - June 2013</a></p> <p><a href="http://www.fma.govt.nz/assets/media/1731574/afa-monitoring-report-dims-review-jan-march-2013.pdf" target="_blank">AFA Monitoring Report January 2013 - March 2013</a></p> <p><a href="http://www.fma.govt.nz/assets/afa-monitoring-report-oct-dec-2012-final3.pdf" target="_blank">AFA Monitoring Report October 2012 - December 2012</a></p> <p><a href="http://www.fma.govt.nz/assets/afa-monitoring-report-july-2012-september-2012-.pdf" target="_blank">AFA Monitoring Report July 2012 - September 2012</a></p> <p><a href="http://www.fma.govt.nz/assets/afa-interim-monitoring-report-june-2012.pdf" target="_blank">AFA Monitoring Report September 2011 - June 2012</a></p> <hr> http://www.fma.govt.nz/keep-updated/reports-and-papers/authorised-financial-advisers-monitoring-report-2014 Authorised Financial Advisers Monitoring Report 2014 2014-09-25 11:49:18 Financial Markets Authority http://www.fma.govt.nz/keep-updated/reports-and-papers/qualifying-financial-entities-monitoring-report-2014 Qualifying Financial Entities Monitoring Report 2014 2014-09-25 11:48:17 Financial Markets Authority http://www.fma.govt.nz/keep-updated/newsroom/afa-updates/financial-markets-authority-afa-update-issue-30 Financial Markets Authority AFA Update: Issue # 30 2014-09-25 11:45:00 Financial Markets Authority <h2>7 days left to complete your Information Return!</h2> <p>Time is running out to complete your AFA Information Return.  All Returns <strong>must be submitted online by 5pm Tuesday 30 September </strong>so don’t delay, <a href="http://financialmarketsauthority.cmail2.com/t/r-l-mklhrjd-ijljtijtid-t/">get started now</a>.<br><br>Remember, your authorisation as an AFA is subject to the <a href="http://www.fma.govt.nz/help-me-comply/financial-advisers/your-obligations/authorised-financial-advisers-obligations/terms-and-conditions-for-afas/">Standard Conditions</a> that include the requirement to complete this Information Return in accordance with the <a href="http://www.fma.govt.nz/help-me-comply/financial-advisers/your-obligations/regulatory-reporting-guide/afa-information-return/">Regulatory Reporting Guide</a>.  If you have not yet started completing your Information Return we encourage you to do so promptly so you are able to collect the information required to complete and submit the Information Return on time.<br><br><strong>Please note: </strong>you are not required to provide a separate Annual Business Statement (ABS) confirmation (required under Standard Condition 1 for AFAs) once you have correctly submitted your Information Return.<br><br>If you have any questions when completing your Information Return please check our <a href="http://www.fma.govt.nz/help-me-comply/financial-advisers/your-obligations/regulatory-reporting-guide/frequently-asked-questions/">FAQs</a>. Otherwise please email your question to <a href="mailto:questions@fma.govt.nz">questions@fma.govt.nz</a> or call us on 0800 434 567.</p> http://www.fma.govt.nz/keep-updated/reports-and-papers/investigations-and-enforcement-report-2014 Investigations and Enforcement Report 2014 2014-09-25 11:37:08 Financial Markets Authority http://www.fma.govt.nz/keep-updated/newsroom/media-releases/2014/fma-releases-2014-investigations-and-enforcement-report FMA releases 2014 Investigations and Enforcement Report 2014-09-25 11:37:08 Financial Markets Authority <p><strong>Media release</strong><b><br><strong>MR No. 2014 – 030</strong><br><strong>25 September 2014</strong></b></p> <p>The Financial Markets Authority (FMA) today released its Investigations and Enforcement Report for the year ending 30 June 2014.</p> <p>The report highlights the key themes and issues that emerged from the FMA’s enforcement activities during the reporting period. It also provides guidance and key learnings to financial market participants, to help them better understand the standards of behaviour and conduct expected in New Zealand’s financial markets.</p> <p>This year’s report demonstrates that the FMA’s enforcement activities have been focused on a broad range of harms threatening financial markets including:</p> <ul> <li>responding to serious financial crime</li> <li>probing allegations of secondary markets violations – insider trading or market manipulation</li> <li>addressing the persistent failure by some issuers to file financial statements</li> <li>completing the investigations into legacy finance company cases.</li> </ul> <p>As well as providing statistics on the FMA’s enforcement activity, the report highlights the wide range of approaches the FMA has taken in responding to misconduct.</p> <p>Belinda Moffat, FMA Director of Investigations and Enforcement said “while we have commenced a number of court proceedings to deal with serious misconduct, we have also used a wide range of other regulatory tools available to us.  As well as issuing warnings, we have entered into settlements to achieve financial returns for investors where this has been in the public interest.  We have also worked collaboratively with financial markets’ entities to resolve various issues of concern.”</p> <p>“The facts of every matter we look at are unique. We carefully consider and exercise judgement in determining how the FMA, as the regulator, needs to respond to the situation.  We strive to be consistent and transparent in exercising the powers that we have.</p> <p>“The FMA’s intention is to raise investors’ confidence in the role of regulation and in our financial markets.”</p> <p><b>See full report <a href="http://fma.govt.nz/keep-updated/reports-and-papers/investigations-and-enforcement-report-2014" target="_blank">here</a>.</b></p> <p><b>Contact:<br></b>Andrew Park<br>09 967 1215<br>021 220 6770<br><a href="mailto:Andrew.park@fma.govt.nz">Andrew.park@fma.govt.nz</a></p> http://www.fma.govt.nz/help-me-comply/anti-money-laundering-and-countering-financing-of-terrorism-reporting-entities/annual-amlcft-reporting/ Annual AML/CFT reporting 2014-09-24 10:30:04 Financial Markets Authority <h3><strong>Annual AML/CFT reports were due 30 August 2014</strong></h3> <p>Thank you for completing your first annual reports for the period 1 July 2013 – 30 June 2014.</p> <p>FMA</p> <p><strong> </strong></p> <h4><strong>What’s it all about?</strong></h4> <p>All reporting entities are required to prepare an annual report on their risk assessment and AML/CFT programme. The first report for the period of 1 July 2013 – 30 June 2014 must be submitted to FMA by 30 August 2014, in accordance with the AML/CFT Act 2009.</p> <p>Information from these reports will provide FMA with important information on our AML/CFT reporting entities and will help us:</p> <ul> <li>understand the risk of money laundering and financing of terrorism activities in our reporting entities</li> <li>ensure that information we have on our reporting entities is current</li> <li>determine the best use of our AML/CFT resources.</li> </ul> <p><strong>Submissions should only be made using our online system any time between 1 July 2014 and 30 August 2014.</strong></p> http://www.fma.govt.nz/help-me-comply/futures-dealers/who-needs-to-comply/ Who Needs to Comply 2014-09-22 10:33:05 Financial Markets Authority <p>Under the Securities Markets Act 1988 (the Act), anyone <em><strong>dealing</strong></em> in<em><strong> futures contracts</strong></em> must be authorised or approved.</p> <p>The Act defines a <a href="http://www.legislation.govt.nz/act/public/1988/0234/latest/DLM141755.html?search=ad_act__securities____25_ac%40bn%40rn%40dn%40apub%40aloc%40apri%40apro%40aimp%40bgov%40bloc%40bpri%40bmem%40rpub%40rimp_ac%40ainf%40anif%40bcur%40rinf%40rnif_h_aw_se&amp;p=1">futures contract</a> (section 37(1)). A key feature is that the contract must be able to be settled other than by delivery of the underlying commodity or index (sometimes referred to as 'net cash settled'). Futures contracts include most contracts for difference and margin foreign exchange products. Some swaps, options and forward contracts can be futures contracts depending on their terms.</p> <p>The Act also enables FMA to declare that other instruments are futures contracts. A person may ask FMA to make a declaration as to whether a particular type of contract is a futures contract, to provide certainty around the compliance obligations which apply. See here for more information on <a href="http://www.fma.govt.nz/help-me-comply/futures-dealers/who-needs-to-comply/declarations/">declarations</a>.</p> <p><a href="http://www.legislation.govt.nz/act/public/1988/0234/latest/DLM141755.html?search=ad_act__securities____25_ac%40bn%40rn%40dn%40apub%40aloc%40apri%40apro%40aimp%40bgov%40bloc%40bpri%40bmem%40rpub%40rimp_ac%40ainf%40anif%40bcur%40rinf%40rnif_h_aw_se&amp;p=1">Dealing</a> is widely defined (section 37(5)). For example, it includes offering to acquire or dispose of a futures contract on behalf of another person or advising or assisting a person to acquire or dispose of a futures contract. This means that advisers, introducing brokers, brokers, and issuers of futures contracts will require authorisation.</p> <p>The Act requires futures dealers to be authorised, regardless of whether they deal solely with wholesale clients or deal with retail clients. However, FMA does apply different conditions to wholesale futures dealers, see <a href="http://www.fma.govt.nz/help-me-comply/futures-dealers/your-obligations/">Your Obligations</a> page.</p> <h2>Overseas dealers</h2> <p>The Act does not specifically state the territorial limits of the requirements for authorisation. FMA interprets the Act as requiring authorisations in circumstances where the dealer either has a place of business in New Zealand from which it conducts all or part of its futures dealing business or where the dealer is soliciting business from New Zealand clients.</p> http://www.fma.govt.nz/keep-updated/newsroom/fma-updates/fma-update-15-september-2014 FMA Update - 15 September 2014 2014-09-17 13:43:18 Financial Markets Authority <h2>Rob Everett presented to the Institute of Directors (IoD)</h2> <p>The FMA’s Chief Executive, Rob Everett, was the guest speaker at IoD meetings in Auckland (August) and Wellington (September).  He outlined expectations on directors, made some observations about the pool of director talent in New Zealand and conflicts of duties and interests, and the Financial Markets Conduct Act 2013 and the opportunities it brings. You can see a video summary of his Auckland IoD speech on the <a href="http://www.fma.govt.nz/keep-updated/">FMA’s website</a>.</p> <h2>FMC licence application deadlines</h2> <p>The FMA is starting to receive licence applications for all new Financial Markets Conduct licence types and we’re encouraging potential applicants who are ready to apply to get in touch with us now.<br><br><strong>Cut-off date for derivative issuer licence applications is 1 October 2014</strong><br><br>If you’re issuing future dated foreign exchange contracts, forwards, swaps and/or options to retail clients, you may need a Derivatives Issuer Licence from 1 December 2014. The FMA’s application processing deadline is 1 October and any applications received after this date will face a higher risk of not being processed in time.<br><br>To check whether you need to apply, check our <a href="http://www.fma.govt.nz/assets/media/1054639/do-you-need-a-derivative-issuer-licence-from-1-december-2014.pdf" target="_blank">licensing flow chart</a>. The standard conditions that apply to licensees and information about other obligations that will apply (for example <a href="http://www.fma.govt.nz/help-me-comply/new-financial-reporting-requirements/">financial reporting obligations</a>) are also available on our website.</p> <h2>How new fair dealing provisions apply to advertising</h2> <p>If you’re an issuer or third party who advertises in order to promote offers, you should be aware of how fair dealing provisions under the Financial Markets Conduct Act 2013 apply to you.  See our <a href="http://www.fma.govt.nz/assets/fair-dealing-provisions-transitional-arrangements-for-advertising.pdf" target="_blank">information sheet</a> for the key things you need to know.</p> <h2>Current consultations</h2> <p>The FMA has two consultations currently underway:</p> <ul> <li><a href="http://www.fma.govt.nz/laws-we-enforce/policy/closed-consultations/consultation-paper-sipos-and-limit-breaks">Statement of Investment Policy and Objectives (SIPOs) and Limit Breaks</a><a href="http://www.fma.govt.nz/laws-we-enforce/policy/current-consultations/consultation-paper-sipos-and-limit-breaks/"></a> – closes Friday 26 September.</li> <li><a href="http://www.fma.govt.nz/laws-we-enforce/policy/closed-consultations/consultation-paper-derivatives-issuer-standard-condition-on-suitability">Derivatives Issuers Standard Condition on Suitability</a> – closes Monday 29 September.</li> </ul> <p>We welcome your comments and feedback.</p> <h2>Less than 15 days left for AFAs to complete their Information Return!</h2> <p>As part of the new regulatory reporting obligations, all Authorised Financial Advisers (AFAs) must complete an <a href="http://www.fma.govt.nz/help-me-comply/financial-advisers/your-obligations/regulatory-reporting-guide/afa-information-return/">Information Return</a> by <strong>5pm Tuesday 30 September</strong>.<br><br>All Returns must be submitted online, <strong>so if you’re an AFA</strong>, why not <a href="http://financialmarketsauthority.cmail1.com/t/r-l-mhrhdkl-wbtdddg-n/"><strong>get started now</strong></a>?  If you have any questions see our <a href="http://www.fma.govt.nz/help-me-comply/financial-advisers/your-obligations/regulatory-reporting-guide/frequently-asked-questions/">FAQs</a> or email <a href="mailto:questions@fma.govt.nz">questions@fma.govt.nz</a>, or you can call us on 0800 434 567.</p> <h2>AFA and QFE monitoring</h2> <p>In our newly released AFA and QFE Monitoring reports, we talk about our key findings and observations during our on-site visits and wider monitoring of AFA and QFE practices.  Click on the links to read our reports.</p> <ul> <li><a href="http://www.fma.govt.nz/keep-updated/reports-and-papers/authorised-financial-advisers-monitoring-report-2014">AFA Monitoring Report</a></li> <li><a href="http://www.fma.govt.nz/keep-updated/reports-and-papers/qualifying-financial-entities-monitoring-report-2014">QFE Monitoring Report</a></li> </ul> <h2>FMA media releases issued over the last month</h2> <ul> <li><a href="http://www.fma.govt.nz/keep-updated/newsroom/media-releases/2014/directors-fined-for-not-filing-financial-statements">Directors fined for not filing financial statements</a></li> <li><a href="http://www.fma.govt.nz/keep-updated/newsroom/media-releases/2014/fma-talking-investment-risk-for-money-week">FMA talking investment risk for Money Week</a></li> <li><a href="http://www.fma.govt.nz/keep-updated/newsroom/media-releases/2014/fma-files-civil-proceedings-against-trustee">FMA files civil proceedings against trustee</a></li> <li><a href="http://www.fma.govt.nz/keep-updated/newsroom/media-releases/2014/strategic-finance-settlement-proceeds-to-first-distribution">Strategic Finance settlement proceeds to first distribution</a></li> </ul> <h2>Previous FMA news updates</h2> <ul> <li><a href="http://www.fma.govt.nz/keep-updated/newsroom/afa-updates/financial-markets-authority-afa-update-issue-28">AFA Update; Issue No. 28</a></li> <li><a href="http://www.fma.govt.nz/keep-updated/newsroom/afa-updates/financial-markets-authority-afa-update-issue-27">AFA Update; Issue No. 27</a></li> </ul> http://www.fma.govt.nz/keep-updated/newsroom/afa-updates/financial-markets-authority-afa-update-issue-29 Financial Markets Authority AFA Update: Issue # 29 2014-09-17 13:13:14 Financial Markets Authority <h2>FMA releases latest AFA and QFE Monitoring Reports</h2> <p>The latest QFE and AFA Monitoring Reports have just been released and available to read.<br><br><a href="http://www.fma.govt.nz/keep-updated/reports-and-papers/authorised-financial-advisers-monitoring-report-2014">Authorised Financial Advisers Monitoring Report 2014</a><br><br><a href="http://www.fma.govt.nz/keep-updated/reports-and-papers/qualifying-financial-entities-monitoring-report-2014">Qualifying Financial Entities Monitoring Report 2014</a></p> <p> </p> <h2>Top tips to help complete your AFA Information Return</h2> <p><strong>Only 15 days left to complete your Information Return!</strong><br><br>Thank you to those AFAs who have already completed their Information Returns. For those who still need to submit theirs, you have only <strong>15 days left</strong> to complete yours.<br><br>You can access the Information Return via our <a href="http://www.fma.govt.nz/help-me-comply/financial-advisers/your-obligations/regulatory-reporting-guide/frequently-asked-questions/">website</a> or use this <a href="http://financialmarketsauthority.cmail1.com/t/r-l-mhrhjut-ijljtijtid-o/">link</a> and to help you complete yours on time we have listed some top tips below.</p> <ol> <li><strong>Check</strong> you have your <a href="http://financialmarketsauthority.cmail1.com/t/r-l-mhrhjut-ijljtijtid-b/">RealMe</a> login details and <strong>individual </strong><a href="http://financialmarketsauthority.cmail1.com/t/r-l-mhrhjut-ijljtijtid-n/">FSP</a> number (and if required your entity FSP number).  After you login, it is your<strong> individual </strong>FSP number that you are required to input.  When typing in your FSP number(s) you will need to enter the letters "FSP" followed by your number - e.g. FSP1234, then click on the green button "validate FSP number". </li> <li><strong>Ensure you select all financial adviser service categories</strong> relevant to you when you complete your Information Return. This is because <strong>you</strong> <strong>cannot edit </strong>those categories once you have started.  Refer to <a href="http://www.fma.govt.nz/help-me-comply/financial-advisers/your-obligations/regulatory-reporting-guide/frequently-asked-questions/">FAQ 23</a> for more information.</li> <li><strong>Review and make any corrections to your Information Return before filing.</strong> If you do notice a mistake after you have filed your Return, you can complete your Return again and re-submit.  Refer to <a href="http://www.fma.govt.nz/help-me-comply/financial-advisers/your-obligations/regulatory-reporting-guide/frequently-asked-questions/">FAQ 19</a> for more information.</li> </ol> <p><strong>Remember, all Returns must be submitted online by 5pm Tuesday 30 September so <a href="http://financialmarketsauthority.cmail1.com/t/r-l-mhrhjut-ijljtijtid-m/">get started now</a>. </strong> If you have any questions then please check our <a href="http://www.fma.govt.nz/help-me-comply/financial-advisers/your-obligations/regulatory-reporting-guide/frequently-asked-questions/">FAQs</a> first. Otherwise please email your question to <a href="mailto:questions@fma.govt.nz">questions@fma.govt.nz</a> or call us on 0800 434 567.</p> http://www.fma.govt.nz/help-me-comply/kiwisaver/monitoring-and-surveillance/ Monitoring and Surveillance 2014-09-12 16:41:49 Financial Markets Authority <p>FMA monitors that KiwiSaver Schemes are compliant with their <a href="http://www.fma.govt.nz/help-me-comply/kiwisaver/your-obligations/">obligations</a>.</p> <p>KiwiSaver is a key priority area for FMA's monitoring and surveillance (see FMA's <a href="http://www.fma.govt.nz/assets/media/1513558/fma-s-compliance-focus-for-2013.pdf" target="_blank">Compliance Focus for 2013</a>). Participants involved in KiwiSaver management and oversight must ensure they meet regulatory standards and act with customer interests in mind.</p> <p>See the most recent <a href="http://www.fma.govt.nz/help-me-comply/kiwisaver/monitoring-and-surveillance/kiwisaver-reports/">KiwiSaver report</a>.</p> <p>See guidance notes on KiwiSaver <a href="http://www.fma.govt.nz/help-me-comply/kiwisaver/guidance-notes/">here</a>.</p> <h2>Trustee supervision</h2> <p><a href="http://www.fma.govt.nz/help-me-comply/licensed-independent-trustees/">Trustees</a> (for non-restricted KiwiSaver schemes) also have a responsibility as front-line supervisors for monitoring the management and administration of these schemes.</p> <h3>FMA's focus areas</h3> <p><strong>Investments -</strong> Managers must exercise care, diligence and skill in the investment of scheme assets, and act in accordance with the stated investment policy and objectives. In 2013 we completed our initial review of how KiwiSaver trustees monitor the investment activities of managers, with a focus on processes and controls. The review resulted in FMA issuing a <a href="http://www.fma.govt.nz/help-me-comply/kiwisaver/guidance-notes/guidance-note-monitoring-investment-risk-in-kiwisaver-schemes/">guidance note to KiwiSaver Trustees</a> and identified what further monitoring work should be undertaken.</p> <p><strong>Unit Pricing -</strong> Unit pricing errors can have adverse implications for investors. FMA will consider how KiwiSaver scheme trustees monitor managers' pricing activities.</p> <p><strong>Disclosure -</strong> FMA will review KiwiSaver scheme offer documents in conjunction with the statement of investment policy and objectives to test whether: investment strategies are appropriately disclosed, and disclosure documents are understandable to investors.</p> <p>Our <a href="http://www.fma.govt.nz/help-me-comply/issuers/financial-reporting-updates-and-guidance-notes/guidance-note-effective-disclosure/">Effective Disclosure</a> guidance for issuers highlights the need for product transparency from the perspective of a prudent but non-expert investor. As part of our 2013 work programme, we will monitor how issuers adapt to our guidance.</p> <p><strong>Fees -</strong> Two new sets of requirements aim to increase transparency of fees and allow easier comparison between schemes. Once implemented, we will monitor compliance with these new requirements, which include quarterly reporting on fees to members and fee disclosure in trustee annual reports. After a period of 'settling in' of the <a href="http://www.fma.govt.nz/help-me-comply/kiwisaver/guidance-notes/guidance-note-kiwisaver-performance-fees/">Guidance Note: KiwiSaver Performance Fees</a>, we will undertake a review to determine to what extent this guidance is being met.</p> <p><strong>KiwiSaver scheme trustees</strong> - Trustees' responsibility as front-line supervisors is crucial to the effective operation of KiwiSaver schemes. We will include a focus on KiwiSaver as part of our ongoing monitoring of trustees. FMA will also work to clarify our expectations of trustees in respect of KiwiSaver schemes.</p> <p><strong>Advice</strong> - FMA has already issued guidance on <a href="http://www.fma.govt.nz/help-me-comply/kiwisaver/guidance-notes/guidance-note-kiwisaver-distribution-and-disclosure/">KiwiSaver sales and distribution</a> and will monitor how distributors adjust to the guidance. We expect distributors to monitor sales practices and avoid inappropriate customer incentives. We will issue information for customers on the selection of non-advice or advice services in response to feedback and will take action in the event of mis-selling.</p> <p>See other guidance notes on KiwiSaver <a href="http://www.fma.govt.nz/help-me-comply/kiwisaver/guidance-notes/">here</a>.</p> http://www.fma.govt.nz/help-me-comply/financial-advisers/how-to-get-licensed/afa-application-resources-and-templates/authorised-financial-advisers-cancellations-terminations-and-suspensions/ Authorised Financial Advisers cancellations, terminations and suspensions 2014-09-12 16:41:12 Financial Markets Authority <p>The Financial Markets Authority (FMA) publishes this information for public use. The obligation for updating Authorised Financial Adviser (AFA) details on the Financial Service Providers Register (FSPR) is the responsibility of the AFA, not FMA.</p> <p>You can visit the <a href="http://www.fspr.govt.nz">www.fspr.govt.nz</a> to review the Register.</p> <table> <tbody> <tr> <td> <h3>AFA Name</h3> </td> <td> <h3>Suspension period</h3> </td> <td> <h3>AFA termination date</h3> </td> </tr> <tr> <td>ROSS, David Robert Gilmor</td> <td>17 December 2012 - 17 June 2013</td> <td>22 February 2013</td> </tr> <tr> <td>BOURKE-SHAW, Rodney Ian</td> <td>19 February 2013 - 19 June 2013</td> <td>8 April 2013</td> </tr> </tbody> </table> http://www.fma.govt.nz/laws-we-enforce/legislation/notices/designated-settlement-systems/ Designated Settlement Systems 2014-09-12 16:40:16 Financial Markets Authority <table class="dss"><caption><strong>NZCDC Settlement System</strong></caption> <tbody> <tr> <td><strong>Name:</strong></td> <td><span>Mandy Simpson</span></td> </tr> <tr> <td><strong>Title:</strong></td> <td>Chief Operating Officer and Head of Risk, New Zealand Clearing and Depository Corporation Limited</td> </tr> <tr> <td><strong>Contact Details:</strong></td> <td> <p>Level 2, NZX Centre 11 Cable Street PO Box 2959 Wellington</p> Telephone: +64 4 472 7599<br><br>Facsimile: +64 4 496 2893<br><br> <p><a href="mailto:clearing@nzx.com">clearing@nzx.com</a></p> </td> </tr> </tbody> </table> http://www.fma.govt.nz/laws-we-enforce/enforcement/orders-reports-and-outcomes/wood-vs-financial-markets-authority Wood vs Financial Markets Authority 2014-09-12 16:38:18 Financial Markets Authority http://www.fma.govt.nz/keep-updated/newsroom/media-releases/2014/directors-fined-for-not-filing-financial-statements Directors fined for not filing financial statements 2014-09-12 16:38:07 Financial Markets Authority <p><strong>Media release<br></strong><strong>MR No. 2014 – 029<br>11 September 2014</strong></p> <p>Directors Hayden George Jones and Thomas Alexander George Jones have been fined $35,000 each for breaches of the Financial Reporting Act 1993 (the FRA). The Financial Markets Authority (FMA) brought charges on four counts against both directors for failing to file financial statements. Sentencing was heard at the Christchurch District Court today.</p> <p>The directors did not file financial statements for two companies, Heritage Park Taupo Limited and Prudential Real Estate Investment Limited (PREIL), for the years ending 31 March 2012 and 2013. PREIL is also the offeror and manager of two proportionate ownership schemes: Kaipara Harbour Proportionate Scheme and Investment 179 Proportionate Scheme, which also failed to file financial statements. Failure to file statements for these two schemes is the basis for the charges against PREIL. The directors pleaded guilty to breaches of sections 18 and 38 of the FRA.</p> <p>Belinda Moffat, FMA Director of Enforcement and Investigations said, “This sentence sends a strong signal to companies raising funds from the public that the FMA will take strong action when companies persistently fail to meet their obligations.  We expect issuers of securities to file their financial statements in an accurate and timely way.”</p> <p>“The information provided in these statements helps investors assess the financial health of a company. Investors also need this information to make decisions about the balance of assets in their entire investment portfolio. The regulators require the information to oversee and monitor firms that issue securities to the public,” said Ms Moffat.</p> <p>Hayden and Thomas Jones were also parties in the FMA case against Prudential Mortgage Limited. They are directors of the companies convicted and fined $2,000 in March 2014 for failing to file an annual report for the contributory mortgage broking firm.</p> <p>There are two further cases now remaining before the courts following the FMA’s review of compliance with the Financial Reporting Act 1993.</p> <p>For more information about FMA’s review into non-filing of financial statements visit <a href="http://www.fma.govt.nz/keep-updated/newsroom/media-releases/2014/consequences-for-failing-to-comply-with-financial-statement-filing-obligations">fma.govt.nz</a></p> <p>ENDS</p> <p><strong>Contact:<br></strong>Andrew Park<br>09 967 1215<br>021 220 6770<br><a href="mailto:Andrew.park@fma.govt.nz">Andrew.park@fma.govt.nz</a></p> http://www.fma.govt.nz/keep-updated/the-future-of-financial-markets/frequently-asked-questions/ Frequently Asked Questions 2014-09-12 11:08:09 Financial Markets Authority <p>These frequently asked questions (FAQs) will be updated as further details around the Regulations are confirmed.</p> <p><em>Last updated 14 August 2014</em></p> <h2> </h2> <h2>What is the Financial Markets Conduct Act?</h2> <p>The Financial Markets Conduct Act 2013 (FMC Act) aims to promote and facilitate the development of fair, efficient, and transparent financial markets and to promote the confident and informed participation of businesses, investors and consumers in the financial markets. The Act is the result of a comprehensive review of securities law and builds on recommendations from the Capital Markets Taskforce, effects of the global financial crisis and the failure of finance companies.</p> <p><strong>See also:</strong></p> <ul> <li><a href="http://www.fma.govt.nz/keep-updated/the-future-of-financial-markets/whats-changing/">What's changing in New Zealand's financial markets?</a></li> <li><a href="http://www.fma.govt.nz/keep-updated/the-future-of-financial-markets/the-history-of-changes/">What's the history of these changes?</a></li> </ul> <h2> </h2> <h2>How will the financial market changes impact me?</h2> <p>The impact of these changes will vary for each market participant. For some, there will be new licence and governance requirements for particular financial products. However, there are changes that will impact every participant, such as new disclosure requirements for offers of financial products.</p> <p>FMA is working with the Ministry of Business, Innovation and Employment (MBIE) to develop the Regulations. We will update you on our progress and, if appropriate, outline any actions you can take to prepare for the new regime.</p> <p><strong>See also:</strong></p> <ul> <li><a href="http://www.fma.govt.nz/keep-updated/the-future-of-financial-markets/whats-changing/">What's changing?</a></li> <li><a href="http://www.fma.govt.nz/keep-updated/the-future-of-financial-markets/timeline-for-change/">Timeline for change?</a></li> <li><a href="http://www.fma.govt.nz/keep-updated/the-future-of-financial-markets/how-can-i-get-involved/">How can I get involved?</a></li> <li><a href="http://www.fma.govt.nz/keep-updated/the-future-of-financial-markets/when-will-you-need-to-comply/">When will you need to comply?</a></li> <li><a href="http://www.fma.govt.nz/keep-updated/the-future-of-financial-markets/useful-links/">Useful links?</a></li> </ul> http://www.fma.govt.nz/keep-updated/the-future-of-financial-markets/whats-changing/ What's Changing? 2014-09-12 11:07:08 Financial Markets Authority <p>The Financial Markets Conduct Act 2013 (FMC Act) will replace most of New Zealand's existing financial markets conduct law and will come into effect over a period beginning on 1 April 2014 through to 1 December 2016.</p> <p>Here you can find more information about what's changing and other key aspects of the new regime that may impact you or your business.</p> <ul> <li><a href="http://www.fma.govt.nz/help-me-comply/new-licences-for-financial-market-services/">New licences under the FMC Act</a></li> <li><a href="http://www.fma.govt.nz/help-me-comply/new-financial-reporting-requirements/">New financial reporting requirements</a></li> <li><a href="http://www.fma.govt.nz/about-us/contact-us/make-a-complaint/the-range-of-complaints-we-deal-with/fair-dealing/">Fair dealing under the FMC Act 2013</a></li> <li><a title="when will you need to comply?" href="http://www.fma.govt.nz/keep-updated/the-future-of-financial-markets/when-will-you-need-to-comply/">Transitioning to the new regime - when will you need to comply?</a></li> <li><a href="http://www.fma.govt.nz/help-me-comply/issuers/who-needs-to-comply/new-securities-act-exemptions-effective-1-april-2014/">New Securities Act disclosure exemptions effective from 1 April 2014</a></li> <li><a title="New Public Registers" href="http://www.fma.govt.nz/keep-updated/the-future-of-financial-markets/whats-changing/new-public-registers/">New public registers</a> (1 December 2014)</li> <li><a href="http://www.fma.govt.nz/help-me-comply/new-accountability-framework-for-financial-products/">New governance and accountability framework for financial products</a> (1 December 2014)</li> <li>New disclosure requirements for offers of financial products (1 December 2014) – keep an eye out for updates. </li> </ul> <h3> </h3> <h2><strong>What can I do now?</strong></h2> <p>Take the time now to familiarise yourself with the legislation. You can find all the key documents and reports in the '<a href="http://www.fma.govt.nz/keep-updated/the-future-of-financial-markets/useful-links/">Useful Links</a>' section.</p> <p>Market participants also need to start thinking about the new requirements and 'readiness' of their own operations, such as whether you'll need to be licensed, and for what services, how you might need to address new disclosure rules or new governance/accountability requirements and, crucially, by when.</p> <h2> </h2> <h2 class="withlink"><a href="http://www.talktous.fma.govt.nz/">Talk to us</a></h2> <p>Last year we launched a new website <a href="http://www.talktous.fma.govt.nz/">www.talktous.fma.govt.nz</a> to give New Zealanders the opportunity to share your thoughts and tell us what you think is important for the future of New Zealand?s financial markets.</p> <p>On the site we ask for your feedback on our proposals from time to time, but you can also ask us questions about any of the future changes.</p> <p>You can also see what FMA is <a title="Current Consultations" href="http://www.fma.govt.nz/laws-we-enforce/policy/current-consultations/">currently consulting</a> on and provide feedback.</p> <h2> </h2> <h2>Find out more</h2> <p>To receive regular news on consultations and guidance you can subscribe to our email '<a href="http://www.fma.govt.nz/keep-updated/subscribe-to-updates/">Updates</a>'.</p> <p>You can also <a href="http://www.fma.govt.nz/about-us/contact-us/">contact us</a><a href="http://www.fma.govt.nz/about-us/contact-us/"></a>. If you're emailing a comment or question, please refer to FMC in your message heading.</p> http://www.fma.govt.nz/laws-we-enforce/registers/list-of-qualifying-financial-entities-qfe/ List of Qualifying Financial Entities (QFE) 2014-09-12 10:56:00 Financial Markets Authority <table class="advisers"><caption>56 entity groups currently have Qualifying Financial Entity status. For a QFE's business address and list of services visit <a href="http://www.fspr.govt.nz">www.fspr.govt.nz</a>. For previously licensed QFE entities see file attachment below.</caption> <thead> <tr><th>FSP No.</th><th>Entity (company or partner)</th><th>Group name</th><th>Associated entities</th></tr> </thead> <tbody> <tr> <td> <p>FSP36405</p> </td> <td> <p>ANZ Bank New Zealand Limited</p> <p><em>Previously ANZ National Bank Limited</em></p> </td> <td> <p>ANZ New Zealand QFE Group</p> </td> <td>ANZ New Zealand Securities Limited (FSP32943)<br><br><em>Previously Direct Broking Limited</em><br><br>UDC Finance Limited (FSP27147)<br>ANZ Investment Services (New Zealand) Limited (FSP32942)<br>ANZ New Zealand Investments Limited (FSP33221)<br><em><br>Previously OnePath (NZ) Limited</em><br><br>OnePath Life (NZ) Limited (FSP33242)<br>OnePath Insurance Services (NZ) Limited (FSP33261)</td> </tr> <tr> <td> <p>FSP29003</p> </td> <td> <p>ASB Bank Limited</p> </td> <td> <p>ASB Bank QFE Group</p> </td> <td>ASB Group Investments Limited (FSP29024)<br>ASB Securities Limited (FSP29162)<br>AEGIS Limited (FSP29025)<br>Commonwealth Bank of Australia (FSP29223)</td> </tr> <tr> <td>FSP21661</td> <td>Fisher and Paykel Finance Limited</td> <td>The Fisher and Paykel Finance QFE Group</td> <td>Fisher and Paykel Financial Services Limited (FSP33225) <p>Retail Financial Services Limited (FSP34723)</p> <p>Equipment Finance Limited (FSP34762)</p> <p>Consumer Insurance Services Limited (FSP34784)</p> <p>Consumer Finance Limited (FSP30663)</p> </td> </tr> <tr> <td> <p>FSP38581</p> </td> <td> <p>Fisher Funds Management Limited</p> </td> <td> <p>Fisher Funds QFE Group</p> </td> <td> <p>TOWER Managed Funds Limited (FSP41483)</p> </td> </tr> <tr> <td> <p>FSP53921</p> </td> <td> <p>Heartland Bank Limited</p> <p><em>Previously Heartland Building Society</em></p> <p><em>Originally Combined Building Society</em></p> </td> <td> <p>Heartland QFE Group</p> <p><em>Previously Heartland Building Society QFE Group</em></p> <p><em>Originally Combined Building Society QFE Group</em></p> </td> <td> <p>MARAC Insurance Limited (FSP41941)</p> </td> </tr> <tr> <td>FSP67641</td> <td>IAG New Zealand Limited</td> <td>IAG New Zealand Limited QFE Group</td> <td>AMI Insurance Limited (FSP 195925)</td> </tr> <tr> <td>FSP19941</td> <td>Kiwibank Limited</td> <td>The Kiwibank QFE Group</td> <td>Gareth Morgan Investments Limited Partnership (FSP46781) Gareth Morgan KiwiSaver Limited (FSP46761)</td> </tr> <tr> <td> <p>FSP34501</p> </td> <td> <p>Prometheus Finance Limited</p> </td> <td> <p>Prometheus QFE Group</p> </td> <td> <p>Prometheus Social Lending Services Limited (FSP119525)</p> </td> </tr> <tr> <td> <p>FSP38642</p> </td> <td> <p>Sovereign Services Limited</p> </td> <td> <p>Sovereign QFE Group</p> </td> <td>Sovereign Assurance Company Limited (FSP39602)<br>Sovereign Superannuation Funds Limited (FSP39623)<br>Sovereign Superannuation Trustees Limited (FSP38641)</td> </tr> <tr> <td> <p>FSP36886</p> </td> <td> <p>The Hongkong and Shanghai Banking Corporation Limited</p> </td> <td> <p>The HSBC QFE Group</p> </td> <td> <p>HSBC Investments New Zealand Limited (FSP37008)</p> </td> </tr> <tr> <td><span style="background-color: #dddddd;">FSP105384</span></td> <td><span style="background-color: #dddddd;">TOWER New Zealand Limited</span></td> <td> <p>TOWER QFE Group</p> </td> <td>TOWER Insurance Limited (FSP41165)<br>TOWER Life (N.Z) Limited (FSP42605)</td> </tr> <tr> <td> <p>FSP35681</p> </td> <td> <p>Westpac New Zealand Limited</p> </td> <td> <p>Westpac NZ QFE Group</p> </td> <td><span style="background-color: #dddddd;">Westpac Banking Corporation (FSP36250)</span><br><span style="background-color: #dddddd;">Westpac Life-NZ-Limited (FSP32901)</span><br><span style="background-color: #dddddd;">BT Funds Management (NZ) Limited (FSP32662)</span></td> </tr> <tr> <td> <p>FSP 7741</p> </td> <td> <p>AA Insurance Limited</p> </td> <td> <p>N/A</p> </td> <td> <p>N/A</p> </td> </tr> <tr> <td> <p>FSP35924</p> </td> <td> <p>ACE Insurance Limited</p> </td> <td> <p>N/A</p> </td> <td> <p>N/A</p> </td> </tr> <tr> <td> <p>FSP39383</p> </td> <td> <p>AIA International Limited</p> <p><em>Previously American International Assurance Company (Bermuda) Limited</em></p> </td> <td> <p>N/A</p> </td> <td> <p>N/A</p> </td> </tr> <tr> <td> <p>FSP38082</p> </td> <td> <p>AMP Services (NZ) Limited</p> </td> <td> <p>N/A</p> </td> <td> <p>N/A</p> </td> </tr> <tr> <td> <p>FSP25081</p> </td> <td> <p>Asteron Life Limited</p> </td> <td> <p>N/A</p> </td> <td> <p>N/A</p> </td> </tr> <tr> <td> <p>FSP41821</p> </td> <td> <p>Avanti Finance Limited</p> </td> <td> <p>N/A</p> </td> <td> <p>N/A</p> </td> </tr> <tr> <td> <p>FSP25101</p> </td> <td> <p>Bank of New Zealand</p> </td> <td> <p>N/A</p> </td> <td> <p>N/A</p> </td> </tr> <tr> <td> <p>FSP27625</p> </td> <td> <p>CIGNA Life Insurance New Zealand Limited</p> </td> <td> <p>N/A</p> </td> <td> <p>N/A</p> </td> </tr> <tr> <td> <p>FSP13041</p> </td> <td> <p>Credit Union Auckland</p> </td> <td> <p>N/A</p> </td> <td> <p>N/A</p> </td> </tr> <tr> <td> <p>FSP27482</p> </td> <td> <p>Credit Union Baywide</p> </td> <td> <p>N/A</p> </td> <td> <p>N/A</p> </td> </tr> <tr> <td> <p>FSP16101</p> </td> <td> <p>Credit Union Central</p> </td> <td> <p>N/A</p> </td> <td> <p>N/A</p> </td> </tr> <tr> <td> <p>FSP27046</p> </td> <td> <p>Credit Union South</p> </td> <td> <p>N/A</p> </td> <td> <p>N/A</p> </td> </tr> <tr> <td> <p>FSP68182</p> </td> <td> <p>Farmers Mutual Group</p> </td> <td> <p>N/A</p> </td> <td> <p>N/A</p> </td> </tr> <tr> <td> <p>FSP42822</p> </td> <td> <p>Finance Now Limited</p> </td> <td> <p>N/A</p> </td> <td> <p>N/A</p> </td> </tr> <tr> <td> <p>FSP29785</p> </td> <td> <p>First Credit Union</p> </td> <td> <p>N/A</p> </td> <td> <p>N/A</p> </td> </tr> <tr> <td> <p>FSP24848</p> </td> <td> <p>Forsyth Barr Limited</p> </td> <td> <p>N/A</p> </td> <td> <p>N/A</p> </td> </tr> <tr> <td> <p>FSP11701</p> </td> <td> <p>GE Finance and Insurance</p> </td> <td> <p>N/A</p> </td> <td> <p>N/A</p> </td> </tr> <tr> <td> <p>FSP28142</p> </td> <td> <p>Grosvenor Investment Management Limited</p> </td> <td> <p>N/A</p> </td> <td> <p>N/A</p> </td> </tr> <tr> <td> <p>FSP26502</p> </td> <td> <p>Hawke's Bay Insurances Limited</p> </td> <td> <p>N/A</p> </td> <td> <p>N/A</p> </td> </tr> <tr> <td> <p>FSP20381</p> </td> <td> <p>Instant Finance Limited</p> <p><em>Previously Instant Finance NZ Limited</em></p> </td> <td> <p>N/A</p> </td> <td> <p>N/A</p> </td> </tr> <tr> <td> <p>FSP34047</p> </td> <td> <p>Jardine Lloyd Thompson Limited</p> </td> <td> <p>N/A</p> </td> <td> <p>N/A</p> </td> </tr> <tr> <td> <p>FSP19261</p> </td> <td> <p>Kookmin Bank</p> </td> <td> <p>N/A</p> </td> <td> <p>N/A</p> </td> </tr> <tr> <td> <p>FSP26147</p> </td> <td> <p>Lumley General Insurance (N.Z.) Limited</p> </td> <td> <p>N/A</p> </td> <td> <p>N/A</p> </td> </tr> <tr> <td> <p>FSP35849</p> </td> <td> <p>Medical Assurance Society New Zealand Limited</p> </td> <td> <p>N/A</p> </td> <td> <p>N/A</p> </td> </tr> <tr> <td> <p>FSP42742</p> </td> <td> <p>Mercer (N.Z.) Limited</p> </td> <td> <p>N/A</p> </td> <td> <p>N/A</p> </td> </tr> <tr> <td> <p>FSP26831</p> </td> <td> <p>Motor Trade Finances Limited</p> </td> <td> <p>N/A</p> </td> <td> <p>N/A</p> </td> </tr> <tr> <td> <p>FSP33381</p> </td> <td> <p>Nelson Building Society</p> </td> <td> <p>N/A</p> </td> <td> <p>N/A</p> </td> </tr> <tr> <td>FSP42705</td> <td> <p>nib nz limited</p> <p><em>Previously TOWER MedicalInsurance Limited</em></p> </td> <td>N/A</td> <td>N/A</td> </tr> <tr> <td> <p>FSP116487</p> </td> <td> <p>Oxford Finance Limited</p> </td> <td> <p>N/A</p> </td> <td> <p>N/A</p> </td> </tr> <tr> <td> <p>FSP110887</p> </td> <td> <p>Partners Life Limited</p> </td> <td> <p>N/A</p> </td> <td> <p>N/A</p> </td> </tr> <tr> <td> <p>FSP88443</p> </td> <td> <p>QBE Insurance (International) Limited</p> </td> <td> <p>N/A</p> </td> <td> <p>N/A</p> </td> </tr> <tr> <td>FSP38761</td> <td> <p>Runacres and Associates Limited</p> <p><em>Previously Anthony Runacres and Associates Limited</em></p> </td> <td>N/A</td> <td>N/A</td> </tr> <tr> <td> <p>FSP25143</p> </td> <td> <p>Smithcorp Finance Limited</p> </td> <td> <p>N/A</p> </td> <td> <p>N/A</p> </td> </tr> <tr> <td> <p>FSP43787</p> </td> <td> <p>Southern Cross Medical Care Society</p> </td> <td> <p>N/A</p> </td> <td> <p>N/A</p> </td> </tr> <tr> <td> <p>FSP30921</p> </td> <td> <p>Southland Building Society</p> </td> <td> <p>N/A</p> </td> <td> <p>N/A</p> </td> </tr> <tr> <td> <p>FSP26061</p> </td> <td> <p>Spicers Portfolio Management Limited</p> </td> <td> <p>N/A</p> </td> <td> <p>N/A</p> </td> </tr> <tr> <td> <p>FSP37128</p> </td> <td> <p>Steelsands Credit Union</p> </td> <td> <p>N/A</p> </td> <td> <p>N/A</p> </td> </tr> <tr> <td> <p>FSP105832</p> </td> <td> <p>Telnet Services Limited</p> </td> <td> <p>N/A</p> </td> <td> <p>N/A</p> </td> </tr> <tr> <td> <p>FSP17605</p> </td> <td> <p>The Co-operative Bank Limited</p> <p><em>Previously PSIS Limited</em></p> </td> <td> <p>N/A</p> </td> <td> <p>N/A</p> </td> </tr> <tr> <td> <p>FSP41189</p> </td> <td> <p>The New Zealand Automobile Association Inc</p> </td> <td> <p>N/A</p> </td> <td> <p>N/A</p> </td> </tr> <tr> <td> <p>FSP33501</p> </td> <td> <p>The New Zealand Guardian Trust Company Limited</p> </td> <td> <p>N/A</p> </td> <td> <p>N/A</p> </td> </tr> <tr> <td> <p>FSP39861</p> </td> <td> <p>Thorn Rentals NZ Limited</p> </td> <td> <p>N/A</p> </td> <td> <p>N/A</p> </td> </tr> <tr> <td> <p>FSP22621</p> </td> <td> <p>TSB Bank Limited</p> </td> <td> <p>N/A</p> </td> <td> <p>N/A</p> </td> </tr> <tr> <td> <p>FSP35932</p> </td> <td> <p>Westforce Credit Union</p> </td> <td> <p>N/A</p> </td> <td> <p>N/A</p> </td> </tr> </tbody> </table> <div id="file-attachments"> <h2>File Attachments</h2> <ul> <li><a href="http://www.fma.govt.nz/assets/Current-QFE-List.pdf" target="_blank">Current QFE List (25 kB pdf)</a></li> <li><a href="http://www.fma.govt.nz/assets/Current-QFE-List.pdf" target="_blank">Previous QFE List (17 kB pdf)</a><a href="http://www.fma.govt.nz/assets/media/1623870/previous-qfe-list.pdf" target="_blank"></a></li> </ul> </div> http://www.fma.govt.nz/help-me-comply/financial-advisers/your-obligations/authorised-financial-advisers-obligations/code-of-professional-conduct-for-afas/ Code of Professional Conduct for Authorised Financial Advisers 2014-09-12 10:51:00 Financial Markets Authority <p> </p> <p><a href="http://www.fma.govt.nz/assets/media/1946311/code-of-professional-conduct-for-afas.pdf" target="_blank"><img title="Code of Conduct 2014" src="http://www.fma.govt.nz/assets/media/1978670/code-of-conduct-image-159x226.jpg" alt="Code of Conduct 2014"></a> <a href="http://www.fma.govt.nz/assets/Code-of-Professional-Conduct-for-AFAs/Code-of-Professional-Conduct-Flyer-2014.pdf" target="_blank"><img title="Code of Conduct flyer" src="http://www.fma.govt.nz/assets/media/1982487/code-of-conduct-flyer-159x225.jpg" alt="Code of Conduct flyer"></a></p> <p>Changes to the Code of Professional Conduct for Authorised Financial Advisers (AFAs) came into effect 1 May 2014.  If you're an AFA you need to familiarise yourself with all of the changes.  A summary of the key changes can be viewed <a href="http://www.fma.govt.nz/assets/Code-of-Professional-Conduct-for-AFAs/Code-of-Professional-Conduct-Flyer-2014.pdf" target="_blank">here</a> or if you would like to download a copy of the revised Code click <a href="http://www.fma.govt.nz/assets/media/1946311/code-of-professional-conduct-for-afas.pdf" target="_blank">here</a>. Bound printed copies are available by <a href="http://www.fma.govt.nz/about-us/contact-us/ask-a-question/ask-a-question/">contacting us directly</a>. </p> <p>The Code of Professional Conduct for Authorised Financial Advisers (AFAs) applies to all AFAs from the date of their authorisation and while they remain authorised. It is also the benchmark for the conduct of Qualifying Financial Entities (QFE) advisers who are generally expected to demonstrate a similar standard of behaviour to AFAs for similar work.</p> <p>AFAs are required to meet the minimum standards of professional conduct set out in the Code:</p> <ul> <li>ethical behaviour: Code standards 1 to 5</li> <li>client care: Code standards 6 to 13</li> <li>competence: Code standards 14 to 18 and Competence Alternatives Schedule. This includes requirements for continuing professional training to maintain their competence and keep up to date with developments relevant to their business. AFAs must also maintain a professional development plan.</li> </ul> <p>AFAs must comply with all applicable laws, whether or not referred to in the Code.</p> http://www.fma.govt.nz/keep-updated/newsroom/media-releases/2014/fma-talking-investment-risk-for-money-week FMA talking investment risk for Money Week 2014-09-12 09:15:45 Financial Markets Authority <p><strong>Media release<br></strong><strong>MR No. 2014 – 028<br>8 September 2014</strong></p> <p>The Financial Markets Authority (FMA) today announced its plans for this year's Money Week from October 13-19 2014. The FMA will be hosting a panel discussion to promote greater understanding of investment risk.</p> <p>The theme for this year's Money Week is getting your money fighting fit and the FMA will be hosting a 'Heavy Weight Debate' at St Matthew's Church, Auckland, Thursday 16 October 2014, 5:30 -7pm.</p> <p>The panel discussion will ask whether New Zealanders are any good at understanding risk.  The panel aims to help investors and consumers understand more about risk, a subject which many investors often find challenging. The event is free and open to the public.</p> <p>The panel will feature Rob Everett, CEO FMA; renowned author and investor advocate Mary Holm; John Body, Managing Director ANZ Wealth, the nation’s largest KiwiSaver provider and Martin Hawes respected commentator and authorised financial adviser.</p> <p>Chairing the panel is broadcaster Wallace Chapman from TV’s “Backbenches” programme and Radio New Zealand.</p> <p>Understanding more about the risks as well as the benefits of investing is an important aspect of encouraging confident and informed investors. The Financial Markets Authority Act 2011 gives the FMA a mandate to provide public information and education on New Zealand’s capital markets.</p> <p>Simone Robbers, FMA’s Head of Primary Markets and Investor Resources, said “New Zealanders seem to be more comfortable chatting about mortgage interest rates around the barbecue than discussing their investment risk profile or the type of KiwiSaver fund they are in. We want to help get people talking about their savings and investments in Money Week.”</p> <p>Money Week is a major nationwide initiative from the Commission for Financial Literacy and Retirement Income. Now in its third year, the week of activities is focused on raising awareness about personal money matters and motivating New Zealanders to assess their financial situation.</p> <p>“The FMA is really pleased to be contributing to Money Week and raising the profile of what’s available for investor resources. We want to help investors be able to make more informed decisions. Well-informed investors are likely to make more appropriate choices, and understanding your investment risk profile has a big impact on these decisions,” said Ms Robbers.</p> <p>As well as hosting the debate, the FMA will be releasing research into Kiwis’ attitudes and understanding of investment risk at the start of Money Week.</p> <p><strong>To find out more and attend the event email <a href="mailto:events@fma.govt.nz">events@fma.govt.nz</a> - <em>limited seats available, entry is free to the public.</em></strong></p> <p>Find out more about <a href="http://moneyweek.org.nz/event/money-week-fma-heavyweight-debate">Money Week</a>.</p> <p>Follow FMA on <a href="https://twitter.com/FMAmedia">twitter</a>.</p> <p>Follow Money Week on <a href="https://twitter.com/MoneyWeekNZ">twitter</a>.</p> <p><strong>Contact:<br></strong>Andrew Park<br>09 967 1215<br>021 220 6770<br><a href="mailto:Andrew.park@fma.govt.nz">Andrew.park@fma.govt.nz</a></p> http://www.fma.govt.nz/help-me-invest/investing-basics/choosing-your-investments/ Choosing Your Investments 2014-09-11 10:44:36 Financial Markets Authority <div> <h2><a id="Typical short-term portfolio (1-3 years)" name="Typical%20short-term%20portfolio%20(1-3%20years)"></a>Typical short-term portfolio (1-3 years)</h2> <p>In our <a href="https://www.moneysmart.gov.au/investing/investing-basics/risk-and-return/case-study-short-term-saving" target="_blank">case study on short-term saving</a>, Isabel's goal was to save for a house within 2 years. Similar short-term goals include saving for a holiday, an education course, a wedding or home renovations. You want investments with:</p> </div> <ul> <li>Risk - no risk of losing your money</li> <li>Volatility - very low risk that the value of your savings will drop</li> <li>Expected return - Typically lower returns but usually guaranteed.</li> </ul> <p>Suitable products could be:</p> <ul> <li>Online savings account (if you could need the cash at any time).  Interest rates will vary between financial institutions like a bank, so always do some research first.</li> <li>Term deposit (if you know how long your money can be locked away). Don't let it rollover automatically as it may not be in your best interests</li> </ul> <p>These products could be suitable because the money is available when you need it but still gives a reasonable return.</p> <p>Ask yourself:</p> <ul> <li>How quickly will I be able to get my money when I need it?</li> <li>Is it easy to add more savings?</li> <li>Am I getting a good interest rate?</li> </ul> <div> <h2><a id="Typical medium-term portfolio (4-9 years)" name="Typical%20medium-term%20portfolio%20(4-9%20years)"></a> Typical medium-term portfolio (4-9 years)</h2> <p>In the <a href="https://www.moneysmart.gov.au/investing/investing-basics/risk-and-return/case-study-medium-term-saving" target="_blank">case study on medium-term saving</a>, Clare invested money in a managed fund so her daughter would have a small nest egg when she finished secondary school. Medium-term investors like Clare should look for investments with:</p> </div> <ul> <li>Risk - low- to medium-level possibility of losing money</li> <li>Volatility - medium; capital value could go up or down 20% in a year</li> <li>Expected return - Typically more than, say an online savings account but it also has the potential for loss.</li> </ul> <p>A suitable product could be a balanced investment option in a <a href="http://www.fma.govt.nz/help-me-invest/types-of-investments/managed-funds/">managed fund</a>. If your timeframe is closer to 4 years, a more conservative investment option may be suitable.</p> <p>This could be suitable because:</p> <ul> <li>It is expected to provide better returns than a bank account over the same period</li> <li>Any short-term periods of negative returns should grow back over the period that you are investing</li> <li>It is easy to add money to the investment.</li> </ul> <p>Ask yourself, can I cope with some risk in order to let my money grow over the medium term?</p> <div> <h2><a id="Typical long-term portfolio (10 years +)" name="Typical%20long-term%20portfolio%20(10%20years%20+)"></a><a id="Typical long-term portfolio (10 years +)" name="Typical%20long-term%20portfolio%20(10%20years%20+)"></a> Typical long-term portfolio (10 years +)</h2> </div> <p>In the <a href="https://www.moneysmart.gov.au/investing/investing-basics/risk-and-return/case-study-capital-growth" target="_blank">case study on capital growth</a>, Richard is using super to save for his retirement and has a 15-year plus timeframe. Long-term investors like Richard are looking for investments with:</p> <ul> <li>Risk - high, with negative returns expected 4-5 years out of 20</li> <li>Volatility - high; capital value could go up or down by 40% in a year</li> <li>Expected return - typically given the volatility of these investments, there is greater potential for gain but equally greater potential for greater loss than in the medium term case study.</li> </ul> <p>A suitable product could be a growth or high growth option in a superannuation fund or managed fund or direct shares.</p> <p>This could be suitable because:</p> <ul> <li>It is expected to provide long-term returns better than a bank account</li> <li>Your capital should grow over time above inflation making up for short-term periods of negative returns</li> </ul> <p>Ask yourself, what's the best way to make my money grow over the long-term and will I be too stressed by short-term fluctuations? <a href="https://www.moneysmart.gov.au/investing/investing-basics/choose-your-investments#top"> </a></p> <div> <h2><a id="Typical portfolio for retirees -2" name="Typical%20portfolio%20for%20retirees%20-2"></a>Typical portfolio for retirees</h2> </div> <p>In the<a href="https://www.moneysmart.gov.au/investing/investing-basics/risk-and-return/case-study-regular-income" target="_blank"> case study on regular income</a>, Neil and Ann, like many financially independent retirees, rely on income from their investments to cover all their living expenses. Because of their age they don't have the capacity to recover from capital losses. At the same time they need solid returns so their capital will last for many years. They need investments with:</p> <ul> <li>Risk - moderate; expect negative returns 2-3 in every 20 years</li> <li>Volatility - medium</li> <li>Expected return - to be typically in line with what a balanced fund could offer.</li> </ul> <p>A suitable product could be a diversified portfolio of balanced and some growth managed funds. This is because it provides a mix of investments to ensure income stays regular but capital also grows over time.</p> <p>Ask yourself:</p> <ul> <li>Are my investments diversified enough so I feel secure about getting regular income but can still see my capital growing over time?</li> <li>Am I comfortable with short-term fluctuations in the value of my investments?</li> </ul> <p><strong>If you are thinking about what investment mix is right for you</strong>, <strong>check</strong> <a href="https://www.sorted.org.nz/calculators/investment-recommender"> <strong>Sorted's investment planner</strong></a> <strong>to help you develop your investment plan.</strong></p> <h2><a id="Check out the investment" name="Check%20out%20the%20investment"></a>Check out the investment</h2> <p>Do you have enough information to understand how the investment product works and identify the associated risks? Be sure to read the Investment Statement and if you want to go further, the Prospectus. See if you can describe to a friend or partner how the product works - how your money will be invested, how the product will generate returns, and how these will be paid to you. If you don't understand it, don't invest in it.</p> <p>Be cautious of any investment that seems complex or that you don't fully understand or sounds too good to be true.  Always check what the risks of investing in it are. Check <a href="http://www.fma.govt.nz/keep-updated/warnings-alerts-and-scams/">warnings, alerts and scams</a>  for more information. It's best to stick with mainstream, reliable, tried and tested investments.</p> <h2><a id="Check the credit rating" name="Check%20the%20credit%20rating"></a> Check the credit rating</h2> <p>A credit rating can be an indicator of the riskiness of an investment, especially fixed interest investments. Not all investments have credit ratings so it may not be necessary.  Credit ratings also apply to organisations offering investments.  These ratings are an assessment of the likelihood that the organisation will default and investors will lose money so it might pay to check that too.</p> <p><strong>Check our</strong> <a href="http://www.fma.govt.nz/help-me-invest/getting-the-right-information/credit-ratings/"><strong> Credit ratings</strong></a> <strong>page for more information.</strong></p> <div> <h2><a id="Check fees, commissions and charges" name="Check%20fees,%20commissions%20and%20charges"></a> Check fees, commissions and charges</h2> </div> <p>What are the commissions, fees or other charges? What is the interest, if you're <a href="http://www.fma.govt.nz/help-me-invest/risks-involved-in-investing/borrowing-to-invest/"> borrowing to invest</a>? All costs reduce the return on your money. Know what you're buying and how you're paying for it.</p> <p>By law you have to be provided this information but if you are unsure, don't be afraid to ask. It's important to know what you're paying for, how much it will cost and how you will pay for it. You are paying for a service so it's vital you factor these costs when investing. Ask how commission will be calculated. Check what charges apply should you be need to withdraw your money earlier than expected. Make sure you understand and are comfortable with the payment arrangements before proceeding. If you're getting investment advice, ask your adviser if the costs include a review of your investments at regular intervals or if you must pay separately for that service.</p> <p><strong>For more information</strong> <a href="http://www.fma.govt.nz/help-me-invest/getting-financial-advice/choosing-an-adviser/"><strong> check our questions to ask when choosing an adviser</strong></a><strong>.</strong></p> <h2><a id="Check legal and tax issues" name="Check%20legal%20and%20tax%20issues"></a> Check legal and tax issues</h2> <p>Your financial and tax situation may be different from your neighbours or workmates. You may need to get professional advice about how an investment will affect your particular situation. A solicitor can explain your legal obligations and an accountant can explain tax issues.</p> <p><strong>Once you've chosen your investments, it's important to put some processes in place to <a href="http://www.fma.govt.nz/help-me-invest/investing-basics/keeping-track-of-your-investments/">keep track of your investments</a>.</strong></p> <h6>Reproduced and adapted with permission of ASIC.  Source: MoneySmart website <a href="http://www.moneysmart.gov.au">www.moneysmart.gov.au</a> 31 August 2012.</h6> http://www.fma.govt.nz/help-me-invest/types-of-investments/fixed-interest-investments/ Fixed Interest Investments 2014-09-10 15:47:37 Financial Markets Authority <p>A fixed interest investment is where you lend someone money, and they pay you a set amount of interest and agree to repay you at a certain time.</p> <p>There are many different types of fixed interest investments, including bonds, term deposits and debentures. The organisation issuing the investment is called the issuer. Governments, banks, finance companies, credit unions, building societies and companies all offer fixed interest investments.</p> <p>The risks associated with each of these types of issuers varies. Government bonds are generally considered to be the lowest risk investment.</p> <p>Generally, the higher the risk of an investment, the higher the return should be. But be aware that sometimes the return being offered may not adequately reflect the risks of the investment.</p> <p>Some issuers of fixed interest investments may be independently rated by credit rating agencies. Investors should not make a decision to invest in fixed interest securities based on the advertised rate alone. An assessment of the credit-worthiness of the issuer is another important consideration.</p> <p>Some fixed interest investments can be bought and sold on exchanges, including New Zealand's exchange <a href="http://www.nzx.com/markets/nzdx/">NZX</a>.</p> http://www.fma.govt.nz/keep-updated/newsroom/media-releases/2011/warning-think-before-signing-away-mum-and-dad-investor-rights Warning: Think Before Signing Away 'Mum and Dad' Investor Rights 2014-09-10 09:41:07 Financial Markets Authority <p>5 May 2011</p> <p>The Financial Markets Authority is warning investors against being classified as wholesale investors and losing retail 'mum and dad' investor rights and protections.</p> <p>FMA's priority is increasing investor confidence in capital markets and increased protections are being phased in (by 1 July 2011) for retail investors. These include advisers being subject to professional conduct standards and disclosure requirements, and investors having the ability to complain to an independent dispute resolution scheme.</p> <p>Advisers servicing only wholesale clients do not have to offer the same protections.</p> <p>An investor recently complained about being asked to sign an 'eligible investor' document making him a wholesale client.</p> <p>FMA Director of Financial Adviser Regulation, Mel Hewitson said the investor was right to be concerned.</p> <p>Ms Hewitson said wholesale investors were defined in the Act to include local authorities and Crown entities, those who habitually invested money as part of their business as well as 'eligible investors' who certified themselves as knowledgeable.</p> <p>"However, entities with net assets over a million dollars are also caught. That could quite easily be a farmer who has just sold the farm, or a retiring small business owner who places money in a trust or partnership entity - that is, the sort of person who may not have the type of detailed financial knowledge you might expect a typical 'wholesale' client to have," she said.</p> <p>Investors who have been classified as wholesale clients have the ability to 'opt out' and be treated as a retail client if they choose, she said.</p> <p>"Investors should think carefully about the consequences of becoming a wholesale client.</p> <p>"This is why it's a requirement for investors who choose to become 'eligible investors' to certify this in writing, and why there are penalties for advisers who don't explain the consequences adequately."</p> <p>Ends</p> <p>For more information: Rebecca Barclay 04 471 7666</p> <hr> http://www.fma.govt.nz/keep-updated/newsroom/speeches/presentation-by-rob-everett-to-the-new-zealand-shareholders-association-2014 Presentation by Rob Everett to the New Zealand Shareholders’ Association 2014 2014-09-10 09:40:31 Financial Markets Authority <p>6 September 2014</p> <p><strong>ROCK STAR ECONOMY</strong></p> <p>Thank you for inviting me to speak to you today.</p> <p>One of the questions – posed as part of the theme at this conference – is can you have confidence the regulatory environment?</p> <p>Indeed, this is a good point in the investing cycle to ask the question and I guess that although ours will not be the only view – we at the FMA ought to have one!</p> <p>The New Zealand public market is in a strong growth phase. <br><br>In the year to date, $5 billion dollars in new capital was listed on NZX's markets.<br><br>The total market capitalisation of the NZX – on an equity basis – was up nearly 17% year-on-year as at July.<a name="_ftnref1" href="http://www.fma.govt.nz/#_ftn1">[1]</a></p> <p>Even if we should ignore it on the basis it came from across the ditch, right now New Zealand is or at least has been described as the rock star economy among the first world countries.</p> <p>And – if the public markets are any gauge – the volume is still going up.</p> <p>So, it’s a good time to reflect on the quality of regulation.</p> <p>Because every time a retail investor – or a fund manager – invests in a debt or equity offer, they are signalling their confidence in the markets and – implicitly – the quality of the regulation.</p> <p>If investors had little or no confidence in the regulatory environment, they’d take their money somewhere else.</p> <p>Or they’d invest in something else.</p> <p>So, my response to your question today – as to the quality of the regulatory environment – is good news, in general.</p> <p>The quality of regulation in New Zealand today is much better than it was.</p> <p>Indeed, we think it is among the best-designed in the developed world for a market of this size and type.</p> <p>Overall, there are good reasons for investors to be reassured as to its quality.</p> <p>But I will also add a caution today.</p> <p>Even the best regulation can’t prevent failures and losses.</p> <p>That’s particularly so in overly-exuberant markets, where investors and firms lose sight of the fundamental questions they should ask about risk, leading to losses that they could have avoided.</p> <p>Good quality regulation does mitigate against failures, making them less likely to occur.</p> <p>And – where there are failures and losses – quality regulation makes it easier to pick up the pieces afterwards.</p> <p>Quality regulation also allows us to set standards – for firms and professionals – and ensure they meet them.</p> <p>It makes it easier to take action against misconduct where it occurs.</p> <p>And – under certain circumstances – good regulation allows the regulator to anticipate problems and act to head them off.</p> <p>But regulation is not a panacea.</p> <p>Or a super-guarantee for investors.</p> <p>Regulation doesn’t displace or eliminate uncertainty.</p> <p>It doesn’t obviate the need for investors to exercise responsibility for their decisions, and to ensure they understand what they are investing in and the risks that come with that.</p> <p><strong>REGULATION = GROWING REASSURANCE</strong></p> <p>Let me make some more detailed observations on the regulation of the capital markets in New Zealand.</p> <p>There are good reasons to be reassured as to the quality of regulation in New Zealand.</p> <p>Most of you will know that regulation – as it applies to wholesale and retail markets, and including conduct regulation and prudential regulation – was overhauled from the mid-2000s.</p> <p>The overhaul was already beginning when the GFC came.</p> <p>The GFC underlined the point – already recognised by many people in Government, and in business – that New Zealand’s regulatory regime had fallen behind.</p> <p>It had fallen behind the expectations of investors and firms, and it had fallen behind the range and depth of change in capital markets and finance.</p> <p>Let me recap – briefly - on what’s changed.</p> <p>Over the last few years, the Government has established a completely new regulator – the FMA – to provide licensing, compliance, supervision, and enforcement in financial services and the capital markets.</p> <p>The patchwork regulation of securities and products – including debt, equity, and managed funds - has been rationalised.</p> <p>This overhaul of markets regulation will be largely complete on the first of December this year, when the second phase of the Financial Markets Conduct Act takes effect.</p> <p>Securities and products will be regulated on the nature of the offer, not according to the corporate form of the firm or fund making it.</p> <p>Fair dealing provisions – which took effect from the first of April this year – apply to everyone working in financial services or the markets.<a name="_ftnref2" href="http://www.fma.govt.nz/#_ftn2">[2]</a></p> <p>The new clear, concise and effective disclosure requirements – for offer documents – are coming in to effect.</p> <p>Indeed, the Genesis float earlier this year led the way with an offer document that was easily-accessible for retail investors, and which is a credit to the firm and its advisers.</p> <p>In the next year or so you’ll see a central register of all offers of financial products – including debt and equity – that will make it possible to access all the information that’s available.</p> <p>Finally, the other major regulator in financial services – the Reserve Bank – enjoys a wider remit in regulating the balance sheets of insurers and the non-bank deposit-takers, like finance companies.</p> <p>Even if you stop right there – with a ‘was/now’ comparison – New Zealand has a regulatory regime that we think is among the most well-considered in the developed world.</p> <p>There are fewer gaps in the regulatory regime. That’s fewer gaps through which poor practices or dubious conduct can slip.</p> <p>Prudential regulation and conduct regulation are recognised as two ends of the same stick.</p> <p>So we have firms that are subject to the conduct tests imposed by the FMA to ensure they are behaving lawfully.</p> <p>And we have firms – not every firm, but key ones – whose balance sheets are subject to scrutiny by the Reserve Bank, to ensure they don’t pose a disproportionate risk to investors and the economy.</p> <p>There’s two other features of regulation in New Zealand today that I would point out to you, because they underline the quality of regulation.</p> <ol> <li>Firstly, the law now recognises the rights of everyone who is investing or making offers. More importantly, the law achieves a good balance of those rights.</li> </ol> <p>Investors and their right to quality disclosure – both when they buy and when they own – are recognised.</p> <p>Finance professionals are recognised. Indeed, many of those professionals are the subject of licensing.</p> <p>Issuers – that’s firms who are creating debt or equity products – are recognised. Under certain circumstances, those firms now enjoy easier means to make debt or equity offers.</p> <p>Directors’ duties are recognised.</p> <p>Indeed, in statute, we have a proportionate liability regime which is in line with similar countries – it can no longer be argued that New Zealand is an especially tough place to be a company director.</p> <p>And the regulators are also recognised. The FMA has more powers than its predecessors, including powers that allow us to act with immediacy and to act if we anticipate the potential for an offer to go badly off-course.</p> <p>………</p> <p>The law creates rights and it distributes them.</p> <p>It’s notoriously hard to get that formula right, especially in something as complex as capital markets.</p> <p>In this instance, the rights and their distribution is a credit to the people who designed the regime.</p> <p>Looking back, we can see that the Capital Market Development Taskforce – headed by Rob Cameron – had a clear vision of how to grow our capital markets while ensuring close attention to respective rights.<a name="_ftnref3" href="http://www.fma.govt.nz/#_ftn3">[3]</a></p> <ol> <li>Secondly, the regulatory regime recognises that – generally – regulation works best when it has a bigger purpose.</li> </ol> <p>Regulation for the sake of regulation –or regulation that assists a few special interests – is pointless, at least, and financially destructive at its worst.</p> <p>The FMA is required to regulate for what is – effectively – a macro-economic objective.</p> <p>Namely, that’s growing New Zealand’s capital markets so we can grow New Zealand companies.</p> <p>All other things being equal, that should make a bigger economy which brings national benefits.</p> <p>Successful debt and equity issues by firms – including IPOs for firms that will make a long-term contribution to the economy - are a good result for regulation.</p> <p>Indeed, the fact that firms and their advisers are willing to run IPOs on the scale we are seeing, suggests that they recognise that the regulatory environment is much better.</p> <p>Levels of reassurance – among investors and firms – are up.</p> <p>The regulatory tide is running in our favour.</p> <p><strong>TURNING DOWN THE MUSIC</strong></p> <p>So far, so good but… and I’m guessing many of you were waiting for the “but”</p> <p>One of the roles of a regulator – indeed, a role that is often overlooked – is the requirement to squeeze on the brakes when it’s necessary to do so.</p> <p>Tim Geithner - who was the Secretary of the US Treasury in the aftermath of the GFC and head of the New York Fed through it – says in his recent book Stress Test that regulators must lean against the prevailing wind in the good times.<a name="_ftnref4" href="http://www.fma.govt.nz/#_ftn4">[4]</a></p> <p>Leaning against the wind requires us to point out – emphatically – the risks, and to anticipate failure even when that seems a remote possibility.</p> <p>Leaning into the wind is especially required when investor confidence is transforming into over-exuberance. When recklessness starts to overtake sober assessments of risk.</p> <p>William McChesney Martin had a more colourful description of this when he was the Chairman of the Federal Reserve.</p> <p>Martin is reputed to have said that the job of the Federal Reserve is to take away the punchbowl when the party gets going.</p> <p>Let me say, I’m not here today to call a halt to the party and I’m not sure I could if I wanted to.</p> <p>But I am going to suggest turning down the music a little.</p> <p>Because, one of the flipsides of quality regulation – like that I have just described to you – is investor caution.</p> <p>Indeed, a capital market that produces consistently good outcomes is comprised of three things: quality regulation, firms subject to good governance, and prudent and well-informed investors.</p> <p>So, I want to reiterate the imperative for investor prudence and awareness in New Zealand today.</p> <p>Because the evidence shows that the public equities market is taking off steadily.</p> <p>New investors are buying and existing investors are buying in greater quantities.</p> <p>It’s harder to measure accurately the private capital market – including debentures and property syndicates – but we can assume it is also warming up.</p> <p>To return to Geithner’s analogy, this is a time when the regulator should notice the wind beginning to pick up and start leaning into it.</p> <p>So, some clear-headed reminders.</p> <p>……</p> <p>Inevitably, investors who exercise prudence ask themselves tough questions about the degree of risk they are willing to accommodate, and answer them frankly.</p> <p>From my own experience – and also from what I have seen as a professional in banking and regulation – I know that risk is very personal.</p> <p>That’s especially the case for retail and private investors.</p> <p>One person’s tolerable risk is another person’s idea of potential agony.</p> <p>A private investor who is contemplating an IPO, for example, should ask themselves how they will feel if the return is considerably less than they anticipated?</p> <p>How they would feel if they lost all or part of the capital?</p> <p>How long they are willing to wait for a positive return?</p> <p>How would a serious loss affect them, their family, their retirement, or their social standing?</p> <p>Overall, investors – especially private ones – should avoid getting caught up in hype.</p> <p>Other people may be buying. But that’s not a good reason – on its own – for you to buy.</p> <p>We all know that following the herd can lead you – blindly – into danger.</p> <p>But – unfortunately – a lot of investors do exactly that: follow the herd.</p> <p>The media may be replete with coverage of promising equity offers. But – again – that’s not a good reason on its own for everyone to buy.</p> <p>Now – more so than in the immediate past – I would encourage private investors to make frank assessments of their risk appetite.</p> <p>Good professional advice – from a regulated financial advisor – will help you.</p> <p>Making full use of good-quality disclosure on offers will also help.</p> <p>However, in the end, prudent investors make their own decisions, having fully assessed how much risk they are really willing to carry.</p> <p>In the current market – where it would be easy to be distracted by hype – I’d urge investors to ensure they do exercise the maximum prudence.</p> <p><strong>TWO POINTS ON GOVERNANCE</strong></p> <p>Finally, I wanted to make two points on corporate governance in New Zealand, at least where it is relevant to shareholders and investors.</p> <ol> <li>Firstly, the FMA anticipates a steady improvement in the quality of disclosure – and its usefulness for investors – in offer documents, in line with the clear, concise and effective requirements in the Financial Markets Conduct Act. <a name="_ftnref5" href="http://www.fma.govt.nz/#_ftn5">[5]</a></li> </ol> <p>Indeed, as I noted earlier, we’re already seeing improvements in offer documents. </p> <p>Some of what we are demanding – in offer documents, and also in company financial reporting – is not easy to execute for firms and their advisers.</p> <p>We know that.</p> <p>But making these documents more readable, more understandable, and more widely-read is critical to us.</p> <p>Continuous disclosure, by listed issuers, remains a work in progress in New Zealand, at least among some firms.</p> <p>There have been some hiccups recently for example in Gentrack and Lyttleton Ports.</p> <p>I’m not going to comment on any inquiries we may have underway, or provide an opinion here on any instances.</p> <p>Nonetheless – judging, for example, from the coverage in the business press – there were investors who were disappointed in the disclosure.</p> <p>In one instance, the initial disclosure was too little to satisfy investors, with some suggestions that selective disclosure in terms of briefing analysts in greater depth than the public may have been an issue.</p> <p>In the second case, apparently some investors felt disadvantaged by the way the material information was disclosed to the market.</p> <p>Last week NZX released detailed guidance – for the purposes of consultation – on the practice of continuous disclosure. <a name="_ftnref6" href="http://www.fma.govt.nz/#_ftn6">[6]</a></p> <p>That guidance, when it is settled, will be welcome among firms, advisers, investors, and analysts.</p> <p>As a statement of principle, everyone needs to apply laser-like focus to the fact that disclosure to the market is critical to shareholders, and that it is also intended to produce an informed and confident market.</p> <p>No prisoners can be taken in the drive to get standards as high as possible in this space.</p> <p>I’d like to acknowledge the willingness of NZX to tackle this subject head-on, knowing that it will be debated among directors, company management, and counsel.</p> <p>In particular, we do and will look at what is said to or given to analysts that is not made publicly available.</p> <ol> <li>Secondly, as I noted earlier this week – in a speech to the Institute of Directors - we must be willing to face up to our responsibilities in recognising conflicts of interest and conflicts of duties.</li> </ol> <p>Yes, I recognise that New Zealand has a small pool of directors, company officers, and advisers.</p> <p>It’s often argued that the size of the New Zealand market means conflicts of duty and conflicts of interest will be more prevalent than they are in a bigger society.</p> <p>That does not mean we should excuse them easily.</p> <p>We have to be willing to step down or step aside – temporarily and sometimes permanently – where that would relieve actual or perceived conflicts.</p> <p>I acknowledge the willingness of NZX and the Markets Disciplinary Tribunal to tackle such conflicts, for example in its recent decision on Marsden Maritime Holdings (MMH).</p> <p>The tribunal found that the role of Marsden’s directors, and the majority shareholder, weren’t separated during a vote on directors’ remuneration, leading to a breach of the Listing Rules.</p> <p>The complaint was brought – initially – by the Shareholders’ Association.</p> <p>The tribunal censured Marsden, but declined to impose a penalty.<a name="_ftnref7" href="http://www.fma.govt.nz/#_ftn7">[7]</a></p> <p>A note on our own board, at the FMA. Because its composition requires us to be very vigilant in respect of conflicts.</p> <p>We are blessed with a board that includes – among others – very experienced financial services and legal practitioners.</p> <p>We don’t have shareholders.</p> <p>But we do have stakeholders – including all of you – who need to trust the impartiality and objectivity of our decision-making.</p> <p>Our conflicts procedures are very conservative.</p> <p>We apply them rigorously.</p> <p>In our oversight of the NZX, for example, we have had extensive discussions with Tim Bennett, and with the NZX Board, on the need to not only separate out potential conflicts of interests, but to have a governance structure that underlines that.</p> <p>Those of us that regulate the market have the same obligations as everyone else.</p> <p>That’s to ensure we are clear as to how we manage these issues, and clear in a way that would satisfy our stakeholders.</p> <p><strong>CLOSE</strong></p> <p>Thank you for the opportunity to speak here today.</p> <p>‘Investors’ are a disparate community.</p> <p>They range from people who might have a few thousand dollars invested in a stock, that they only remember their investment when the dividend payment appears, through to professional investors who follow markets by the second.</p> <p>In-between those groups are – among others – fund managers, analysts, legal counsel, and financial advisers.</p> <p>All of them people who have an interest in the subject of investment.</p> <p>I imagine that – for the NZSA – it’s tough to be the voice of such a diverse group.</p> <p>Indeed, it would require patience and attention to maintain a consistent and constructive position when you advocate to regulators, Ministers, firms, and NZX.</p> <p>So, I’d like to congratulate the Shareholders’ Association for raising the flag – on behalf of shareholders – for 13 years.</p> <p>Everyone needs to remember that without the shareholders, it all ends.</p> <p>The issuers, the boards, the lawyers, the accountants and – of course – the regulators.</p> <p>We all need to keep that at the front of our focus.</p> <p>And a strong shareholders’ body – like the NZSA – goes a long way to reminding us of that.</p> <p>Thank you.</p> <hr> <div> <div> <p><a name="_ftn1" href="http://www.fma.govt.nz/#_ftnref1">[1]</a> All data year-on-year, at July 2014. From ‘NZX report to shareholders July 2014’, NZX Limited, Auckland, New Zealand.</p> </div> <div> <p><a name="_ftn2" href="http://www.fma.govt.nz/#_ftnref2">[2]</a>Financial Markets Conduct Act 2013, Part 2.</p> </div> <div> <p><a name="_ftn3" href="http://www.fma.govt.nz/#_ftnref3">[3]</a>Capital Markets Matter: Report of the Capital Market Development Taskforce, New Zealand Government, December 2009, Wellington, New Zealand.</p> </div> <div> <p><a name="_ftn4" href="http://www.fma.govt.nz/#_ftnref4">[4]</a> Timothy F Geithner, ‘Stress Test: Reflections on Financial Crises’, Random House, New York, 2014.</p> </div> <div> <p><a name="_ftn5" href="http://www.fma.govt.nz/#_ftnref5">[5]</a>Financial Markets Conduct Act 2013, Part 3.</p> </div> <div> <p><a name="_ftn6" href="http://www.fma.govt.nz/#_ftnref6">[6]</a> See: <a href="https://nzx.com/market-regulation/rules-consultation">https://nzx.com/market-regulation/rules-consultation</a>, 26 August 2014, NZX, Auckland</p> </div> <div> <p><a name="_ftn7" href="http://www.fma.govt.nz/#_ftnref7">[7]</a>‘Public censure of Marsden Maritime Holdings’, 21 August 2014, NZMDT 8-2014, NZX Markets Disciplinary Tribunal, Auckland, New Zealand.</p> </div> </div> http://www.fma.govt.nz/keep-updated/subscribe-to-updates/ Subscribe to Updates 2014-09-09 11:44:30 Financial Markets Authority <p>FMA provides regular updates on news, warnings and alerts, consultations and guidance. To subscribe to these email updates complete the form below:</p> http://www.fma.govt.nz/help-me-comply/financial-advisers/who-needs-to-comply/qualifying-financial-entities/what-products-can-qfe-advisers-sell/ What Products Can QFE Advisers Sell? 2014-09-08 10:12:48 Financial Markets Authority <p>QFE Advisers can give financial advice to <a href="http://www.fma.govt.nz/help-me-comply/financial-advisers/who-needs-to-comply/what-type-of-financial-adviser-am-i/retail-or-wholesale-clients/">wholesale clients</a> and can give <a title="Personalised or Class Services" href="http://www.fma.govt.nz/help-me-comply/financial-advisers/who-needs-to-comply/what-type-of-financial-adviser-am-i/personalised-or-class-services/">class advice</a> to <a title="Retail or Wholesale Clients" href="http://www.fma.govt.nz/help-me-comply/financial-advisers/who-needs-to-comply/what-type-of-financial-adviser-am-i/retail-or-wholesale-clients/">retail clients</a>. They can also provide personalised advice and <a title="Types of Financial Adviser Services" href="http://www.fma.govt.nz/help-me-comply/financial-advisers/who-needs-to-comply/what-type-of-financial-adviser-am-i/types-of-financial-adviser-services/">discretionary investment management services</a> for <a title="Category 1 or Category 2 Products" href="http://www.fma.govt.nz/help-me-comply/financial-advisers/who-needs-to-comply/what-type-of-financial-adviser-am-i/category-1-or-category-2-products/">category 1 and category 2 products</a> without being individually registered (and authorised), as follows:</p> <table class="qfe"><colgroup> <col class="structure"> <col class="advisers"> <col class="products"> </colgroup> <thead> <tr><th valign="top">QFE structure</th><th style="text-align: center;" valign="top">QFE advisers</th><th style="text-align: center;" valign="top">Category 2 products</th><th style="text-align: center;" valign="top">Category 1 products</th></tr> </thead> <tbody> <tr> <td>A single entity QFE</td> <td>Employees and nominated representatives of the QFE</td> <td>Yes</td> <td>Yes where QFE is product provider or for securities, the promoter</td> </tr> <tr> <td>A QFE composed of partner entities</td> <td>Employees of any partner entity and nominated representatives</td> <td>Yes</td> <td>Yes where any partner entity is product provider or for securities, the promoter</td> </tr> <tr> <td>A QFE which has associated entities</td> <td>Employees of the QFE (or its partner entities) and those of the associated entities and any nominated representatives</td> <td>Yes</td> <td>Yes where, OFE, partner entities or any of associated entities is the product provider, or for securities, the promoter</td> </tr> </tbody> </table> <p>A QFE can extend the range of financial products or services that its advisers may provide by applying to the Financial Markets Authority to approve the addition of one or more entities as <a title="Jump to What is an Associated Entity" href="http://www.fma.govt.nz/#ref-03">associated entities</a>.</p> <p>Employees of any entity in the <a title="Jump to QFE Group" href="http://www.fma.govt.nz/#ref-02">QFE Group</a> and the QFE's <a title="Jump to Nominated Representative" href="http://www.fma.govt.nz/#ref-01">nominated representative</a> can advise on category 1 products where any entity in the same QFE Group is the product provider or in the case of securities, the promoter, and any category 2 product, without being individually registered or authorised (see section 18 of the Act).</p> <p>Advisers who work for QFEs still need to be individually registered and authorised if providing the following services to retail clients:</p> <ul class="noindent"> <li>an investment planning service</li> <li>personalised advice or personalised discretionary investment management service on category 1 products where the QFE is not the product provider or for securities, the promoter</li> </ul> <p>Note, promoter has the same meaning as section 2 (1) of the Securities Act 1978. A QFE is not the 'promoter' just because the product carries a brand of the QFE Group.</p> <p>For class and wholesale services, individuals providing only wholesale or class services (or both) are not expected to register, provided that their employer is a registered financial service provider (not necessarily a QFE) and remains registered.</p> <p>Individuals who have voluntarily opted to be authorised for wholesale and class services will still need to register as individuals.</p> <h2 id="ref-01">What is a nominated representative?</h2> <p>A QFE can nominate any individual adviser as a nominated representative (see section 74 of the <a href="http://www.legislation.govt.nz/act/public/2008/0091/latest/DLM1584202.html" target="_blank">Act</a>). It does not have to nominate all of the agents who sell its products. A QFE can nominate advisers either in writing or if agreed by FMA via another mechanism. This will be included in the terms and conditions of its QFE status.</p> <p>A person may not be a nominated representative of more than one QFE, except when the two QFEs are related companies, as this would cause confusion about which entity was responsible for the representative's conduct.</p> <p>A QFE must provide FMA with a list of its <a title="Jump to Nominated Representative" href="http://www.fma.govt.nz/#ref-01">nominated representatives</a>, when requested. In addition, the terms and conditions of QFE status will specify how often the list must be provided.</p> <p><a title="Q &amp; A" href="http://www.fma.govt.nz/help-me-comply/financial-advisers/guidance-notes/q-a/">Find out more about what responsibility a QFE takes for its nominated representatives</a>.</p> <h2 id="ref-03">What is an associated entity?</h2> <p>A QFE may apply to FMA to approve one or more entities as associated entities of the QFE (see section 65 and 67 of the <a href="http://www.legislation.govt.nz/act/public/2008/0091/latest/DLM1584202.html">Act</a>). The QFE's application must state how it is connected to the associated entity. The QFE and its associated entities form a QFE Group.</p> <p>If approved, the QFE is responsible for the advisers of the associated entity. The advisers in the QFE group can advise on products provided or promoted by the QFE and any of its associated entities without being individually registered and authorised.</p> <h2 id="ref-02">What is a QFE Group?</h2> <p>A QFE Group is the term used for either:</p> <ul> <li>a QFE and its associated entities</li> <li>the partner entities that together form a QFE and any associated entities.</li> </ul> <p>A QFE must choose a name for its QFE Group and submit it to FMA for approval (see section 69 of the <a href="http://www.legislation.govt.nz/act/public/2008/0091/latest/DLM1584202.html">Act</a>). Employees of any entity in the QFE Group and its nominated representatives can advise on category 1 products where any entity in the same QFE Group is the product provider or in the case of securities, the promoter, and any category 2 product without being individually registered or authorised (see section 18 of the Act).</p> http://www.fma.govt.nz/help-me-comply/issuers/exemptions/ Exemptions 2014-09-08 09:55:11 Financial Markets Authority <p><strong><span>FMA grants a class exemption relating to the form and content of Investment Statements for IPOs</span></strong></p> <p><span>Following consultation earlier this year, the Financial Markets Authority (FMA) has granted a class exemption relating to the form and content of an investment statement for initial offers of equity securities to the public. The class exemption notice can be found <a href="http://www.fma.govt.nz/laws-we-enforce/legislation/exemption-notices/current-exemption-notices/securities-act-exemptions/securities-act-form-and-content-of-investment-statement-for-equity-security-offers-exemption-notice-2014">here</a>.</span></p> <p><span>The class exemption is substantially similar to previous individual exemptions granted by the FMA except that we have included an additional condition requiring information be included about the process and timing of the listing of the securities.</span></p> <p><span>In addition, there was a concern that the condition requiring the investment statement to be worded and presented in a clear, concise and effective manner might create uncertainty for issuers. Although a similar requirement will apply to Product Disclosure Statements under the Financial Markets Conduct Act 2013, a breach of the condition in an exemption would have a more serious consequence under the Securities Act regime. For this reason we have amended the condition to require the issuer’s directors to pass a resolution to confirm that, in their opinion after due enquiry, the investment statement is worded and presented in a clear, concise, and effective manner. This will allow issuers greater certainty that they meet the condition.</span></p> <p><span>We will continue to work with issuers, prior to registration of their prospectus, to ensure IPO investment statements meet the recommendations in our <a href="http://www.fma.govt.nz/assets/guidance-note-effective-disclosure-june-2012.pdf" target="_blank">Effective Disclosure</a> guidance. Our approach to <a href="http://www.fma.govt.nz/help-me-comply/issuers/prospectus-registration/pre-registration-review-of-offer-documents-prospectuses-and-investment-statements/">pre-registration review of offer documents</a> is available on our website.</span></p> <p><span> </span></p> <p>The Financial Markets Authority has wide powers to exempt persons (or types of persons) or transactions (or types of transactions) from some requirements in the Securities Act 1978, Securities Markets Act 1988, Financial Reporting Act 1993 and associated regulations.</p> <ul> <li><a title="What Exemptions Can I Apply For?" href="http://www.fma.govt.nz/help-me-comply/issuers/exemptions/what-exemptions-can-i-apply-for/">What exemptions can I apply for?</a></li> <li><a title="How Do I Make an Application?" href="http://www.fma.govt.nz/help-me-comply/issuers/exemptions/how-do-i-make-an-application/">How do I make an application?</a></li> <li><a title="What Are the Charges?" href="http://www.fma.govt.nz/help-me-comply/issuers/exemptions/what-are-the-charges/">What are the charges?</a></li> <li><a title="How Long Does It Take?" href="http://www.fma.govt.nz/help-me-comply/issuers/exemptions/how-long-does-it-take/">How long does it take?</a></li> <li><a title="What Exemptions Won&#039;t Be Granted?" href="http://www.fma.govt.nz/help-me-comply/issuers/exemptions/what-exemptions-wont-be-granted/">What exemptions won't be granted?</a></li> <li>What if I want to <a title="Applications to Exclude Commercially Sensitive Information from Material Contracts" href="http://www.fma.govt.nz/help-me-comply/issuers/exemptions/applications-to-exclude-commercially-sensitive-information-from-material-contracts/">exclude commercially sensitive information</a> from my application?</li> </ul> <p><a title="Exemption Notices" href="http://www.fma.govt.nz/laws-we-enforce/legislation/exemption-notices/">Find out more about exemptions, including exemptions already granted</a>.</p> <p><strong><a title="Exemption Notices" href="http://www.fma.govt.nz/laws-we-enforce/legislation/exemption-notices/">See a full list of Exemption Notices</a></strong></p> <table> <tbody> <tr> <td> <p>This information relates to FMA's exemption powers under the Securities Act regime. FMA also has exemption powers under the FMC Act. <a href="http://www.fma.govt.nz/help-me-comply/issuers/who-needs-to-comply/new-securities-act-exemptions-effective-1-april-2014/">Some of the substantive provisions in the FMC Act come into force on 1 April 2014</a> and the remainder come into force on 1 December 2014.</p> <p>For information on the timeline for change and the latest news and information, click <a href="http://www.fma.govt.nz/keep-updated/the-future-of-financial-markets/">here</a>.</p> </td> </tr> </tbody> </table> http://www.fma.govt.nz/keep-updated/the-future-of-financial-markets/whats-changing/licensing-of-financial-product-markets/ Licensing of Financial Product Markets 2014-09-04 19:16:21 Financial Markets Authority <p>Financial product markets will need to be licensed, with exemptions available for specified wholesale and small markets. 'Stepping stone' or alternative markets will also be able to be licensed, but with lighter compliance requirements for listed issuers, such as periodic rather than continuous disclosure.</p> <p>The framework for these markets will be developed directly with potential operators and users of the markets and will be subject to consultation.</p> http://www.fma.govt.nz/laws-we-enforce/policy/closed-consultations/examples-of-questions-and-complaints-about-kiwisaver-distribution Examples of questions and complaints about KiwiSaver distribution 2014-09-04 16:19:57 Financial Markets Authority <p><a href="http://www.fma.govt.nz/laws-we-enforce/policy/closed-consultations/examples-of-questions-and-complaints-about-kiwisaver-distribution/">Examples of questions and complaints about KiwiSaver distribution</a>.</p> http://www.fma.govt.nz/laws-we-enforce/policy/closed-consultations/submissions-on-the-second-consultation-proposed-guidance-note-effective-disclosure Submissions On The Second Consultation: Proposed Guidance Note: Effective Disclosure 2014-09-04 16:16:26 Financial Markets Authority <p>In January 2012, FMA released a draft guidance note on Effective Disclosure.  Following a first round of submissions a second version of the guidance note was released.</p> <div id="content-area"> <p>We received 40 further written submissions, from a wide range of market participants, professional advisers and consumer groups. </p> <p>The further submissions were detailed and constructive.  We thank all submitters for their assistance which has helped us to refine and finalise the guidance.</p> <ul> <li><a href="http://www.fma.govt.nz/assets/media/final-guidance-8-june.pdf" target="_blank">See the response document summarising these submissions and our changes</a></li> <li><a href="http://www.fma.govt.nz/laws-we-enforce/policy/closed-consultations/submissions-on-the-proposed-guidance-note-effective-disclosure">See submissions on the first consultation round</a></li> <li><a href="http://www.fma.govt.nz/assets/media/response-to-submissions-8-june.pdf" target="_blank">See the final guidance note</a></li> </ul> <p>Copies of the non-confidential submissions are attached below.</p> <div id="file-attachments"> <h2>File Attachments</h2> <a href="http://www.fma.govt.nz/assets/media/100/1.-joanna-perry.pdf" target="_blank"><span style="line-height: 20px;">1. Joanna Perry (86 kB pdf)</span></a><br><a href="http://www.fma.govt.nz/assets/media/802084/2.-external-reporting-board.pdf" target="_blank"><span style="line-height: 20px;">2. External Reporting Board (95 kB pdf)</span></a><br><a href="http://www.fma.govt.nz/assets/media/100/3.-financial-services-federation.pdf" target="_blank"><span style="line-height: 20px;">3. Financial Services Federation (334 kB pdf)</span></a><br><a href="http://www.fma.govt.nz/assets/media/100/4.-harmos-horton-lusk.pdf" target="_blank"><span style="line-height: 20px;">4. Harmos Horton &amp; Lusk (120 kB pdf)</span></a><br><a href="http://www.fma.govt.nz/assets/media/100/5.-new-zealand-institute-of-chartered-accountants.pdf" target="_blank"><span style="line-height: 20px;">5. New Zealand Institute of Chartered Accountants (706 kB pdf)</span></a><br><a href="http://www.fma.govt.nz/assets/media/100/6.-private-asset-management-limited.pdf" target="_blank"><span style="line-height: 20px;">6. Private Asset Management Limited (505 kB pdf)</span></a><br><a href="http://www.fma.govt.nz/assets/media/100/7.-genesis-energy.pdf" target="_blank"><span style="line-height: 20px;">7. Genesis Energy (37 kB pdf)</span></a><br><a href="http://www.fma.govt.nz/assets/media/100/8.-first-nz-capital.pdf" target="_blank"><span style="line-height: 20px;">8. First NZ Capital (82 kB pdf)</span></a><br><a href="http://www.fma.govt.nz/assets/media/100/9.-meridian-energy-limited.pdf" target="_blank"><span style="line-height: 20px;">9. Meridian Energy Limited (507 kB pdf)</span></a><br><a href="http://www.fma.govt.nz/assets/media/100/10.-dla-phillips-fox.pdf" target="_blank"><span style="line-height: 20px;">10. DLA Phillips Fox (442 kB pdf)</span></a><br><a href="http://www.fma.govt.nz/assets/media/100/11.-write-limited.pdf" target="_blank"><span style="line-height: 20px;">11. Write Limited (179 kB pdf)</span></a><br><a href="http://www.fma.govt.nz/assets/media/802114/12.-kensington-swan.pdf" target="_blank"><span style="line-height: 20px;">12. Kensington Swan (74 kB pdf)</span></a><br><a href="http://www.fma.govt.nz/assets/media/100/13.-new-zealand-shareholders-association.pdf" target="_blank"><span style="line-height: 20px;">13. New Zealand Shareholders Association (309 kB pdf)</span></a><br><a href="http://www.fma.govt.nz/assets/media/100/14.-gareth-morgan-investments.pdf" target="_blank"><span style="line-height: 20px;">14. Gareth Morgan Investments (360 kB pdf)</span></a><br><a href="http://www.fma.govt.nz/assets/media/100/15.-institute-of-directors.pdf" target="_blank"><span style="line-height: 20px;">15. Institute of Directors (150 kB pdf)</span></a><br><a href="http://www.fma.govt.nz/assets/media/100/16.-anz.pdf" target="_blank"><span style="line-height: 20px;">16. ANZ (2 MB pdf)</span></a><br><a href="http://www.fma.govt.nz/assets/media/100/17.-russell-mcveagh.pdf" target="_blank"><span style="line-height: 20px;">17. Russell McVeagh (450 kB pdf)</span></a><br><a href="http://www.fma.govt.nz/assets/media/100/18.-pathfinder-asset-management-limited.pdf" target="_blank"><span style="line-height: 20px;">18. Pathfinder Asset Management Limited (28 kB pdf)</span></a><br><a style="line-height: 20px;" href="http://www.fma.govt.nz/media/802135/19._financial_services_council.pdf">19. Financial Services Council (499 kB pdf)</a><br><a style="line-height: 20px;" href="http://www.fma.govt.nz/assets/media/1241376/workplace-savings-nz.pdf" target="_blank">20. Workplace Savings (176 kB pdf)</a><br><a style="line-height: 20px;" href="http://www.fma.govt.nz/assets/media/100/amp.pdf" target="_blank">21. AMP (405 kB pdf)</a><br><a style="line-height: 20px;" href="http://www.fma.govt.nz/assets/media/100/22.-chapman-tripp.pdf" target="_blank">22. Chapman Tripp (266 kB pdf)</a><br><a style="line-height: 20px;" href="http://www.fma.govt.nz/assets/media/100/23.-nzacu.pdf" target="_blank">23. NZACU (1 MB pdf)</a><br><a style="line-height: 20px;" href="http://www.fma.govt.nz/assets/media/100/24.-pricewaterhousecoopers-new-zealand.pdf" target="_blank">24. PricewaterhouseCoopers New Zealand (222 kB pdf)</a><br><a style="line-height: 20px;" href="http://www.fma.govt.nz/assets/media/100/25.-new-zealand-bankers-association.pdf" target="_blank">25. New Zealand Bankers' Association (55 kB pdf)</a><br><a style="line-height: 20px;" href="http://www.fma.govt.nz/assets/media/100/26.-minter-ellison-rudd-watts.pdf" target="_blank">26. Minter Ellison Rudd Watts (490 kB pdf)</a><br><a style="line-height: 20px;" href="http://www.fma.govt.nz/assets/media/100/27.-trustee-corporation-association.pdf" target="_blank">27. Trustee Corporation Association (204 kB pdf)</a><br><a style="line-height: 20px;" href="http://www.fma.govt.nz/assets/media/100/28.-bnz.pdf" target="_blank">28. BNZ (528 kB pdf)</a><br><a style="line-height: 20px;" href="http://www.fma.govt.nz/assets/media/100/29.-nzx-limited.pdf" target="_blank">29. NZX Limited (189 kB pdf)</a><br><a style="line-height: 20px;" href="http://www.fma.govt.nz/assets/media/100/30.-westpac-new-zealand-limited.pdf" target="_blank">30. Westpac New Zealand Limited (114 kB pdf)</a><br><a style="line-height: 20px;" href="http://www.fma.govt.nz/assets/media/100/31.-buddle-findlay.pdf" target="_blank">31. Buddle Findlay (105 kB pdf)</a><br><a style="line-height: 20px;" href="http://www.fma.govt.nz/assets/media/100/32.-deloitte.pdf" target="_blank">32. Deloitte (628 kB pdf)</a><br><a style="line-height: 20px;" href="http://www.fma.govt.nz/assets/media/100/33.-bell-gully.pdf" target="_blank">33. Bell Gully (697 kB pdf)</a><br><a style="line-height: 20px;" href="http://www.fma.govt.nz/assets/media/100/34.-plain-english-power.pdf" target="_blank">34. Plain English Power (88 kB pdf)</a><br><a style="line-height: 20px;" href="http://www.fma.govt.nz/assets/media/100/35.-kpmg.pdf" target="_blank">35. KPMG (50 kB pdf)</a><br><a style="line-height: 20px;" href="http://www.fma.govt.nz/assets/media/100/36.-fisher-funds.pdf" target="_blank">36. Fisher Funds (182 kB pdf)</a></div> </div> http://www.fma.govt.nz/laws-we-enforce/policy/closed-consultations/consultation-paper-disclosing-non-gaap-financial-information Consultation Paper - Disclosing non-GAAP financial information 2014-09-04 16:07:55 Financial Markets Authority <div id="content-area"> <p>We are seeking feedback on our proposed guidance on the use of financial information in corporate documents, such as transaction documents and market announcements, where that financial information is not presented in accordance with generally accepted accounting practice (GAAP), described in the guidance note as non-GAAP financial information.   The draft guidance note is included with the consultation paper (Attachment A) which can be downloaded below.</p> <p>In the guidance note, we set out FMA's views on when non-GAAP financial information should or should not be used and what additional disclosure should be made so that the information is not misleading. The purpose of our proposed guidance is to:</p> <ul> <li>promote more meaningful communication of financial information to investors and other users of financial statements; and</li> <li>increase the likelihood that financial information is disclosed in a way that is not misleading; and</li> <li>provide greater certainty in the market about FMA's views on disclosure of non-GAAP financial information.</li> </ul> <p> </p> <h2><strong>Submission process</strong></h2> <p>Please email your feedback to consultation@fma.govt.nz, providing it in a Word document format. The email subject line should identify that the email contains a submission on disclosing non-GAAP financial information, and who the submission is from, eg 'Submission on Disclosing non-GAAP financial information by [submitter's name]'.  The consultation paper has additional submission instructions and a submission template.</p> <p>The final date for submissions on this paper is Friday 29 June 2012.</p> <h2><strong>Next steps</strong></h2> <p>We propose to issue a final version of the guidance note by 31 August 2012.</p> <p>We will not treat any part of your submission as confidential unless you specifically request we do so. Submissions will be subject to the Official Information Act 1982. We may make submissions available on our website, may compile a summary of the submissions or draw attention to individual submissions in internal or external reports.</p> <p>If you would like us to withhold any commercially sensitive, confidential or proprietary information included in your submission, please clearly state this in your submission and identify the relevant sections. We will consider any request to have information withheld in accordance with our obligations under the Official Information Act.</p> <div id="file-attachments"> <h2>File Attachments</h2> <ul> <li><a href="http://www.fma.govt.nz/assets/media/100/consultation-paper-disclosing-non-gaap-financial-information-final.pdf" target="_blank">Consultation Paper - Disclosing non-GAAP financial information (327 kB pdf)</a></li> <li><a href="http://www.fma.govt.nz/assets/media/100/draft-guidance-note-disclosing-non-gaap-financial-information-final.pdf" target="_blank">DRAFT Guidance Note - Disclosing non-GAAP financial information (491 kB pdf)</a></li> </ul> </div> </div> <p> </p> http://www.fma.govt.nz/laws-we-enforce/policy/closed-consultations/second-consultation-request-for-feedback-guidance-note-effective-disclosure Second Consultation: Request for Feedback – Guidance Note: Effective Disclosure 2014-09-04 16:07:36 Financial Markets Authority <h3>The final date for submissions is 5pm Thursday 10 May 2012.<br><br></h3> <p>FMA has previously consulted on proposed guidance on how to prepare and present prospectuses and investment statements. We have incorporated feedback from that consultation into this revised draft <a href="http://www.fma.govt.nz/assets/media/seccomdocs-210684-v1-draft-guidance-effective-disclosure-april-2012.pdf" target="_blank">guidance note</a>. We are now seeking feedback on this final draft.</p> <h2>Submission process.</h2> <p>This is an opportunity to provide high level feedback on our overall approach and output. The 'Response document and invitation to provide feedback' can be downloaded <a href="http://www.fma.govt.nz/media/689061/seccomdocs-_210287-v1-response_document__effective_disclosure.pdf">here</a>.<br><br>Please <a href="mailto:consultation@fma.govt.nz">email</a> your feedback, providing it in both PDF and word documents.<br><br></p> <h2>Previous submissions</h2> <p>A summary of feedback from the first consultation can be downloaded below in the document 'Response document and invitation to provide feedback'. <br><br>Copies of non-confidential <a href="http://www.fma.govt.nz/laws-we-enforce/policy/closed-consultations/submissions-on-the-proposed-guidance-note-effective-disclosure">submissions</a> are also available.<br><br></p> <h2>Next steps</h2> <p>We propose to issue a final version of the guidance note before the end of May 2012.</p> <p>We will not treat any part of your submission as confidential unless you specifically request we do so. Submissions will be subject to the Official Information Act 1982.  We may make submissions available on our website, may compile a summary of the submissions or draw attention to individual submissions in internal or external reports.</p> <p>If you would like us to withhold any commercially sensitive, confidential or proprietary information included in your submission, please clearly state this in your submission and identify the relevant sections.  We will consider any request to have information withheld in accordance with our obligations under the Official Information Act.</p> <div id="file-attachments"> <h2>File Attachments</h2> <ul> <li><a href="http://www.fma.govt.nz/assets/media/seccomdocs-210287-v1-response-document-effective-disclosure.pdf" target="_blank">Response document and invitation to provide feedback (260 kB pdf)</a></li> <li><a href="http://www.fma.govt.nz/assets/media/seccomdocs-210684-v1-draft-guidance-effective-disclosure-april-2012.pdf" target="_blank">Revised draft guidance note on effective disclosure (580 kB pdf)</a></li> </ul> </div> http://www.fma.govt.nz/laws-we-enforce/policy/closed-consultations/consultation-kiwisaver-performance-fees-guidance-note Consultation – KiwiSaver Performance Fees Guidance Note 2014-09-04 15:54:21 Financial Markets Authority <p>The KiwiSaver Performance Fees Guidance Note builds upon the three characteristics the Government Actuary identified in his Guidance Note KSGN2 issued in March 2008. It will be the basis upon which FMA will assess whether a performance fee is 'not unreasonable'.<br> <br> Prior to finalising the document for publication, FMA wishes to receive your comments on the contents of the Guidance Note.</p> <h2><strong>Consultation period</strong></h2> <p>The consultation period is three weeks.<br> <br> Please send your written submissions by using the <a href="http://www.fma.govt.nz/about-us/contact-us/">Contact Form</a>  on FMA's website. Select 'make a comment' and clearly label your attached submission document as 'Submission on KiwiSaver Performance Fees Guidance Note'.<br> <br> You can also send your written submission to the Manager, Superannuation Schemes at FMA's <a href="http://www.fma.govt.nz/about-us/contact-us/office-details/">Wellington offices</a>.<br> <br> The deadline for submissions is <strong>Friday 2 December 2011</strong>.</p> <p> </p> <h2><strong>Next steps</strong></h2> <p>Once submissions have been received and considered, FMA will issue a final version of the Guidance Note.<br> <br> Submissions will be subject to the Official Information Act 1982. FMA may also make submissions available on its website, or draw attention to submissions in internal or external reports. If you would like FMA to withhold any commercially sensitive, confidential or proprietary information included in your submission please say so in your submission. Any request to have information withheld will be considered in accordance with the Official Information Act.</p> <div> <h2>File Attachments</h2> <a href="http://www.fma.govt.nz/assets/Uploads/guidance-note-kiwisaver-performance-fees.pdf" target="_blank"><span style="line-height: 20px;">guidance_note_kiwisaver_performance_fees (2 MB pdf)</span></a></div> http://www.fma.govt.nz/laws-we-enforce/policy/closed-consultations/submissions-on-the-proposed-guidance-note-effective-disclosure Submissions on the proposed Guidance Note Effective Disclosure 2014-09-04 15:18:29 Financial Markets Authority <p>FMA issued its draft guidance note and a consultation paper on 26 January 2012.</p> <div id="content-area"> <p>We met with over 35 groups of stakeholders (including industry groups and associations, consumer groups, issuers, law firms, accountancy firms, fund managers, investment banks, registered banks) during February and early March 2012.</p> <p>We received 62 formal submissions from groups including industry groups and associations, consumer groups, issuers, law firms, accountancy firms, fund managers, investment banks, registered banks and some individuals.</p> <p>We are grateful to all submitters who took the time to prepare and provide a submission, and to those who discussed specific issues with us during the consultation meetings.</p> <p>Copies of the non-confidential submissions can be downloaded below. A summary of the submissions is available in the document 'Response document and invitation to provide' feedback on our consultations page.</p> <ul> <li><a title="Second Consultation: Request for Feedback - Guidance Note: Effective Disclosure" href="http://www.fma.govt.nz/laws-we-enforce/policy/closed-consultations/second-consultation-request-for-feedback-%E2%80%93-guidance-note-effective-disclosure/">Second consultation: Revised draft guidance note: Effective disclosure</a></li> <li><a href="http://www.fma.govt.nz/assets/media/seccomdocs-210287-v1-response-document-effective-disclosure.pdf" target="_blank"> Response document and invitation to provide feedback</a>  </li> </ul> <div id="file-attachments"> <h2>File Attachments</h2> <ul> <li><a href="http://www.fma.govt.nz/assets/media/688866/anthony-harper-submission.pdf" target="_blank">Anthony Harper Submission (34 kB pdf)</a></li> <li><a href="http://www.fma.govt.nz/assets/media/anz-submission.pdf" target="_blank">ANZ Submission (391 kB pdf)</a></li> <li><a href="http://www.fma.govt.nz/assets/media/auckland-airport-submission.pdf" target="_blank">Auckland Airport Submission (75 kB pdf)</a></li> <li><a href="http://www.fma.govt.nz/assets/media/bell-gully-submission.pdf" target="_blank">Bell Gully Submission (999 kB pdf)</a></li> <li><a href="http://www.fma.govt.nz/assets/media/688878/bnz-submission.pdf" target="_blank">BNZ Submission (478 kB pdf)</a></li> <li><a href="http://www.fma.govt.nz/assets/media/100/buddle-findlay.pdf" target="_blank">Buddle Findlay Submission (123 kB pdf)</a></li> <li><a href="http://www.fma.govt.nz/assets/media/100/chapman-tripp.pdf" target="_blank">Chapman Tripp Submissions (380 kB pdf)</a></li> <li><a href="http://www.fma.govt.nz/assets/media/commission-for-financial-literacy-and-retirement-income-submission.pdf" target="_blank">Commission for Financial Literacy and Retirement Income Submission (99 kB pdf)</a></li> <li><a href="http://www.fma.govt.nz/assets/media/consumer-nz-submission.pdf" target="_blank">Consumer NZ Submission (62 kB pdf)</a></li> <li><a href="http://www.fma.govt.nz/assets/media/craigs-investment-partners-limited-submission.pdf" target="_blank">Craigs Investment Partners Limited Submission (298 kB pdf)</a></li> <li><a href="http://www.fma.govt.nz/assets/media/689046/deloitte-submission.pdf" target="_blank">Deloitte Submission (4 MB pdf)</a></li> <li><a href="http://www.fma.govt.nz/assets/media/688899/diversified-wealth-management-submission.pdf" target="_blank">Diversified Wealth Management Submission (422 kB pdf)</a></li> <li><a href="http://www.fma.govt.nz/assets/media/688902/dla-phillips-fox-submission.pdf" target="_blank">DLA Phillips Fox Submission (2 MB pdf)</a></li> <li><a href="http://www.fma.govt.nz/assets/media/ernst-young-submission.pdf" target="_blank">Ernst &amp; Young Submission (1 MB pdf)</a></li> <li><a href="http://www.fma.govt.nz/assets/media/financial-services-council-of-nz-submission.pdf" target="_blank">Financial Services Council of NZ Submission (503 kB pdf)</a></li> <li><a href="http://www.fma.govt.nz/assets/media/688911/financial-services-federation-submission.pdf" target="_blank">Financial Services Federation Submission (439 kB pdf)</a></li> <li><a href="http://www.fma.govt.nz/assets/media/first-mortgage-managers-limited-submission.pdf" target="_blank">First Mortgage Managers Limited Submission (74 kB pdf)</a></li> <li><a href="http://www.fma.govt.nz/assets/media/first-nz-capital-limited-submission.pdf" target="_blank">First NZ Capital Limited Submission (126 kB pdf)</a></li> <li><a href="http://www.fma.govt.nz/assets/media/fisher-funds-submission.pdf" target="_blank">Fisher Funds Submission (225 kB pdf)</a></li> <li><a href="http://www.fma.govt.nz/assets/media/fletcher-building-submission.pdf" target="_blank">Fletcher Building Submission (83 kB pdf)</a></li> <li><a href="http://www.fma.govt.nz/assets/media/foodstuffs-south-island-limited-submission.pdf" target="_blank">Foodstuffs South Island Limited Submission (26 kB pdf)</a></li> <li><a href="http://www.fma.govt.nz/assets/media/forest-enterprises-limited-submission.pdf" target="_blank">Forest Enterprises Limited Submission (30 kB pdf)</a></li> <li><a href="http://www.fma.govt.nz/assets/media/forsyth-barr-submission.pdf" target="_blank">Forsyth Barr Submission (29 kB pdf)</a></li> <li><a href="http://www.fma.govt.nz/assets/media/gareth-morgan-investments-limited-submission.pdf" target="_blank">Gareth Morgan Investments Limited Submission (583 kB pdf)</a></li> <li><a href="http://www.fma.govt.nz/assets/media/general-finance-limited-submission.pdf" target="_blank">General Finance Limited Submission (50 kB pdf)</a></li> <li><a href="http://www.fma.govt.nz/assets/media/genesis-energy-power-limited-submission.pdf" target="_blank">Genesis Energy Power Limited Submission (253 kB pdf)</a></li> <li><a href="http://www.fma.govt.nz/assets/media/grant-thornton-submission.pdf" target="_blank">Grant Thornton Submission (213 kB pdf)</a></li> <li><a href="http://www.fma.govt.nz/assets/media/harbour-asset-management-limited-submission.pdf" target="_blank">Harbour Asset Management Limited Submission (457 kB pdf)</a></li> <li><a href="http://www.fma.govt.nz/assets/media/hayes-knight-nz-limited-submission.pdf" target="_blank">Hayes Knight NZ Limited Submission (160 kB pdf)</a></li> <li><a href="http://www.fma.govt.nz/assets/media/insight-creative-limited-submission.pdf" target="_blank">Insight Creative Limited Submission (97 kB pdf)</a></li> <li><a href="http://www.fma.govt.nz/assets/media/institute-of-finance-professionals-submission.pdf" target="_blank">Institute of Finance Professionals Submission (153 kB pdf)</a></li> <li><a href="http://www.fma.govt.nz/assets/media/institutue-of-directors-submission.pdf" target="_blank">Institutue of Directors Submission (223 kB pdf)</a></li> <li><a href="http://www.fma.govt.nz/assets/media/john-larcomb-submission.pdf" target="_blank">John Larcomb Submission (17 kB pdf)</a></li> <li><a href="http://www.fma.govt.nz/assets/media/kensington-swan-submission.pdf" target="_blank">Kensington Swan Submission (102 kB pdf)</a></li> <li><a href="http://www.fma.govt.nz/assets/media/kiwibank-limited-submission.pdf" target="_blank">Kiwibank Limited Submission (267 kB pdf)</a></li> <li><a href="http://www.fma.govt.nz/assets/media/kpmg-submission.pdf" target="_blank">KPMG Submission (80 kB pdf)</a></li> <li><a href="http://www.fma.govt.nz/assets/media/medical-assurance-society-submission.pdf" target="_blank">Medical Assurance Society Submission (98 kB pdf)</a></li> <li><a href="http://www.fma.govt.nz/assets/media/meridian-energy-submission.pdf" target="_blank">Meridian Energy Submission (203 kB pdf)</a></li> <li><a href="http://www.fma.govt.nz/assets/media/688977/minter-ellison-submission.pdf" target="_blank">Minter Ellison Submission (748 kB pdf)</a></li> <li><a href="http://www.fma.govt.nz/assets/media/688983/new-zealand-bankers-association-submission.pdf" target="_blank">New Zealand Bankers Association Submission (128 kB pdf)</a></li> <li><a href="http://www.fma.govt.nz/assets/media/new-zealand-funds-management-submission.pdf" target="_blank">New Zealand Funds Management Submission (336 kB pdf)</a></li> <li><a href="http://www.fma.govt.nz/assets/media/new-zealand-cooperative-association-submission.pdf" target="_blank">New Zealand Cooperative Association Submission (243 kB pdf)</a></li> <li><a href="http://www.fma.govt.nz/assets/media/nz-institute-of-chartered-accountants-submission.pdf" target="_blank">NZ Institute of Chartered Accountants Submission (182 kB pdf)</a></li> <li><a href="http://www.fma.govt.nz/assets/media/nz-law-society-submission.pdf" target="_blank">NZ Law Society Submission (359 kB pdf)</a></li> <li><a href="http://www.fma.govt.nz/assets/media/nz-shareholders-association-inc-submission.pdf" target="_blank">NZ Shareholders Association Inc Submission (560 kB pdf)</a></li> <li><a href="http://www.fma.govt.nz/assets/media/nzx-limited-submission.pdf" target="_blank">NZX Limited Submission (181 kB pdf)</a></li> <li><a href="http://www.fma.govt.nz/assets/media/pathfinder-asset-management-limited-submission.pdf" target="_blank">Pathfinder Asset Management Limited Submission (984 kB pdf)</a></li> <li><a href="http://www.fma.govt.nz/assets/media/paul-kelway-submission.pdf" target="_blank">Paul Kelway Submission (41 kB pdf)</a></li> <li><a href="http://www.fma.govt.nz/assets/media/perpetual-asset-management-limited-submission.pdf" target="_blank">Perpetual Asset Management Limited Submission (244 kB pdf)</a></li> <li><a href="http://www.fma.govt.nz/assets/media/pricewaterhousecoopers-submission.pdf" target="_blank">PricewaterhouseCoopers Submission (524 kB pdf)</a></li> <li><a href="http://www.fma.govt.nz/assets/media/russell-mcveagh-submission.pdf" target="_blank">Russell McVeagh Submission (64 kB pdf)</a></li> <li><a href="http://www.fma.govt.nz/assets/media/securities-industry-association-submission.pdf" target="_blank">Securities Industry Association Submission (135 kB pdf)</a></li> <li><a href="http://www.fma.govt.nz/assets/media/simpson-grierson-submission.pdf" target="_blank">Simpson Grierson Submission (650 kB pdf)</a></li> <li><a href="http://www.fma.govt.nz/assets/media/superlife-submission.pdf" target="_blank">SuperLife Submission (200 kB pdf)</a></li> <li><a href="http://www.fma.govt.nz/assets/media/tower-submission.pdf" target="_blank">Tower Submission (331 kB pdf)</a></li> <li><a href="http://www.fma.govt.nz/assets/media/trustee-corporations-association-of-nz-inc-submission.pdf" target="_blank">Trustee Corporations Association of NZ inc Submission (276 kB pdf)</a></li> <li><a href="http://www.fma.govt.nz/assets/media/westpac-submission.pdf" target="_blank">Westpac Submission (890 kB pdf)</a></li> <li><a href="http://www.fma.govt.nz/assets/media/workplace-savings-nz-submission.pdf" target="_blank">Workplace Savings NZ Submission (130 kB pdf)</a></li> <li><a href="http://www.fma.govt.nz/assets/media/write-limited-submission.pdf" target="_blank">Write Limited Submission (188 kB pdf)</a></li> <li><a href="http://www.fma.govt.nz/assets/media/the-external-reporting-board-submission.pdf" target="_blank">The External Reporting Board Submission (157 kB pdf)</a></li> <li><a href="http://www.fma.govt.nz/assets/media/tony-submission.pdf" target="_blank">Tony Submission (14 kB pdf)</a></li> </ul> </div> </div> http://www.fma.govt.nz/laws-we-enforce/policy/closed-consultations/consultation-papers-on-draft-minimum-standards-and-conditions-for-new-licenses Consultation Papers on draft minimum standards and conditions for new licenses 2014-09-04 15:08:20 Financial Markets Authority <div id="content-area"> <h2>Shaping the future of our markets</h2> <p><strong>Published at 13 November 2013</strong></p> <p>The Financial Markets Conduct Act 2013 (the Act) introduces licensing for providers offering certain types of financial services.</p> <p>We are now consulting on the proposed minimum standards for these licence types:        </p> <ul> <li><a href="http://www.fma.govt.nz/assets/media/101/licensing-dims-providers.pdf" target="_blank">Consultation: Licensing Discretionary Investment Management Service (DIMS) providers</a>         </li> <li><a href="http://www.fma.govt.nz/assets/media/101/licensing-peer-to-peer-lending.pdf" target="_blank">Consultation: Licensing peer-to-peer lending services</a>  </li> <li><a href="http://www.fma.govt.nz/assets/media/101/licensing-crowd-funding.pdf" target="_blank">Consultation: Licensing crowd funding </a>   </li> <li><a href="http://www.fma.govt.nz/assets/media/101/licensing-independent-trustees.pdf" target="_blank">Consultation: Licensing independent trustees</a>        </li> <li><a href="http://www.fma.govt.nz/assets/media/101/licensing-derivatives-issuers.pdf" target="_blank">Consultation: Licensing derivatives issuers</a>    </li> <li><a href="http://www.fma.govt.nz/assets/media/101/licensing-mis.pdf" target="_blank">Consultation: Managed Investment Schemes (MIS) managers</a></li> </ul> <p>We invite you to review these consultation papers and share your feedback with us. This is our chance to work together to shape the future of our financial markets.</p> <p><strong>The final date for submissions is 12 December 2013.</strong></p> <p><strong>How do I make a submission? </strong></p> <p>Please use this <a href="http://www.fma.govt.nz/assets/feedback-form-november-20131.docx" target="_blank">feedback form</a><a href="http://www.fma.govt.nz/media/1903122/feedback-form-november-2013.docx" target="_blank"></a>. This is also on the final page of each consultation paper – this gives the details of what you need to do. Forms must be submitted electronically in both PDF and word formats and emailed to <a href="mailto:consultation@fma.govt.nz">consultation@fma.govt.nz</a> – please put ‘Feedback {insert title of consultation paper} standards and conditions’ in the subject line.</p> <p>Alternatively, you can make an online submission on our engagement site <a href="http://www.talktous.fma.govt.nz">www.talktous.fma.govt.nz</a>. You need to register to be able to use the site.</p> <p><strong>Where can I get more information?</strong></p> <p><strong> </strong>You’ll find more information about the changes on our website <a href="http://www.fma.govt.nz/keep-updated/the-future-of-financial-markets">www.fma.govt.nz</a>, or at the Ministry of Business Innovation and Employment site <a href="http://www.mbie.govt.nz">www.mbie.govt.nz</a></p> <p>If you have questions about the licensing consultation process, please get in touch.</p> <p><strong>Simon Smith </strong></p> <p>Manager Compliance Monitoring FrameworkEmail: <a href="mailto:simon.smith@fma.govt.nz">simon.smith@fma.govt.nz</a>Tel:   04 4742440</p> </div> http://www.fma.govt.nz/laws-we-enforce/policy/closed-consultations/consultation-financial-reporting-regulatory-policy-for-financial-reporting-designations-and-exemptions Consultation: Financial Reporting - Regulatory policy for financial reporting designations and exemptions 2014-09-04 15:04:56 Financial Markets Authority <div id="content-area"> <h2>Shaping the future of our markets</h2> <p>When the Financial Markets Conduct Act 2013 comes into effect on 1 April 2014 we will have regulatory powers to vary the financial reporting obligations of FMC reporting entities by:</p> <ul> <li>Varying public accountability designations, and</li> <li>Granting exemptions.</li> </ul> <p>We are now seeking feedback on how we intend to apply our new powers, and the immediate changes we propose to make to both designations and exemptions under these powers.</p> <p><a href="http://www.fma.govt.nz/assets/media/101/consultation-paper-financial-reporting-regulatory-policy-for-financial-reporting-designations-and-exemptions.pdf" target="_blank">Consultation: Financial Reporting - Regulatory policy for financial reporting designations and exemptions</a></p> <p>We invite you to review our policies and the proposed changes and share your feedback on them with us. This is our chance to work together to shape the future for our industry.</p> <p><strong>Submissions close on 28 February 2014.</strong></p> <p><strong>Consultation workshops</strong></p> <p><strong>Open meetings:</strong></p> <ul> <li>FMA Wellington: Friday 14 February, 2  p.m.</li> <li>FMA Auckland: Friday 21 February, 2 p.m.</li> </ul> <p><strong>Legal advisers:</strong></p> <ul> <li>FMA Wellington, Friday 14 February, 10 am.</li> <li>FMA Auckland, Friday 21 February, 10 a.m.</li> </ul> <p>Please register asap as numbers are limited by emailing <a href="mailto:Raksha.Magan@fma.govt.nz">Raksha.Magan@fma.govt.nz</a></p> <p><strong>How do I make a submission?</strong>Please use this <a href="http://www.fma.govt.nz/assets/media/101/feedback-form-financial-reporting-consultation-paper.docx" target="_blank">feedback form</a>. This is also on the final page of the consultation paper – this gives the details of what you need to do. Forms must be submitted electronically in both PDF and word formats and emailed to <a href="mailto:consultation@fma.govt.nz">consultation@fma.govt.nz</a> – please put ‘Feedback - Financial Reporting’ in the subject line.</p> <p><strong>Where can I get more information?</strong>You’ll find more information about the changes on our website <a href="http://www.fma.govt.nz/">www.fma.govt.nz</a>. If you have questions about the consultation process, please get in touch.</p> <p><strong>Jeromy Meerman</strong>Compliance Monitoring - Senior Accountant Surveillance</p> <p>Email: <a href="mailto:Jeromy.meerman@fma.govt.nz">jeromy.meerman@fma.govt.nz</a>  Tel:    09 300 0426</p> </div> http://www.fma.govt.nz/laws-we-enforce/policy/closed-consultations/fma-seeks-comments-on-proposed-class-exemption-to-apply-to-initial-public-offers FMA seeks comments on proposed class exemption to apply to initial public offers 2014-09-04 15:01:38 Financial Markets Authority <div id="content-area"> <p>The Financial Markets Authority (<strong>FMA</strong>) is planning to consult on a proposed class exemption for firms making initial public offers (<strong>IPOs</strong>). FMA has granted specific exemptions for two recent offers, namely Genesis Energy Limited and Intueri Education Group.</p> <p>Those two exemptions included – among other things - exemptions for form and content of the investment statements. FMA proposes to make the form and content exemptions the subject of a class exemption.</p> <p>Under the proposal, a class exemption would apply to any firm making a similar IPO, if they elect to take up the exemption.</p> <p>An issuer that requires any additional exemptions – beyond those covering form and content - would need to apply to FMA in the usual manner.</p> <p>Two investments statements which provide an indication of how information could be presented under such a class exemption are attached (Genesis and Intueri).</p> <p>The complete Genesis and Intueri exemptions are available <a href="http://www.fma.govt.nz/laws-we-enforce/legislation/exemption-notices/current-exemption-notices/">here</a>.</p> <p>FMA plans to consult formally on the exemption including publication of a draft class exemption notice, in the next few weeks. Ahead of the formal consultation we invite comments on:</p> <ul> <li>whether a class exemption relating to the form and content of the investment statement, along the lines of the two exemptions that were granted, would be a useful exemption;</li> <li>whether there are any other exemptions (in addition to those relating to the form and content of the investment) that may be appropriate for inclusion in the class exemption.  An example is the ‘significant event and right of withdrawal exemption’ similar to that granted for Genesis Energy Limited;</li> <li>whether there are any provisions in the two exemptions that may present compliance difficulties for particular issuers and firms making offers; and</li> <li>whether it is likely that issuers will continue to require additional individual exemptions in addition to the proposed class exemption.</li> </ul> <p>Please provide any comments to us by Tuesday, 27 May 2014. FMA will carry out a formal consultation during June.</p> <p>Feedback can be provided to <a href="mailto:exemptions@fma.govt.nz">exemptions@fma.govt.nz</a>. Please include: ‘Feedback –Class Exemption for IPOs’ in the subject line.</p> <p><strong>Ends</strong></p> <p>Media queries – Andrew Park: 021 220 6770</p> <div id="file-attachments"> <h2>File Attachments</h2> <ul> <li><a href="http://www.fma.govt.nz/assets/media/101/securities-act-genesis-energy-limited-crown-share-offer-exemption-notice-2014.pdf" target="_blank">Securities Act (Genesis Energy Limited Crown Share Offer) Exemption Notice 2014 (4 MB pdf)</a></li> <li><a href="http://www.fma.govt.nz/assets/media/101/intueri-education-group-limited-investment-statement.pdf" target="_blank">Securities Act (Intueri Education Group Limited) Exemption Notice 2014 (3 MB pdf)</a></li> <li><a href="http://www.fma.govt.nz/assets/media/101/genesis-energy-limited-investment-statement.pdf" target="_blank">Genesis Energy Limited – Investment Statement (4 MB pdf)</a></li> <li><a href="http://www.fma.govt.nz/assets/media/101/intueri-education-group-limited-investment-statement.pdf" target="_blank">Intueri Education Group Limited – Investment statement (6 MB pdf)</a></li> </ul> </div> </div> <p> </p> http://www.fma.govt.nz/laws-we-enforce/policy/closed-consultations/second-consultation-paper-regulatory-reporting-guide-for-authorised-financial-advisers Second Consultation Paper: Regulatory Reporting Guide for Authorised Financial Advisers 2014-09-04 14:54:59 Financial Markets Authority <div id="content-area"> <p><strong>Final date for submissions is Wednesday 9 April 2014.</strong></p> <h2>About this consultation</h2> <p>The FMA has opened a second <a href="http://www.fma.govt.nz/assets/media/101/regulatory-reporting-guide-second-consulation-paper-2014.pdf" target="_blank">consultation</a> on the proposed <strong>Regulatory Reporting Guide</strong> (<strong>RRG</strong>) for Authorised Financial Advisers (AFAs).</p> <p>In this second consultation we would like feedback on revised RRG and Information Return questions which is intended to be the first reporting requirement contained in the RRG..</p> <h3>Submission process</h3> <p>We invite and encourage all stakeholders to make submissions.</p> <p>You can either email your feedback to <a href="mailto:consultation@fma.govt.nz">consultation@fma.govt.nz</a> or through the <a href="http://www.fma.govt.nz/about-us/contact-us/">Contact Us</a> section of our website. Please submit your feedback both as a PDF and in Word format. The email subject line should identify that the email contains a submission on the proposed RRG e.g. “Submission on the proposed Regulatory Reporting Guide – second consultation.”</p> <p><strong>The final date for submissions is Wednesday 9 April 2014.</strong></p> <p><strong>Please note: as this is a second consultation, we will not be showing an online demonstration version of the Information Return as we did in the previous consultation.  Any feedback from the consultation will be considered appropriately and may be incorporated into the online Information Return.</strong></p> <p>We will not treat any part of your submission as confidential unless you specifically request we do so. Submissions may be subject to the Official Information Act 1982. We may make submissions available on our website, may compile a summary of the submissions or draw attention to individual submissions in internal or external reports.</p> <p>If you would like us to withhold any commercially sensitive, confidential or proprietary information included in your submission, please clearly state this in your submission and identify the relevant extracts of information. We will consider any request to have information withheld in accordance with our obligations under the Official Information Act.</p> <p>If you would like further information about this consultation, please contact us on 0800 434 567 or email us at <a href="mailto:questions@fma.govt.nz">questions@fma.govt.nz</a></p> <p> </p> <h3>First consultation paper</h3> <p><a href="http://www.fma.govt.nz/laws-we-enforce/policy/closed-consultations/consultation-paper-regulatory-reporting-guide-for-authorised-financial-advisers">Consultation Paper: Regulatory Reporting Guide for Authorised Financial Advisers</a></p> <p> </p> <h3>Submissions received</h3> <table> <tbody> <tr> <td><strong>First consultation submissions</strong></td> <td><strong>Second consultation submissions</strong></td> </tr> <tr> <td><a href="http://www.fma.govt.nz/assets/anz-bank-new-zealand-limited.pdf" target="_blank">ANZ Bank New Zealand Limited</a></td> <td><a href="http://www.fma.govt.nz/assets/media/101/afa-information-return-questions-final.pdf" target="_blank">ANZ Bank New Zealand Limited</a></td> </tr> <tr> <td><a href="http://www.fma.govt.nz/assets/asb-bank-limited.pdf" target="_blank">ASB Bank Limited</a></td> <td><a href="http://www.fma.govt.nz/assets/bank-of-new-zealand.pdf" target="_blank">Bank of New Zealand</a></td> </tr> <tr> <td><a href="http://www.fma.govt.nz/assets/carey-church1.pdf" target="_blank">Carey Church</a></td> <td><a href="http://www.fma.govt.nz/assets/carey-church.pdf" target="_blank">Carey Church</a></td> </tr> <tr> <td><a href="http://www.fma.govt.nz/assets/chris-lynch-submission-no-1-.pdf" target="_blank">Chris Lynch (Submission No. 1)</a></td> <td><a href="http://www.fma.govt.nz/assets/charles-lambert.pdf" target="_blank">Charles Lambert</a></td> </tr> <tr> <td><a href="http://www.fma.govt.nz/assets/chris-lynch-submission-no-2-.pdf" target="_blank">Chris Lynch (Submission No. 2)</a></td> <td><a href="http://www.fma.govt.nz/assets/duncan-balmer.pdf" target="_blank">Duncan Balmer</a></td> </tr> <tr> <td> <p><a href="http://www.fma.govt.nz/assets/craig-investment-partners-limited.pdf" target="_blank">Craig Investment Partners Limited</a></p> </td> <td><a href="http://www.fma.govt.nz/assets/media/100/financial-services-council.pdf" target="_blank">Financial Services Council</a><a href="http://www.fma.govt.nz/assets/duncan-balmer.pdf" target="_blank"></a></td> </tr> <tr> <td><a href="http://www.fma.govt.nz/assets/donald-broad.pdf" target="_blank">Donald Broad</a></td> <td><a href="http://www.fma.govt.nz/assets/michael-dowling.pdf" target="_blank">Michael Dowling</a></td> </tr> <tr> <td><a href="http://www.fma.govt.nz/assets/duncan-balmer1.pdf" target="_blank">Duncan Balmer</a><a href="http://www.fma.govt.nz/assets/duncan-balmer.pdf" target="_blank"></a></td> <td><a href="http://www.fma.govt.nz/assets/new-zealand-financial-advisers-association.pdf" target="_blank">New Zealand Financial Advisers Association</a></td> </tr> <tr> <td><a href="http://www.fma.govt.nz/assets/financial-services-council1.pdf" target="_blank">Financial Services Council</a></td> <td><a href="http://www.fma.govt.nz/assets/paul-clancy.pdf" target="_blank">Paul Clancy</a></td> </tr> <tr> <td><a href="http://www.fma.govt.nz/assets/institute-of-financial-advisers.pdf" target="_blank">Institute of Financial Advisers</a></td> <td><a href="http://www.fma.govt.nz/assets/rob-jeffs.pdf" target="_blank">Rob Jeffs</a></td> </tr> <tr> <td><a href="http://www.fma.govt.nz/assets/kiwibank-limited.pdf" target="_blank">Kiwibank Limited</a></td> <td><a href="http://www.fma.govt.nz/assets/securities-industry-association.pdf" target="_blank">Securities Industry Association</a></td> </tr> <tr> <td><a href="http://www.fma.govt.nz/assets/mark-fairfield.pdf" target="_blank">Mark Fairfield</a></td> <td><a href="http://www.fma.govt.nz/assets/sifa-incorporated.pdf" target="_blank">SIFA Incorporated</a></td> </tr> <tr> <td><a href="http://www.fma.govt.nz/assets/matthew-lynch.pdf" target="_blank">Matthew Lynch</a></td> <td><a href="http://www.fma.govt.nz/assets/simon-hassan.pdf" target="_blank">Simon Hassan</a></td> </tr> <tr> <td><a href="http://www.fma.govt.nz/assets/michael-shaw.pdf" target="_blank">Michael Shaw</a></td> <td><a href="http://www.fma.govt.nz/assets/somerset-smith-partners.pdf" target="_blank">Somerset Smith Partners</a></td> </tr> <tr> <td><a href="http://www.fma.govt.nz/assets/mike-hayes.pdf" target="_blank">Mike Hayes</a></td> <td><a href="http://www.fma.govt.nz/assets/steve-tutbury.pdf" target="_blank">Steve Tutbury</a></td> </tr> <tr> <td><a href="http://www.fma.govt.nz/assets/miles-hayward-ryan.pdf" target="_blank">Miles Hayward-Ryan</a></td> <td><a href="http://www.fma.govt.nz/assets/trustees-executors.pdf" target="_blank">Trustees Executors</a></td> </tr> <tr> <td><a href="http://www.fma.govt.nz/assets/neville-caird.pdf" target="_blank">Neville Caird</a></td> <td><a href="http://www.fma.govt.nz/assets/trustees-executors.pdf" target="_blank">Westpac New Zealand Limited</a><a title="westpac" href="http://www.fma.govt.nz/assets/trustees-executors.pdf" target="_blank"></a></td> </tr> <tr> <td><a href="http://www.fma.govt.nz/assets/media/new-zealand-bankers-association.pdf" target="_blank">New Zealand Bankers Association</a></td> <td><a href="http://www.fma.govt.nz/assets/william-stevens.pdf" target="_blank">William Stevens</a></td> </tr> <tr> <td><a href="http://www.fma.govt.nz/assets/new-zealand-wealth-adviser-services.pdf" target="_blank">New Zealand Wealth Adviser Services</a></td> <td> </td> </tr> <tr> <td><a href="http://www.fma.govt.nz/assets/peter-wannan.pdf" target="_blank">Peter Wannan</a></td> <td> </td> </tr> <tr> <td><a href="http://www.fma.govt.nz/assets/professional-advisers-association.pdf" target="_blank">Professional Advisers Association</a></td> <td> </td> </tr> <tr> <td><a href="http://www.fma.govt.nz/assets/rein-purre.pdf" target="_blank">Rein Purre</a></td> <td> </td> </tr> <tr> <td><a href="http://www.fma.govt.nz/assets/rob-jeffs1.pdf" target="_blank">Rob Jeffs</a></td> <td> </td> </tr> <tr> <td><a href="http://www.fma.govt.nz/assets/ross-sheerin.pdf" target="_blank">Ross Sheerin</a></td> <td> </td> </tr> <tr> <td><a href="http://www.fma.govt.nz/assets/securities-industry-association1.pdf" target="_blank">Securities Industry Association</a></td> <td> </td> </tr> <tr> <td><a href="http://www.fma.govt.nz/assets/sifa-inc.pdf" target="_blank">SiFA Inc</a></td> <td> </td> </tr> <tr> <td><a href="http://www.fma.govt.nz/assets/simon-hassan1.pdf" target="_blank">Simon Hassan</a></td> <td> </td> </tr> <tr> <td> <p><a href="http://www.fma.govt.nz/assets/somerset-smith-partners1.pdf" target="_blank">Somerset Smith Partners</a></p> </td> <td> </td> </tr> <tr> <td><a href="http://www.fma.govt.nz/assets/stephen-oconnor.pdf" target="_blank">Stephen O'Connor</a></td> <td> </td> </tr> <tr> <td><a href="http://www.fma.govt.nz/assets/stratus-financial-services-ltd.pdf" target="_blank">Stratus Financial Services Ltd</a></td> <td> </td> </tr> <tr> <td><a href="http://www.fma.govt.nz/assets/tony-walker.pdf" target="_blank">Tony Walker</a></td> <td> </td> </tr> <tr> <td><a href="http://www.fma.govt.nz/assets/trustees-executors-limited.pdf" target="_blank">Trustees Executors Limited</a></td> <td> </td> </tr> <tr> <td><a href="http://www.fma.govt.nz/assets/westpac-new-zealand-limited1.pdf" target="_blank">Westpac New Zealand Limited</a></td> <td> </td> </tr> <tr> <td><a href="http://www.fma.govt.nz/assets/william-stevens1.pdf" target="_blank">William Stevens</a></td> <td> </td> </tr> </tbody> </table> <div id="file-attachments"> <h2>File Attachments</h2> <ul> <li><a href="http://www.fma.govt.nz/assets/media/101/afa-information-return-questions-final.pdf" target="_blank">AFA Information Return – Questions (453 kB pdf)</a></li> <li><a href="http://www.fma.govt.nz/assets/media/101/regulatory-reporting-guide-second-consulation-paper-2014.pdf" target="_blank">Second Consultation Paper: Regulatory Reporting Guide for Authorised Financial Advisers (365 kB pdf)</a></li> <li><a href="http://www.fma.govt.nz/assets/media/101/regulatory-reporting-guide-submission-template-march-2014.docx" target="_blank">Attachment A: Submission template (WORD version) (104 kB docx)</a></li> <li><a href="http://www.fma.govt.nz/assets/media/101/afa-regulatory-reporting-guide-2014.pdf" target="_blank">Attachment B: Regulatory Reporting Guide for Authorised Financial Advisers (489 kB pdf)</a></li> </ul> </div> </div> http://www.fma.govt.nz/keep-updated/newsroom/speeches/presentation-by-rob-everett-to-the-institute-of-directors Presentation by Rob Everett to the Institute of Directors 2014-09-04 14:09:10 Financial Markets Authority <p>This morning I am going to cover the following areas:</p> <p class="Body">-       Expectations of directors – that’s expectations held by the regulator - but also by shareholders and consumers.</p> <p class="Body">-       Some remarks specific to New Zealand, notably on conflicts of interest and the pool of director talent in New Zealand and how we can improve it.</p> <p class="Body">-       The Financial Markets Conduct Act, and the opportunities it brings not only for financial services firms, but firms that are issuing debt or equity, or raising funds in some way.<a name="_ftn1" href="http://www.fma.govt.nz/#_ftnref1">[1]</a></p> <p class="Body">-       And finally I want to remind you of something that I know you all recognise.  That the role of a non-executive director is one worth undertaking.  Despite its tribulations, directorships contribute to the welfare of this country in a substantial way, and at the Financial Markets Authority (FMA) we greatly value that contribution.</p> <p class="BodyACxSpFirst"><strong>EXPECTATIONS</strong></p> <p class="BodyACxSpMiddle">Let me start with expectations.  Because – from what I hear anecdotally when I and FMA staff are talking to directors and boards – it’s an area that might trouble some of you.</p> <p class="BodyACxSpMiddle">A good place to start is to ask how much has changed - in expectations of directors - in the last 25 years or so?  I’d suggest to you that the expectations of directors are still largely the same.</p> <p class="BodyACxSpMiddle">I agree that there’s more pressure and more focus on boards.  The media get on your case more readily. And regulators and shareholders are more willing to assert themselves.</p> <p class="BodyACxSpMiddle">But the substantial underlying duties – at law – are not much different to what they were in the 1990s.</p> <p class="BodyACxSpMiddle">Indeed, if I look at the vast majority of the cases the FMA has pursued against directors - either on our own, or jointly with the Serious Fraud Office (SFO) – few, if any, of those cases have aimed at raising the bar in terms of the legal standard.  Most of them sought to ensure that the law – as it stood at the time – was applied properly.</p> <p class="BodyACxSpMiddle">I have heard suggestions that recent case law in New Zealand - and specifically the approach taken by the FMA and the SFO - has shifted the goalposts a long way for directors.   I don’t accept that.</p> <p class="BodyACxSpMiddle">New Zealand had a strict liability regime for misstatements in offer documents – which was among the more demanding regimes of its type in comparable jurisdictions.  And that has had serious consequences for directors who breached the regime.</p> <p class="BodyACxSpMiddle">But - broadly speaking - most of the judicial commentary on the duties of directors - in the cases over offers - was textbook stuff for anyone who studied corporate law in the 1980s, as I did.  </p> <p class="BodyACxSpMiddle">So, as the capital markets regulator - and with the benefit of case law fresh from the bench - what do we expect of directors today?</p> <p class="BodyACxSpMiddle">We do expect directors to pay close attention:</p> <p class="BodyACxSpMiddle">- in particular when the quality, honesty and prudence of public statements could cause harm to investors or consumers</p> <p class="BodyACxSpMiddle">- in particular when people are entrusting their savings or their financial security to financial services firms.</p> <p class="BodyACxSpMiddle">This is really very straightforward, and I think you would all accept the underlying point.</p> <p class="BodyACxSpMiddle">Investors – who are taking on debt or equity securities, or buying financial services products - are entitled to believe what they are told and to believe they are being told everything that is material to their decision.</p> <p class="BodyACxSpMiddle">Indeed, many of the key rules of the NZX - and the intentions of regulators like the FMA – zero-in on the quality of corporate disclosure - whether that’s in offer documents, exchange announcements, or other material that is provided to shareholders.</p> <p class="BodyACxSpMiddle">For directors, this is an area where relying solely on experts, or on management, raises unnecessary risks.  Directors should reassure themselves - personally - that the materials tell the right story.</p> <p class="BodyACxSpMiddle">Of course, different skill sets on any board must be acknowledged and made the most of.</p> <p class="BodyACxSpMiddle">Boards need a blend of directors with a diversity of skill-set, and approach, to function best.  Some directors will have a better grasp of debt and equity offers and the expectations of the market in terms of content and timing of disclosure than will others.</p> <p class="BodyACxSpLast">And management enjoys a detailed understanding of a company’s operations that non-executive directors can’t achieve, simply because they aren’t there all the time.  But this is not a recipe for blind reliance.  </p> <p class="BodyCxSpMiddle">Directors need to pay close attention.  Read the materials.  Ask questions. Keep asking until you are fully satisfied.  Challenge the executive and the advisors.</p> <p class="BodyACxSpFirst">Overall, take steps to reassure yourselves that the materials are accurate and that management and the experts are competent and honest.  You are directing both business strategy and managing risk. And you need a strategy and process for both.</p> <p class="BodyACxSpMiddle">In financial services – where the FMA has specific regulatory responsibilities - I challenge the boards and management of firms, both big and small:</p> <p class="BodyACxSpMiddle">- To show us that they put the customers first.</p> <p class="BodyACxSpMiddle">- To show us that they pay attention to the outcomes delivered to their customers and that those outcomes match your aspirations and claims.</p> <p class="BodyACxSpMiddle">- That what you do as a board - what you look at, how you react, and how you probe beyond what management tells you - is designed to protect and serve shareholders and customers.</p> <p class="BodyACxSpMiddle">Thinking more widely, in my view, boards should – alongside management - drive corporate culture.</p> <p class="BodyACxSpMiddle">Putting up posters – complete with the right messages on them - in lifts and in meeting rooms isn’t enough.</p> <p class="BodyACxSpMiddle">Defining culture demands leadership by conduct and - more importantly - by demonstrating what it is that the board cares about.</p> <p class="BodyACxSpMiddle">I believe - very strongly - that “tone from the top” is crucial in any organisation, and that the board has a huge role in setting that tone.</p> <p class="BodyACxSpMiddle">Some questions I have asked of the boards of financial services firms, to determine whether a board is concerned with culture include (and by the way, any company should be looking at many of these same questions):</p> <p class="BodyACxSpMiddle">- Does the board look at customer complaints?</p> <p class="BodyACxSpMiddle">- Does it pay attention to data on customer outcomes?</p> <p class="BodyACxSpMiddle">- Does the board inquire into sales incentive structures and whether these contribute to good outcomes?</p> <p class="BodyACxSpMiddle">- Does the board understand thoroughly the company’s relationship with its suppliers, shareholders, employees, customers, and regulators?</p> <p class="BodyACxSpMiddle">- Does the board consider the criteria for promotion or rewards?</p> <p class="BodyACxSpMiddle">- Who do staff look up to and wish to emulate and why?</p> <p class="BodyACxSpMiddle">- Are the star performers allowed to behave differently to other staff?</p> <p class="BodyACxSpMiddle">In the United Kingdom, I saw – first-hand - instances of good, well-organised boards that were full of experienced and successful non-executive directors who were stunned at the bad outcomes their institutions were delivering to customers.</p> <p class="BodyACxSpMiddle">Often it took the regulators - or a dose of embarrassing media coverage - for them to recognise what was happening.</p> <p class="BodyACxSpMiddle">When challenged, these boards often said: “But we put customers first...it’s on the wall in the lobby.” Well, it didn’t feel like that when you looked at their complaints data or talked to their regulators. This is not a remote, far-off problem.</p> <p class="BodyACxSpMiddle">Some of you will have followed the inquiry into Commonwealth Bank’s financial planners in Australia.  Last month the report of a Senate inquiry revealed a long-run problem with very poor quality and in some cases dishonest advice - by a group of financial advisors - to clients of two advisory firms that are owned by CBA, which is Australia’s largest bank. <a name="_ftn2" href="http://www.fma.govt.nz/#_ftnref2">[2]</a></p> <p class="BodyACxSpMiddle">Many of the retail clients were significantly damaged as a result of the advice they were given, and CBA has been undertaking a very public settlement with those clients.</p> <p class="BodyACxSpMiddle">Senior management at CBA knew about the problem.  Indeed, the Australian regulator agreed on a continuous improvement plan with CBA in 2008 as a result of the regulator’s prior concerns.</p> <p class="BodyACxSpMiddle">But the problem persisted, at least partly because CBA’s response was inadequate. That indicates, among other things, a culture that allowed the bank to perpetuate a risk – for customers and shareholders - without responding to it.</p> <p class="BodyACxSpMiddle"><strong>TRUST</strong></p> <p class="BodyACxSpMiddle">Underlying these duties - for directors - is the quality that is most often called trust.</p> <p class="BodyACxSpMiddle">It’s a nebulous term.  Trust means different things to different people at different times.</p> <p class="BodyACxSpMiddle">One definition of trust is that I can be reassured that you will do what you said you would and that you will act in our agreed <span>mutual</span> interest – even though you would enjoy an advantage in not doing so. <a name="_ftn3" href="http://www.fma.govt.nz/#_ftnref3">[3]</a></p> <p class="BodyACxSpMiddle">To put that plainly, it means all sides of the transaction are looking after everyone’s interests – as they were agreed - even when we aren’t all there to see what’s happening.</p> <p class="BodyACxSpMiddle">Trust is fragile.</p> <p class="BodyACxSpMiddle">If I knowingly breach your trust – with substantial consequences for you - what’s to say I won’t do it again? And it’s fair to say that in the public domain, trust has been slowly declining over the last few decades.</p> <p class="BodyACxSpMiddle">Generally, public trust – which is the degree of trust between a society and its agents, such as governments and police forces – is less than it was, say in the 1970s when I was growing up.</p> <p class="BodyACxSpMiddle">One result of that is that public sentiment is already acutely tuned to actual or perceived breaches of trust, whether they are in the public or in the private sectors.</p> <p class="BodyACxSpMiddle">Here – in New Zealand – the finance company saga eroded trust in directors and - indeed - in regulators.  People saw directors running companies for their own benefit, engaging in related-party transactions and tolerating conflicts of interest on a large scale.</p> <p class="BodyACxSpMiddle">In some cases, boards and trustees did little while management behaved poorly or even dishonestly.</p> <p class="BodyACxSpMiddle">Of course, there are many instances where boards did their jobs to the fullest extent, making tough decisions in demanding times.  For every company that failed, there were many others that steered through the storm and kept investors whole.</p> <p class="BodyACxSpMiddle">Indeed, it’s vital to remember that.</p> <p class="BodyACxSpMiddle">There will be some of you here today who sat on boards during that period and have good reason to be proud of the decisions you made in the interests of shareholders, employees, and customers.  Nonetheless, the shadow of that period remains.</p> <p class="BodyACxSpMiddle">All of us – directors, senior management, and regulators as well – face a slow climb out of the shadow.  I’m confident that we are up to the task.</p> <p class="BodyACxSpMiddle">I wanted to make two observations about the director community in New Zealand, based on my experience at the FMA since I started in February.</p> <p class="BodyCxSpFirst">Firstly, competence and trust are related proportionately, at least up to a point.</p> <p class="BodyACxSpFirst">So, I applaud the IoD’s decision to transform the Institute into a professional body that requires members to undertake formal professional development if they want to remain a member.  It’s recognition that the director community in New Zealand must be at least up to the standard of other director communities in the Asia-Pacific region.</p> <p class="BodyACxSpMiddle">However, tough though that requirement might be, on its own mandatory professional development won’t raise the quality of a community of directors.</p> <p class="BodyCxSpFirst">If you are a director in New Zealand today, I’d urge you to think about your skill set.  Can you cover – comprehensively - all the competencies for a director? If, for example, financial statements vex you then I’d urge you to address that.</p> <p class="BodyCxSpMiddle">Boards need a blend of strengths, so not everyone will be as comfortable as everyone else on every topic and you should seek the benefit of that experience round the table.  But that doesn’t mean unquestioning reliance on other directors or management to do your job for you.</p> <p class="BodyCxSpMiddle">Secondly, growing the pool of potential director talent in New Zealand would have advantages for businesses.</p> <p class="BodyCxSpMiddle">Generally, it’s better to have more people to choose from – provided they are ready to do the job - not fewer.  Today I’d like to make a public call for people who think they are up to the job to consider taking it on.  You need the right experience, you must be willing to do the hard work, and you must be willing to dedicate yourself to a firm or organisation over the medium-term.</p> <p class="BodyCxSpLast">But the benefits – for firms, investors, and the economy as a whole – from high-quality directors - are substantial.  That includes the injection of deep and broad commercial and technical knowledge and experience into boards, blending diverse cultural and personal backgrounds and skill-sets, and asserting independence of mind.  A deeper pool of director talent in New Zealand might also mean fewer conflicts of interests, and fewer conflicts of duty – both actual and perceived.</p> <p class="BodyACxSpMiddle">And that’s my second point about the director community in New Zealand.</p> <p class="BodyACxSpMiddle">New Zealand must do better in addressing conflicts. Conflicts of interest occur where directors put their own personal interests and relationships before the interests of the company.</p> <p class="BodyACxSpMiddle">Conflicts of duty occur where they put themselves in situations where they have conflicting duties to more than one organization or group of people.</p> <p class="BodyACxSpMiddle">As a recent arrival here, I am surprised at how tolerant New Zealanders are of senior company officers and professionals who have a role on two sides of a deal, on two sides of proceedings, or on two sides of a critical policy issue.</p> <p class="BodyACxSpMiddle">I hear this referred to as a conflict of interest.  It’s not.  As I have indicated, a conflict of interest is where you prefer your own welfare over someone else.</p> <p class="BodyACxSpMiddle">What I’m describing here is a conflict of duties.  Generally-speaking, one professional can’t serve two or more causes – or two or more parties - that are opposed to each other.</p> <p class="BodyACxSpMiddle">The answer – which I often hear – is that “New Zealand is a small society and we have to tolerate it”.  In my view, that response is lazy and inadequate.</p> <p class="BodyACxSpMiddle">The fact that New Zealand is a small society means that trust is hard-earned and easily lost and we have to be particularly diligent.  We have to be willing to be clearer about separating our duties and willing to be seen to do so.  We have to be willing to step down or step aside – temporarily, and sometimes permanently - where that would alter actual or perceived conflicts.</p> <p class="BodyCxSpFirst"><strong>FMC ACT - OPPORTUNITIES</strong></p> <p class="BodyACxSpFirst">On a more positive note, I’d like to talk now about some of the opportunities for corporate New Zealand provided by the Financial Markets Conduct Act, which is progressively coming into effect this year and next.</p> <p class="BodyACxSpMiddle">Firstly, the improvements – which we are already seeing – in offer documents for debt and equity.</p> <p class="BodyACxSpMiddle">The new standards for offer documents focus on content and format, with the aim of providing investors with clear, concise and effective disclosure.  Documents drafted by lawyers, for lawyers - and in anticipation of litigation – don’t help investors make informed decisions.</p> <p class="BodyACxSpMiddle">We made huge progress with the Genesis IPO when it came out earlier this year, with a cogent and succinct offer document.  Full marks to the directors of Genesis, its management team and its advisors, because they worked incredibly hard to get to clear, concise and effective disclosure – to meet the new standards even though they don’t take effect – technically – until 1 December.</p> <p class="BodyACxSpMiddle">Others have followed, including among the IPOs like Serko.</p> <p class="BodyACxSpMiddle">I used to draft and review these documents for a living and it’s incredibly disheartening to think how little use they were for those who were supposed to read them – namely, investors.</p> <p class="BodyACxSpMiddle">The FMA is looking for a similar response – from boards, CFOs, and the auditing profession – in financial statements and financial reporting.</p> <p class="BodyACxSpMiddle">I know it is very hard to distil complex performance data, and to present it in a cogent way and real bravery is required not to take the easy route and just “kitchen sink” all the information on a “just- in-case” basis.  But some New Zealand companies have recognised this and are publishing quality financial reporting that investors can follow very easily.  Some of you here will be coming to the half-day seminar – which the FMA is hosting - on this in September.</p> <p class="BodyACxSpMiddle">We applaud the positive approach, being taken by many boards and their auditors, to recognise that financial disclosures and investment disclosures are designed to be read by people who buy securities or by people who advise buyers.  That’s something that got lost in the anxiety about over-eager litigation or, dare I say it, enforcement.</p> <p class="BodyACxSpMiddle">Secondly, the Financial Markets Conduct Act provides new capital-raising mechanisms for New Zealand companies – with a particular focus on smaller companies.</p> <p class="BodyACxSpMiddle">Some companies may make use of the ability - provided in the Act - to issue securities of the same class, as those already issued, without extensive new disclosure documents.</p> <p class="BodyACxSpMiddle">Under other provisions, we have just licensed the first platforms that will provide crowd-sourced equity.  This is getting plenty of profile, partly because it’s new to New Zealand as a regulated product and partly because it plays to the enthusiasm of New Zealanders for entrepreneurial and visionary businesses.</p> <p class="BodyACxSpMiddle">Crowd-sourced equity allows:</p> <p class="BodyACxSpMiddle">- Up to $2 million to be raised in any 12-month period.</p> <p class="BodyACxSpMiddle">- No need for an offer document or prospectus.</p> <p class="BodyACxSpMiddle">- Leading to significant time and cost savings for smaller firms that are raising funds.</p> <p class="BodyACxSpMiddle">The ability of small, but growing companies to bring in experienced and sizeable investors often changes the game, turning a burgeoning company into a potential world-beater.</p> <p class="BodyACxSpMiddle">Thus, the Conduct Act also provides for exchanges that provide a ‘stepping stone’ or growth market, for smaller firms that want to raise funds publicly, but aren’t ready to list on the main board.  </p> <p class="BodyACxSpMiddle">Right now we are working hard - with the NZX, which has a proposal for such a stepping stone market, and with the Ministry for Business, Innovation and Employment - to find the right balance, of issuer simplicity and investor protection, in the stepping stone space.</p> <p class="BodyACxSpLast">I said earlier that directors’ duties are largely unchanged.  But I also accept that – practically - a director’s job is tougher than it was.</p> <p class="BodyCxSpMiddle">Nonetheless, for you, for regulators, for the firms you serve, and for the economy – it’s still a job worth aspiring to.  It’s still a job that provides the opportunity to serve a higher cause.  Indeed, being a director is that rare thing in the 21<span>st</span> Century - a job with a genuinely noble purpose, and demanding the highest ethical standards.</p> <p class="BodyCxSpMiddle">As a Brit, standing in front of a room full of New Zealanders, I am reluctant to take my lead from an Australian.  Nonetheless, allow me to quote an Australian judge on this. </p> <p class="BodyCxSpMiddle">In 2011, Justice Middleton in his decision in the Centro case –which was a directors’ duties decision over the firm’s annual financial statement - said: <a name="_ftn4" href="http://www.fma.govt.nz/#_ftnref4">[4]</a></p> <p class="BodyCxSpMiddle"><em>“A director is an essential component of corporate governance. Each director is placed at the apex of the structure of direction and management of a company…the role of a director is significant as their actions may have a profound effect on the community, and not just shareholders, employees and creditors.”</em></p> <p class="BodyCxSpMiddle">Justice Middleton is saying – effectively – that directors serve more than the shareholders, plus the three C’s - ‘capital, the customers, and the company’.</p> <p class="BodyCxSpMiddle">Holding a directorship requires you to serve the interests of people you don’t know and may never know. They may be customers or suppliers in distant countries.  Employees who you haven’t met. They may be investors, local and offshore, big and small, institutional and retail.</p> <p class="BodyCxSpLast">For those of you who are starting high-potential firms or managing big funds, you may be serving the interests of people who aren’t born yet.</p> <p class="BodyACxSpMiddle">So, let me leave you with this thought.  Don’t be put off by the scare-mongers.</p> <p class="BodyACxSpMiddle">Big and small companies - take up the challenge and embrace the opportunities under the new regime.</p> <p class="BodyACxSpMiddle">Tell us at the FMA what concerns you and how we can support you – because, you can be reassured, we do want to support you.</p> <p class="BodyACxSpMiddle">If you care enough about the company you lead - and pay careful attention to what it is delivering to customers, shareholders, and employees – I am confident you can - and will - do it well.</p> <p class="BodyACxSpLast">Thank you.</p> <hr> <p><a name="_ftnref1" href="http://www.fma.govt.nz/#_ftn1">[1]</a> Financial Markets Conduct Act 2013, New Zealand</p> <div> <div> <p><a name="_ftnref2" href="http://www.fma.govt.nz/#_ftn2">[2]</a> Economics Reference Committee, Senate of the Commonwealth of Australia, ‘Performance of the Australian Securities and Investments Commission’, Commonwealth of Australia, June 2014</p> </div> <div> <p><a name="_ftnref3" href="http://www.fma.govt.nz/#_ftn3">[3]</a> Stephen Knack, ‘Trust, Associational Life and Economic Performance’, in The Contribution of Human and Social Capital to Sustained Economic Growth and Well-Being: International Symposium Report, J. Helliwell (ed.), Human Resources Development Canada, 2001</p> </div> <div> <p><a name="_ftnref4" href="http://www.fma.govt.nz/#_ftn4">[4]</a> Australian Securities and Investments Commission vs Healey and Others, Federal Court of Australia, 2011</p> </div> </div> http://www.fma.govt.nz/keep-updated/newsroom/afa-updates/financial-markets-authority-afa-update-issue-8 Financial Markets Authority AFA Update: Issue # 8 2014-09-04 13:24:50 Financial Markets Authority <p><strong>AFA Questionnaire - final day to respond is Friday 28 September 2012</strong></p> <p>We've emailed all AFAs a <a href="http://www.eSurveysPro.com/Survey.aspx?id=8e6a458a-1ac9-4dd7-9425-ce118034bb36"> questionnaire</a> seeking input on how financial adviser regulation has impacted your business. We've been really encouraged by the high level of interest and to date we've had over 700 responses. Thank you for this input.<br><br> Remember if you haven't yet responded the deadline is Friday 28 September 2012.<br><br> Please take this opportunity to have your say.</p> <p><strong>Complaints - offering 'AFA' services<br><br></strong> We often receive complaints about RFAs offering services that can only be offered and provided by AFAs. When we receive these complaints we generally review the RFA's advertising and then contact the RFA for further information about the extent of their services so that we can assess their compliance with the law. In most cases it is an issue of unclear marketing and advertising and compliance is achieved quite quickly, without recourse to any other regulatory enforcement powers.<br><br> For example, recently we have requested that RFAs withdraw advertising which uses phrases such as, 'comprehensive personal financial plans' and 'full financial health checks'. We think this type of advertising could imply an investment planning service is provided, which is not permitted under the Financial Advisers Act unless an adviser is appropriately authorised.<br><br> We have a range of additional powers to use where these measures do not achieve compliant outcomes.<br><br> The information provided to us by members of the public and by advisers, is very valuable and we encourage AFAs to continue to provide us with details of any non- compliant behaviour. We can't always tell you exactly how we will act on your information, but we do<br> take all information referred to us very seriously.<br><br><strong>Is your annual ABS confirmation due?<br><br></strong> A reminder that if your annual confirmation was due for the months of June - August, then you should have submitted your annual confirmation to FMA via <a href="mailto:afa.monitoring@fma.govt.nz">afa.monitoring@fma.govt.nz</a> by now. <br><br> To ensure that your confirmation is correctly received, please include in the subject line your first name, surname, and FSPR number.<br><br> You will recall that the annual reporting period is a 12 month period that commences from the date of your authorisation. <strong>This is separate to your annual registration requirements that you complete with the Companies Office.<br><br></strong> Failure to complete the annual ABS confirmation is a breach of your Standard Conditions.<br><br><strong>Have you selected the right address for mail?<br><br></strong> Any FMA reminders or other important correspondence that we mail to you is posted to the address you have listed as your address for communications on the Financial Service Providers Register (FSPR).<br><br> Remember this must be an address NZ Post delivers to (e.g. if you are in a commercial building this will normally be a PO Box rather than a street address). Please take a moment to check your address details are up to date on the FSPR and that you have selected the correct address for communication.<br><br> Go to <span><a href="http://www.business.govt.nz/fsp/do-it-now/my-account">http://www.business.govt.nz/fsp/do-it-now/my-account</a></span> remember you will need your i-govt logon to access your account.<br><br> We ask that you do this without delay; otherwise you may not receive important communications from FMA.<br><br><strong>Other recent news and website updates</strong></p> <ul> <li>FMA has announced the granting of licences for Securities Trustees and Statutory Supervisors. <a href="http://www.fma.govt.nz/keep-updated/newsroom/media-releases/2012/fma-announces-licensing-of-securities-trustees-and-statutory-supervisors">See here</a>.</li> <li>FMA has issued a guidance note on pre-prospectus publicity. See the guidance note <a href="http://www.fma.govt.nz/help-me-comply/issuers/guidance-note/guidance-note-pre-prospectus-publicity-some-practical-guidance-for-issuers-and-their-advisers/"> here</a>.</li> <li>Our new <a href="http://www.fma.govt.nz/help-me-invest/getting-the-right-information/brochures/">consumer flyers</a> are proving popular. AFAs can order copies of these flyers by <a href="http://www.fma.govt.nz/about-us/contact-us/">contacting us</a>.</li> <li>FMA has published its first report on inquiries, investigations and enforcement. See the <a href="http://www.fma.govt.nz/keep-updated/reports-and-papers/inquiries-investigations-and-enforcement-report">report here</a>.</li> </ul> <hr> http://www.fma.govt.nz/keep-updated/newsroom/releases-from-the-old-securities-commission/2010/new-designated-settlement-system New Designated Settlement System 2014-09-04 13:20:00 Financial Markets Authority <p class="date">3 September 2010</p> <p><img title="" src="http://www.fma.govt.nz/assets/Uploads/logo-rbnz.gif" alt="RBNZ Logo" width="206" height="57"> <img title="" src="http://www.fma.govt.nz/assets/Uploads/logo-secc-2010.gif" alt="SecCom Logo" width="331" height="43"></p> <p>The Reserve Bank of New Zealand and the Securities Commission today announced that the newly established NZCDC Settlement System has been declared a designated settlement system under Part 5C of the Reserve Bank of New Zealand Act.</p> <p>The Reserve Bank and Securities Commission are joint regulators of designated settlement systems. The NZCDC Settlement System is operated by New Zealand Clearing and Depository Corporation, a wholly-owned subsidiary of NZX Limited.</p> <p>Reserve Bank Head of Prudential Supervision Toby Fiennes, and Securities Commission Chairman Jane Diplock said the designation gives statutory backing to the finality of settlement and netting of transactions through the system so that in the event of failure by a participant, transactions cannot be unwound. Designated settlement systems are subject to ongoing oversight by the Securities Commission and the Reserve Bank.  However, it is not compulsory for settlement systems operating in New Zealand to be designated.</p> <p>New Zealand has two existing designated settlement systems: the Reserve Bank's Exchange Settlement Account System and the Continuous Linked Settlement System operated by CLS Bank International.</p> <p>A settlement system will only be recommended for designation after a thorough assessment by the regulators, they said. The regulators assess, amongst other things, the clarity and legal certainty of the rules of a system, its financial soundness and risk management policies, and the capability and capacity of the operator.</p> <p>Questions and answers on the new settlement system are available on the <a href="http://www.rbnz.govt.nz/finstab/payment/3816027.html">Reserve Bank website</a>.</p> <p>Media contacts:<br> Anthea Black, External Communications Adviser, Reserve Bank<br> Ph 04 471 3767, 021 222 5225, <a href="mailto:anthea.black@rbnz.govt.nz">anthea.black@rbnz.govt.nz</a></p> <p>Roger Marwick, Communications Manager, Securities Commission<br> Ph 04 471 7659</p> <p>Ends</p> <hr> http://www.fma.govt.nz/keep-updated/newsroom/media-releases/2012/new-designated-settlement-system New designated settlement system 2014-09-04 12:12:49 Financial Markets Authority <p class="Discard">NEWS RELEASE</p> <p>7 September 2012<br><br><strong>New designated settlement system</strong></p> <p>The Reserve Bank of New Zealand and the Financial Markets Authority (FMA) today announced that the NZ Clear Settlement System has been declared a designated settlement system under Part 5C of the Reserve Bank of New Zealand Act. </p> <p>The designation will take effect from 4 October 2012.</p> <p>The Reserve Bank and FMA are joint regulators of designated settlement systems. The NZ Clear Settlement System is operated by the Financial Services Group of the Reserve Bank of New Zealand.<br><br>Reserve Bank Head of Prudential Supervision Toby Fiennes, and FMA Head of Compliance Monitoring Elaine Campbell said the designation gives statutory backing to the finality of settlement and netting of transactions through the system so that in the event of failure by a participant, transactions cannot be unwound.<br><br>Designated settlement systems are subject to ongoing oversight by FMA and the Reserve Bank. However, it is not compulsory for settlement systems operating in New Zealand to be designated.<br><br>New Zealand has three existing designated settlement systems: the Reserve Bank's Exchange Settlement Account System, the Continuous Linked Settlement System operated by CLS Bank International and the NZCDC Settlement System which is operated by New Zealand Clearing and Depository Corporation, a wholly-owned subsidiary of NZX Limited.  The first two are pure payment systems and so are regulated solely by the Reserve Bank whereas the last is a settlement system and therefore regulated by both the Reserve Bank and FMA.<br><br>A settlement system will only be recommended for designation after a thorough assessment by the regulators, who will assess, amongst other things, the clarity and legal certainty of the rules of a system, its financial soundness and risk management policies, and the capability and capacity of the operator.<br><br>Questions and answers on designated settlement systems are available on the <a href="http://www.rbnz.govt.nz/finstab/payment/3816027.html">Reserve Bank website</a>.</p> <p>Naomi Mitchell, External Communications Adviser, Reserve Bank of New Zealand<br>Ph 04 471 3960, 027 485 9474, <a href="mailto:naomi.mitchell@rbnz.govt.nz">naomi.mitchell@rbnz.govt.nz</a></p> <p>Tony Reid, Media Manager, FMA<br>Ph 09 985 4868, 021 739 052, <a href="mailto:tony.reid@fma.govt.nz">tony.reid@fma.govt.nz</a></p> http://www.fma.govt.nz/keep-updated/newsroom/media-releases/2012/fma-action-to-recover-25-million-in-related-party-loans FMA action to recover $25 million in related party loans 2014-09-04 12:08:18 Financial Markets Authority <p><strong>5 July 2012<br><br></strong> FMA can now confirm its continued engagement with Perpetual Trust Limited (Perpetual) to recover $25 million in related party loans made by Perpetual as trustee of the Perpetual Cash Management Fund (Fund).<br><br> Perpetual is a subsidiary of Pyne Gould Corporation (PGC).<br><br> In a High Court judgment delivered on 26 June 2012, Justice Heath discharged confidentiality orders originally made at the request of Perpetual in proceedings taken against FMA. Perpetual has sought judicial review of FMA decisions and actions since it became aware of issues in relation to the Fund in April this year.<br><br> The Court of Appeal yesterday dismissed Perpetual's appeal against the High Court decision and ruled it can be released.<br><br> "FMA welcomes the High Court and Court of Appeal decisions and believes they emphasise the importance of transparency in the markets," said FMA Chief Executive Sean Hughes.<br><br> FMA previously confirmed on 1 May that it was making inquiries into issues regarding PGC and related entities. Those inquiries have to date focussed particularly on loans made by the Fund to Torchlight Fund No. 1 LP (Torchlight) and the implications for the investors in the Fund and the Perpetual Mortgage Fund.<br><br> In FMA's view, these loans were not in the best interests of investors in the Funds and the circumstances in which they were made by Perpetual reflects a lack of judgment and lack of understanding of its role as trustee of funds of this nature.<br><br> FMA has sought to minimise losses that investors may suffer by engaging with Perpetual to seek the return of the loans. Since April 2012, around half of the total amount lent to Torchlight has been repaid, but approximately $13 million remains outstanding. FMA considers Perpetual has now had ample time to secure repayment of the loans, but is concerned at the lack of progress and the consequent risk to investors.<br><br> FMA believes investors in the Fund need to be aware of its concerns about the loans made by the Fund to Torchlight and the delays in repayment, so they can make informed decisions about their investments.<br><br> "FMA has moved proactively in the interests of investors in the funds and is pleased the High Court's decision can now be released. Actions taken by FMA are in line with its objective to promote the confident and informed participation of businesses, investors and consumers in the financial markets," said FMA Chief Executive Sean Hughes.<br><br> The High Court judgment can be found <a href="http://www.fma.govt.nz/assets/media/high-court-decision.pdf" target="_blank">here</a> and the Court of Appeal judgment <a href="http://www.fma.govt.nz/assets/media/court-of-appeal-decision.pdf" target="_blank">here.</a></p> <p>Any investor in the Perpetual Cash Management Fund or the Perpetual Mortgage Fund who is unsure whether to retain their investment in the funds or to request that it should be repaid should take advice from their Authorised Financial Adviser. You can find information about how to find and use a financial adviser on FMA's website.<br><br><strong>Background</strong><br><br> Torchlight is a limited partnership for sophisticated investors run by Torchlight GP No 1 Limited (Torchlight GP), a subsidiary of PGC. FMA understand George Kerr is Chairman and has an ownership interest in Torchlight. Brian Mogridge (one of Perpetual's two directors) and Torchlight GP also have ownership interests in Torchlight. Mr Kerr is also a director and owns approximately 76.5%, of PGC.<br><br> Ends<br> Contact:<br> Tony Reid on 021 739 052 or <a href="mailto:tony.reid@fma.govt.nz">tony.reid@fma.govt.nz</a></p> <div id="file-attachments"> <h2>File Attachments</h2> <ul> <li><a href="http://www.fma.govt.nz/assets/media/court-of-appeal-decision.pdf" target="_blank">Court of appeal decision (72 kB pdf)</a></li> <li><a href="http://www.fma.govt.nz/assets/media/high-court-decision.pdf" target="_blank">High court decision (768 kB pdf)</a></li> </ul> </div> <hr> http://www.fma.govt.nz/keep-updated/newsroom/fma-updates/fma-welcomes-the-introduction-of-the-unsolicited-offers-regulations-from-1-december-2012 FMA welcomes the introduction of the unsolicited offers regulations from 1 December 2012 2014-09-04 12:05:35 Financial Markets Authority <p>FMA welcomes the introduction of the Securities Markets (Unsolicited Offers) Regulations 2012 (Regulations), which come into force on 1 December 2012.</p> <p>The Regulations introduce new processes and disclosure obligations for most unsolicited offers (also known as 'low ball' offers).  A key change introduced by the new Regulations is a right for individuals to cancel an agreement to sell shares (or other securities) during a 10 working day 'cooling off' period, after accepting an offer.</p> <p>The Regulations will not apply to unsolicited offers made prior to 1 December that remain open for acceptance on or after 1 December.  They also do not prohibit unsolicited offers.  These can still be made, but they must comply with the Regulations and other legal obligations.</p> <p>FMA will have enhanced enforcement powers in relation to unsolicited offers that are subject to the Regulations.  FMA will continue to actively monitor unsolicited offers and will take enforcement action in appropriate cases.</p> <p>The Regulations can be viewed <a href="http://www.legislation.govt.nz/regulation/public/2012/0331/latest/whole.html" target="_blank">here</a>.</p> <h2>Consultation Paper: Issuer exemptions from licensed auditor requirement</h2> <p>FMA is consulting on a review of class Financial Reporting Act exemptions for issuers in light of the introduction of auditor licensing requirements under the Auditor Regulation Act 2011.</p> <p>FMA's consultation paper proposes policy positions regarding when Financial Reporting Act exemptions will generally be given to relieve an issuer from using a licensed auditor, discusses specific amendments to existing exemptions, and consider whether any new class exemption notices may be required.</p> <p>We seek submissions on the proposals in the paper to assist with this review process.  Submissions should be sent by email to exemptions@fma.govt.nz.  The deadline for submissions is 17 December 2012.</p> <p>You can contact Natalie Muir, Manager Exemptions, with any questions.</p> <p>The consultation paper can be viewed <a href="http://www.fma.govt.nz/keep-updated/reports-and-papers/consultation-paper-issuer-exemptions-from-licensed-auditor-requirement">here</a>.</p> http://www.fma.govt.nz/keep-updated/newsroom/media-releases/2012/further-charges-laid-in-belgrave-finance-investigation Further charges laid in Belgrave Finance investigation 2014-09-04 12:01:35 Financial Markets Authority <p>30 November 2012</p> <p>An Acacia Bay man, Hugh Edward Staples Hamilton (61) has appeared at the Auckland  District Court today charged with fraud following the 2008 collapse of Belgrave Finance Limited (Belgrave).</p> <p>As a result of a joint prosecution by the Serious Fraud Office (SFO) and the Financial Markets Authority (FMA), Mr Hamilton is facing 19 Crimes Act charges of theft by a person in a special relationship, five charges of false statement by promoter, and 11 Companies Act charges of making a false statement to a trustee.</p> <p>Mr Hamilton, a former barrister and solicitor, was a legal advisor to the other individuals charged in relation to Belgrave. He no longer holds a current practicing certificate.</p> <p>Following the collapse of Belgrave in 2008, the FMA (then Securities Commission) made initial investigations into the company before referring the matter to the SFO in June 2010. As a result of the SFO investigation, in September 2011 the SFO and FMA commenced a joint prosecution.</p> <p>The SFO initially laid 23 fraud charges against three people alleging that between June 2005 and March 2008 they used more than $18 million of Belgrave investors' funds to make related party loans and in doing so they misrepresented to investors how their funds would be used.</p> <p>The FMA laid an additional 23 charges under the Securities Act and Companies Act.</p> <p>Acting Chief Executive of the SFO, Simon McArley explained that additional information resulted in further enquiries into Mr Hamilton's involvement. The SFO and FMA now allege that Mr Hamilton is an accomplice to the substantive fraudulent representations and use of the Belgrave investors' funds. </p> <p>"We believe that it is important to explore the culpability of all involved with financial crime. Professional advisors are not exempt and where we believe they have been complicit in offending, we will seek to bring those individuals to account." Simon McArley said.</p> <p>FMA Head of Enforcement, Belinda Moffat, said it is alleged that Mr Hamilton was a party to the conduct of the Belgrave directors particularly with respect to related party lending and statements made to the trustee.</p> <p>"This case highlights the importance of the role that professional advisers have to ensure that Trustees of issuers are provided with accurate information," Ms Moffat said.</p> <p>On 30 August 2012, Shane Joseph Buckley (44) a former Belgrave Director was sentenced to three years imprisonment after pleading guilty for his role in defrauding the Belgrave investors. Mr Buckley was convicted on 19 charges of theft by person in a special relationship and four charges of false statement by a promoter laid under the Crimes Act by the SFO. Mr Buckley was also convicted on representative charges brought by the FMA under the Securities Act and the Companies Act.</p> <p>Earlier this year, former Belgrave Finance Director, Stephen Charles Smith (43), and an associate, Raymond Tasman Schofield (49), were committed for trial on similar charges. The trial date is set for 29 April 2013. </p> <p>ENDS </p> <p><strong>For further information:</strong><br> Andrea Linton                                                  Tony Reid<br> Serious Fraud Office                                         FMA Media Manager<br> Phone: 027 705 4550                                       021 739 052</p> <p><strong>Note to editors</strong></p> <p><strong>Background to investigation</strong><br> Belgrave was incorporated in September 2000. <br> Belgrave provided financial accommodation and mortgage facilities for commercial and residential property developments.  Funds for lending were sourced primarily from the issue of securities to the public in the form of debenture stock and convertible capital notes.<br> Belgrave was placed into receivership in on 28 May 2008 owing around $22 million to approximately 1,000 investors.  The company was placed into liquidation in April 2010 and at the time, was the 20th finance company to collapse in two years.<br>  Following the collapse of Belgrave, the (then) Securities Commission made initial investigations into the company before referring the matter to the SFO in June 2010. The Director determined that an investigation into the affairs of Belgrave may disclose serious or complex fraud, and the SFO commenced an investigation under Part II of the Serious Fraud Office Act in July 2010.</p> <p><strong>Crimes Act offences:</strong><br><strong>Section 66: Parties to offences</strong><br> (1) Every one is a party to and guilty of an offence who-<br> (a) actually commits the offence; or<br> (b) does or omits an act for the purpose of aiding any person to commit the offence; or<br> (c) abets any person in the commission of the offence; or<br> (d) incites, counsels, or procures any person to commit the offence.<br> (2) Where 2 or more persons form a common intention to prosecute any unlawful purpose, and to assist each other therein, each of them is a party to every offence committed by any one of them in the prosecution of the common purpose if the commission of that offence was known to be a probable consequence of the prosecution of the common purpose.<br><br><strong>Section 220: Theft by person in special relationship</strong><br> (1) This section applies to any person who has received or is in possession of, or has control over, any property on terms or in circumstances that the person knows require the person-<br> (a) to account to any other person for the property, or for any proceeds arising from the property; or<br> (b) to deal with the property, or any proceeds arising from the property, in accordance with the requirements of any other person.<br> (2) Every one to whom subsection (1) applies commits theft who intentionally fails to account to the other person as so required or intentionally deals with the property, or any proceeds of the property, otherwise than in accordance with those requirements.<br> (3) This section applies whether or not the person was required to deliver over the identical property received or in the person's possession or control.<br> (4) For the purposes of subsection (1), it is a question of law whether the circumstances required any person to account or to act in accordance with any requirements.<br><br><strong>Section 242: False statement by promoter, etc</strong><br> (1) Every one is liable to imprisonment for a term not exceeding 10 years who, in respect of any body, whether incorporated or unincorporated and whether formed or intended to be formed, makes or concurs in making or publishes any false statement, whether in any prospectus, account, or otherwise, with intent-<br> (a) to induce any person, whether ascertained or not, to subscribe to any security within the meaning of the Securities Act 1978; or<br> (b) to deceive or cause loss to any person, whether ascertained or not; or<br> (c) to induce any person, whether ascertained or not, to entrust or advance any property to any other person.<br> (2) In this section, false statement means any statement in respect of which the person making or publishing the statement-<br> (a) knows the statement is false in a material particular; or<br> (b) is reckless as to the whether the statement is false in a material particular.<br><br><strong>Companies Act offences:</strong><br><strong>Section 377: False statements</strong><br> (1) Every person who, with respect to a document required by or for the purposes of this Act,-<br> (a) makes, or authorises the making of, a statement in it that is false or misleading in a material particular knowing it to be false or misleading; or<br> (b) omits, or authorises the omission from it of, any matter knowing that the omission makes the document false or misleading in a material particular-<br> commits an offence, and is liable on conviction to the penalties set out in section 373(4).<br> (2) Every director or employee of a company who makes or furnishes, or authorises or permits the making or furnishing of, a statement or report that relates to the affairs of the company and that is false or misleading in a material particular, to-<br> (a) a director, employee, auditor, shareholder, debenture holder, or trustee for debenture holders of the company; or<br> (b) a liquidator, liquidation committee, or receiver or manager of property of the company; or<br> (c) if the company is a subsidiary, a director, employee, or auditor of its holding company; or<br> (d) a stock exchange or an officer of a stock exchange,-<br> knowing it to be false or misleading, commits an offence, and is liable on conviction to the penalties set out in section 373(4).<br> (3) For the purposes of this section, a person who voted in favour of the making of a statement at a meeting is deemed to have authorised the making of the statement<br><br><strong>Role of the FMA</strong><br> FMA was established in 2011 under the Financial Markets Authority Act 2011.<br> It replaced the Securities Commission and took over some roles of the Ministry of Economic Development, in particular the regulatory role of the Government Actuary and some of the roles of the Registrar of Companies. FMA  enforces securities, financial reporting, and company law as they apply to financial services and securities markets.<br> It also regulates securities exchanges, financial advisers and brokers, trustees and issuers - including issuers of KiwiSaver and superannuation schemes. Shortly it will also regulate auditors.<br> The FMA's Statement of Intent 2012-2015 sets out the FMA's strategic intent, statement of services and forecast financial statements and prescribes FMA's strategy for the coming three years from July 2012 to June 2015.  It is available online at: <a href="http://www.fma.govt.nz/">www.fma.govt.nz</a><br><br><strong>Role of the SFO</strong></p> <p>The Serious Fraud Office (SFO) was established in 1990 under the Serious Fraud Office Act in response to the collapse of financial markets in New Zealand at that time.<br> The SFO operates three investigative teams:<br> •           Evaluation &amp; Intelligence;<br> •           Financial Markets &amp; Corporate Fraud; and<br> •           Fraud &amp; Corruption.</p> <p>The SFO operates under two sets of investigative powers.</p> <p>Part I of the SFO Act provides that it may act where the Director "has reason to suspect that an investigation into the affairs of any person may disclose serious or complex fraud."</p> <p>Part II of the SFO Act provides the SFO with more extensive powers where: "…the Director has reasonable grounds to believe that an offence involving serious or complex fraud may have been committed…"<br> The SFO's Annual Report 2012 sets out its achievements for the past year, while the Statement of Intent 2012-2015 sets out the SFO's three year strategic goals and performance standards.  Both are available online at: <a href="http://www.sfo.govt.nz">www.sfo.govt.nz</a></p> <hr> http://www.fma.govt.nz/keep-updated/newsroom/afa-updates/financial-markets-authority-afa-update-issue-7 Financial Markets Authority AFA Update: Issue # 7 2014-09-04 11:57:31 Financial Markets Authority <h2>AFA Interim Monitoring Report</h2> <p>FMA has released an interim report providing feedback on AFA monitoring visits to 34 advisers over five locations in the nine months September 2011 to June 2012.<br><br> You are strongly encouraged to read the report and consider whether the observations made might also apply to your own client advice processes.  If so, you should make the necessary improvements.</p> <p>The report is available on our <a href="http://www.fma.govt.nz/keep-updated/reports-and-papers/afa-interim-monitoring-report/"> website here</a>.</p> <h2>Overdue annual ABS confirmations</h2> <p>Advisers with overdue annual ABS confirmations should now have received a letter from us asking for confirmation within 10 working days.<br><br> Annual ABS confirmations are a Standard Condition of authorisation.  Failing to comply with terms and conditions of authorisation is an offence under section 126 of the Financial Advisers Act with a fine of up to $5000 payable on summary conviction and may result in cancellation or suspension of authorisation.<br><br> Every AFA must confirm their ABS is up to date on the anniversary of their authorisation.  AFAs must take personal responsibility for submitting their confirmations - this cannot be delegated to a compliance officer or your employer.<br><br><a href="http://www.fma.govt.nz/help-me-comply/financial-advisers/how-to-get-licensed/afa-application-resources-and-templates/afa-adviser-business-statement-guide/annual-confirmation-your-adviser-business-statement-is-current/"> For confirmation instructions see our web page.</a></p> <h2>Annual registration renewal</h2> <p>Another obligation for all AFAs is the need to annually renew your registration on the Financial Service Providers Register.<br><br> Under the Financial Advisers Act, authorisation terminates when a person ceases to be registered.  The authorisation of two AFAs has already been terminated because of this situation.<br> We urge advisers to diarise this important date, and to attend to their annual confirmation on the FSPR. This will avoid termination and having to re-apply to FMA for authorisation.<br><br> Please take a moment to review <a href="http://www.fma.govt.nz/help-me-comply/financial-advisers/your-obligations/authorised-financial-advisers-obligations/"> all your AFA obligations</a>.</p> <h2>Other recent news and website updates</h2> <ul> <li>FMA is currently consulting on a guidance note about KiwiSaver sales and distribution.  It gives guidance on the Financial Market Authority's expectations for the sale of KiwiSaver schemes within the requirements and spirit of the Financial Advisers Act. Submissions close on Monday 16 July 2012. See the <a href="http://www.fma.govt.nz/laws-we-enforce/policy/closed-consultations/consultation-request-for-feedback-guidance-note-sale-and-distribution-of-kiwisaver">guidance note</a>.</li> <li>FMA finalised its effective disclosure guidance note earlier this month. See the <a href="http://www.fma.govt.nz/help-me-comply/issuers/guidance-note/"> final guidance note</a>.</li> <li>The auditor regulatory regime comes fully into effect on 1 July 2012. This affects auditors of issuers.  <a href="http://www.fma.govt.nz/help-me-comply/auditors/">Read more here</a>.</li> </ul> <h2><br> AFA Update emails - alerting you to your obligations</h2> <p><br> This periodic email provides information, guidance and feedback to help you meet your obligations as an AFA. It is not intended to be an exhaustive list of all AFA obligations on the topics discussed.  Please see <a href="https://fadc-uat.cwp.govt.nz/">our website</a> for further resources and information available for AFAs.</p> <hr> http://www.fma.govt.nz/keep-updated/newsroom/afa-updates/financial-markets-authority-afa-update-issue-9 Financial Markets Authority AFA Update: Issue # 9 2014-09-04 11:54:57 Financial Markets Authority <h2>AFA Survey Findings</h2> <p>We had an unprecedented response to our survey and wish to thank all of those who participated. We have attached our report setting out key themes and outlining our responses to the issues.  FMA has already started talking to industry about these issues and we will continue this dialogue in 2013. <a href="http://financialmarketsauthority.createsend1.com/t/r-l-ujltel-l-t/"> <br></a> <a href="http://www.fma.govt.nz/assets/media/1341443/afa-survey-2012-summary-of-findings-and-fma-response-.pdf" target="_blank">AFA Survey 2012 - Summary of Findings and FMA response</a>.</p> <h2>AFA Monitoring Report</h2> <p>Our second monitoring report has now been published and you can access a copy of it <a href="http://www.fma.govt.nz/assets/afa-monitoring-report-july-2012-september-2012-.pdf" target="_blank">here</a>. We will be continuing our monitoring visits again early in the New Year.</p> <h2>Other recent news and website updates</h2> <p>FMA's 2012 Annual Report has now been released and can be viewed on our <a href="http://www.fma.govt.nz/about-us/corporate-publications/annual-reports/fma-annual-report-2012">website</a>.</p> <h2>Happy Holidays</h2> <p><strong><span><span>It's been a busy year and Christmas is almost upon us.  We'd like to take the opportunity to wish you all a very Merry Christmas and a Happy New Year.</span></span></strong></p> <hr> http://www.fma.govt.nz/keep-updated/newsroom/articles/low-ball-offers-guidance-for-investors "Low ball" offers - Guidance for Investors 2014-09-04 11:52:33 Financial Markets Authority <p>(For offers made after 1 December 2012)</p> <p><strong>What is a "low ball" offer?</strong><br><br> A "low ball" offer is an unsolicited offer to buy an investment from you:</p> <ul> <li>at significantly below the market price; and/or</li> <li>where payment is spread over a long period of time.</li> </ul> <p>"Unsolicited" means that you do not know the person making the offer and that the offer is not part of an offer process such as a share buyback from the company whose shares you hold or a takeover.<br><br> It is not illegal to make an unsolicited offer to buy someone's investments, or to offer to buy them at a price below their current market value. However, the law requires that such offers must not be misleading or deceptive and that, in most cases, key information be disclosed, including a recent market price or the fair value of your investment.</p> <table> <tbody> <tr> <td><strong>Your right to cancel during the "cooling off" period</strong><br><br> If you have accepted a "low ball" offer and then change your mind you have a right, in most cases, to cancel the resulting agreement, provided you do so within 10 working days of acceptance. See below for more information on how to cancel.</td> </tr> </tbody> </table> <p><strong>What to do before deciding whether or not to accept a "low ball" offer</strong><br><br> If you receive a "low ball" offer to buy your investment make sure you read the offer carefully and understand all of the terms of the offer, including any fine print in documents and forms relating to the offer.<br><br> Questions you should ask before deciding whether or not to accept an offer:<br><br><strong>1. Who is making the offer?</strong><br><br> Read the offer to see exactly who is making it. Some "low ball" offers are sent on official looking letterhead, using official sounding names, which may sound like the company you have shares with or a stock exchange. "Low ball" offers are also sometimes sent out at the same time as legitimate letters from companies to their shareholders. If you are unsure about an offer you have received, you should contact the company (or its receiver or liquidator if applicable) in which you have an investment and check whether or not the offer is "official".<br><br><strong>2. Am I receiving the market price or a fair value for my investment?</strong><br><br> Check exactly what price you will receive for your investment and compare it with the current market price or the fair estimate of value of your investment.  In most cases a recent market price or fair estimate of value of your investment will be included in a document sent with the offer. You can get an up-to-date market price for your investment, if it is listed on a registered stock exchange, in a newspaper or on a stock exchange's website. Most listed shares and other securities issued by New Zealand or Australian companies will be listed by the NZX www.nzx.com or on the ASX www.asx.com.<br><br> If your investment is not listed on a registered stock exchange, the current market price or a fair estimate of value of your investment may be more difficult to establish. An Authorised Financial Adviser (AFA) may be able to help you. You could also check the following:</p> <ul> <li>The website of the company you have invested in;</li> <li>The original offer documents for your investment;</li> <li>The investment statement and prospectus for your investment (if you have a New Zealand investment you can access the prospectus online by searching under the company's or other entity's name at the Companies Office website: www.companies.govt.nz;</li> <li>Unregistered securities trading facilities, such as the Unlisted website: www.unlisted.co.nz, which includes price information on some shares and other securities issued in New Zealand;</li> <li>If the company you invested in is in receivership, receiver's reports may also give you a good indication of how much you are likely to receive for your investment. Copies of the receiver's reports (if it is a New Zealand company) can be found by searching under the company's name at the Companies Office website: www.companies.govt.nz. You can also contact the receiver directly to find out how much you are likely to receive for your investment and when you can expect payment.</li> </ul> <p><strong>3. When will I receive payment?</strong><br><br> Some offers spread payment of the price in instalments over a number of years. In this case the true value of the offer could be much less than it appears because you will have to wait a long time for your money. There is also a risk that, if your payment instalments are spread over a long time, the offeror might go out of business and you will not receive all of the promised payments.<br><br> As a benchmark, if you sell your investment through a sharebroker, someone who is a member of New Zealand's only registered exchange, NZX, you are likely to receive payment within just three working days.</p> <p><strong>4. If I sell will I have to pay brokerage fees?</strong><br><br> If you sell your investment through a sharebroker directly you will receive the full market price for your investment, less any brokerage fees. Different sharebrokers charge different fees, but generally you should expect to pay between $30 to $75 as a minimum brokerage fee.<br><br><strong>Your right to cancel during the "cooling off" period</strong><br><br> In most cases where you have accepted a "low ball" offer, and then change your mind, you have a legal right to cancel the agreement under the Securities Markets (Unsolicited Offers) Regulations 2012.  However, you must cancel the agreement during the 10 working day "cooling off" period (see below for what counts as a "working day").  To cancel the agreement you must do one of the following:</p> <ul> <li>Write to, or email, the offeror and state that you want to cancel or withdraw from the agreement. You must do this within 10 working days after the date on which you accepted the offer. You must also repay to the offeror any amounts paid by the offeror to you under the agreement. You should do this within 20 working days after the date on which you accepted the offer.</li> <li>If you have received payment under the agreement, simply repay to the offeror all amounts paid by the offeror to you under the agreement within 10 working days after the date on which you accepted the offer.</li> </ul> <p><strong>Note:</strong> A "working day" does not include a Saturday or a Sunday, public holidays, the period between 25 December and 2 January (and if 1 January falls on a Friday, the following Monday or, if 1 January falls on a Saturday or a Sunday, the following Monday and Tuesday).<br><br><strong>Where can I get further information or advice?</strong></p> <ul> <li>For a list of Authorised Financial Advisers (AFAs) in your area see <a href="http://www.fma.govt.nz/help-me-comply/financial-advisers/how-to-get-licensed/afa-application-resources-and-templates/list-of-authorised-financial-advisers-afa/">here</a> on FMA's website.</li> <li>For a list of sharebrokers see <a href="http://www.nzx.com/investing/find_a_participant">here</a> on the NZX website.</li> <li>Search the Yellow Pages for "financial advisers" or "sharebrokers".</li> <li>Visit your local Community Law Centre or Citizens Advice Bureau.</li> </ul> <p>Check the latest warnings and alerts and the names of firms and individuals to be wary of <a href="http://www.fma.govt.nz/keep-updated/warnings-alerts-and-scams/">here</a> on FMA's website.</p> <hr> http://www.fma.govt.nz/keep-updated/newsroom/media-releases/2012/fma-consultation-on-disclosure-of-non-gaap-financial-information FMA consultation on disclosure of non-GAAP financial information 2014-09-04 11:51:03 Financial Markets Authority <p><span><strong>22 May 2012</strong> <span> </span></span></p> <p>The Financial Markets Authority has today published draft guidance for public consultation on the disclosure of non-GAAP financial information.</p> <p>One of the most common forms of non-GAAP financial information is profit information often referred to as 'alternative performance measures' (APMs). </p> <p>"The use of APMs such as 'underlying profit' and 'normalised profit' in public documents including annual reports, market announcements and transaction documents is becoming increasingly common in New Zealand. These measures can provide useful information to investors, but they also have the potential to be misleading if used to mask bad news," said Elaine Campbell, FMA Head of Compliance Monitoring. </p> <p>FMA's guidance is designed to assist issuers in their communication of financial information to investors and other stakeholders to minimise the potential for it to be misleading.</p> <p>FMA commenced initial consultation with market participants in November last year. In developing this draft guidance FMA held targeted discussions with small groups of NZX listed company chief financial officers, independent directors and audit firms. </p> <p>"The candid feedback we received during our preliminary consultation has been valuable in shaping the draft guidance within this consultation paper.  It is important for both issuers and investors to have greater clarity on the use of non-GAAP financial information which will contribute to increasing confidence in our markets," said Elaine Campbell.</p> <p>FMA welcome comments and suggestions from interested parties before the guidance is finalised.</p> <p>Interested parties are invited to provide feedback on the revised draft guidance to <a href="mailto:consultation@fma.govt.nz">consultation@fma.govt.nz</a> by 5pm on Friday 29 June 2012.</p> <p>FMA aims to publish final guidance by 31 August 2012 to apply to documents published from 1 January 2013.</p> <p>The consultation paper can be found <a href="http://www.fma.govt.nz/assets/media/consultation-paper-disclosing-non-gaap-financial-information-final.pdf" target="_blank">here</a>.</p> <p>Ends</p> <p>Contact:<br> Scott McMurray Tel. 029 222 0776 or <a href="mailto:scott.mcmurray@fma.govt.nz">scott.mcmurray@fma.govt.nz</a></p> <hr> http://www.fma.govt.nz/keep-updated/newsroom/media-releases/2012/fma-releases-kiwisaver-performance-fees-guidance-note FMA releases KiwiSaver performance fees guidance note 2014-09-04 11:48:59 Financial Markets Authority <p><span><span><span><strong>25 May 2012</strong></span></span></span></p> <p><span><span>The Financial Markets Authority (FMA) has today released a final version of its guidance note on KiwiSaver performance fees.</span></span></p> <p><span><span>The guidance sets out the criteria against which FMA will assess the reasonableness of performance fees, which are fees charged to an investor when an investment manager outperforms an appropriate benchmark.</span></span></p> <p><span><span>FMA Head of Compliance Monitoring, Elaine Campbell said, "While only two KiwiSaver providers currently charge performance fees, it was important to clarify how FMA would assess performance fees and the elements that should apply in any such fee arrangement."</span></span></p> <p><span><span>"The guidance makes it clearer for everyone about the balance between how managers and investors are rewarded for the risks taken."</span></span></p> <p><span><span>The guidance was first issued in draft form in November. 13 submissions were received with most supporting the overall objectives and principles.<span> </span></span></span></p> <p><span><span>Changes were made to clarify the status of the guidance note and to emphasise performance fees are only appropriate in certain, limited circumstances for example, actively-managed growth funds.<span> </span> FMA also clarified the performance fee elements expected to be present and added information on the disclosure of performance fees.</span></span></p> <p><span><span>"FMA will continue to work with providers seeking to amend or introduce performance fees," said Elaine Campbell.</span></span></p> <p><span><span>The guidance note can be found</span> <a href="http://www.fma.govt.nz/help-me-comply/kiwisaver/guidance-notes/guidance-note-kiwisaver-performance-fees/"><span><span><span> here</span></span></span></a></span></p> <p><span><span> </span></span></p> <p><strong><span>Background</span></strong></p> <p><span><span>KiwiSaver legislation (Clause 2 of Schedule 1 of the KiwiSaver Act 2006) provides that fees</span> <span>for services in relation to the provision of a KiwiSaver scheme</span></span> <span><span>should not be unreasonable.</span></span></p> <p><span><span>FMA is responsible for assessing the reasonableness of fees charged by KiwiSaver providers.</span></span></p> <p><span><span>KiwiSaver is a regulatory priority for FMA and it also intends to provide guidance on other issues related to KiwiSaver, for example investment risk disclosure.</span></span></p> <p><span><span>In addition, yesterday the Government announced in its Budget 2012 new disclosure rules for KiwiSaver fund managers that will apply from 1 April 2013. These new periodic disclosure rules will require fund managers to report their performance and returns, fees and costs, assets and portfolio holdings, liquidity and liabilities, and key personnel, along with any conflicts of interest, in a standardised format on their website.</span></span></p> <p><span><span>The Ministry of Economic Development is working on the development of regulations for KiwiSaver periodic disclosure requirements. This mandatory reporting will give investors access to consistent information to assist with comparisons across different KiwiSaver funds. More information is available</span> <span><a href="http://www.med.govt.nz/business/business-law/current-business-law-work/kiwisaver/period-disclosure"> <span><span>here</span></span></a></span><span>.</span></span></p> <p><span><span> </span></span></p> <p><span><span>Ends</span></span></p> <p><strong><span><span>Contact:</span></span></strong><span><br><span>Scott McMurray Tel. 029 222 0776 or</span></span> <a href="mailto:scott.mcmurray@fma.govt.nz"><span><span>scott.mcmurray@fma.govt.nz</span></span></a></p> <hr> http://www.fma.govt.nz/keep-updated/newsroom/afa-updates/financial-markets-authority-afa-update-issue-10 Financial Markets Authority AFA Update: Issue # 10 2014-09-04 11:47:52 Financial Markets Authority <h2>Are you currently providing Discretionary Investment Management Services (DIMS)?</h2> <p>FMA is in the process of conducting a thematic monitoring project focused on AFAs who are licensed to provide Discretionary Investment Management Services.  There are currently around 1,300 AFAs licensed to provide these.<br><br> The purpose of the project is to:<br><br> • Get confirmation from AFAs licensed to provide Discretionary Investment Management Services that they are currently providing this service to clients.</p> <p>• Monitor a selection of AFAs who are licensed to provide Discretionary Investment Management Services in order to:</p> <ul> <li>ascertain if the AFA is currently providing Discretionary Investment Management Services to clients</li> <li>identify how these services are being provided</li> <li>identify any potential compliance issues that may be common across AFAs</li> <li>provide specific monitoring feedback to individual AFAs that have been visited by FMA.</li> </ul> <p>Our monitoring approaches range from reviewing the AFA’s Adviser Business Statement (ABS), to telephone interviews and monitoring visits.<br><br> A report on our findings and guidance on DIMS will be published in April.<br><br></p> <h2>AFA Monitoring for October to December 2012</h2> <p>As signalled last year, the focus and intensity of FMA’s monitoring work continues as we approach the end of our second year of operation under the Financial Advisers Act 2008.  Our overarching focus is on raising standards of good conduct, ethics and integrity amongst market participants.  Where activities have been subject to regulation for some time, we have higher expectations that participants will operate above the bare minimum required, and that senior management will sponsor a culture of integrity and good conduct.<br><br> As part of FMA’s ongoing monitoring of AFAs, we review AFA’s compliance with the conduct obligations set out in the Financial Advisers Act 2008.<br><br> Of particular relevance this quarter are sections 33 and 34 of the Financial Advisers Act 2008:</p> <ul> <li>All financial advisers must exercise care, diligence and skill</li> <li>All financial advisers must not engage in misleading or deceptive conduct</li> </ul> <p>View a copy of our latest monitoring report <a href="http://www.fma.govt.nz/assets/afa-monitoring-report-oct-dec-2012-final3.pdf" target="_blank">here</a>.<br><br></p> <h2>Giving KiwiSaver advice</h2> <p>FMA has just launched a consumer brochure to help advisers explain to New Zealanders the different types of services they may receive when investing in KiwiSaver schemes or considering changing between schemes or funds.  The brochure can also help advisers explain their services to their clients.<br><br> The brochure describes the three different types of services:<br><br> • No advice – provision of information only - no advice is provided;<br> • Class Advice – advice on what is usually suitable for people in a group or class; and<br> • Personalised Advice –advice tailored to the client’s personal circumstances.</p> <p>Many advisers only offer one KiwiSaver scheme.  The brochure encourages customers to find out if their adviser is able to advise on only one scheme, or can compare schemes.<br><br> Understanding the service they receive is a key step to helping customers make informed decisions about their money.<br><br> The brochure responds to feedback received during consultation on FMA’s <a href="http://www.fma.govt.nz/laws-we-enforce/policy/closed-consultations/response-to-submissions-draft-guidance-note-sale-and-distribution-of-kiwisaver">Guidance Note: Sale and Distribution of KiwiSaver</a> and from our <a href="http://www.fma.govt.nz/keep-updated/reports-and-papers/afa-survey-2012">AFA Survey</a>.  We now expect all distributors to have taken account of the Guidance Note in their distribution practice and will review distributors approach to the guidance in our monitoring and surveillance work.<br><br> We invite you to download a copy of our new brochure <a href="http://www.fma.govt.nz/assets/media/1520025/kiwisaver-are-you-getting-the-right-advice.pdf">here</a>.  Or, if you would like to receive some printed copies, please contact our Customer Service team on 0800 434 566.<br><br></p> <h2>FMA’s Compliance Focus for 2013</h2> <p>In February we released our compliance focus for 2013, outlining FMA’s priority areas for monitoring and surveillance over the coming year.<br><br> Our document outlines the four major themes which will influence our priorities for 2013.  They are: building customer trust; raising standards in existing regimes; embedding new regimes; and KiwiSaver, as well as our overall regulatory approach.<br><br> AFAs will find raising standards in existing regimes of particular relevance.  FMA’s overarching focus is on raising the standards of good conduct, ethics and integrity, and we expect that where activities have been subject to regulation for some time, participants will operate above the bare minimum required and that senior management will help foster a culture of integrity and good conduct.<br><br> We will also be placing significant emphasis on supporting participants and investors throughout the reconstruction of Christchurch.<br><br> A copy of FMA’s Compliance Focus for 2013 can be viewed <a href="http://www.fma.govt.nz/keep-updated/reports-and-papers/fmas-compliance-focus-for-2013">here</a>. If you would like a printed and bound copy please contact Danette Hunter at FMA on <a href="mailto:danette.hunter@fma.govt.nz">danette.hunter@fma.govt.nz</a>.</p> <hr> http://www.fma.govt.nz/keep-updated/newsroom/media-releases/2013/guilty-plea-sees-another-finance-company-director-held-to-account Guilty plea sees another finance company director held to account 2014-09-04 11:37:05 Financial Markets Authority <p><strong>Media Release</strong><br><strong>17 April 2013</strong><br><br><br>Stephen Charles Smith (45), pleaded guilty at the Auckland High Court today to 25 charges arising out of the collapse of Belgrave Finance Limited (Belgrave Finance). The charges were brought in a joint prosecution by the Financial Markets Authority (FMA) and the Serious Fraud Office (SFO).<br><br>Mr Smith pleaded guilty to 19 Crimes Act charges of theft by person in a special relationship, four charges of false statement by promoter, one Securities Act charge of making an untrue statement and one Companies Act charge of making a false statement to a trustee.<br><br>The charges relate to more than $18 million of loans made by Belgrave Finance to various related entities between June 2005 and March 2008.<br><br>FMA Head of Enforcement, Belinda Moffat, said all directors should treat today’s guilty plea as a reminder of their duties and responsibilities.<br><br>“Anyone who invests their hard earned money relies on directors to do the right thing,” said Ms Moffat. “There are standards of behaviour that are expected and consequences of getting it wrong.”<br><br>Acting SFO Chief Executive, Simon McArley, added that Mr Smith’s plea is another positive step towards concluding the response to the finance company collapses.<br><br>“The impact of fraud on its victims is substantial. Whether it’s the loss of financial investments or jobs, many New Zealanders’ lives and prosperity are irrevocably changed through the impact of fraud. The completion of these prosecutions sends a strong deterrent message that will help ensure we don’t see a repetition of the finance company issues and will deter any new forms of financial crime developing,” he said.<br><br>Under the Companies Act, Stephen Smith’s conviction means he is automatically banned from managing companies for five years.<br><br>Mr Smith has been remanded in custody pending a bail hearing at 3.15pm today and will next appear for sentencing on 7 June.<br><br>ENDS<br><br><strong>For further information:</strong></p> <p>Andrea Linton                                   Tony Reid<br>Serious Fraud Office                          Financial Markets Authority<br>027 705 4550                                   021 739 052<br><br><strong>Notes to editors</strong><br><br><strong>Background to investigation</strong><br>Belgrave Finance Limited was incorporated in September 2000.<br><br>Belgrave Finance provided financial accommodation and mortgage facilities for commercial and residential property developments.  Funds for lending were sourced primarily from the issue of securities to the public in the form of debenture stock and convertible capital notes.<br><br>Belgrave Finance was placed into receivership in on 28 May 2008 owing around $22 million to approximately 1,000 investors.  The company was placed into liquidation in April 2010 and at the time, was the 20<sup>th</sup> finance company to collapse in two years. <br><br>Following the collapse of Belgrave Finance, the (then) Securities Commission made initial investigations into the company before referring the matter to SFO in June 2010. The SFO Director determined that an investigation into the affairs of Belgrave Finance may disclose serious or complex fraud, and SFO commenced an investigation under Part II of the Serious Fraud Office Act in July 2010.<br><br>Charges have also been laid against former director Shane Buckley (45), alleged controller of the company Raymond Schofield (51), and legal advisor Hugh Hamilton (61). Mr Buckley was sentenced to three years’ imprisonment following a guilty plea in August 2012. Mr Schofield was granted a stay of prosecution on the grounds of terminal illness in December 2012, conditional upon review. Mr Hamilton has been committed for trial at a date to be set.<br><br><strong>SFO charges</strong><br><br><strong>Crimes Act offences:</strong><br><br><strong>Section 220: Theft by person in special relationship</strong><br>(1) This section applies to any person who has received or is in possession of, or has control over, any property on terms or in circumstances that the person knows require the person—<br><br>(a) to account to any other person for the property, or for any proceeds arising from the property; or<br><br>(b) to deal with the property, or any proceeds arising from the property, in accordance with the requirements of any other person.<br><br>(2) Every one to whom subsection (1) applies commits theft who intentionally fails to account to the other person as so required or intentionally deals with the property, or any proceeds of the property, otherwise than in accordance with those requirements.<br><br>(3) This section applies whether or not the person was required to deliver over the identical property received or in the person's possession or control.<br><br>(4) For the purposes of subsection (1), it is a question of law whether the circumstances required any person to account or to act in accordance with any requirements.<br><br><strong>Section 223: Punishment of theft</strong><br>Every one who commits theft is liable as follows:<br><br>(a) in the case of any offence against section 220, to imprisonment for a term not exceeding 7 years; or<br><br>(b) if the value of the property stolen exceeds $1,000, to imprisonment for a term not exceeding 7 years; or<br><br>(c) if the value of the property stolen exceeds $500 but does not exceed $1,000, to imprisonment for a term not exceeding 1 year; or<br><br>(d) if the value of the property stolen does not exceed $500, to imprisonment for a term not exceeding 3 months.<br><br><strong>Section 242: False statement by promoter, etc<br></strong>(1) Every one is liable to imprisonment for a term not exceeding 10 years who, in respect of any body, whether incorporated or unincorporated and whether formed or intended to be formed, makes or concurs in making or publishes any false statement, whether in any prospectus, account, or otherwise, with intent—<br><br>(a) to induce any person, whether ascertained or not, to subscribe to any security within the meaning of the Securities Act 1978; or<br><br>(b) to deceive or cause loss to any person, whether ascertained or not; or<br><br>(c) to induce any person, whether ascertained or not, to entrust or advance any property to any other person.<br><br>(2) In this section, false statement means any statement in respect of which the person making or publishing the statement—<br><br>(a) knows the statement is false in a material particular; or<br><br>(b) is reckless as to the whether the statement is false in a material particular.<br><br><strong>FMA charges</strong><br><strong>Securities Act offences:<br><br>Section 58: Criminal liability for misstatement in advertisement or registered prospectus<br><br></strong>(1) Subject to subsection (2), where an advertisement that includes any untrue statement is distributed,—<br><br>(a) the issuer of the securities referred to in the advertisement, if an individual; or<br><br>(b) if the issuer of the securities is a body, every director thereof at the time the advertisement is distributed—<br><br>commits an offence.<br><br>(2) No person shall be convicted of an offence under subsection (1) if the person proves either that the statement was immaterial or that he or she had reasonable grounds to believe, and did, up to the time of the distribution of the advertisement, believe that the statement was true.<br><br>(3) Subject to subsection (4), where a registered prospectus that includes an untrue statement is distributed, every person who signed the prospectus, or on whose behalf the registered prospectus was signed for the purposes of section 41(1)(b), commits an offence.<br><br>(4) No person shall be convicted of an offence under subsection (3) if the person proves either that the statement was immaterial or that he or she had reasonable grounds to believe, and did, up to the time of the distribution of the prospectus, believe that the statement was true.<br><br>(5) Every person who commits an offence against this section is liable—<br><br>(a) on conviction on indictment to—<br><br>(i) imprisonment for a term not exceeding 5 years; or<br><br>(ii) a fine not exceeding $300,000 and, if the offence is a continuing one, to a further fine not exceeding $10,000 for every day or part of a day during which the offence is continued; or<br><br>(b) on summary conviction to—<br><br>(i) imprisonment for a term not exceeding 3 months; or<br><br>(ii) a fine not exceeding $300,000 and, if the offence is a continuing one, to a further fine not exceeding $10,000 for every day or part of a day during which the offence is continued.<br><br><strong>Companies Act offences:</strong><br><br><strong>Section 377: False statements<br><br></strong>(1) Every person who, with respect to a document required by or for the purposes of this Act,—<br><br>(a) makes, or authorises the making of, a statement in it that is false or misleading in a material particular knowing it to be false or misleading; or<br><br>(b) omits, or authorises the omission from it of, any matter knowing that the omission makes the document false or misleading in a material particular—<br><br>commits an offence, and is liable on conviction to the penalties set out in section 373(4).<br><br>(2) Every director or employee of a company who makes or furnishes, or authorises or permits the making or furnishing of, a statement or report that relates to the affairs of the company and that is false or misleading in a material particular, to—<br><br>(a) a director, employee, auditor, shareholder, debenture holder, or trustee for debenture holders of the company; or<br><br>(b) a liquidator, liquidation committee, or receiver or manager of property of the company; or<br><br>(c) if the company is a subsidiary, a director, employee, or auditor of its holding company; or<br><br>(d) a stock exchange or an officer of a stock exchange,—<br><br>knowing it to be false or misleading, commits an offence, and is liable on conviction to the penalties set out in section 373(4).<br><br>(3) For the purposes of this section, a person who voted in favour of the making of a statement at a meeting is deemed to have authorised the making of the statement.<br><br><strong>Role of SFO</strong><br>The Serious Fraud Office (SFO) was established in 1990 under the Serious Fraud Office Act in response to the collapse of financial markets in New Zealand at that time.<br><br>SFO operates three investigative teams:<br><br>•           Evaluation &amp; Intelligence;<br> •           Financial Markets &amp; Corporate Fraud; and<br> •           Fraud &amp; Corruption.<br><br>SFO operates under two sets of investigative powers.<br><br>Part I of the SFO Act provides that it may act where the Director “has reason to suspect that an investigation into the affairs of any person may disclose serious or complex fraud.”<br><br>Part II of the SFO Act provides SFO with more extensive powers where: “…the Director has reasonable grounds to believe that an offence involving serious or complex fraud may have been committed…”<br><br>SFO’s Annual Report 2012 sets out its achievements for the past year, while the Statement of Intent 2012-2015 sets out the SFO’s three year strategic goals and performance standards.  Both are available online at: <a href="http://www.sfo.govt.nz">www.sfo.govt.nz<br><br></a><strong>Role of FMA</strong><br>FMA was established on 1 May 2011 as part of the Financial Markets Authority Act 2011, in response to the need to address failures in the financial markets, made evident from the global financial crisis. The Government recognised that New Zealand required a single conduct regulator to proactively monitor and enforce securities legislation.<br>FMA is an independent Crown entity and has the following functions:</p> <ul> <li>to monitor compliance with, investigate contraventions of, and enforce securities and investment law, financial reporting law, and companies law, in respect of financial markets participants;</li> <li>to promote confident and informed participation in the financial markets;</li> <li>to license and supervise particular financial markets participants, including financial advisers, trustees and statutory supervisors, auditors, and securities markets;</li> <li>to monitor and conduct inquiries and investigations into financial markets and financial markets participants; and</li> <li>to keep the law under review.</li> </ul> <p>More information about FMA can be found at <a href="http://www.fma.govt.nz/">www.fma.govt.nz</a></p> <hr> http://www.fma.govt.nz/keep-updated/newsroom/fma-updates/fma-update-30-may-2013 FMA Update 30 May 2013 2014-09-04 11:34:18 Financial Markets Authority <h2>Hybrid financial instrument disclosures</h2> <p>FMA has just finished our report on hybrid financial instrument disclosures. As part of our theme based monitoring projects on financial reporting, we have reviewed the accounting classification and disclosure of financial instruments, classified as hybrid instruments, and listed on the NZX debt market.<br><br>We consider that disclosures around hybrid financial instruments need improvement and would like all issuers of hybrid financial instruments to reconsider your disclosures in regard to these.<br><br>FMA’s findings and recommendations are listed in the <a href="http://www.fma.govt.nz/keep-updated/reports-and-papers/report-on-hybrid-financial-instrument-disclosures">report</a>.</p> <p> </p> <h2>Statement of Intent</h2> <p>FMA’s 2013 – 2016 Statement of Intent has just been released.  You can read more about our strategic direction over the next three years, how we will measure our success, and the three appropriations FMA receives to achieve our objective of fair, efficient, and transparent markets.<br><br>A copy of our SOI can be found <a href="http://www.fma.govt.nz/about-us/corporate-publications/statement-of-intent/statement-of-intent-2013-2016">here</a>, or if you would like a printed bound copy, please contact Danette Hunter at <a href="mailto:danette.hunter@fma.govt.nz">danette.hunter@fma.govt.nz</a></p> http://www.fma.govt.nz/keep-updated/newsroom/fma-updates/fma-update-6-june-2013 FMA Update 6 June 2013 2014-09-04 11:31:25 Financial Markets Authority <h2>FMA’s supervision of Anti-Money Laundering and Countering Financing of Terrorism</h2> <p>From 30 June 2013, FMA’s role as a supervisor will be to monitor compliance with the Anti-Money Laundering and Countering Financing of Terrorism Act 2009 (AML/CFT Act), including assessment of the adequacy and effectiveness of reporting entities’ systems and controls, to detect and deter money laundering and terrorist financing, and to take action where these fall below the expected standard.<br><br>Click <a href="http://www.fma.govt.nz/assets/Uploads/fmas-supervision-of-anti-money-laundering-and-countering-financing-of-terrorism.pdf" target="_blank">here</a> to see our report released today, outlining FMA’s priorities for monitoring reporting entities under the AML/CFT Act.</p> <h2>FMC Bill</h2> <p>FMA is working on the Financial Markets Conduct Bill (FMC Bill). This is currently before Parliament and is the last major step in the reform of financial markets legislation in New Zealand. The Bill will govern how financial products are created, promoted and sold, and the ongoing responsibilities of those who offer, deal and trade them. It will also regulate the provision of certain financial services.<br><br>Look out for more information on our website over the coming weeks.</p> <h2>General obligations review of NZX report</h2> <p>Earlier this week FMA released our report on General Obligations Review of NZX. The report summarises our assessment of compliance by NZX with its obligations. To view the report click <a href="http://www.fma.govt.nz/keep-updated/reports-and-papers/general-obligations-review-of-nzx-june-2013">here</a>.</p> http://www.fma.govt.nz/keep-updated/newsroom/media-releases/2013/director-sentenced-to-prison-term-for-theft-and-false-statements Director sentenced to prison term for theft and false statements 2014-09-04 11:29:30 Financial Markets Authority <p><strong>Media Release</strong><br>7 June 2013<br><br>Stephen Charles Smith (45), a former director of failed finance company Belgrave Finance Limited (Belgrave Finance), has today been sentenced to four years’ imprisonment. The sentence follows a joint prosecution by the Financial Markets Authority (FMA) and the Serious Fraud Office (SFO).<br><br>In April, Mr Smith pleaded guilty to 19 Crimes Act charges of theft by person in a special relationship, four charges of false statement by promoter, one Securities Act charge of making an untrue statement and one Companies Act charge of making a false statement to a trustee. He was sentenced at the Auckland High Court.<br><br>The charges relate to more than $18 million of transactions made by Belgrave Finance for the benefit of various related entities between June 2005 and March 2008.<br><br>FMA Head of Enforcement, Belinda Moffat said, “Today’s sentence is a reminder to directors that they cannot depart from their obligations under the law, and their duty to investors.”<br><br>Acting SFO Chief Executive added, “This sentencing brings us another step closer to bringing the criminal prosecution of the Finance Company collapses to a close. This will increasingly allow resources to be refocused toward proactive intervention in emerging areas of financial crime.”<br><br>Belinda Moffat and Simon McArley said the joint prosecution demonstrated the efficiencies that were being achieved from the close working relationship between the two agencies.<br><br>"The combination of our specialist skills has enabled this prosecution to be progressed quickly and efficiently and without duplication of resource" said Simon McArley.<br><br>Under the Companies Act, Stephen Smith’s conviction means he is automatically banned from managing companies for five years.<br><br>ENDS<br><br><strong>For further information:</strong></p> <p>Andrea Linton                                        Tony Reid<br>Serious Fraud Office                               Financial Markets Authority<br>027 705 4550                                        021 739 052<br><br><strong>Notes to editors</strong><br><br><strong>Background to investigation</strong><br><br>Belgrave Finance Limited was incorporated in September 2000. <br><br>Belgrave Finance provided financial accommodation and mortgage facilities for commercial and residential property developments. Funds for lending were sourced primarily from the issue of securities to the public in the form of debenture stock and convertible capital notes.<br><br>Belgrave Finance was placed into receivership in on 28 May 2008 owing around $22 million to approximately 1,000 investors. The company was placed into liquidation in April 2010 and at the time, was the 20<sup>th</sup> finance company to collapse in two years.<br><br>Following the collapse of Belgrave Finance, the (then) Securities Commission made initial investigations into the company before referring the matter to SFO in June 2010. The SFO Director determined that an investigation into the affairs of Belgrave Finance may disclose serious or complex fraud, and SFO commenced an investigation under Part II of the Serious Fraud Office Act in July 2010.<br><br>Charges have also been laid against former director Shane Buckley (45), alleged controller of the company Raymond Schofield (51), and legal advisor Hugh Hamilton (61). Mr Buckley was sentenced to three years’ imprisonment following a guilty plea in August 2012. Mr Schofield was granted a stay of prosecution on the grounds of terminal illness in December 2012, conditional upon review. Mr Hamilton has been committed for trial at the High Court Auckland commencing 10 February 2014.<br><br><strong>SFO charges</strong><br><strong>Crimes Act offences:</strong><br><br><strong>Section 220: Theft by person in special relationship</strong><br>(1) This section applies to any person who has received or is in possession of, or has control over, any property on terms or in circumstances that the person knows require the person—</p> <p class="labelledlabel">(a) to account to any other person for the property, or for any proceeds arising from the property; or</p> <p class="labelledlabel">(b) to deal with the property, or any proceeds arising from the property, in accordance with the requirements of any other person.</p> <p class="labelledlabel">(2) Every one to whom subsection (1) applies commits theft who intentionally fails to account to the other person as so required or intentionally deals with the property, or any proceeds of the property, otherwise than in accordance with those requirements.</p> <p class="labelledlabel">(3) This section applies whether or not the person was required to deliver over the identical property received or in the person's possession or control.</p> <p class="labelledlabel">(4) For the purposes of subsection (1), it is a question of law whether the circumstances required any person to account or to act in accordance with any requirements.</p> <p class="labelledlabel"><strong>Section 223: Punishment of theft</strong><br>Every one who commits theft is liable as follows:</p> <p class="labelledlabel">(a) in the case of any offence against section 220, to imprisonment for a term not exceeding 7 years; or</p> <p class="labelledlabel">(b) if the value of the property stolen exceeds $1,000, to imprisonment for a term not exceeding 7 years; or</p> <p class="labelledlabel">(c) if the value of the property stolen exceeds $500 but does not exceed $1,000, to imprisonment for a term not exceeding 1 year; or</p> <p class="labelledlabel">(d) if the value of the property stolen does not exceed $500, to imprisonment for a term not exceeding 3 months.</p> <p><strong>Section 242: False statement by promoter, etc</strong><br>(1) Every one is liable to imprisonment for a term not exceeding 10 years who, in respect of any body, whether incorporated or unincorporated and whether formed or intended to be formed, makes or concurs in making or publishes any false statement, whether in any prospectus, account, or otherwise, with intent—</p> <p class="labelledlabel">(a) to induce any person, whether ascertained or not, to subscribe to any security within the meaning of the Securities Act 1978; or</p> <p class="labelledlabel">(b) to deceive or cause loss to any person, whether ascertained or not; or</p> <p class="labelledlabel">(c) to induce any person, whether ascertained or not, to entrust or advance any property to any other person.</p> <p class="labelledlabel">(2) In this section, false statement means any statement in respect of which the person making or publishing the statement—</p> <p class="labelledlabel">(a) knows the statement is false in a material particular; or</p> <p class="labelledlabel">(b) is reckless as to the whether the statement is false in a material particular.<br><br><strong>FMA charges</strong><br><strong>Securities Act offences:</strong><br><br><strong>Section 58: Criminal liability for misstatement in advertisement or registered prospectus<br></strong>(1) Subject to subsection (2), where an advertisement that includes any untrue statement is distributed,—</p> <p style="padding-left: 30px;">(a) the issuer of the securities referred to in the advertisement, if an individual; or</p> <p style="padding-left: 30px;">(b) if the issuer of the securities is a body, every director thereof at the time the advertisement is distributed—</p> <p>commits an offence.</p> <p>(2) No person shall be convicted of an offence under subsection (1) if the person proves either that the statement was immaterial or that he or she had reasonable grounds to believe, and did, up to the time of the distribution of the advertisement, believe that the statement was true.<br><br>(3) Subject to subsection (4), where a registered prospectus that includes an untrue statement is distributed, every person who signed the prospectus, or on whose behalf the registered prospectus was signed for the purposes of section 41(1)(b), commits an offence.<br><br>(4) No person shall be convicted of an offence under subsection (3) if the person proves either that the statement was immaterial or that he or she had reasonable grounds to believe, and did, up to the time of the distribution of the prospectus, believe that the statement was true.<br><br>(5) Every person who commits an offence against this section is liable—</p> <p>(a) on conviction on indictment to—</p> <p style="padding-left: 30px;">(i) imprisonment for a term not exceeding 5 years; or</p> <p style="padding-left: 30px;">(ii) a fine not exceeding $300,000 and, if the offence is a continuing one, to a further fine not exceeding $10,000 for every day or part of a day during which the offence is continued; or</p> <p>(b) on summary conviction to—</p> <p style="padding-left: 30px;">(i) imprisonment for a term not exceeding 3 months; or</p> <p style="padding-left: 30px;">(ii) a fine not exceeding $300,000 and, if the offence is a continuing one, to a further fine not exceeding $10,000 for every day or part of a day during which the offence is continued.</p> <p><strong>Companies Act offences:</strong><br><br><strong>Section 377: False statements</strong><br>(1) Every person who, with respect to a document required by or for the purposes of this Act,—</p> <p style="padding-left: 30px;">(a) makes, or authorises the making of, a statement in it that is false or misleading in a material particular knowing it to be false or misleading; or</p> <p style="padding-left: 30px;">(b) omits, or authorises the omission from it of, any matter knowing that the omission makes the document false or misleading in a material particular—</p> <p>commits an offence, and is liable on conviction to the penalties set out in section 373(4).<br><br>(2) Every director or employee of a company who makes or furnishes, or authorises or permits the making or furnishing of, a statement or report that relates to the affairs of the company and that is false or misleading in a material particular, to—</p> <p style="padding-left: 30px;">(a) a director, employee, auditor, shareholder, debenture holder, or trustee for debenture holders of the company; or</p> <p style="padding-left: 30px;">(b) a liquidator, liquidation committee, or receiver or manager of property of the company; or</p> <p style="padding-left: 30px;">(c) if the company is a subsidiary, a director, employee, or auditor of its holding company; or</p> <p style="padding-left: 30px;">(d) a stock exchange or an officer of a stock exchange,—</p> <p>knowing it to be false or misleading, commits an offence, and is liable on conviction to the penalties set out in section 373(4).<br><br>(3) For the purposes of this section, a person who voted in favour of the making of a statement at a meeting is deemed to have authorised the making of the statement.<br><br><strong>Role of SFO</strong><br>The Serious Fraud Office (SFO) was established in 1990 under the Serious Fraud Office Act in response to the collapse of financial markets in New Zealand at that time.<br><br>SFO operates three investigative teams:<br><br>•           Evaluation &amp; Intelligence;<br>•           Financial Markets &amp; Corporate Fraud; and<br>•           Fraud &amp; Corruption.<br><br>SFO operates under two sets of investigative powers.<br><br>Part I of the SFO Act provides that it may act where the Director “has reason to suspect that an investigation into the affairs of any person may disclose serious or complex fraud.”<br><br>Part II of the SFO Act provides SFO with more extensive powers where: “…the Director has reasonable grounds to believe that an offence involving serious or complex fraud may have been committed…”<br><br>SFO’s Annual Report 2012 sets out its achievements for the past year, while the Statement of Intent 2012-2015 sets out the SFO’s three year strategic goals and performance standards.  Both are available online at: <a href="http://www.sfo.govt.nz">www.sfo.govt.nz</a></p> <p><strong>Role of FMA<br></strong>FMA was established on 1 May 2011 under the Financial Markets Authority Act 2011, in response to the need to address failures in the financial markets, made evident from the global financial crisis. The Government recognised that New Zealand required a single conduct regulator to proactively monitor and enforce securities legislation.<br><br>FMA is an independent Crown entity and has the following functions:</p> <ul> <li>to monitor compliance with, investigate contraventions of, and enforce securities and investment law, financial reporting law, and companies law, in respect of financial markets participants;</li> <li>to promote confident and informed participation in the financial markets;</li> <li>to license and supervise particular financial markets participants, including financial advisers, trustees and statutory supervisors, auditors, and securities markets;</li> <li>to monitor and conduct inquiries and investigations into financial markets and financial markets participants; and</li> <li>to keep the law under review. </li> </ul> <p>More information about FMA can be found at <a href="http://www.fma.govt.nz/">www.fma.govt.nz</a></p> <hr> http://www.fma.govt.nz/keep-updated/newsroom/media-releases/2013/charges-laid-today-against-david-ross Charges laid today against David Ross 2014-09-04 11:28:48 Financial Markets Authority <p><strong>Media Release</strong><br>13 June 2013<br><br>Charges have today been laid in the Wellington District Court against  David Robert Gilmour Ross (63). The charges laid by the Serious Fraud Office (SFO) allege he operated a $400 million Ponzi scheme. They follow a joint agency investigation between SFO and the Financial Markets Authority (FMA).<br><br>The Wellington financial adviser faces four Crimes Act charges of false accounting and one charge of theft by person in special relationship.<br><br>The joint investigation into Ross Asset Management (RAM) and related entities commenced in November last year after complaints were received regarding the delayed or non-payment of funds to investors. Following enquiries FMA undertook in October 2012, FMA took immediate action to preserve investors’ funds by obtaining asset preservation orders and orders appointing receivers and managers to the Ross Group of entities. These orders were obtained under the Financial Advisers Act and remain in place. Initial inquiries by receivers showed investments of only $10.2 million actually existed. <br><br>In response to the potential loss, large number of victims, concerns of the receivers, complexity of the case and the significant public interest, both FMA and SFO commenced the joint investigation.<br><br>The charges laid by SFO allege that Mr Ross conducted a Ponzi scheme which he disguised by falsely reporting clients’ investments. They allege that large portions of client portfolios shown as invested through a broker ‘Bevis Marks’ were fictitious and never existed, resulting in an overstatement of investment positions by more than $380 million.<br><br>More than 1,200 RAM client accounts have been affected by Mr Ross’ scheme.<br><br>SFO’s Acting Chief Executive, Simon McArley said, "The allegations made amount to serious criminal matters. However the saddest fact of all of this is the position that Mr Ross’ clients find themselves in. The joint activity between SFO and FMA demonstrates that we can work effectively together to both address the serious criminal offending and protect as far as possible the interests of the victims of that offending".<br><br>FMA Head of Enforcement Belinda Moffat said, "FMA will now complete its investigation into conduct by Mr Ross under the Financial Advisers Act. We will also shortly release best practice guidance for financial advisers providing discretionary investment management services to ensure our expectations are well understood by advisers, as well as guidance for investors considering using such services".<br><br>SFO and FMA acknowledge the assistance provided to them by the receivers of the Ross Group of entities and their advisers as well as the many investors who have provided information.<br><br>ENDS<br><br><strong>For further information:</strong><br><br>Andrea Linton                                    Tony Reid</p> <p>Serious Fraud Office                           Financial Markets Authority</p> <p>027 705 4550                                     021 739 052</p> <p><br>Note to editors<br><br><strong>Background to investigation<br><br></strong>Since 1989, David Robert Gilmour Ross has operated a funds management business, Ross Asset Management Limited (RAM). The RAM office was located in Wellington. RAM was the key trading entity for the Ross Group and Mr Ross had sole responsibility and decision-making authority for all aspects of RAM.<br><br>Mr Ross was approved as an Authorised Financial Adviser (AFA) by FMA on 12 July 2011. His authorisation was suspended in November 2012 and his registration as a financial services provider cancelled in February 2013, which resulted in the termination of his authorisation as an AFA.<br><br>Mr Ross and RAM were placed into receivership in early November 2012 along with Mr Ross’ other associated entities. Eight of the Ross entities were placed in liquidation in December 2012.<br><br>Crimes Act offences:<br><br>Section 220 Theft by person in special relationship<br>(1) This section applies to any person who has received or is in possession of, or has control over, any property on terms or in circumstances that the person knows require the person—<br><br>(a) to account to any other person for the property, or for any proceeds arising from the property; or<br><br>(b) to deal with the property, or any proceeds arising from the property, in accordance with the requirements of any other person.<br><br>(2) Every one to whom subsection (1) applies commits theft who intentionally fails to account to the other person as so required or intentionally deals with the property, or any proceeds of the property, otherwise than in accordance with those requirements.</p> <p>(3) This section applies whether or not the person was required to deliver over the identical property received or in the person's possession or control.</p> <p>(4) For the purposes of subsection (1), it is a question of law whether the circumstances required any person to account or to act in accordance with any requirements.<br><br>Section 252 False accounting by officer or member of body corporate<br><br>(Pre 2003 amendments)<br><br>Every one is liable to imprisonment for a term not exceeding 7 years who, being a director or an officer or a member of any company, or body corporate, with intent to defraud,—<br><br>(a)   Destroys, mutilates, alters, or falsifies any book, account, valuable security, or document belonging to the company or body corporate, or concurs in so doing; or<br><br>(b)   Makes or concurs in making any false entry in, or omits or alters, or concurs in omitting or altering, any material particular from or in any such book, account, valuable security, or document.<br><br>Section 260 False accounting<br><br>Every one is liable to imprisonment for a term not exceeding 10 years who, with intent to obtain by deception any property, privilege, service, pecuniary advantage, benefit, or valuable consideration, or to deceive or cause loss to any other person,—<br><br>(a) makes or causes to be made, or concurs in the making of, any false entry in any book or account or other document required or used for accounting purposes; or<br><br>(b) omits or causes to be omitted, or concurs in the omission of, any material particular from any such book or account or other document; or<br><br>(c) makes any transfer of any interest in a stock, debenture, or debt in the name of any person other than the owner of that interest.<br><br>About SFO<br><br>The Serious Fraud Office (SFO) was established in 1990 under the Serious Fraud Office Act in response to the collapse of financial markets in New Zealand at that time.<br><br>SFO’s role is the detection, investigation and prosecution of serious or complex financial crime. SFO’s focus is on investigating and prosecuting criminal cases that will have a real effect on:</p> <ul> <li>business and investor confidence in our financial markets and economy</li> <li>public confidence in our justice system and public service</li> <li>New Zealand’s international business reputation.</li> </ul> <p>SFO operates three investigative teams:</p> <ul> <li>Evaluation and Intelligence;</li> <li>Financial Markets and Corporate Fraud; and</li> <li>Fraud and Corruption.</li> </ul> <p>SFO operates under two sets of investigative powers.<br><br>Part I of the SFO Act provides that it may act where the Director “has reason to suspect that an investigation into the affairs of any person may disclose serious or complex fraud.”<br><br>Part II of the SFO Act provides the SFO with more extensive powers where: “…the Director has reasonable grounds to believe that an offence involving serious or complex fraud may have been committed…”<br><br>SFO’s Annual Report 2012 sets out its achievements for the past year, while the Statement of Intent 2013-2016 sets out the SFO’s three year strategic goals and performance standards.  Both are available online at: <a href="http://www.sfo.govt.nz">www.sfo.govt.nz<br><br></a>About FMA<br><br>FMA was established on 1 May 2011 under the Financial Markets Authority Act 2011, in response to the need to address failures in the financial markets, made evident from the global financial crisis. The Government recognised that New Zealand required a single conduct regulator to proactively monitor and enforce securities legislation.<br><br>FMA is an independent Crown entity and has the following functions:</p> <ul> <li>to monitor compliance with, investigate contraventions of, and enforce securities and investment law, financial reporting law, and companies law, in respect of financial markets participants;</li> <li>to promote confident and informed participation in the financial markets;</li> <li>to license and supervise particular financial markets participants, including financial advisers, trustees and statutory supervisors, auditors, and securities markets;</li> <li>to monitor and conduct inquiries and investigations into financial markets and financial markets participants; and</li> <li>to keep the law under review.</li> </ul> <p>FMA is committed to taking enforcement action against those whose behaviour threatens market integrity and investor confidence in New Zealand.<br><br>More information about FMA can be found at <a href="http://www.fma.govt.nz/">www.fma.govt.nz</a></p> <hr> http://www.fma.govt.nz/keep-updated/newsroom/afa-updates/financial-markets-authority-afa-update-issue-11 Financial Markets Authority AFA Update: Issue # 11 2014-09-04 11:27:34 Financial Markets Authority <h2>Upcoming opportunities to provide feedback</h2> <p>Over the next few months FMA will be embarking on a series of consultations and discussion workshops to seek input into both proposed new guidance, and the upcoming Financial Markets Conduct Bill legislative changes. In some cases we will seek initial input directly from affected market participants or from their representative industry bodies.  In other cases, we will publish public consultation documents. And in others, we will do a mixture of these things.   <br><br>Your feedback and input into these discussions and consultations is very important. To help you plan your time and identify those topics you would most like to provide feedback on, we have put together the following indicative consultation timeline.  Please note, that these dates are subject to change, depending on the feedback we receive during the consultation process.   <br><br>We recommend you also talk with your industry association or body.  For access to current public consultations, please visit FMA’s ‘current consultations’ web-page: <a href="http://www.fma.govt.nz/laws-we-enforce/policy/current-consultations/">Current Consultations</a></p> <p><strong>Planned release date:</strong> Mid July <br><strong>Topic:</strong> AML/CFT:  Practical implications of Reporting Entities transacting with other Reporting Entities and the Factsheet on Managing Intermediaries <br><strong>Feedback type:</strong> Public consultation</p> <p><strong>Planned release date:</strong> Late July <br><strong>Topic:</strong> Draft guidance note: DIMS <br><strong>Feedback type:</strong> Industry body workshops and public consultation</p> <p><strong>Planned release date:</strong> Late July <br><strong>Topic:</strong> Draft guidance note: Personalised advice <br><strong>Feedback type:</strong> Industry body workshops and public consultation</p> <p><strong>Planned release date:</strong> Late July <br><strong>Topic:</strong> Draft guidance note: Client Communications and Record-Keeping <br><strong>Feedback type:</strong> Industry body workshops and public consultation</p> <p><strong>Planned release date:</strong> Mid-late August <br><strong>Topic:</strong> Draft AFA Regulatory Reporting Guide <br><strong>Feedback type:</strong> Public consultation</p> <p><strong>Planned release date:</strong> October <br><strong>Topic:</strong> Licensing framework for market services licences and other key operational changes as a result of Financial Markets Conduct (FMC) Bill changes <br><strong>Feedback type:</strong> Public consultation   <br><br>During this period there will also be ongoing consultations on the expiry of various exemptions. Please check our <a href="http://www.fma.govt.nz/laws-we-enforce/policy/current-consultations/">current consultations</a> web page for details. <br><br>Please note, the Ministry of Business, Innovation and Employment (MBIE) will also be running public consultations during this period. Current/planned consultations include:</p> <ul> <li>discussion paper on DIMS regulations for advisers (<a href="http://www.med.govt.nz/business/business-law/current-business-law-work/consultation-dims/discussion-document-dims-and-custody.pdf" target="_blank">available now</a>)</li> <li>exposure draft of FMC regulations released (October).</li> </ul> <h2>Code of Professional Conduct consultation</h2> <p>The Code Committee has advised they will be consulting on proposed changes to the Code of Professional Conduct for AFAs. The Committee propose to release a consultation paper in August and FMA will be supporting the Committee by sending an AFA Update out to all AFAs once the consultation document has been released. Wherever possible, we will work with the Code Committee to co-ordinate stakeholder engagement across related consultations.</p> <hr> http://www.fma.govt.nz/keep-updated/newsroom/fma-updates/code-of-conduct-consultation-underway Code of Conduct consultation underway 2014-09-04 11:25:03 Financial Markets Authority <h2>Code of Conduct consultation underway</h2> <p>The Code Committee for Financial Advisers is conducting its first review of the Code of Professional Conduct for Authorised Financial Advisers.<br><br>A consultation paper on proposed changes to the Code is now available on the <a href="http://financialadvisercode.govt.nz/downloads/code-consultation-paper-august-2013.pdf" target="_blank"><span style="color: #0eb6ce;">Code Committee’s website</span></a>. Submissions close 5 pm Friday 6 September.<br><br>The Committee is also running a series of <a href="http://financialadvisercode.govt.nz/publications/code-review.php" target="_blank"><span style="color: #0eb6ce;">public meetings</span></a><a style="color: #0eb6ce; text-decoration: none;" href="http://financialmarketsauthority.createsend1.com/t/r-l-bdtdhyd-l-k/"> </a>to discuss the changes. Please RSVP as shown if you would like to attend.</p> <hr> http://www.fma.govt.nz/keep-updated/newsroom/afa-updates/financial-markets-authority-afa-update-issue-12 Financial Markets Authority AFA Update: Issue # 12 2014-09-04 11:23:24 Financial Markets Authority <h2>Code of Conduct consultation underway</h2> <p>The Code Committee for Financial Advisers is conducting its first review of the Code of Professional Conduct for Authorised Financial Advisers.</p> <p>A consultation paper on proposed changes to the Code is now available on the <a href="http://financialadvisercode.govt.nz/downloads/code-consultation-paper-august-2013.pdf" target="_blank">Code Committee’s website</a>. Submissions close 5 pm Friday 6 September.</p> <p>You may also be interested in attending one of the <a href="http://financialadvisercode.govt.nz/publications/code-review.php" target="_blank">Committee’s public meetings</a> to discuss the changes. Please RSVP as shown if you would like to attend.</p> http://www.fma.govt.nz/keep-updated/newsroom/media-releases/2012/fma-publishes-revised-draft-guidance-on-effective-disclosure FMA publishes revised draft guidance on effective disclosure 2014-09-04 11:21:21 Financial Markets Authority <p>5 April 2012<br><br></p> <p>The Financial Markets Authority today published their revised draft guidance note for issuers, directors and advisers on preparation of effective disclosure documents.</p> <p>Following publication of the first draft guidance in late January, FMA has engaged with industry and consumer groups and received more than 60 submissions. As a result of that feedback, the second draft guidance note is markedly different to the first. FMA is now seeking further high level feedback from interested parties before it is finalised.</p> <p>FMA CEO Sean Hughes said submissions from the first round had been constructive and well thought through, and acknowledged the investment of time and resource by market participants in the consultation process. </p> <p>"Effective disclosure is a cornerstone of fair, efficient and transparent markets. Our final guidance needs to be based on a sound understanding of market fundamentals and commercial realities.</p> <p>"Issuing guidance is just one of the ways that FMA can be transparent and share our intended approach with the market.</p> <p>"We are asking interested parties to let us know of any remaining substantive issues so we can build on the many constructive suggestions we received in the first round."</p> <p>The revised document clarifies that the guidance does not change or add to existing legal requirements. It seeks to help issuers comply with those requirements, and have confidence that they understand the FMA's approach, including how it will interpret and apply the law relating to their responsibilities.</p> <p>Changes have also been made to emphasise that the guidance is not a compliance 'check list' and that not every example given will be relevant to every offer. The guidance emphasises the importance of issuers and their directors assessing what information will be material to an investor's decision about whether or not to invest.</p> <p>Interested parties are invited to provide feedback on the revised draft guidance to <a href="mailto:consultation@fma.govt.nz">consultation@fma.govt.nz</a> by 5pm on Thursday, 10 May 2012.</p> <p>FMA aims to publish final guidance by 31 May 2012.</p> <p>The revised draft guidance can be found <a href="http://www.fma.govt.nz/laws-we-enforce/policy/closed-consultations/second-consultation-request-for-feedback-guidance-note-effective-disclosure">here</a>. FMA's response to the key themes raised by submitters, can be found <a href="http://www.fma.govt.nz/laws-we-enforce/policy/current-consultations/submissions-on-the-proposed-guidance-note-effective-disclosure/"> here</a>.<br>  <br> Ends</p> <p>Contact:<br> Nick Stride  021 739 052</p> <hr> http://www.fma.govt.nz/keep-updated/newsroom/media-releases/2013/new-website-and-twitter-account-for-fma New website and Twitter account for FMA 2014-09-04 11:14:53 Financial Markets Authority <p>News release<br>26 August 2013<br><br>The Financial Markets Authority (FMA) has today launched two communication tools which will enhance the way it works with market participants, investors and the media.<br><br><a href="http://www.talktous.fma.govt.nz">www.talktous.fma.govt.nz</a> will provide an opportunity for New Zealanders to share their thoughts and tell us what they think is important for the future of New Zealand’s financial markets, which are entering a new era.<br><br>Visitors to the site will also be able to see what FMA is currently consulting on and provide feedback.<br><br>And Twitter users will now be able to follow FMA on <a href="https://twitter.com/FMAmedia">@FMAmedia</a>.<br><br><a href="https://twitter.com/FMAmedia">@FMAmedia</a> will tweet FMA news releases and other public announcements.<br><br>FMA will continue to release information on its main website, <a href="http://www.fma.govt.nz/">www.fma.govt.nz</a>, and via its <a href="http://fadc-uat.cwp.govt.nz/feeds/keepupdated">RSS feeds</a>, <a href="http://www.fma.govt.nz/keep-updated/subscribe-to-updates/">FMA updates</a> and direct emails to news media.<br><br>Ends<br><br><strong>Contact:</strong><br>Tony Reid on 021 739 052 or <a href="mailto:tony.reid@fma.govt.nz">tony.reid@fma.govt.nz</a></p> <hr> http://www.fma.govt.nz/keep-updated/newsroom/media-releases/2013/david-ross-pleads-guilty David Ross pleads guilty 2014-09-04 11:13:01 Financial Markets Authority <p><strong>Media Release</strong><br><strong>29 August 2013</strong><br><br>Wellington financial adviser David Robert Gilmour Ross (63) today pleaded guilty in the Wellington District Court to charges laid by the Serious Fraud Office (SFO) and the Financial Markets Authority (FMA).<br><br>A joint agency investigation between SFO and FMA into Ross Asset Management (RAM), and related entities, saw SFO charge Mr Ross on 13 June. The charges comprised four counts of false accounting and one count of theft by person in special relationship.<br><br>On 28 June FMA charged Mr Ross with one count of providing a financial service when he was not registered for that service, one count of knowingly making a false or misleading declaration or representation to FMA for the purposes of obtaining authorisation to become an Authorised Financial Adviser, and one count of supplying information or producing documents to FMA which he knew to be false or misleading.<br><br>The investigation into RAM and its related entities commenced in October last year when FMA received complaints from investors who had been unable to withdraw funds. FMA took immediate action to preserve investors’ funds by obtaining asset preservation orders and appointing receivers and managers to RAM and its related entities. A joint investigation with SFO subsequently commenced.<br><br>The SFO charges alleged that Mr Ross conducted a Ponzi scheme which he disguised by falsely reporting clients’ investments. Large portions of client portfolios shown as invested through a broker ‘Bevis Marks’ were fictitious and never existed, resulting in an overstatement of investment positions by more than $380 million.<br><br>More than 1,200 RAM client accounts have been affected by Mr Ross’ scheme.<br><br>SFO Acting Chief Executive, Simon McArley said, “While a guilty plea does not address the significant losses incurred by a large number of victims, it will bring some relief to those victims. SFO and FMA have worked well together, applying their respective specialist skills in order to progress the investigation quickly and enable this timely outcome.”<br><br>FMA Head of Enforcement, Belinda Moffat said, “The financial adviser regime relies on advisers providing truthful information when they apply for any licence and Mr Ross’ conduct has seriously undermined the integrity of that regime. We are committed to restoring investor confidence and will continue to respond immediately to investor complaints against market participants.”<br><br>Mr Ross has been remanded in custody to reappear on 24 October to set a sentencing date.<br><br><br>ENDS<br><br><strong>For further information:</strong></p> <p>Andrea Linton                                   Tony Reid</p> <p>Serious Fraud Office                          Financial Markets Authority</p> <p>027 705 4550                                   021 739 052<br><br><br><strong>Note to editors</strong><br><br><strong>Background to investigation<br><br></strong>Since 1989, David Robert Gilmour Ross has operated a funds management business, Ross Asset Management Limited (RAM). The RAM office was located in Wellington. RAM was the key trading entity for the Ross Group and Mr Ross had sole responsibility and decision-making authority for all aspects of RAM.<br><br>Mr Ross was approved as an Authorised Financial Adviser (AFA) by FMA on 12 July 2011. His authorisation was suspended in November 2012 and his registration as a financial services provider cancelled in February 2013, which resulted in the termination of his authorisation as an AFA.<br><br>Following an application made by FMA under the Financial Advisers Act 2011, Mr Ross and RAM were placed into receivership in early November 2012 along with Mr Ross’ other associated entities. Eight of the Ross entities were placed in liquidation in December 2012.<br><br><strong>Crimes Act offences:<br><br></strong><strong>SFO charges</strong></p> <p><strong>Section 220 Theft by person in special relationship</strong><br>(1) This section applies to any person who has received or is in possession of, or has control over, any property on terms or in circumstances that the person knows require the person—<br><br>(a) to account to any other person for the property, or for any proceeds arising from the property; or</p> <p>(b) to deal with the property, or any proceeds arising from the property, in accordance with the requirements of any other person.</p> <p>(2) Every one to whom subsection (1) applies commits theft who intentionally fails to account to the other person as so required or intentionally deals with the property, or any proceeds of the property, otherwise than in accordance with those requirements.</p> <p>(3) This section applies whether or not the person was required to deliver over the identical property received or in the person's possession or control.</p> <p>(4) For the purposes of subsection (1), it is a question of law whether the circumstances required any person to account or to act in accordance with any requirements.<br><br><strong>Section 252 False accounting by officer or member of body corporate</strong><br><strong>(Pre 2003 amendments)</strong></p> <p>Every one is liable to imprisonment for a term not exceeding 7 years who, being a director or an officer or a member of any company, or body corporate, with intent to defraud,—</p> <p>(a)  Destroys, mutilates, alters, or falsifies any book, account, valuable security, or document belonging to the company or body corporate, or concurs in so doing; or</p> <p>(b)  Makes or concurs in making any false entry in, or omits or alters, or concurs in omitting or altering, any material particular from or in any such book, account, valuable security, or document.</p> <p><strong>Section 260 False accounting</strong></p> <p>Every one is liable to imprisonment for a term not exceeding 10 years who, with intent to obtain by deception any property, privilege, service, pecuniary advantage, benefit, or valuable consideration, or to deceive or cause loss to any other person,—</p> <p>(a) makes or causes to be made, or concurs in the making of, any false entry in any book or account or other document required or used for accounting purposes; or</p> <p>(b) omits or causes to be omitted, or concurs in the omission of, any material particular from any such book or account or other document; or</p> <p>(c) makes any transfer of any interest in a stock, debenture, or debt in the name of any person other than the owner of that interest.</p> <p><strong>FMA charges</strong></p> <p><strong>Section 11 Financial Service Providers (Registration and Dispute Resolution) Act 2008 - No being in business of providing financial service unless registered</strong></p> <p>(1)       A person to whom this Act applies must not be in the business of providing a financial service unless that person is registered for that service under this Part.</p> <p>(2)       Every person who knowingly breaches subsection (1) commits an offence and is liable on … conviction,—</p> <p>(a)    in the case of an individual, to imprisonment for a term not exceeding 12 months or to a fine not exceeding $100,000, or to both; or</p> <p>(b)    in the case of a person who is not an individual, to a fine not exceeding $300,000.</p> <p><strong>Section 136 Financial Advisers Act 2008 - Offence of false declaration, etc, in support of application for authorisation or grant of QFE status</strong></p> <p>(1)       A person (“A”) commits an offence if A has, for the purpose of obtaining authorisation or the grant of QFE status, either for A or for any other person,—</p> <p>(a)    either orally or in writing, made any declaration or representation knowing it to be false or misleading in a material particular; or</p> <p>(b)    produced to the FMA or made use of any document knowing it to contain a declaration or representation referred to in paragraph (a); or</p> <p>(c)    produced to the FMA or made use of any document knowing that it was not genuine.</p> <p>(2)      A person who commits an offence under this section is liable on … conviction to a fine,—</p> <p>(a)    in the case of an individual, not exceeding $100,000:</p> <p>(b)    in the case of an entity, not exceeding $300,000.</p> <p><strong>Section 61 Financial Markets Authority Act 2011 - Criminal liability for obstructing exercise of powers</strong></p> <p>(1)       Every person commits an offence who—</p> <p>(a)    refuses or fails, without reasonable excuse, to comply with a notice under section 25; or</p> <p>(b)    in purported compliance with a notice under section 25, supplies information, or produces a document, or gives evidence, knowing it to be false or misleading; or</p> <p>(c)    resists, obstructs, or delays a person acting under a warrant issued under section 29; or</p> <p>(d)    having been required under a notice under section 25(1)(d) to appear before the FMA or a specified person referred to in that paragraph, for the purposes of any matter, without reasonable excuse—</p> <p>(i)      refuses or fails to appear; or</p> <p>(ii)     refuses to take an oath or affirmation as a witness; or</p> <p>(iii)    refuses to answer any question; or</p> <p>(iv)   refuses or fails to provide any document or information that the person is required to provide; or</p> <p>(e)    deceives or attempts to deceive or knowingly misleads the FMA or a specified person referred to in section 25(5) in providing evidence to either of them; or</p> <p>(f)     wilfully acts in contravention of any order made by the FMA under section 44.</p> <p>(2)       A body corporate commits an offence under subsection (1)(d) if it is required to appear under section 25(1)(d) and, without reasonable excuse, an authorised representative on its behalf refuses or fails to appear, refuses to take an oath or affirmation as a witness, refuses to answer any question, or refuses or fails to provide any document or information that the body corporate is required to provide.</p> <p>(3)       Every person who commits an offence against subsection (1) is liable on conviction to a fine not exceeding $300,000.</p> <p><strong>About SFO</strong></p> <p>The Serious Fraud Office (SFO) was established in 1990 under the Serious Fraud Office Act in response to the collapse of financial markets in New Zealand at that time.<br><br>SFO’s role is the detection, investigation and prosecution of serious or complex financial crime. SFO’s focus is on investigating and prosecuting criminal cases that will have a real effect on:</p> <ul> <li>business and investor confidence in our financial markets and economy</li> <li>public confidence in our justice system and public service</li> <li>New Zealand’s international business reputation.</li> </ul> <p>SFO operates three investigative teams:</p> <ul> <li>Evaluation and Intelligence;</li> <li>Financial Markets and Corporate Fraud; and</li> <li>Fraud and Corruption.</li> </ul> <p>SFO operates under two sets of investigative powers.</p> <p>Part I of the SFO Act provides that it may act where the Director “has reason to suspect that an investigation into the affairs of any person may disclose serious or complex fraud.”</p> <p>Part II of the SFO Act provides the SFO with more extensive powers where: “…the Director has reasonable grounds to believe that an offence involving serious or complex fraud may have been committed…”</p> <p>SFO’s Annual Report 2012 sets out its achievements for the past year, while the Statement of Intent 2013-2016 sets out the SFO’s three year strategic goals and performance standards.  Both are available online at: <a href="http://www.sfo.govt.nz">www.sfo.govt.nz</a></p> <p><strong>About FMA</strong></p> <p>FMA was established on 1 May 2011 under the Financial Markets Authority Act 2011, in response to the need to address failures in the financial markets, made evident from the global financial crisis. The Government recognised that New Zealand required a single conduct regulator to proactively monitor and enforce securities legislation.</p> <p>FMA is an independent Crown entity and has the following functions:</p> <ul> <li>to monitor compliance with, investigate contraventions of, and enforce securities and investment law, financial reporting law, and companies law, in respect of financial markets participants;</li> <li>to promote confident and informed participation in the financial markets;</li> <li>to license and supervise particular financial markets participants, including financial advisers, trustees and statutory supervisors, auditors, and securities markets;</li> <li>to monitor and conduct inquiries and investigations into financial markets and financial markets participants; and</li> <li>to keep the law under review.</li> </ul> <p>FMA is committed to taking enforcement action against those whose behaviour threatens market integrity and investor confidence in New Zealand.</p> <p>More information about FMA can be found at <a href="http://www.fma.govt.nz/">www.fma.govt.nz</a></p> <hr> http://www.fma.govt.nz/keep-updated/newsroom/afa-updates/financial-markets-authority-afa-update-issue-13 Financial Markets Authority AFA Update: Issue # 13 2014-09-04 11:11:58 Financial Markets Authority <h2>Regulatory Reporting - getting ready to report online</h2> <p>Regulatory reporting is changing, so<strong> in the next few weeks we will be inviting you to give us feedback </strong>on our first<strong> Regulatory Reporting Guide </strong>(RRG) for Authorised Financial Advisers (AFAs).<br><br> The RRG will set out the periodic and other reporting, accounting and notification requirements that each AFA must report to us, to ensure they are compliant with Standard Condition 2 of the <a href="http://www.fma.govt.nz/assets/media/101/standard-conditions-for-authorised-financial-advisers-afas-.pdf" target="_blank">Standard Conditions for AFAs</a>. The RRG will also contain guidance and explanations to assist AFAs to understand and comply with the new reporting requirements.<br><br> As part of the RRG, we would like your feedback on a new online questionnaire we will be launching soon called the <strong>Information Return</strong>.<br><br> The Information Return is designed to support your reporting obligations to us and will consist of a series of questions about you, your business, your compliance approach and your approach to continuing professional development.<br><br> Your feedback and input into this is very important because starting in 2014, each AFA will need to complete an annual Information Return.  We strongly encourage you to participate in the forthcoming consultation to view the questions, try the new system, see what you think and give us your feedback.<br><br> It will also give you an early opportunity to start thinking about what information you will need to gather in time before the Information Return goes live early next year.<br><br> If you would like further information about this, please contact our Customer Service Centre on 0800 434 567 or email us at <a href="http://www.fma.govt.nz/">questions@fma.govt.nz</a></p> <h2>Talk to us</h2> <p>We have launched a new website <a href="http://www.talktous.fma.govt.nz/talk-to-us" target="_blank">www.talktous.fma.govt.nz</a> to give New Zealanders the opportunity to share their thoughts and tell us what they think is important for the future of New Zealand’s financial markets.<br><br> On the site we'll be asking for feedback on our proposals from time to time, but you can also ask us questions about any of the future changes.<br><br> Visitors to the site will also be able to see what FMA is currently consulting on and provide feedback.</p> <h2>Code of Conduct Consultation</h2> <p><strong>Reminder: The final date for submissions on the proposed changes is Friday 6 September.</strong><br><br> Click <a href="http://financialadvisercode.govt.nz/downloads/code-consultation-paper-august-2013.pdf" target="_blank">here</a> to view the consultation.</p> <hr> http://www.fma.govt.nz/keep-updated/newsroom/media-releases/2012/fma-calls-for-submissions-on-exemption-reviews FMA calls for submissions on exemption reviews 2014-09-04 11:11:32 Financial Markets Authority <p>12 April 2012</p> <p>The Financial Markets Authority is seeking submissions from market participants, investors, representatives and advisers on review of 44 class exemption notices due to expire later this year.</p> <p>FMA is able to grant exemptions from provisions of various securities laws. Exemptions remove rigidities in the law and ensure standards set for market participants are reasonable and cost-effective. They provide relief where the costs of compliance are not matched by improved outcomes for investors or market participants.<br><br> FMA will review each of the 44 notices before they expire. As part of the review process FMA is calling for submissions from all interested parties on their experience with the notices, and proposals on whether, and if so how, the exemptions should be renewed consistently with FMA's regulatory objectives.</p> <p>The final date for submissions is 7 May 2012. The consultation paper and request for feedback can be found <a href="http://www.fma.govt.nz/laws-we-enforce/policy/closed-consultations/consultation-request-for-feedback-class-exemption-review">here</a>.<br><br> Ends<br><br> Contact:<br> Nick Stride on 09 985 4868 or 021 739 052</p> <h3>Background</h3> <p>FMA may grant exemptions from various provisions of the Securities Act 1978, Financial Reporting Act 1993, Securities Markets Act 1988, Financial Advisers Act 2008 and regulations made under those Acts.<br> Forty-four class exemption notices expire between June and November 2012, with the bulk expiring on 30 September 2012. Forty-two provide exemptions from the provisions of the Securities Act 1978 and two provide exemptions for overseas issuers from the Financial Reporting Act.</p> <h3>Purpose of exemptions</h3> <p>Exemption notices recognise that organisations and entities with widely differing aims and circumstances are affected by securities law. Full compliance with all the requirements of securities law will not always provide the best outcomes for investors, and can also result in unnecessary compliance costs. Examples of exemptions on which submissions are being called for are:</p> <p><strong>Real Property Developments</strong><br><br> This notice recognises that memberships and shares offered as ancillary features to real estate transactions can allow residents in a property development to use and enjoy communal facilities. They are not investments in the usual sense. The notice exempts the developer and the society or company from the standard offer document disclosure requirements, among other things.</p> <p><strong>Charitable and Religious Purposes</strong></p> <p>This notice recognises that the investors in debt securities offered by charitable and religious organisations are motivated by a desire to support the charitable goals of the organisation in question, as well as possibly making an investment. The notice exempts charitable and religious organisations from the trustee and trust deed, and standard offer document disclosure requirements, among other things.</p> <p>Note that the above are simplified examples intended to assist understanding of the purpose of Class Exemptions. They should not be relied on as a comprehensive description of the conditions of an exemption or the extent of disclosure requirements.</p> <hr> http://www.fma.govt.nz/keep-updated/newsroom/media-releases/2013/joint-investigation-results-in-charges-for-strategic-planning-group Joint investigation results in charges for Strategic Planning Group 2014-09-04 11:08:48 Financial Markets Authority <p><strong>Media release</strong><br><strong>5 September 2013</strong><br><br>Following a joint investigation into the activities of Auckland based company Strategic Planning Group Limited (SPG), the Serious Fraud Office (SFO) and the Financial Markets Authority (FMA) have laid charges against former financial adviser Andrew Hrothgar Robinson (40).<br><br>Mr Robinson was a director of Strategic Planning Group Limited (SPG) and is a current director of SPG Investment Company No.1 Limited (SPGI).<br><br>Mr Robinson appeared in the Auckland District Court today to face five charges laid by SFO under the Crimes Act of theft by person in a special relationship and one charge of dishonestly using a document.<br><br>It is alleged that Mr Robinson stole investor funds of approximately $3 million to repay the investments of other investors and to pay for some business and personal expenses between 2010 and 2012. It is further alleged Mr Robinson made false statements in various investment reports to hide the true picture from investors.<br><br>FMA has laid one charge against Mr Robinson under the Financial Service Providers Act for providing a broking service without being registered, and one charge of knowingly making a false statement in his application to become an Authorised Financial Adviser (AFA) under the Financial Advisers Act.<br><br>FMA has laid additional charges against Mr Robinson and a co-director of SPGI, Mark Andrew Turnock. They each face two charges under the Financial Reporting Act of making false statements in the SPGI financial documents. SFO has not laid charges against Mr Turnock.<br><br>The investigation into SPG and SPGI began in December 2012 when FMA received a complaint with allegations about Mr Robinson’s management of client funds through SPG. FMA took immediate action to preserve investors’ funds by requesting that the bank accounts of Mr Robinson and SPG be frozen. Mr Robinson’s status as an AFA was terminated in December 2012.<br><br>FMA subsequently referred certain aspects of their investigation to SFO.<br><br>“Public confidence in the financial adviser regime relies on advisers complying with their regulatory obligations and FMA will take appropriate action where it is alleged this is not occurring,” said FMA Head of Enforcement, Belinda Moffat.<br><br>“It is critical that members of the public have available to them accurate financial statements when making informed investment decisions. Directors have an obligation to ensure that financial statements are not false or misleading,” said Ms Moffat.<br><br>SFO Acting Director, Graham Gill added, “The joint efforts of SFO and FMA have progressed this investigation effectively and efficiently. This demonstrates our commitment to working together to deliver a coordinated response to financial crime in New Zealand’s investment markets.”<br><br>The defendants’ next appearance is scheduled for 26 September.<br><br>ENDS<br><br><strong>For further information:</strong></p> <p>Andrea Linton                                    Tony Reid</p> <p>Serious Fraud Office                           Financial Markets Authority</p> <p>027 705 4550                                    021 739 052</p> <p> </p> <p><strong>Notes to editors</strong><br><br><strong>Background to investigation</strong><br><br>Strategic Planning Group was incorporated on 13 December 2004 and for approximately eight years provided financial, accounting, mortgage broking and risk and insurance services to clients.<br><br><strong>SFO charges</strong><br><br><strong>Crimes Act offences:</strong><br><br><strong>Section 220 Theft by person in special relationship</strong><br>(1) This section applies to any person who has received or is in possession of, or has control over, any property on terms or in circumstances that the person knows require the person—<br><br>(a) to account to any other person for the property, or for any proceeds arising from the property; or<br><br>(b) to deal with the property, or any proceeds arising from the property, in accordance with the requirements of any other person.</p> <p>(2) Every one to whom subsection (1) applies commits theft who intentionally fails to account to the other person as so required or intentionally deals with the property, or any proceeds of the property, otherwise than in accordance with those requirements.</p> <p>(3) This section applies whether or not the person was required to deliver over the identical property received or in the person's possession or control.</p> <p>(4) For the purposes of subsection (1), it is a question of law whether the circumstances required any person to account or to act in accordance with any requirements.</p> <p>Section 228 Dishonestly taking or using document<br>Every one is liable to imprisonment for a term not exceeding 7 years who, with intent to obtain any property, service, pecuniary advantage, or valuable consideration,—</p> <p>(a) dishonestly and without claim of right, takes or obtains any document; or</p> <p>(b) dishonestly and without claim of right, uses or attempts to use any document.</p> <p><strong>FMA charges</strong><br><br><strong> Financial Service Providers (Registration and Dispute Resolution) Act 2008 offences</strong><br><br><strong> Section 11 No being in business of providing financial service unless registered</strong><br>(1) A person to whom this Act applies must not be in the business of providing a financial service unless that person is registered for that service under this Part.</p> <p>(2) Every person who knowingly breaches subsection (1) commits an offence and is liable on conviction,—</p> <p>(a) in the case of an individual, to imprisonment for a term not exceeding 12 months or to a fine not exceeding $100,000, or to both; or</p> <p>(b) in the case of a person who is not an individual, to a fine not exceeding $300,000.</p> <p><strong>Financial Reporting Act 1993</strong></p> <p><strong>Section 41 False statements</strong><br>(1) Every person who, with respect to a document required by this Act,—</p> <p>(a) makes, or authorises the making of, a statement in the document that is false or misleading in a material particular knowing the statement to be false or misleading; or</p> <p>(b) omits, or authorises the omission, from the document of any matter knowing that the omission makes the document false or misleading in a material particular—</p> <p>commits an offence and is liable on conviction to imprisonment for a term not exceeding 5 years or to a fine not exceeding $200,000.</p> <p>(2) For the purposes of this section, a person who voted in favour of the making of a statement at a meeting of directors or members or shareholders of an entity is deemed to have authorised the making of the statement.</p> <p><strong>Financial Advisers Act 2008</strong></p> <p><strong>Section 136 Offence of false declaration, etc, in support of application for authorisation or grant of QFE status</strong></p> <p>(1) A person (A) commits an offence if A has, for the purpose of obtaining authorisation or the grant of QFE status, either for A or for any other person,—</p> <p>(a) either orally or in writing, made any declaration or representation knowing it to be false or misleading in a material particular; or</p> <p>(b) produced to the FMA or made use of any document knowing it to contain a declaration or representation referred to in paragraph (a); or</p> <p>(c) produced to the FMA or made use of any document knowing that it was not genuine.</p> <p>(2) A person who commits an offence under this section is liable on conviction to a fine,—</p> <p>(a) in the case of an individual, not exceeding $100,000:</p> <p>(b) in the case of an entity, not exceeding $300,000.</p> <p><strong>Role of SFO</strong></p> <p>The Serious Fraud Office (SFO) was established in 1990 under the Serious Fraud Office Act in response to the collapse of financial markets in New Zealand at that time.</p> <p>SFO operates three investigative teams:</p> <p>•           Evaluation &amp; Intelligence;<br> •           Financial Markets &amp; Corporate Fraud; and<br> •           Fraud &amp; Corruption.</p> <p>SFO operates under two sets of investigative powers.</p> <p>Part I of the SFO Act provides that it may act where the Director “has reason to suspect that an investigation into the affairs of any person may disclose serious or complex fraud.”</p> <p>Part II of the SFO Act provides SFO with more extensive powers where: “…the Director has reasonable grounds to believe that an offence involving serious or complex fraud may have been committed…”</p> <p>SFO’s Annual Report 2012 sets out its achievements for the past year, while the Statement of Intent 2012-2015 sets out the SFO’s three year strategic goals and performance standards.  Both are available online at: <a href="http://www.sfo.govt.nz">www.sfo.govt.nz</a></p> <p><strong>Role of FMA</strong></p> <p>FMA was established on 1 May 2011 under the Financial Markets Authority Act 2011, in response to the need to address failures in the financial markets, made evident from the global financial crisis. The Government recognised that New Zealand required a single conduct regulator to proactively monitor and enforce securities legislation.</p> <p>FMA is an independent Crown entity and has the following functions:</p> <ul> <li>to monitor compliance with, investigate contraventions of, and enforce securities and investment law, financial reporting law, and companies law, in respect of financial markets participants;</li> <li>to promote confident and informed participation in the financial markets;</li> <li>to license and supervise particular financial markets participants, including financial advisers, trustees and statutory supervisors, auditors, and securities markets;</li> <li>to monitor and conduct inquiries and investigations into financial markets and financial markets participants; and</li> <li>to keep the law under review.</li> </ul> <p>More information about FMA can be found at <a href="http://www.fma.govt.nz/">www.fma.govt.nz</a></p> <hr> http://www.fma.govt.nz/keep-updated/newsroom/media-releases/2013/fma-announcement-on-finance-company-cases FMA announcement on finance company cases 2014-09-04 11:08:00 Financial Markets Authority <p><strong>News release</strong><br><strong>9 September 2013</strong><br><br>The Financial Markets Authority (FMA) today announced that it has completed investigations into four of its remaining finance company cases.<br><br>FMA inherited 25 finance company investigations from the Securities Commission when it came into force on 1 May 2011. To date, 32 directors have been convicted.<br><br>Having now completed its investigations into potential breaches of financial markets legislation, including the Securities Act and the Companies Act, FMA has announced that it will not be taking enforcement proceedings in the following cases:</p> <ul> <li>Allied Nationwide Finance Limited (in receivership)</li> <li>Equitable Mortgages Limited (in receivership)</li> <li>LDC Finance Limited (in receivership and liquidation)</li> <li>Irongate Property Limited (in receivership and liquidation)</li> </ul> <p>FMA’s investigations focused on possible breaches of the Securities Act and identified some evidence of non-compliance. However, taking into account FMA’s <a href="http://www.fma.govt.nz/laws-we-enforce/enforcement/fma-enforcement-policy/">Enforcement Policy</a>, the prospects of success and potential defences, existing returns to investors, and public interest considerations, including the efficient use of public resources, FMA does not intend to take enforcement action.<br><br>FMA has issued a warning letter to the directors of Allied Nationwide Finance saying it is FMA’s view that they likely breached the Securities Act and that better disclosure should have been made to ensure investors were aware of the risks associated with their investment.<br><br>“I acknowledge that investors will be disappointed with today’s decisions, but when we weighed up all the factors, it would not have been appropriate to take proceedings,” said FMA CEO Sean Hughes.<br><br>“The directors of these failed finance companies have been reminded of their obligations to comply with all financial markets legislation, and we will continue to monitor their conduct within our general surveillance activities,” said Mr Hughes.<br><br>“It is our expectation that the directors of these companies will disclose to the market the positions they held at the time of the collapse. The market is entitled to that transparency.”<br><br>Under the Crown Retail Deposit Guarantee Scheme, secured debenture investors in Allied Nationwide Finance were repaid the principal and interest on their investments. Approximately 97% of amounts owing to secured investors in Equitable Mortgages have also been paid under the Crown Retail Deposit Guarantee Scheme.<br><br>Irongate receivers anticipate that the total distribution to secured bondholders will be approximately 70 cents in the dollar of principle outstanding at the date of receivership.<br><br>Secured investors in LDC are expected to get their money back, plus some interest, following last month’s announcement of a settlement with Finance &amp; Investments Partnership.<br><br>“FMA is committed to completing its finance company investigations so that we can focus on today’s issues,” said Sean Hughes.<br><br>“We will be making announcements on the remaining five investigations by the end of 2013.”<br><br>Ends<br><br><strong>Contact:<br></strong>Tony Reid on 021 739 052 or <a href="mailto:tony.reid@fma.govt.nz">tony.reid@fma.govt.nz<br><br></a><strong>Background:</strong><br><br>Allied Nationwide Finance Limited (in receivership) owed $128 million to 7200 secured debenture holders when it went into receivership in August 2010. Under the Crown Retail Deposit Guarantee Scheme they were repaid the principal and interest on their investment. A further 749 perpetual bond holders who were owed approximately $15.5 million were not covered by the scheme. The directors for the period which was the subject of FMA’s investigation were: John James Loughlin, Philip Charles Luscombe, Susannah Adair Staley, John Lewis Spencer, Paul MacFie, Gary Charles Bluett and Richard Nelson Spiers.<br><br>Equitable Mortgages Limited (in receivership) owed $192.3 million to 6000 secured debenture holders when it went into receivership in November 2010. Under the Crown Retail Deposit Guarantee Scheme $170 million was repaid to 3700 investors. The directors for the period which was the subject of FMA’s investigation were: Christopher Albert Spencer, Allan John Wadams, Arthur William Young, David Parkes Forgie, Ross Alexander Aitken and David Scott Ferraby.<br><br>LDC Finance Limited (in receivership and liquidation) owed $21 million to 1200 investors when it went into receivership in September 2007. In July 2013, receivers Grant Thornton announced that 468 secured investors of LDC Finance are to receive repayment in full, plus a partial interest distribution. The directors for the period which was the subject of FMA’s investigation were: Kevin Elliott, Christopher John Hardiman, David Gordon Miller, John Charles Janetto. FMA also considered the conduct of auditors, trustees, and professional advisers, including accountants and lawyers involved in LDC in 2006-2007.<br><br>Irongate Property Limited (in receivership and liquidation) owed $46.1 million to 1500 secured debenture holders when it went into receivership in May 2011. The directors for the period which was the subject of FMA’s investigation were: Kevin John Podmore, Geoffrey Keith McWilliam, Philip Samuel Newland *(who resigned as a director on 18 April 2007) and Andrew David Walker.<br><br><strong>*Amendment to the original media release</strong>.</p> <hr> http://www.fma.govt.nz/keep-updated/newsroom/fma-warns-of-illegal-offer-by-makko-securities-to-advise-on-facebook-ipo FMA warns of illegal offer by Makko Securities to advise on Facebook IPO 2014-09-04 11:07:10 Financial Markets Authority <p>The Financial Markets Authority is warning the public of an illegal offer by Makko Securities and its Senior Account Manager, Roy Lochen, to provide broking services in relation to the proposed Initial Public Offering of Facebook and other securities.<br> <br> Makko Securities is not registered to provide financial services in New Zealand and therefore cannot legally offer financial advice or broking services to retail investors in New Zealand.<br> <br> See the <a href="http://www.fma.govt.nz/keep-updated/newsroom/media-releases/2012/fma-warns-of-illegal-offer-by-makko-securities-to-advise-on-facebook-ipo"> news release</a>.</p> http://www.fma.govt.nz/keep-updated/newsroom/afa-updates/financial-markets-authority-afa-update-issue-14 Financial Markets Authority AFA Update: Issue # 14 2014-09-04 11:06:56 Financial Markets Authority <h2>Talk to us</h2> <p>Have you taken the opportunity to <a href="http://www.talktous.fma.govt.nz/">talk to us </a>yet? We’re eagerly waiting to hear <strong>your</strong> feedback on what <strong>you</strong> think is important for the future of New Zealand’s financial markets. You can also find out more about what we’re currently consulting on. So, why not visit us now?</p> <h2>AFA Monitoring Report</h2> <p>Our April to June 2013 AFA Monitoring Report has now been released. In this edition we talk about the thematic review we conducted on NZX Adviser AFAs. </p> <p>The purpose of our review was to find out just what services and products were being offered by NZX Adviser AFAs, review advice and high risk processes based on an initial risk assessment and environmental scan, and perform specific targeted monitoring based on the initial risk assessment.</p> <p>There were two distinct phases:  <br><strong>Phase One</strong> – an information gathering and review process; and <br><strong>Phase Two</strong> – a more targeted review of advice practices at an individual level, and a review of specific risks at an entity level.</p> <p>Click <a href="http://www.fma.govt.nz/keep-updated/reports-and-papers/afa-monitoring-report-thematic-review-nzx-adviser-afas-april-to-june-2013">here</a> to find out more… </p> <h2>Guidance Notes - DIMS, Personalised Advice, and Client Communications and Record Keeping</h2> <p>The consultation period for the proposed new FMA guidance relating to Discretionary Investment Management Service, Personalised Advice, and Client Communications and Record Keeping has closed. Feedback provided to FMA is being reviewed currently. FMA is pleased with the level of engagement generated by the consultation and is grateful for the input from industry and the broader public. The guidance notes are expected to be published by mid-October.</p> http://www.fma.govt.nz/keep-updated/newsroom/afa-updates/financial-markets-authority-afa-update-issue-15 Financial Markets Authority AFA Update: Issue # 15 2014-09-04 11:05:25 Financial Markets Authority <h2>Release of exposure draft of Code delayed</h2> <p>The Code Committee for Financial Advisers has announced a short delay for the release of the exposure draft version of the Code of Professional Conduct for Authorised Financial Advisers.<br><br> It is expected that the exposure draft will be available on the <a href="http://www.financialadvisercode.govt.nz/" target="_blank">Code Committee website</a> from Thursday 3 October.  This will be available for comment for three weeks instead of the two weeks previously indicated.<br><br></p> <h2>Regulatory Reporting Guide consultation – don’t forget to have your say</h2> <p>Regulatory reporting is changing for Authorised Financial Advisers (AFAs) so don’t forget to take part in our <a href="http://www.fma.govt.nz/laws-we-enforce/policy/closed-consultations/consultation-paper-regulatory-reporting-guide-for-authorised-financial-advisers">consultation paper</a> on the proposed Regulatory Reporting Guide (RRG) and the Information Return.<br><br> The final date for submissions closes on Friday 11 October 2013.</p> <hr> http://www.fma.govt.nz/keep-updated/newsroom/fma-updates/fma-update-30-september-2013 FMA Update - 30 September 2013 2014-09-04 11:02:31 Financial Markets Authority <h2>Real Property Developments Exemption Notice Update</h2> <p>The Financial Markets Authority (FMA) has extended the Securities Act (Real Property Developments) Exemption Notice 2007 (Notice) to the close of 30 November 2016.<br><br>The Notice applies to participatory securities offered in the form of membership of an incorporated society, or a shareholding in a company, that owns, leases, licenses, maintains, administers, or operates communal facilities in a real property development.  The Notice provides relief from the requirement to appoint a statutory supervisor, the prospectus and investment statement requirements, the restrictions on statements in advertisements by experts, and the requirement to produce certificates evidencing securities. The Notice requires developers to give purchasers information about their interests in the society or company and the intended communal facilities including the likely levies or fees.<br><br>The extension to 30 November 2016 is in line with the two year transition period in the Financial Markets Conduct Act 2013 (FMCA).<br><br>In light of the enactment of FMCA and prior to the disclosure provisions of the FMCA coming into force (which we understand is intended to be 1 December 2014), FMA will conduct a review of such offers of participatory securities with a view to indicating FMA’s approach to such offers under the new FMCA regime.<br><br>A copy of the Securities Act (Real Property Developments) Exemption Amendment Notice (No 2) 2013 is available <a href="http://www.fma.govt.nz/laws-we-enforce/legislation/exemption-notices/current-exemption-notices/securities-act-exemptions/securities-act-real-property-developments-exemption-amendment-2013">here</a>.<br><br></p> <h2>Monitoring of non-GAAP disclosures</h2> <p>Last Friday FMA released its report on Monitoring of non-GAAP disclosures. The report outlines our findings and suggested areas of improvement for issuers, their directors and preparers of financial information.<br><br>Click <a href="http://www.fma.govt.nz/keep-updated/reports-and-papers/monitoring-of-non-gaap-disclosures">here</a> to view.</p> http://www.fma.govt.nz/keep-updated/newsroom/media-releases/2013/fma-cancels-prospectus FMA cancels prospectus 2014-09-04 10:59:15 Financial Markets Authority <p><strong>News release</strong><br><strong>16 October 2013</strong><br><br>The Financial Markets Authority (FMA) has cancelled the combined offer document of FMP Medical Services Limited (FMP) because it believes it is false or misleading. FMA is also of the view that the offer document is likely to deceive, mislead or confuse.<br><br>This is the first time that FMA has cancelled an offer document and it means FMP must stop the offer and that it cannot allot any shares. FMP must immediately repay any investors who have subscribed to the offer.<br><br>The sole shareholder and director of FMP is Antone Thomas Pedras, who also goes by the name of Christopher or Chris Pedras. The offer document said the purpose of the offer was to set up a chain of renal dialysis clinics in New Zealand.<br><br>FMA Head of Primary Regulatory Operations, Simone Robbers, said the decision to cancel the offer document was in the public interest.<br><br>“FMP failed to effectively communicate the risks of investing, including its plans to substantially dilute the value of any public investment, and its lack of any real business plan,” said Ms Robbers.<br><br>“Offer documents must not be false or misleading and must include all material information to assist investors when they are deciding whether or not to invest. We could not allow FMP’s offer to go to market.”<br><br>FMA’s risk-based approach to reviewing prospectuses picked up FMP’s offer when it was registered in August. FMA issued an interim order prohibiting the allotment of shares while it carried out a thorough review.<br><br>“By picking this up at an early stage FMA has been able to step in and take action to protect potential investors considering this offer,” said Simone Robbers.<br><br>A copy of the order can be found <a href="http://www.fma.govt.nz/laws-we-enforce/enforcement/orders-reports-and-outcomes/order-relating-to-fmp-medical-services-limited">here</a>.<span style="text-decoration: underline;"><br><br><br></span>Ends<br><br><strong>Contact:</strong><br> Tony Reid on 021 739 052 or <a href="mailto:tony.reid@fma.govt.nz">tony.reid@fma.govt.nz</a></p> <hr> http://www.fma.govt.nz/keep-updated/newsroom/afa-updates/financial-markets-authority-afa-update-issue-16 Financial Markets Authority AFA Update: Issue # 16 2014-09-04 10:57:07 Financial Markets Authority <h2>Guidance Note: Discretionary Investment Management Services</h2> <p>Today FMA issued a <a href="http://www.fma.govt.nz/assets/guidance-note-dims-24-october-2013.pdf" target="_blank">guidance note</a> on Discretionary Investment Management Services (DIMS) for Authorised Financial Advisers (AFAs) who are licensed to provide DIMS, and others providing ‘custody’ or broking services.</p> <p>In July a consultation draft was released and since then we have received and reviewed submissions and held face to face sessions with industry representatives to discuss practical aspects of the guidance note. Thank you to all who took the time to make submissions and take part.</p> <p>The consultation process highlighted for us the wide range of DIMS practices in the market.  Therefore while we are issuing this <a href="http://www.fma.govt.nz/assets/guidance-note-dims-24-october-2013.pdf" target="_blank">guidance</a> now, we see this as only part of our on-going dialogue with AFAs about the services they offer, their understanding of the objectives of adviser obligations and how we can help with this, and lastly, how we can help AFAs apply the guidance in a way that assists their clients and their businesses.</p> <p>To this end, we want to ensure we remain abreast of the different types of services being offered and the associated challenges, so please continue to talk to us about this.   We anticipate we will need to revise this <a href="http://www.fma.govt.nz/assets/guidance-note-dims-24-october-2013.pdf" target="_blank">guidance note</a> once the legislative changes come into effect in 2014.  With that in mind, we will be interested in understanding any further refinements or changes that AFAs consider could helpfully be made at that time.</p> <p>As a result of the feedback, we have made changes to the consultation version and we encourage all AFAs authorised for DIMS to carefully review the final <a href="http://www.fma.govt.nz/assets/guidance-note-dims-24-october-2013.pdf" target="_blank">guidance note</a>.</p> <p><strong>The key changes are:</strong><br> • Clarification that the guidance is for AFAs, although it may be helpful for other DIMS providers and brokers</p> <p>• Clarification that the guidance articulates FMA’s expectations for AFAs providing DIMS currently, it does not change the legal requirements of providers. However, given the significant changes ahead as a result of the Financial Markets Conduct Act 2013 the guidance note contains information for AFAs to signal what is coming next year and how to start getting ready.</p> <p>• Refinements to the examples of DIMS including a new example of what is <strong>not</strong> DIMS at the AFA level</p> <p>• Amendments to reflect that the client classification obligations only apply in respect of wholesale clients, not for retail clients</p> <p>• Simplification of terminology used when referring to investment authorities and investment mandates to avoid confusion</p> <p>• Removal of the reference to a requirement for a client to contract directly with a platform provider as this does not occur in the market generally</p> <p>• Refinement to make it clear that FMA expect advisers to use their professional judgment where there are material or adverse changes to a portfolio and where preparing their investment authorities</p> <p>• Clarification of the due diligence requirements when selecting brokers</p> <p>• Refinement to the requirements around documentation where investment authorities are changed</p> <p>• Amendment to require AFAs to make inquiries to explain a third party valuation to the client rather than adjusting a valuation</p> <p>• Amendment to require AFAs to explain the effect of an investment authority to a client in the event of sickness or incapacity, rather than requiring alternative arrangements to be in place.</p> <p><strong>Changes ahead for all DIMS Providers</strong></p> <p>The Financial Markets Conduct Act 2013 and associated Financial Adviser Regulations, due to come into force from 1 April 2014, will bring about significant changes. Provision of class DIMS will require a licence, and while AFAs will be able to continue to provide personalised DIMS, there will be additional obligations. The guidance is intended to encourage AFAs providing personalised DIMS to start thinking ahead and to get ready to comply with the new requirements.</p> <p>We will provide more information about these changes over the next few weeks and months as the content of the regulations start to develop and the requirements become clear. However, if you have specific questions now please feel free to <a href="http://www.talktous.fma.govt.nz/talk-to-us">talk to us via our website</a> or contact us on 0800 434 567 or use our<a href="http://www.fma.govt.nz/about-us/contact-us/ask-a-question/ask-a-question/"> online enquiries/question form</a> to ask us a question or talk to your professional body.</p> <p>Please also check our <a href="http://www.fma.govt.nz/">website</a> for updates.</p> <h2>Hot off the press</h2> <p>We have also just released today the <a href="http://www.fma.govt.nz/keep-updated/reports-and-papers/kiwisaver-report-for-the-year-ended-30-june-2013">KiwiSaver Annual Report</a> and <a href="http://www.fma.govt.nz/keep-updated/reports-and-papers/superannuation-schemes-report-for-the-year-ended-30-june-2013">Superannuation Schemes Report</a> which you may find of interest.</p> http://www.fma.govt.nz/keep-updated/newsroom/media-releases/2013/disclosure-documents-need-to-improve Disclosure documents need to improve 2014-09-04 10:52:25 Financial Markets Authority <p><strong>News release</strong><br><strong>30 October 2013</strong><br><br>A report by the Financial Markets Authority (FMA) into prospectuses and investment statements (disclosure documents) highlights the need for issuers to lift their game.<br><br>The report comes more than a year after FMA released its <a href="http://www.fma.govt.nz/assets/media/final-guidance-8-june.pdf" target="_blank">Guidance Note</a> on Effective Disclosure which explains the approach FMA will take to reviewing disclosure documents for compliance with the law.<br><br>The Guidance Note encourages issuers to set out information in a clear, concise and effective way to assist investors to make investment decisions.<br><br>FMA Head of Primary Regulatory Operations, Simone Robbers, said while there were some positive signs, issuers have some way to go in providing better quality information to retail investors.<br><br>“The disclosure documents for initial public offerings (IPOs) were so long and dense that we doubt many retail investors would have read them,” said Ms Robbers.<br><br>“FMA is concerned that such long documents may in fact have deterred members of the public from investing in the offers.”<br><br>Simone Robbers said the disclosure documents that FMA reviewed are unlikely to meet the requirements under the Financial Markets Conduct Act which comes into effect in 2014.<br><br>“Issuers who move now and produce documents that are clear, concise and effective will be much better prepared for the changes ahead.”<br><br>A copy of FMA’s report into Effective Disclosure can be found <a href="http://www.fma.govt.nz/keep-updated/reports-and-papers/clear-concise-and-effective-disclosure">here</a>.<br><br><br>Ends<br><br><strong>Contact:</strong><br> Tony Reid on 021 739 052 or <a href="mailto:tony.reid@fma.govt.nz">tony.reid@fma.govt.nz</a></p> <hr> http://www.fma.govt.nz/keep-updated/newsroom/afa-updates/financial-markets-authority-afa-update-issue-17 Financial Markets Authority AFA Update: Issue # 17 2014-09-04 10:50:09 Financial Markets Authority <h2>KiwiSaver - providing advice to clients who are considering transferring their Australian superannuation savings to KiwiSaver</h2> <p>As you will be aware KiwiSaver is one of the main priorities for FMA.  This is because for many New Zealanders, KiwiSaver will be their first investment and will represent a large proportion of their retirement savings and ultimate financial security.<br><br> With changes in legislation it now means New Zealanders can choose to transfer their Australian superannuation savings into a registered KiwiSaver scheme. While this may present opportunities for New Zealanders, FMA expects those providing advice or selling KiwiSaver to put their customers first, and to concentrate on what outcomes are being achieved for them.<br><br> This means providing factual and balanced information to them when promoting a transfer facility and is likely to include information on:<br><br> • Fees and costs<br> • Access to information and advice<br> • Benefits<br> • Tax implications<br> • Exchange rate movements<br><br> We also expect advisers to offer the option of financial advice to customers.<br><br> FMA will be closely monitoring providers’ advertising and other publically available information to ensure it is not misleading, deceptive or confusing.<br><br> In support of having well informed investors, FMA has published information on our <a href="http://www.fma.govt.nz/help-me-invest/kiwisaver/transferring-your-overseas-superannuation-savings-to-kiwisaver/">website</a> for those considering whether to transfer funds from their Australian Superannuation Fund into their KiwiSaver scheme in New Zealand.<br><br> If you would like further information about this please contact us on 0800 434 567 or email us at <a href="http://mailto:questions@fma.govt.nz">questions@fma.govt.nz</a></p> <hr> http://www.fma.govt.nz/keep-updated/newsroom/fma-updates/we-are-now-consulting-on-standards-and-conditions-for-new-licenses We are now consulting on standards and conditions for new licenses 2014-09-04 10:49:33 Financial Markets Authority <p>The Financial Markets Conduct Act 2013 (the Act) introduces licensing for providers offering certain types of financial services. We are now consulting on the proposed minimum standards for these licence types:</p> <p><br>-          <a href="http://www.fma.govt.nz/assets/media/101/licensing-dims-providers.pdf" target="_blank">Consultation: Licensing Discretionary Investment Management Service (DIMS) providers</a><br>-          <a href="http://www.fma.govt.nz/assets/media/101/licensing-peer-to-peer-lending.pdf" target="_blank">Consultation: Licensing peer-to-peer lending services</a><br>-          <a href="http://www.fma.govt.nz/assets/media/101/licensing-crowd-funding.pdf" target="_blank">Consultation: Licensing crowd funding</a><br>-          <a href="http://www.fma.govt.nz/assets/media/101/licensing-independent-trustees.pdf" target="_blank">Consultation: Licensing independent trustees</a><br>-          <a href="http://www.fma.govt.nz/assets/media/101/licensing-derivatives-issuers.pdf" target="_blank">Consultation: Licensing derivatives issuers</a><br>-          <a href="http://www.fma.govt.nz/assets/media/101/licensing-mis.pdf" target="_blank">Consultation: Managed Investment Schemes (MIS) managers</a><br><br>We invite you to review these consultation papers and share your feedback with us. This is our chance to work together to shape the future of our financial markets. For full details please see the <a href="http://fma-fadc-uat.cwp.govt.nz/laws-we-enforce/policy/current-consultations/consultation-papers-on-draft-minimum-standards-and-conditions-for-new-licenses/">consultation</a> section on our website.<br><br><strong>The final date for submissions is 12 December 2013.</strong><br><br><strong>How do I make a submission?</strong><br>Please use this feedback form. You can also find the form on the final page of each consultation paper – this gives the details of what you need to do. Forms must be submitted electronically in both PDF and word formats and emailed to <a href="http://www.fma.govt.nz/">consultation@fma.govt.nz</a> – please put ‘Feedback {insert title of consultation paper} standards and conditions’ in the subject line.<br><br>Alternatively, you can make an online submission on our engagement site <a href="http://www.talktous.fma.govt.nz/talk-to-us" target="_blank">www.talktous.fma.govt.nz</a>. You need to register to be able to use the site.</p> http://www.fma.govt.nz/keep-updated/newsroom/media-releases/2013/david-ross-sentenced-for-new-zealands-largest-ever-ponzi David Ross sentenced for New Zealand’s largest ever Ponzi 2014-09-04 10:40:40 Financial Markets Authority <p><strong>Media Release</strong><br><strong>15 November 2013</strong><br><br>David Robert Gilmour Ross (63) has been sentenced in the Wellington District Court to 10 years and 10 months of imprisonment following a joint agency investigation by the Serious Fraud Office (SFO) and the Financial Markets Authority (FMA).<br><br>The Wellington based financial adviser pleaded guilty in August this year to four Crimes Act charges of false accounting and one charge of theft by person in special relationship laid by the SFO. He pleaded guilty to three FMA charges of providing a financial service when he was not registered for that service, knowingly making a false declaration to FMA for the purposes of obtaining authorisation as an Authorised Financial Adviser (AFA) and producing documents to FMA which he knew to be false or misleading.<br><br>The investigation into David Ross, Ross Asset Management (RAM) and related entities began in October last year when FMA received complaints from investors who had been unable to withdraw their funds. A joint investigation with the SFO subsequently commenced.<br><br>Mr Ross has admitted running a Ponzi scheme which he disguised by falsely reporting clients’ investments. Large portions of client portfolios shown as invested through a broker ‘Bevis Marks’ were fictitious and never existed, resulting in an overstatement of investment positions at September 2012 of more than $385 million.  Between June 2000 and September 2012 Mr Ross reported false profits of $351 million from purported trading of the fictitious securities. The overall loss to investors is in excess of $115 million.<br><br>SFO Director, Julie Read said, “More than 1,200 client accounts were affected by Mr Ross’ scheme so his offending has had a devastating impact on many lives. The financial losses are not only significant to those individuals but they will have a flow on effect as those investors’ dealings in the New Zealand economy are impacted. It is important the SFO remains vigilant in fighting financial crime so we don’t see a repetition of this sort of scheme.”<br><br>FMA CEO, Sean Hughes, said he had the utmost sympathy for investors who had trusted their finances with David Ross and that the law had been changed as a result.<br><br>“From next year financial advisers who manage a client’s portfolio under an investment authority will no longer be able to hold that money or property themselves.<br><br>“This change will better protect the security of investors’ money and FMA’s risk-based monitoring of AFAs will assist in ensuring that they are meeting their new obligations,” said Mr Hughes.<br><br>Sean Hughes and Julie Read acknowledged that the joint agency approach to the RAM investigation had produced a prompt and effective outcome.<br><br><br>ENDS<br><br><br><strong>For further information:</strong><br>Andrea Linton                                   Tony Reid</p> <p>Serious Fraud Office                          Financial Markets Authority</p> <p>027 705 4550                                   021 739 052</p> <p><br>Note to editors<br><br><strong>Background to investigation</strong><br>Since 1989, David Robert Gilmour Ross operated a funds management business, Ross Asset Management Limited (RAM). The RAM office was located in Wellington. RAM was the key trading entity for the Ross Group and Mr Ross had sole responsibility and decision-making authority for all aspects of RAM.<br><br>Mr Ross was approved as an Authorised Financial Adviser (AFA) by FMA on 12 July 2011. His authorisation was suspended by FMA in November 2012 and his registration as a financial services provider cancelled in February 2013, which resulted in the termination of his authorisation as an AFA.<br><br>Following an urgent application made by FMA under the Financial Advisers Act 2011, remaining investment assets held by RAM and associated entities were preserved and Mr Ross and RAM were placed into receivership in early November 2012 along with Mr Ross’ other associated entities and Trusts. Eight of the Ross entities were placed in liquidation in December 2012.<br><br><strong>Crimes Act offences:</strong><br><strong>SFO charges</strong><br><strong>Section 220 Theft by person in special relationship</strong><br>(1) This section applies to any person who has received or is in possession of, or has control over, any property on terms or in circumstances that the person knows require the person—</p> <p>(a) to account to any other person for the property, or for any proceeds arising from the property; or</p> <p>(b) to deal with the property, or any proceeds arising from the property, in accordance with the requirements of any other person.</p> <p>(2) Every one to whom subsection (1) applies commits theft who intentionally fails to account to the other person as so required or intentionally deals with the property, or any proceeds of the property, otherwise than in accordance with those requirements.</p> <p>(3) This section applies whether or not the person was required to deliver over the identical property received or in the person's possession or control.</p> <p>(4) For the purposes of subsection (1), it is a question of law whether the circumstances required any person to account or to act in accordance with any requirements.<br><br><strong>Section 252 False accounting by officer or member of body corporate</strong><br><strong>(Pre 2003 amendments)</strong></p> <p>Every one is liable to imprisonment for a term not exceeding 7 years who, being a director or an officer or a member of any company, or body corporate, with intent to defraud,—</p> <p>(a)  Destroys, mutilates, alters, or falsifies any book, account, valuable security, or document belonging to the company or body corporate, or concurs in so doing; or</p> <p>(b)  Makes or concurs in making any false entry in, or omits or alters, or concurs in omitting or altering, any material particular from or in any such book, account, valuable security, or document.</p> <p><strong>Section 260 False accounting</strong><br>Every one is liable to imprisonment for a term not exceeding 10 years who, with intent to obtain by deception any property, privilege, service, pecuniary advantage, benefit, or valuable consideration, or to deceive or cause loss to any other person,—</p> <p>(a) makes or causes to be made, or concurs in the making of, any false entry in any book or account or other document required or used for accounting purposes; or</p> <p>(b) omits or causes to be omitted, or concurs in the omission of, any material particular from any such book or account or other document; or</p> <p>(c) makes any transfer of any interest in a stock, debenture, or debt in the name of any person other than the owner of that interest.</p> <p><strong>FMA charges<br></strong><br><strong>Section 11 Financial Service Providers (Registration and Dispute Resolution) Act 2008 - Not being in business of providing financial service unless registered</strong></p> <p>(1)       A person to whom this Act applies must not be in the business of providing a financial service unless that person is registered for that service under this Part.</p> <p>(2)       Every person who knowingly breaches subsection (1) commits an offence and is liable on … conviction,—</p> <p>(a)    in the case of an individual, to imprisonment for a term not exceeding 12 months or to a fine not exceeding $100,000, or to both; or</p> <p>(b)    in the case of a person who is not an individual, to a fine not exceeding $300,000.</p> <p><strong>Section 136 Financial Advisers Act 2008 - Offence of false declaration, etc, in support of application for authorisation or grant of QFE status</strong></p> <p>(1)       A person (“A”) commits an offence if A has, for the purpose of obtaining authorisation or the grant of QFE status, either for A or for any other person,—</p> <p>(a)    either orally or in writing, made any declaration or representation knowing it to be false or misleading in a material particular; or</p> <p>(b)    produced to the FMA or made use of any document knowing it to contain a declaration or representation referred to in paragraph (a); or</p> <p>(c)    produced to the FMA or made use of any document knowing that it was not genuine.</p> <p>(2)       A person who commits an offence under this section is liable on … conviction to a fine,—</p> <p>(a)    in the case of an individual, not exceeding $100,000:</p> <p>(b)    in the case of an entity, not exceeding $300,000.</p> <p><strong>Section 61 Financial Markets Authority Act 2011 - Criminal liability for obstructing exercise of powers</strong></p> <p>(1)       Every person commits an offence who—</p> <p>(a)    refuses or fails, without reasonable excuse, to comply with a notice under section 25; or</p> <p>(b)    in purported compliance with a notice under section 25, supplies information, or produces a document, or gives evidence, knowing it to be false or misleading; or</p> <p>(c)    resists, obstructs, or delays a person acting under a warrant issued under section 29; or</p> <p>(d)    having been required under a notice under section 25(1)(d) to appear before the FMA or a specified person referred to in that paragraph, for the purposes of any matter, without reasonable excuse—</p> <p>(i)      refuses or fails to appear; or</p> <p>(ii)     refuses to take an oath or affirmation as a witness; or</p> <p>(iii)    refuses to answer any question; or</p> <p>(iv)   refuses or fails to provide any document or information that the person is required to provide; or</p> <p>(e)    deceives or attempts to deceive or knowingly misleads the FMA or a specified person referred to in section 25(5) in providing evidence to either of them; or</p> <p>(f)     wilfully acts in contravention of any order made by the FMA under section 44.</p> <p>(2)       A body corporate commits an offence under subsection (1)(d) if it is required to appear under section 25(1)(d) and, without reasonable excuse, an authorised representative on its behalf refuses or fails to appear, refuses to take an oath or affirmation as a witness, refuses to answer any question, or refuses or fails to provide any document or information that the body corporate is required to provide.</p> <p>(3)       Every person who commits an offence against subsection (1) is liable on conviction to a fine not exceeding $300,000.</p> <p><strong>About the SFO</strong><br>The Serious Fraud Office (SFO) was established in 1990 under the Serious Fraud Office Act in response to the collapse of financial markets in New Zealand at that time.<br><br>The SFO’s role is the detection, investigation and prosecution of serious or complex financial crime. The SFO’s focus is on investigating and prosecuting criminal cases that will have a real effect on:</p> <ul> <li>business and investor confidence in our financial markets and economy</li> <li>public confidence in our justice system and public service</li> <li>New Zealand’s international business reputation.</li> </ul> <p>The SFO operates three investigative teams:</p> <ul> <li>Evaluation and Intelligence;</li> <li>Financial Markets and Corporate Fraud; and</li> <li>Fraud and Corruption.</li> </ul> <p>The SFO operates under two sets of investigative powers.</p> <p>Part I of the SFO Act provides that it may act where the Director “has reason to suspect that an investigation into the affairs of any person may disclose serious or complex fraud.”</p> <p>Part II of the SFO Act provides the SFO with more extensive powers where: “…the Director has reasonable grounds to believe that an offence involving serious or complex fraud may have been committed…”</p> <p>The SFO’s Annual Report 2013 sets out its achievements for the past year, while the Statement of Intent 2013-2016 sets out the SFO’s three year strategic goals and performance standards.  Both are available online at: <a href="http://www.sfo.govt.nz/">www.sfo.govt.nz</a></p> <p><strong>About FMA</strong></p> <p>FMA was established on 1 May 2011 under the Financial Markets Authority Act 2011, in response to the need to address failures in the financial markets, made evident from the global financial crisis. The Government recognised that New Zealand required a single conduct regulator to proactively monitor and enforce securities legislation.</p> <p>FMA is an independent Crown entity and is the conduct regulator for New Zealand’s financial markets. It has a primary statutory function to investigate and prosecute breaches of financial markets legislation and breaches of the Crimes Act by financial markets participants.  It also has the following functions:</p> <ul> <li>to monitor compliance with, investigate contraventions of, and enforce securities and investment law, financial reporting law, and companies law, in respect of financial markets participants;</li> <li>to promote confident and informed participation in the financial markets;</li> </ul> <ul> <li>to license and supervise particular financial markets participants, including financial advisers, trustees and statutory supervisors, auditors, and securities markets;</li> <li>to monitor and conduct inquiries and investigations into financial markets and financial markets participants; and</li> <li>to keep the law under review.</li> </ul> <p>FMA is committed to taking enforcement action against those whose behaviour threatens market integrity and investor confidence in New Zealand.</p> <p>More information about FMA can be found at <a href="http://www.fma.govt.nz/">www.fma.govt.nz</a></p> http://www.fma.govt.nz/keep-updated/newsroom/afa-updates/financial-markets-authority-afa-update-issue-18 Financial Markets Authority AFA Update: Issue # 18 2014-09-04 10:40:06 Financial Markets Authority <h2>Changes ahead for AFAs who provide DIMS</h2> <p>The Financial Markets Conduct (FMC) Act 2013 changes both the way Discretionary Investment Management Services (DIMS) are provided and requirements for AFAs. Check out this <a href="http://www.fma.govt.nz/assets/changes-ahead-for-afas-who-provide-dims.pdf" target="_blank">factsheet</a> for more details.</p> http://www.fma.govt.nz/keep-updated/newsroom/media-releases/2013/fma-guidance-helps-consumers-access-financial-advice FMA guidance helps consumers access financial advice 2014-09-04 10:36:22 Financial Markets Authority <p><strong>News release</strong><br><strong>17 December 2013<br><br></strong>The Financial Markets Authority has released guidance to help financial advisers give high quality personalised advice that is time-efficient and adopts the right level of compliance.<br><br>FMA believes that better access to financial advice is crucial to increase investor participation in our financial markets and that advisers can help achieve this goal by offering limited personalised advice, where appropriate. The guidance note provides examples of when such advice may be given.<br><br>FMA has consulted with industry advisers and their professional associations on the guidance note. We will continue to work in partnership with industry to promote our shared objective of improving access to advice.<br><br>A copy of the guidance note can be found <a href="http://www.fma.govt.nz/help-me-comply/financial-advisers/guidance-notes/">here</a>.<span style="text-decoration: underline;"><br><br></span>FMA has also recently published guidance on <a href="http://www.fma.govt.nz/assets/Uploads/guidance-note-dims-24-october-2013.pdf" target="_blank">discretionary investment management</a> services and <a href="http://www.fma.govt.nz/assets/Uploads/client-communications-guidance-note-final.pdf" target="_blank">client communications</a> and record keeping.</p> <p><br><br>Ends<br><br>Contact:<br>Tony Reid on 021 739 052 or <a href="mailto:tony.reid@fma.govt.nz">tony.reid@fma.govt.nz</a></p> <hr> http://www.fma.govt.nz/keep-updated/newsroom/afa-updates/financial-markets-authority-afa-update-issue-19 Financial Markets Authority AFA Update: Issue # 19 2014-09-04 10:34:00 Financial Markets Authority <h2>Guidance Note: Limited personalised advice</h2> <p>FMA has released <a href="http://www.fma.govt.nz/assets/guidance-note-limited-personalised-advice-dec-2013-final.pdf" target="_blank">guidance</a> to help financial advisers give high quality limited personalised advice that is time and cost efficient and adopts the right level of compliance.  This follows from a number of in-depth face-to-face consultations with AFA groups who provided some very helpful comments which assisted in shaping the guidance note.</p> <h2>Guidance Note: Client communications and record-keeping</h2> <p>Last week we published our <a href="http://www.fma.govt.nz/assets/client-communications-guidance-note-final.pdf" target="_blank">Guidance Note on client communications and record-keeping</a>. This is for AFAs who provide personalised advice services to retail clients and covers our communication and record-keeping expectations for all forms of personalised services including financial advice, investment planning services and discretionary investment management services.</p> <h2>Merry Christmas</h2> <p><strong>This is our last update for 2013 so we would like to thank you all for your support in what has been a very busy period. We wish you all a safe and merry Christmas and happy new year.</strong></p> <hr> http://www.fma.govt.nz/keep-updated/newsroom/media-releases/2012/fma-warns-of-illegal-offer-by-makko-securities-to-advise-on-facebook-ipo FMA warns of illegal offer by Makko Securities to advise on Facebook IPO 2014-09-04 10:29:12 Financial Markets Authority <p>29 February 2012</p> <p>The Financial Markets Authority is warning the public of an illegal offer by Makko Securities and its Senior Account Manager, Roy Lochen, to provide broking services in relation to the proposed Initial Public Offering of Facebook and other securities. </p> <p>Makko Securities is not registered to provide financial services in New Zealand and therefore cannot legally offer financial advice or broking services to retail investors in New Zealand.</p> <p>FMA notes that no shares in Facebook are available to the public at this time, and that any offer of shares in Facebook is therefore likely to be a scam.  Any initial offer of shares in Facebook in New Zealand would have to meet the requirements of the Securities Act 1978.</p> <p>Makko Securities is a company purporting to have offices in London, Singapore and the Cayman Islands.</p> <p>FMA reminds the public that they can search the Financial Service Providers Register to ensure that anyone offering to broker shares, or to provide financial advice on shares, is properly registered.  FMA encourages investors to seek financial advice in relation to investing in shares from an Authorised Financial Adviser.</p> <p>Ends<br> <br> Contact:<br> Nick Stride on 09 985 4868 or 021 739 052</p> http://www.fma.govt.nz/keep-updated/newsroom/afa-updates/financial-markets-authority-afa-update-issue-20 Financial Markets Authority AFA Update: Issue # 20 2014-09-04 10:21:35 Financial Markets Authority <h2>Helping you understand the changes ahead for DIMS</h2> <p>Check out our recent factsheet ‘<a href="http://www.fma.govt.nz/assets/changes-ahead-for-afas-who-provide-dims.pdf" target="_blank">Changes ahead for AFAs who provide DIMS</a>’.</p> <p>We are also working on some guidance to help explain the difference between a ‘Class’ and ‘Personalised’ Discretionary Investment Management Service (DIMS). We expect to publish this in February.</p> <h2>Licensing changes for new AFAs</h2> <p>FMA has reviewed its’ AFA application requirements and has made some important changes.</p> <p>These include changes to the requirements relating to testimonials and the introduction of a new Supplementary Application Information Form.</p> <p>At a glance we now require:-</p> <ul> <li>a testimonial from a manager, a peer and client</li> <li>a Certificate of Standing from a professional body if appropriate. This replaces the Professional Body Testimonial.</li> <li>Supplementary information:  including a CV; details of professional memberships; copy of your ABS; DRS membership history; plus additional requirements for applicants that have worked overseas.</li> </ul> <p>There are also new verification requirements for qualifications.</p> <p>For further information about these changes please visit our <a href="http://www.fma.govt.nz/help-me-comply/financial-advisers/how-to-get-licensed/afa-application-resources-and-templates/afa-authorisation-guide/">website</a>. If you have any questions please contact <a href="mailto:questions@fma.govt.nz">questions@fma.govt.nz</a></p> http://www.fma.govt.nz/keep-updated/newsroom/afa-updates/financial-markets-authority-afa-update-issue-21 Financial Markets Authority AFA Update: Issue # 21 2014-09-04 10:19:41 Financial Markets Authority <h2>Regulatory Reporting – update</h2> <p>Last September we invited submissions about our proposed <a href="http://www.fma.govt.nz/keep-updated/newsroom/afa-updates/financial-markets-authority-afa-update-issue-13">Regulatory Reporting Guide and Information Return</a>.<br><br>What you think is important to us so thank you to everyone who gave feedback. Your feedback has been very useful in helping us understand your concerns and we are currently working to address a number of the issues raised.<br><br>We intend to undertake a limited consultation on a revised Regulatory Reporting Guide and Information Return in the near future.  As a result the original time-table for the Information Return has changed.  This means that the first 2014 information return will need to be completed at a later date later than originally anticipated, likely to be in June of this year. We will advise the first reporting dates when the Information return is finalised.<br><br>Once again, we appreciate your feedback and if you have any questions about this please email us at <a href="mailto:questions@fma.govt.nz">questions@fma.govt.nz</a></p> <p> </p> <h2>New guidance on broker obligations</h2> <p>If you are a registered provider of broking services on the Financial Services Provider Register (FSPR), our newly released <a href="http://www.fma.govt.nz/assets/media/1027578/guidance-note-broker-obligations-february-2014.pdf" target="_blank">Guidance Note on Broker Obligations</a> is a must read!<br><br>It sets out how FMA interprets and applies certain parts of the Financial Advisers Act and is focussed on custody of client money and client property, and the key obligation of brokers to hold client money and client property on trust.</p> <hr> http://www.fma.govt.nz/keep-updated/newsroom/fma-updates/consultation-kiwisaver-performance-fees Consultation: KiwiSaver Performance Fees 2014-09-04 10:17:39 Financial Markets Authority <p><span>FMA has prepared a draft <a href="http://www.fma.govt.nz/laws-we-enforce/policy/closed-consultations/consultation-kiwisaver-performance-fees-guidance-note"><span>guidance note</span></a></span>  which outlines the basis on which FMA will assess whether a performance fee is 'not unreasonable'.</p> <p><span>Comments are invited. Submissions close Friday 2 December.</span></p> <hr> http://www.fma.govt.nz/keep-updated/newsroom/media-releases/2014/bridgecorp-settlement Bridgecorp settlement 2014-09-04 10:15:17 Financial Markets Authority <p><strong>News release</strong><br><strong>12 March 2014<br><br></strong>The Financial Markets Authority (FMA) has consented to an $18.9 million settlement between the receiver of Bridgecorp, the Bridgecorp directors, and their liability insurers. FMA has agreed to end its own civil proceedings against the Bridgecorp directors once the settlement sum has been paid.<br><br>FMA says the settlement represents the best outcome for Bridgecorp investors in the circumstances, and will ensure that investors receive the funds in a timely way.<br><br>Bridgecorp Ltd and Bridgecorp Investments Ltd were placed in receivership in July 2007 with approximately $459 million owing to 14,500 investors. Two of its former directors, Rodney Petricevic and Robert Roest, are each serving over six years imprisonment following successful prosecutions taken by FMA.<br><br>FMA Head of Enforcement, Belinda Moffat, said the decision to discontinue its civil proceedings against the Bridgecorp directors was not taken lightly.<br><br>“We assessed the public interest in continuing with the claim, and after considering the personal financial position of the directors and the settlement sum achieved by the receivers, and the fact that FMA would not be able to achieve a greater recovery, it was clear that it would not have been an appropriate use of taxpayers’ money to proceed,” said Ms Moffat.<br><br>“Our claim would have gone after the same pool of funds that the receiver has reached a settlement on, so there was little, if any, money left to pursue.<br><br>“It was also our view that the custodial sentences handed down in the criminal trial had sent a very strong deterrence message to the market which continues to be felt today,” said Ms Moffat.<br><br>FMA has a number of ongoing civil proceedings against finance company directors which it is currently assessing. Announcements on these will be made in the near future.<br><br>A list of finance company cases before the Court can be found here: <a href="http://www.fma.govt.nz/laws-we-enforce/enforcement/prosecutions-and-proceedings/finance-company-cases-before-the-court/">http://www.fma.govt.nz/laws-we-enforce/enforcement/prosecutions-and-proceedings/finance-company-cases-before-the-court/</a>.<br><br><br></p> <p>Ends<br><br><strong>Contact:<br></strong>Tony Reid on 021 739 052 or <a href="mailto:tony.reid@fma.govt.nz">tony.reid@fma.govt.nz</a></p> <hr> http://www.fma.govt.nz/keep-updated/newsroom/afa-updates/financial-markets-authority-afa-update-issue-22 Financial Markets Authority AFA Update: Issue # 22 2014-09-04 10:13:42 Financial Markets Authority <h2>Second Consultation on Regulatory Reporting Guide (RRG) for Authorised Financial Advisers – open now</h2> <p>Further to our last <a href="http://www.fma.govt.nz/keep-updated/newsroom/afa-updates/financial-markets-authority-afa-update-issue-21">AFA Update</a>, we have opened a <a href="http://www.fma.govt.nz/laws-we-enforce/policy/closed-consultations/second-consultation-paper-regulatory-reporting-guide-for-authorised-financial-advisers">second consultation on the proposed RRG for Authorised Financial Advisers</a>. As a result of the constructive feedback received from the first consultation, we undertook a comprehensive and detailed review of the proposed RRG and Information Return, (which is intended to be the first reporting requirement contained in the RRG).<br><br>The <a href="http://www.fma.govt.nz/assets/media/101/regulatory-reporting-guide-second-consulation-paper-2014.pdf" target="_blank">second consultation paper</a> summarises our responses to some of the key themes and issues raised by submitters on the first consultation and includes the revised Information Return.<br><br>Your feedback to date has helped us refine the proposals and we welcome any further input from advisers and industry groups. Submissions are due to FMA by <strong>Wednesday 9 April</strong> so please take part.</p> <h2>DIMS factsheet for AFAs</h2> <p>Following on from our <a href="http://www.fma.govt.nz/assets/changes-ahead-for-afas-who-provide-dims.pdf" target="_blank">November 2013 update</a> we have published another <a href="http://www.fma.govt.nz/assets/changes-ahead-for-afas-who-provide-dims-update-2.pdf" target="_blank">factsheet</a> to help you understand and prepare for the change in the way DIMS will be regulated in the future. This factsheet provides guidance on the difference between Class and Personalised DIMS. There is also a more detailed set of <a href="http://www.fma.govt.nz/assets/media/1054639/understanding-the-regulation-of-dims-frequently-asked-questions.pdf" target="_blank">frequently asked questions</a> that includes practical examples.</p> <h2>AFA Monitoring Report July – December 2013</h2> <p>FMA has just released its <a href="http://www.fma.govt.nz/keep-updated/reports-and-papers/afa-monitoring-report-july-december-2013">July - December 2013 AFA Monitoring Report</a>. Our report covers three specific themes, they are: Christchurch and Canterbury region, UK pension transfers and complaints processes.</p> <hr> http://www.fma.govt.nz/keep-updated/newsroom/media-releases/2011/fma-consults-on-auditor-licensing-and-audit-firm-registration FMA consults on auditor licensing and audit firm registration 2014-09-04 10:12:25 Financial Markets Authority <p>16 November 2011<br><br> The Financial Markets Authority has begun consulting with the auditing profession and other interested parties on the implementation of the Auditor Regulation Act, which comes into force on 1 July 2012.<br><br> FMA has published the first of a series of papers seeking submissions and feedback on the approach to be taken by FMA on setting the standards that will apply to the licensing of auditors and the registration of audit firms.<br><br> "The Auditor Regulation Act is a new piece of legislation that requires FMA to prescribe minimum standards for individuals and firms conducting audits of issuers in New Zealand," said Elaine Campbell, Head of Compliance Monitoring.<br><br> The Act requires FMA to consult with people who represent the views of the auditing profession and any other organisations or groups that will be substantially affected by the proposed requirements.<br><br> It also requires that the minimum standards for auditors must promote the quality, expertise, and integrity of the audit profession, and the recognition of the professional status of New Zealand auditors in overseas jurisdictions.<br><br> "This is an important development for the restoration of investor confidence in New Zealand's capital markets," Ms Campbell said. "It will help to ensure audits of issuers are being performed to a high professional standard and in accordance with the auditing standards.<br><br> "I encourage interested parties to consider the proposals put forward in our consultation documents and to make submissions."<br><br> The first consultation paper can be found <a href="http://www.fma.govt.nz/laws-we-enforce/policy/current-consultations/">here</a>. The final date for submissions is Friday, 16 December 2011.<br><br> Ends<br><br> Contact:<br> Nick Stride on 09 985 4868 or 021 739 052<br><br></p> <h2>Background on the Auditor Regulation Act 2011</h2> <ul> <li>The Auditor Regulation Act passed into law on 12 May, 2011.</li> </ul> <ul> <li>The Act applies only to audits of issuers of securities and other entities who are required to file publicly financial statements under the Financial Reporting Act.</li> </ul> <ul> <li>FMA has overall responsibility for the regulation of auditors in New Zealand.</li> </ul> <ul> <li>However, the frontline regulation of auditors is split between:   </li> </ul> <p>- accredited bodies, which have primary responsibility for regulating New Zealand-based auditors, and:<br>                                                                                                                                          - FMA, which has primary responsibility for regulating overseas auditors.<br><br></p> <ul> <li>FMA also has the role of granting accreditation to accredited bodies and supervising them on an ongoing basis.</li> </ul> <ul> <li>The first accredited body is the New Zealand Institute of Chartered Accountants (NZICA).</li> </ul> <ul> <li>NZICA will start assessing applications from July 2012.</li> </ul> <p> </p> <hr> http://www.fma.govt.nz/keep-updated/newsroom/afa-updates/financial-markets-authority-afa-update-issue-23 Financial Markets Authority AFA Update: Issue # 23 2014-09-04 10:07:07 Financial Markets Authority <h2>Revised Code of Professional Conduct formally approved by Minister</h2> <p>Yesterday the Minister of Commerce, Craig Foss, issued a <a href="http://www.beehive.govt.nz/release/strengthened-conduct-code-financial-advisers" target="_blank">media release</a><a href="http://financialmarketsauthority.createsend4.com/t/r-l-xllmyd-tkllkhhkij-d/"> </a>announcing the <a href="http://www.fma.govt.nz/assets/media/1946311/code-of-professional-conduct-for-afas.pdf" target="_blank">revised Code of Professional Conduct for Authorised Financial Advisers (AFAs) (Code)</a>, which will come into force on 1 May 2014.<br><br><strong>What this means for AFAs</strong><br><br>FMA will be communicating the key changes over the coming weeks and sending revised Code booklets to all AFAs. It is important that all AFAs familiarise themselves with the new Code. Changes to the Code centre around the Code standards relating to ethical behaviour, client care, competence, knowledge and skills, and continuing professional training.<br><br><strong>Summary of key changes:</strong></p> <ul> <li>The minimum standards of client care have been revised to provide more clarification about what is required at each stage of the advice process and include:<br>      </li> <li>Clarifying that Code Standard 1 is paramount - to place the interests of the client first and act with integrity.<br>      </li> <li>A provision enabling AFAs to advise on KiwiSaver first home withdrawals without having attained Unit Standard Set D (provided the AFA satisfies Code Standard 14).<br>      </li> <li>Providing greater flexibility for AFAs and their professional training by broadening the definition of structured professional development,  spreading the professional development hours over two years and increasing the number of structured hours AFAs are required to undertake from 20 to 30 hours.<br>      </li> <li>A new Code Standard for managing conflicts of interest. (Code Standard 5).</li> </ul> <p>We have also recently published guidance on how Discretionary Investment Management Services (DIMS) will be regulated after 1 December 2014. Please read our guidance <a href="http://www.fma.govt.nz/assets/media/1054639/understanding-the-regulation-of-dims-frequently-asked-questions.pdf" target="_blank">here</a>.</p> <h2>AFA Updates</h2> <p>Thank you for subscribing to the AFA update.<br><br>The AFA Update is sent to your email address as recorded on the FSPR.<br><br>To ensure you continue to receive the AFA Update, it is important to remember to ensure your current email address is correctly recorded on the FSPR. You can update your email address via the FSPR (<em>Update my FSP</em>) at any time.</p> <hr> http://www.fma.govt.nz/keep-updated/newsroom/fma-updates/fma-update-4-april-2014 FMA Update - 4 April 2014 2014-09-04 10:02:53 Financial Markets Authority <h2>New era for New Zealand financial markets – FMC Act comes into effect</h2> <p>April 2014 marks the start of a new era for New Zealand’s financial markets with <a href="http://www.fma.govt.nz/keep-updated/the-future-of-financial-markets/timeline-for-change/">Phase One</a> of the Financial Markets Conduct (FMC) Act 2013 coming into effect. This is an ambitious and exciting period of change for market participants and for investors.<br><br>The key parts of the Act coming into effect now include being able to <a href="http://www.fma.govt.nz/help-me-comply/new-licences-for-financial-market-services/quick-links/">apply for license</a>s under the new licensing regime, this includes the exciting new services of peer-to-peer and crowd-funding platforms. Another key change is <a href="http://www.fma.govt.nz/assets/fmas-new-role-as-regulator-of-conduct-april-2014.pdf" target="_blank">FMA becoming the primary regulator of conduct</a> in relation to financial products and financial services in place of the Commerce Commission.<br><br>You can find all the key details of these changes, including useful links and when you will need to comply, on our <a href="http://www.fma.govt.nz/keep-updated/the-future-of-financial-markets/timeline-for-change/">website</a>.<br><br><strong>What's next?</strong><br><br>The rest of the FMC Act will come into force on 1 December 2014, which is when new disclosure requirements and licensing obligations will begin to take effect. The new online registers system will also be up and running, ensuring information on financial products and managed investment schemes are easily accessible and comparable.<br><br>Over the next few months there will be more opportunities to join the conversation and to help shape the future, so keep an eye out for updates.</p> <h2>FMA’s quarterly industry event</h2> <p>FMA’s CEO Rob Everett addressed business leaders on the medium-term challenges in financial services in New Zealand at the Langham Hotel on Wednesday 2 April 2014.  <a href="http://www.fma.govt.nz/keep-updated/">Hear what he has to say</a>.</p> http://www.fma.govt.nz/keep-updated/newsroom/afa-updates/financial-markets-authority-afa-update-issue-1 Financial Markets Authority AFA Update: Issue # 1 2014-09-04 10:00:31 Financial Markets Authority <h3>AFA Update emails - alerting you to your obligations</h3> <p><br> Authorised Financial Advisers (AFAs) have certain obligations under law, their Standard Conditions and the Code of Professional Conduct for Authorised Financial Advisers. This new periodic email update has been designed to alert AFAs to information, guidance and feedback to help you meet those obligations.</p> <p>If you would like your compliance officer or support person to also receive future copies, please use this link to forward them a copy. They can <a href="http://www.fma.govt.nz/keep-updated/subscribe-to-updates/">subscribe directly here</a>.</p> <h3>   <br> Monitoring visits begin</h3> <p><br> Monitoring visits begin next week in the lower North Island. Requests for Adviser Business Statements are also ongoing.</p> <p>Please remember, Standard Condition 4 requires AFAs to make available their business records, including client information, for FMA's inspection at any time. FMA will rely on this condition for its routine monitoring activities. Inspection of records is a standard function of any regulatory body and gives the public more certainty professional standards are being upheld.</p> <p>If you have not already alerted your clients that you are subject to monitoring you should take steps to do so now.<br> FMA's website now includes information about the purpose and current focus of our <a href="http://www.fma.govt.nz/help-me-comply/financial-advisers/monitoring-and-surveillance/">monitoring and surveillance</a> activities.</p> <h3>   <br> Disclosure web pages updated</h3> <p><br> FMA's web pages on <a href="http://www.fma.govt.nz/help-me-comply/financial-advisers/your-obligations/disclosure-obligations/">disclosure</a> have been updated to cover common questions we receive.</p> <p>A reminder, please update any references to the Securities Commission in your disclosure documents to Financial Markets Authority.</p> <h3>   <br> Canterbury Red Zone resident advertising underway</h3> <p><br> FMA is running a series of press and radio advertisements in the Canterbury region to remind the public to get financial advice from professional financial advisers.</p> <p><a href="http://www.fma.govt.nz/help-me-invest/getting-the-right-information/getting-the-right-advice-on-your-red-zone-payout/"> Red Zone</a> website pages have been developed to support the campaign. These pages include information explaining the extension provided to Canterbury based AFAs.</p> <p> </p> <hr> http://www.fma.govt.nz/keep-updated/newsroom/media-releases/2014/finance-company-legal-adviser-found-guilty-of-fraud Finance company legal adviser found guilty of fraud 2014-09-04 09:58:36 Financial Markets Authority <p><strong>Media Release</strong><br><strong>16 May 2014</strong></p> <p>Hugh Edward Staples Hamilton (62) has been found guilty at the Auckland High Court today of 14 charges arising out of the collapse of Belgrave Finance Limited (Belgrave Finance).  The charges were brought in a joint prosecution by the Serious Fraud Office (SFO) and the Financial Markets Authority (FMA).</p> <p>The charges related to loans, with a value of more than $12 million, made by Belgrave Finance to various related companies between June 2005 and March 2008.</p> <p>Mr Hamilton, a former barrister and solicitor, was a legal adviser to the other individuals, Mr Schofield, Mr Smith and Mr Buckley, who were charged in relation to Belgrave for substantive fraudulent representations and use of Belgrave investors’ funds.</p> <p>Mr Hamilton was found not guilty of 25 charges, these included 11 charges of false statement by a promoter, 11 Companies Act charges of making a false statement to a trustee and three theft charges.</p> <p>Justice Faire’s comments regarding the verdict, included that he was satisfied that Mr Hamilton “had knowledge that Mr Schofield, Mr Smith or Mr Buckley, through their borrowing were causing Belgrave to be in breach of the Debenture Trust Deed.”  Justice Faire also found beyond reasonable doubt that Mr Hamilton “intended to assist in the offending”.</p> <p>FMA Head of Enforcement, Belinda Moffat, said, “Professional advisers play a critical role in ensuring compliance in financial markets.  This case shows that advisers who fail in this basic obligation and who are instrumental in enabling their clients to commit financial crimes will be held accountable for their actions.”</p> <p>SFO Director Julie Read added, “This was a complex matter which has been dealt with through our coordination with the FMA, ensuring the most effective and efficient application of specialist skills and resources to the investigation.”</p> <p>Mr Hamilton has been remanded on bail and will next appear for sentencing on 4 July 2014.</p> <p> </p> <p>ENDS </p> <p> </p> <p><strong>For further information:</strong></p> <p>Andrea Linton                                                  Andrew Park</p> <p>Serious Fraud Office                                      Financial Markets Authority</p> <p>027 705 4550                                                  021 220 6770</p> <p> </p> <p><strong>Notes to editors</strong></p> <p><strong>Background to investigation</strong></p> <p>Belgrave Finance Limited was incorporated in September 2000. </p> <p>Belgrave Finance provided financial accommodation and mortgage facilities for commercial and residential property developments.  Funds for lending were sourced primarily from the issue of securities to the public in the form of debenture stock and convertible capital notes.</p> <p>Belgrave Finance was placed into receivership in on 28 May 2008 owing around $22 million to approximately 1,200 investors.  The company was placed into liquidation in April 2010 and at the time, was the twentieth finance company to collapse in two years. </p> <p>Following the collapse of Belgrave Finance, the (then) Securities Commission made initial investigations into the company before referring the matter to the SFO in June 2010. The SFO Director determined that an investigation into the affairs of Belgrave Finance may disclose serious or complex fraud, and the SFO commenced an investigation under Part II of the Serious Fraud Office Act in July 2010. </p> <p>Charges were also laid against former director Shane Joseph Buckley who pleaded guilty and was sentenced to three years’ imprisonment and former director Stephen Charles Smith who pleaded guilty and received four years’ imprisonment. Also charged was the controller of the company Raymond Tasman Schofield who has been granted a stay of prosecution on the grounds of terminal illness, conditional upon review.</p> <p><strong>SFO charges</strong></p> <p><strong>Crimes Act offences:</strong></p> <h5>Section 220: Theft by person in special relationship</h5> <p>(1) This section applies to any person who has received or is in possession of, or has control over, any property on terms or in circumstances that the person knows require the person—</p> <p class="labelledlabel" style="padding-left: 30px;">(a) to account to any other person for the property, or for any proceeds arising from the property; or</p> <p class="labelledlabel" style="padding-left: 30px;">(b) to deal with the property, or any proceeds arising from the property, in accordance with the requirements of any other person.</p> <p class="labelledlabel">(2) Every one to whom subsection (1) applies commits theft who intentionally fails to account to the other person as so required or intentionally deals with the property, or any proceeds of the property, otherwise than in accordance with those requirements.</p> <p class="labelledlabel">(3) This section applies whether or not the person was required to deliver over the identical property received or in the person's possession or control.</p> <p class="labelledlabel">(4) For the purposes of subsection (1), it is a question of law whether the circumstances required any person to account or to act in accordance with any requirements.</p> <p class="labelledlabel"><strong>Section 223: Punishment of theft</strong><br>Every one who commits theft is liable as follows:</p> <p class="labelledlabel" style="padding-left: 30px;">(a) in the case of any offence against section 220, to imprisonment for a term not exceeding 7 years; or</p> <p class="labelledlabel" style="padding-left: 30px;">(b) if the value of the property stolen exceeds $1,000, to imprisonment for a term not exceeding 7 years; or</p> <p class="labelledlabel" style="padding-left: 30px;">(c) if the value of the property stolen exceeds $500 but does not exceed $1,000, to imprisonment for a term not exceeding 1 year; or</p> <p class="labelledlabel" style="padding-left: 30px;">(d) if the value of the property stolen does not exceed $500, to imprisonment for a term not exceeding 3 months.</p> <h5>Section 242: False statement by promoter, etc</h5> <p>(1) Every one is liable to imprisonment for a term not exceeding 10 years who, in respect of any body, whether incorporated or unincorporated and whether formed or intended to be formed, makes or concurs in making or publishes any false statement, whether in any prospectus, account, or otherwise, with intent—</p> <p class="labelledlabel">(a) to induce any person, whether ascertained or not, to subscribe to any security within the meaning of the Securities Act 1978; or</p> <p class="labelledlabel">(b) to deceive or cause loss to any person, whether ascertained or not; or</p> <p class="labelledlabel">(c) to induce any person, whether ascertained or not, to entrust or advance any property to any other person.</p> <p class="labelledlabel">(2) In this section, false statement means any statement in respect of which the person making or publishing the statement—</p> <p class="labelledlabel">(a) knows the statement is false in a material particular; or</p> <p class="labelledlabel">(b) is reckless as to the whether the statement is false in a material particular.</p> <p><strong>FMA charges</strong><br><strong>Companies Act offences:</strong></p> <p><strong>Section 377: False statements</strong></p> <p>(1) Every person who, with respect to a document required by or for the purposes of this Act,—</p> <p style="padding-left: 30px;">(a) makes, or authorises the making of, a statement in it that is false or misleading in a material particular knowing it to be false or misleading; or</p> <p style="padding-left: 30px;">(b) omits, or authorises the omission from it of, any matter knowing that the omission makes the document false or misleading in a material particular—</p> <p>commits an offence, and is liable on conviction to the penalties set out in section 373(4).</p> <p>(2) Every director or employee of a company who makes or furnishes, or authorises or permits the making or furnishing of, a statement or report that relates to the affairs of the company and that is false or misleading in a material particular, to—</p> <p style="padding-left: 30px;">(a) a director, employee, auditor, shareholder, debenture holder, or trustee for debenture holders of the company; or</p> <p style="padding-left: 30px;">(b) a liquidator, liquidation committee, or receiver or manager of property of the company; or</p> <p style="padding-left: 30px;">(c) if the company is a subsidiary, a director, employee, or auditor of its holding company; or</p> <p style="padding-left: 30px;">(d) a stock exchange or an officer of a stock exchange,—</p> <p>knowing it to be false or misleading, commits an offence, and is liable on conviction to the penalties set out in section 373(4).</p> <p>(3) For the purposes of this section, a person who voted in favour of the making of a statement at a meeting is deemed to have authorised the making of the statement.</p> <p><strong>About the SFO</strong></p> <p>The Serious Fraud Office (SFO) was established in 1990 under the Serious Fraud Office Act in response to the collapse of financial markets in New Zealand at that time.</p> <p>The SFO’s role is the detection, investigation and prosecution of serious or complex financial crime. The SFO’s focus is on investigating and prosecuting criminal cases that will have a real effect on:</p> <ul> <li>business and investor confidence in our financial markets and      economy</li> <li>public confidence in our justice system and public service</li> <li>New Zealand’s international business reputation.</li> </ul> <p>The SFO operates three investigative teams:</p> <ul> <li>Evaluation and Intelligence;</li> <li>Financial Markets and Corporate Fraud; and</li> <li>Fraud and Corruption.</li> </ul> <p>The SFO operates under two sets of investigative powers.</p> <p>Part I of the SFO Act provides that it may act where the Director “has reason to suspect that an investigation into the affairs of any person may disclose serious or complex fraud.”</p> <p>Part II of the SFO Act provides the SFO with more extensive powers where: “…the Director has reasonable grounds to believe that an offence involving serious or complex fraud may have been committed…”</p> <p>The SFO’s Annual Report 2013 sets out its achievements for the past year, while the Statement of Intent 2013-2016 sets out the SFO’s three year strategic goals and performance standards.  Both are available online at: <a href="http://www.sfo.govt.nz">www.sfo.govt.nz</a></p> <p><strong>About the FMA</strong></p> <p>The FMA was established on 1 May 2011 under the Financial Markets Authority Act 2011, in response to the need to address failures in the financial markets, made evident from the global financial crisis. The Government recognised that New Zealand required a single financial markets conduct regulator to proactively monitor and enforce financial markets legislation.</p> <p>The FMA is an independent Crown entity and has the following functions:</p> <ul> <li>to monitor compliance with, investigate contraventions of, and enforce securities and investment law, financial reporting law, and companies law, in respect of financial markets participants;</li> <li>to promote confident and informed participation in the financial markets;</li> <li>to license and supervise particular financial markets participants, including financial advisers, trustees and statutory supervisors, auditors, and securities markets;</li> <li>to monitor and conduct inquiries and investigations into financial markets and financial markets participants; and</li> <li>to keep the law under review.</li> </ul> <p>The FMA is committed to taking appropriate enforcement action against those whose behaviour threatens market integrity and investor confidence in New Zealand.</p> <p>More information about the FMA can be found at <a href="http://www.fma.govt.nz/">www.fma.govt.nz</a></p> <hr> http://www.fma.govt.nz/keep-updated/newsroom/afa-updates/financial-advisers-code-committee-seeking-expressions-of-interest Financial Advisers Code Committee Seeking Expressions of Interest 2014-09-04 09:51:03 Financial Markets Authority <p><strong>The Financial Markets Authority seeks expressions of interest for membership of the Code Committee established under the Financial Advisers Act 2008.</strong></p> <p>The Code Committee was appointed in 2009 to prepare and periodically review the Code of Professional Conduct for Authorised Financial Advisers. Under the Financial Advisers Act 2008 the Committee may be comprised of between 7 and 11 members from industry and the consumer affairs sector as follows:</p> <ul> <li>one member with knowledge, experience and competence in consumer affairs, appointed for three years; and</li> <li>other persons who, in FMA’s opinion, are qualified for appointment by virtue of their individual knowledge of, and experience and competency in relation to, the financial adviser industry.</li> </ul> <p>The role of a Code Committee member is on an as required basis. The current Chairman envisages the key work of the Code Committee over the next three years to initially involve monitoring the effectiveness of the current Code against ongoing regulatory and other developments impacting on authorised financial advisers and the wider financial adviser industry, and then undertaking a further full review of the Code in conjunction with the formal review of the Financial Advisers Act 2008 by the Ministry of Business, Innovation, and Employment.</p> <p><strong>FMA and the Code Committee are particularly looking for people who have:</strong></p> <ul> <li>an understanding of the economic, social, legal, financial, and regulatory issues regarding financial advice in New Zealand</li> <li>experience in specialist areas in the financial adviser profession (eg. comprehensive financial planning or insurance) and in other areas such as compliance, ethics or adviser education</li> <li>involvement in investor and consumer protection activities</li> <li>experience in senior leadership roles, within an organisation and in a profession/industry-wide context</li> <li>ability to work in a collegial, decision-making environment, and to communicate effectively.</li> </ul> <p>Committee members are appointed by virtue of their individual expertise, and not as representatives or nominees of particular interest groups.</p> <p><a href="http://www.fma.govt.nz/assets/media/afa-updates/financial-advisers-code-committee-application-package.pdf" target="_blank">Download the full role description and requirements for expressions of interest.</a></p> <p>Expressions of interest must be submitted to the Code Committee’s secretariat via email to <a href="mailto:secretariat@financialadvisercode.govt.nz">secretariat@financialadvisercode.govt.nz</a> no later than 5.00pm on Monday 23rd June 2014.</p> <hr> http://www.fma.govt.nz/keep-updated/newsroom/afa-updates/financial-markets-authority-afa-update-issue-24 Financial Markets Authority AFA Update: Issue # 24 2014-09-04 09:48:15 Financial Markets Authority <h2>Annual AML/CFT reports are due soon!</h2> <p>All AFAs who are reporting entities under the <a href="http://www.legislation.govt.nz/act/public/2009/0035/latest/DLM2140720.html?search=ts_act_anti+money+laundering_resel&amp;p=1" target="_blank">AML/CFT Act 2009</a> are required to prepare an annual report on their risk assessment and AML/CFT programme. If you are unsure if you are a reporting entity, see our <a href="http://www.fma.govt.nz/assets/Uploads/aml-guide-for-fas-8-nov.pdf" target="_blank">AML/CFT Guide for small financial adviser businesses</a>. The first report for the period 1 July 2013 - 30 June 2014 must be submitted to FMA by 30 August 2014.<br><br>You can submit your annual AML/CFT report, using our standard template, any time between 1 July 2014 and 30 August 2014. The report template and information on how to complete and submit an annual AML/CFT report will be published on our <a href="http://www.fma.govt.nz/">website</a> no later than Tuesday, 1 July.<br><br>The annual report will provide FMA with important information on your business to help us:</p> <ul> <li>understand your business</li> <li>ensure information we have on your business is current</li> <li>better understand the controls you have in place to reduce the risk of money laundering and terrorist financing occurring in your business</li> <li>determine whether a compliance review or monitoring visit to your business is necessary.</li> </ul> <p>More information on annual AML/CFT reports can be found on our website. If you have any further questions please email <a href="mailto:aml@fma.govt.nz" target="_blank">aml@fma.govt.nz</a></p> <h2>Updates to Guidance Notes</h2> <p>Due to the <a href="http://www.fma.govt.nz/assets/media/1946311/code-of-professional-conduct-for-afas.pdf" target="_blank">revised Code of Professional Conduct</a> coming into force last month, we have begun updating information on our website - specifically some of our guidance notes on <a href="http://www.fma.govt.nz/assets/guidance-note-discretionary-investment-management-services-revised-june-2014.pdf" target="_blank">DIMS</a>, <a href="http://www.fma.govt.nz/assets/guidance-note-limited-personalised-advice-revised-june-2014.pdf" target="_blank">Limited Personalised Advice</a> and <a href="http://www.fma.govt.nz/assets/guidance-note-client-communications-and-record-keeping-revised-june-2014.pdf" target="_blank">Client Communications and Record Keeping</a>. Other materials are also being reviewed and updated and we’ll let you know when these have been completed.</p> <h2>Financial Advisers Code Committee Seeking Expressions of Interest</h2> <p>Expressions of interest are being sought for membership to the Code Committee. Find out more about the role and requirements <a href="http://www.fma.govt.nz/keep-updated/newsroom/afa-updates/financial-advisers-code-committee-seeking-expressions-of-interest">here</a>.</p> <hr> http://www.fma.govt.nz/keep-updated/newsroom/media-releases/2014/fma-publishes-annual-review-of-nzx-regulatory-obligations-11-agreed-actions FMA publishes annual review of NZX regulatory obligations; 11 agreed actions 2014-09-04 09:37:58 Financial Markets Authority <p class="Body"><strong>News release</strong><br><strong>MR No. 2014 – 021</strong><br><strong>30 June 2014</strong></p> <p class="Body">The Financial Markets Authority (FMA) today published its annual General Obligations Review of NZX.</p> <p class="Body">The FMA’s report confirms that NZX met its obligations, under the Securities Markets Act 1988, to ensure that its markets were fair, orderly, and transparent. The review covered the period January – December 2013.</p> <p class="Body">The report lists 11 actions that NZX will take, in order to achieve further improvements in its arrangements for operating the markets. </p> <p class="Body">NZX is New Zealand’s only registered exchange and the front line regulator for its markets. The 2013 report is the third General Obligations Review of NZX by the FMA.</p> <p class="Body">The Chief Executive of the FMA, Rob Everett, said the review process had been rigorous, involving in-depth reviews of NZX’s resources, policies, and practices. This is notwithstanding FMA’s close involvement with, and monitoring of, NZX day-to-day.</p> <p class="Body">Mr Everett said that the FMA and NZX have agreed that NZX will undertake a number of actions, some of which are already underway. This will address issues discussed during the review about NZX’s arrangements for managing conflicts, monitoring conduct, and enforcing compliance.</p> <p class="Body"> “NZX has given top priority to its regulatory obligations, and the FMA has seen substantial improvements from the previous report,” Mr Everett said. “I’m pleased we have been able to agree a schedule of tangible and actionable improvements this year.</p> <p class="Body">“Along with the improvements that NZX has already implemented, I believe we have the appropriate degree of reassurance - on regulatory compliance - that investors, firms, and the Government expect of New Zealand’s only registered exchange.”</p> <p class="Body">ENDS</p> <p class="Body">Read the NZX General Obligations Review report <a href="http://www.fma.govt.nz/keep-updated/reports-and-papers/nzx-general-obligations-review-2014">here</a>.</p> <p class="Body"><strong>Contact:</strong></p> <p class="Body">Andrew Park</p> <p class="Body">Phone: 09 967 1215</p> <p class="Body">Mobile: 021 220 6770</p> <p class="Body"><a href="mailto:andrew.park@fma.govt.nz">andrew.park@fma.govt.nz</a></p> <p class="Body"> </p> <p class="Body"><strong>Agreed actions:</strong></p> <p class="Body"><strong>Arrangements for handling conflicts</strong></p> <p class="Body">NZX will:</p> <ul> <li> <div class="SubListBullet">revise the process for regulatory decision-making in circumstances where particular conflicts may arise, or there could be a significant market impact</div> </li> <li> <div class="SubListBullet">establish a Conflicts Committee of the Board to oversee NZX’s arrangements for managing conflicts</div> </li> <li> <div class="SubListBullet">appoint independent members to the Board’s Regulatory Governance Committee (RGC)</div> </li> <li> <div class="SubListBullet">expand the scope of the RGC to include reviewing regulatory policy changes</div> </li> <li> <div class="SubListBullet">improve visibility of its conflict management arrangements</div> </li> <li> <div class="SubListBullet">revise its communications policy in relation to public comment, for greater transparency.</div> </li> </ul> <p class="Body"><strong>Arrangements for monitoring conduct</strong></p> <p class="Body">NZX will:</p> <ul> <li> <div class="SubListBullet">amend the guidance note on amendments to NZX’s rules.</div> </li> </ul> <p class="Body"><strong>Arrangements for enforcing compliance</strong></p> <p class="Body">NZX will:</p> <ul> <li> <div class="SubListBullet">enhance visibility of regulatory matters and enforcement activities</div> </li> <li> <div class="SubListBullet">amend internal service levels to reflect the nature and complexity of different investigations, and the variety of possible outcomes</div> </li> <li> <div class="SubListBullet">improve communication with complainants</div> </li> <li> <div class="SubListBullet">review the penalty structure for minor and unambiguous breaches of its rule.</div> </li> </ul> <hr> http://www.fma.govt.nz/keep-updated/newsroom/afa-updates/financial-markets-authority-afa-update-issue-25 Financial Markets Authority AFA Update: Issue # 25 2014-09-04 09:36:33 Financial Markets Authority <h2>Guide to help small financial adviser businesses with the licensing process for DIMS</h2> <p>On 18 June, FMA released a <a href="http://www.fma.govt.nz/assets/Code-of-Professional-Conduct-for-AFAs/guide-to-licensing-small-dims-businesses.pdf" target="_blank"><span style="color: #0eb6ce;">quick guide</span></a> for small financial adviser businesses wanting to become licensed to provide DIMS.  The guide explains further the <a href="http://financialmarketsauthority.createsend1.com/t/r-l-mlrkhhl-l-k/" target="_blank">summary of the changes</a> announced on 16 June, by Commerce Minister, Craig Foss.</p> <h2>Advertisements advertising financial adviser services</h2> <p>This is a reminder to ensure you are meeting all your disclosure obligations under the Financial Advisers Act 2008 (Act).  In particular, under <a href="http://financialmarketsauthority.createsend1.com/t/r-l-mlrkhhl-l-u/" target="_blank">section 30</a>, any advertisement advertising financial adviser services by an AFA must state that a disclosure statement is available, on request and free of charge.</p> <h2>Recording keeping</h2> <p>We have been asked several questions recently about record keeping obligations. Compliance with <a href="http://www.fma.govt.nz/assets/media/1946311/code-of-professional-conduct-for-afas.pdf" target="_blank">Code Standard 12</a> remains an important focus of our ongoing monitoring programme. The overarching principle is:</p> <p><em>“An Authorised Financial Adviser must record in writing adequate information about any personalised services provided to a retail client”</em></p> <p>The information required to be recorded in relation to each retail client must:</p> <ul> <li>be sufficient to demonstrate compliance with <a href="http://www.fma.govt.nz/be%20sufficient%20to%20demonstrate%20compliance%20with%20Code%20Standards%205%20to%209">Code Standards 5 to 9</a></li> <li>include copies of all information and documents provided to, or received from, the client in writing, in connection with the AFA’s personalised services.</li> </ul> <p>We expect AFAs to proactively ensure their record keeping meets this standard and to take any steps necessary to improve their processes if they don’t meet this standard.  Without proper record keeping it can be difficult or impossible to demonstrate whether the financial services provided to your clients are suitable.</p> <p>We remain committed to supporting AFAs to achieve better compliance through our monitoring work.  Our approach to non-compliance is proportionate to the circumstances.  We are unlikely to take formal action where a breach is a one-off, isolated case, and involves minor events relating to a technical error or similar issues unless there are other compelling reasons to do so.  However where there is evidence the breaches are intentional or reckless or involve other serious unlawful conduct then you can expect FMA to take appropriate action, such as a referral to the <a href="http://financialmarketsauthority.createsend1.com/t/r-l-mlrkhhl-l-n/" target="_blank">Financial Adviser Disciplinary Committee</a>.</p> <h2>Important information for Financial Advisers completing annual AML/CFT reports</h2> <p>As a reminder, annual AML/CFT reports can now be submitted to FMA using our <a href="http://www.fma.govt.nz/help-me-comply/anti-money-laundering-and-countering-financing-of-terrorism-reporting-entities/annual-amlcft-reporting/how-to-get-started/">online system</a> any time from now until 30 August 2014. However, we understand there is some uncertainty regarding how financial advisers can/should interpret <strong>Question 6.1</strong>.  We are working with adviser associations to clarify the requirements to help you provide the correct information. More guidance on this will be published on our <a href="http://www.fma.govt.nz/help-me-comply/anti-money-laundering-and-countering-financing-of-terrorism-reporting-entities/annual-amlcft-reporting/frequently-asked-questions-faqs/">FAQs</a> page in the coming days.</p> <p>Remember, all reporting entities for AML/CFT are required to prepare an annual report on their risk assessment and AML/CFT programme.  The first report for the period 1 July 2013 to 30 June 2014 must be submitted to FMA by <strong>30 August 2014</strong>, in accordance with the <a href="http://financialmarketsauthority.createsend1.com/t/r-l-mlrkhhl-l-m/" target="_blank">AML/CFT Act 2009</a>.</p> <p>More information on annual AML/CFT reports can be found in the ‘Help me comply’ section on our <a href="http://www.fma.govt.nz/help-me-comply/anti-money-laundering-and-countering-financing-of-terrorism-reporting-entities/annual-amlcft-reporting/how-to-get-started/">website</a>.  If you have any further questions please email <a href="mailto:aml@fma.govt.nz" target="_blank">aml@fma.govt.nz</a></p> <h2>AFA Information Return</h2> <p>We would like to update you on our progress following the second consultation.<br> In line with the second consultation, we expect AFAs to complete the first Information Return relating to their business as at 30 June 2014. AFAs will be required to submit the completed Information Return online to FMA by 30 September 2014.</p> <p>We will provide you with further information shortly, including confirmation of timeframes and when the AFA Information Return will be available online.</p> <p>In the meantime we have developed a revised <a href="http://www.fma.govt.nz/assets/media/101/afa-information-return-questions-final.pdf" target="_blank">AFA Information Return set of questions</a>, which has been reduced to 40 questions in total. For this first Return, you will be able to give your best estimate to any question where it may be difficult to collect the necessary information.</p> <p>The particular questions that you will need to answer will depend on your situation, including the types of financial adviser services you provide.</p> <p>To help you prepare, you can review the reduced <a href="http://www.fma.govt.nz/assets/media/101/afa-information-return-questions-final.pdf" target="_blank">set of questions</a> in the AFA Information Return. We recommend you:</p> <ul> <li>familiarise yourself with the questions</li> <li>ensure you have your correct RealMe login details</li> </ul> <p>Remember, the purpose of the AFA Information Return is designed to support your reporting obligations to us so we can better understand your business, your compliance approach and your approach to continuing professional development.  It will also help us focus our monitoring and surveillance work and how best to apply our resources.</p> <p>If you would like further information about this, please contact our Customer Service Centre on 0800 434 567 or email us at <a href="mailto:questions@fma.govt.nz">questions@fma.govt.nz</a></p> http://www.fma.govt.nz/keep-updated/newsroom/media-releases/2014/joint-finance-company-prosecutions-promote-renewed-public-confidence-and-ethical-conduct-in-financial-markets Joint finance company prosecutions promote renewed public confidence and ethical conduct in financial markets 2014-09-04 09:26:57 Financial Markets Authority <p><strong>Media Release</strong><br><strong>4 July 2014</strong></p> <p>Lawyer, Hugh Edward Staples Hamilton (63), who was found guilty of fraud in relation to the collapse of Belgrave Finance Limited (Belgrave), has been sentenced at the Auckland High Court today to four years and nine months’ imprisonment.</p> <p>Mr Hamilton was found guilty in May of 14 charges brought in a joint prosecution by the Serious Fraud Office (SFO) and the Financial Markets Authority (FMA).</p> <p>The charges related to loans, with a value of more than $12 million, made by Belgrave to various related entities between June 2005 and March 2008.</p> <p>Mr Hamilton, a former barrister and solicitor, was a legal adviser to the other people, Mr Schofield, Mr Smith and Mr Buckley, who were charged in relation to the making of substantive fraudulent representations and use of Belgrave investors’ funds.</p> <p>Mr Hamilton was found guilty as a party to the offending, namely, theft by a person in a special relationship. Mr Hamilton aided Mr Schofield, Mr Smith and Mr Buckley in perpetrating the related party transactions in breach of Belgrave’s Debenture Trust Deed. He also transacted a portion of the loan funds through his firm’s trust account on behalf of Mr Schofield.</p> <p>SFO Director, Julie Read said, “At the time Belgrave was placed into liquidation, it was the 20<sup>th</sup> finance company to collapse in two years. The SFO have been acutely aware that the finance company collapses hindered public confidence in the integrity of our financial markets. The sentencing of Mr Hamilton concludes another prosecution and is one step closer to addressing and rebuilding that confidence.”</p> <p>FMA Director of Enforcement and Investigations, Belinda Moffat, added, “The sentence reflects the seriousness of the offending in the Belgrave case.  Professional advisers play a critical role in companies that raise money from the public, and they have a responsibility to ensure they do not enable wrongdoing.  We hope this decision and the conclusion of the case will help to promote high standards of conduct in New Zealand’s financial markets.”<br><br></p> <p>ENDS</p> <p><strong>For further information:</strong></p> <p>Andrea Linton                                        Andrew Park</p> <p>Serious Fraud Office                               Financial Markets Authority</p> <p>027 705 4550                                        021 220 6770</p> <p> </p> <p><strong>Notes to editors</strong></p> <p><strong>Background to investigation</strong></p> <p>Belgrave Finance Limited was incorporated in September 2000. </p> <p>Belgrave provided financial accommodation and mortgage facilities for commercial and residential property developments.  Funds for lending were sourced primarily from the issue of securities to the public in the form of debenture stock and convertible capital notes.</p> <p>Belgrave was placed into receivership in on 28 May 2008 owing around $22 million to approximately 1,200 investors.  The company was placed into liquidation in April 2010. </p> <p>Following the collapse of Belgrave, the (then) Securities Commission made initial investigations into the company before referring the matter to the SFO in June 2010. The SFO Director determined that an investigation into the affairs of Belgrave may disclose serious or complex fraud, and the SFO commenced an investigation under Part II of the Serious Fraud Office Act in July 2010. </p> <p>Charges were also laid against former director Shane Joseph Buckley who pleaded guilty and was sentenced to three years’ imprisonment and former director Stephen Charles Smith who pleaded guilty and received four years’ imprisonment. Also charged was the controller of the company Raymond Tasman Schofield who has been granted a stay of prosecution on the grounds of terminal illness, conditional upon review.</p> <p><strong>SFO charges</strong><br><strong>Crimes Act offences:</strong></p> <h4>Section 220: Theft by person in special relationship</h4> <p>(1) This section applies to any person who has received or is in possession of, or has control over, any property on terms or in circumstances that the person knows require the person—</p> <p class="labelledlabel" style="padding-left: 30px;">(a) to account to any other person for the property, or for any proceeds arising from the property; or</p> <p class="labelledlabel" style="padding-left: 30px;">(b) to deal with the property, or any proceeds arising from the property, in accordance with the requirements of any other person.</p> <p class="labelledlabel">(2) Every one to whom subsection (1) applies commits theft who intentionally fails to account to the other person as so required or intentionally deals with the property, or any proceeds of the property, otherwise than in accordance with those requirements.</p> <p class="labelledlabel">(3) This section applies whether or not the person was required to deliver over the identical property received or in the person's possession or control.</p> <p class="labelledlabel">(4) For the purposes of subsection (1), it is a question of law whether the circumstances required any person to account or to act in accordance with any requirements.</p> <p class="labelledlabel"><strong>Section 223: Punishment of theft</strong><br>Every one who commits theft is liable as follows:</p> <p class="labelledlabel" style="padding-left: 30px;">(a) in the case of any offence against section 220, to imprisonment for a term not exceeding 7 years; or</p> <p class="labelledlabel" style="padding-left: 30px;">(b) if the value of the property stolen exceeds $1,000, to imprisonment for a term not exceeding 7 years; or</p> <p class="labelledlabel" style="padding-left: 30px;">(c) if the value of the property stolen exceeds $500 but does not exceed $1,000, to imprisonment for a term not exceeding 1 year; or</p> <p class="labelledlabel" style="padding-left: 30px;">(d) if the value of the property stolen does not exceed $500, to imprisonment for a term not exceeding 3 months.</p> <h5>Section 242: False statement by promoter, etc</h5> <p>(1) Every one is liable to imprisonment for a term not exceeding 10 years who, in respect of any body, whether incorporated or unincorporated and whether formed or intended to be formed, makes or concurs in making or publishes any false statement, whether in any prospectus, account, or otherwise, with intent—</p> <p class="labelledlabel" style="padding-left: 30px;">(a) to induce any person, whether ascertained or not, to subscribe to any security within the meaning of the Securities Act 1978; or</p> <p class="labelledlabel" style="padding-left: 30px;">(b) to deceive or cause loss to any person, whether ascertained or not; or</p> <p class="labelledlabel" style="padding-left: 30px;">(c) to induce any person, whether ascertained or not, to entrust or advance any property to any other person.</p> <p class="labelledlabel">(2) In this section, false statement means any statement in respect of which the person making or publishing the statement—</p> <p class="labelledlabel" style="padding-left: 30px;">(a) knows the statement is false in a material particular; or</p> <p class="labelledlabel" style="padding-left: 30px;">(b) is reckless as to the whether the statement is false in a material particular.</p> <p><strong>FMA charges</strong><br><strong>Companies Act offences:</strong></p> <p><strong>Section 377: False statements</strong></p> <p>(1) Every person who, with respect to a document required by or for the purposes of this Act,—</p> <p style="padding-left: 30px;">(a) makes, or authorises the making of, a statement in it that is false or misleading in a material particular knowing it to be false or misleading; or</p> <p style="padding-left: 30px;">(b) omits, or authorises the omission from it of, any matter knowing that the omission makes the document false or misleading in a material particular—</p> <p style="padding-left: 30px;">commits an offence, and is liable on conviction to the penalties set out in section 373(4).</p> <p>(2) Every director or employee of a company who makes or furnishes, or authorises or permits the making or furnishing of, a statement or report that relates to the affairs of the company and that is false or misleading in a material particular, to—</p> <p style="padding-left: 30px;">(a) a director, employee, auditor, shareholder, debenture holder, or trustee for debenture holders of the company; or</p> <p style="padding-left: 30px;">(b) a liquidator, liquidation committee, or receiver or manager of property of the company; or</p> <p style="padding-left: 30px;">(c) if the company is a subsidiary, a director, employee, or auditor of its holding company; or</p> <p style="padding-left: 30px;">(d) a stock exchange or an officer of a stock exchange,—</p> <p style="padding-left: 30px;">knowing it to be false or misleading, commits an offence, and is liable on conviction to the penalties set out in section 373(4).</p> <p>(3) For the purposes of this section, a person who voted in favour of the making of a statement at a meeting is deemed to have authorised the making of the statement.</p> <p><strong>About the SFO</strong></p> <p>The Serious Fraud Office (SFO) was established in 1990 under the Serious Fraud Office Act in response to the collapse of financial markets in New Zealand at that time.</p> <p>The SFO’s role is the detection, investigation and prosecution of serious or complex financial crime. The SFO’s focus is on investigating and prosecuting criminal cases that will have a real effect on:</p> <ul> <li>business and investor confidence in our financial markets and      economy</li> <li>public confidence in our justice system and public service</li> <li>New Zealand’s international business reputation.</li> </ul> <p>The SFO operates three investigative teams:</p> <ul> <li>Evaluation and Intelligence;</li> <li>Financial Markets and Corporate Fraud; and</li> <li>Fraud and Corruption.</li> </ul> <p>The SFO operates under two sets of investigative powers.</p> <p>Part I of the SFO Act provides that it may act where the Director “has reason to suspect that an investigation into the affairs of any person may disclose serious or complex fraud.”</p> <p>Part II of the SFO Act provides the SFO with more extensive powers where: “…the Director has reasonable grounds to believe that an offence involving serious or complex fraud may have been committed…”</p> <p>The SFO’s Annual Report 2013 sets out its achievements for the past year, while the Statement of Intent 2014-2018 sets out the SFO’s strategic goals and performance standards.  Both are available online at: <a href="http://www.sfo.govt.nz">www.sfo.govt.nz</a></p> <p><strong>About the FMA</strong></p> <p>The FMA was established on 1 May 2011 under the Financial Markets Authority Act 2011, in response to the need to address failures in the financial markets, made evident from the global financial crisis. The Government recognised that New Zealand required a single financial markets conduct regulator to proactively monitor and enforce financial markets legislation.</p> <p>The FMA is an independent Crown entity and has the following functions:</p> <ul> <li>to monitor compliance with, investigate contraventions of, and enforce securities and investment law, financial reporting law, and companies law, in respect of financial markets participants;</li> <li>to promote confident and informed participation in the financial markets;</li> <li>to license and supervise particular financial markets participants, including financial advisers, trustees and statutory supervisors, auditors, and securities markets;</li> <li>to monitor and conduct inquiries and investigations into financial markets and financial markets participants; and</li> <li>to keep the law under review.</li> </ul> <p>The FMA is committed to taking appropriate enforcement action against those whose behaviour threatens market integrity and investor confidence in New Zealand.</p> <p>More information about the FMA can be found at <a href="http://www.fma.govt.nz/">www.fma.govt.nz</a></p> <hr> http://www.fma.govt.nz/keep-updated/newsroom/media-releases/2014/fma-issues-new-zealands-first-licence-for-peer-to-peer-lending-services FMA issues New Zealand’s first licence for peer-to-peer lending services 2014-09-04 09:23:12 Financial Markets Authority <div id="content-top"><hr></div> <div id="content"> <div id="content-area"> <p><strong>News release</strong><br><strong>MR No. 2014 – 023</strong><br><strong>8 July 2014<br><br></strong>The Financial Markets Authority (FMA) today issued its first peer-to-peer lending service licence. Auckland-based Harmoney is the first provider of this new financial service, under the provisions of the Financial Markets Conduct Act 2013.</p> <p>“This is a new service for New Zealand that brings new opportunities for lenders and borrowers. Peer-to-peer lending has already proved popular in Europe and US, and we’ve been able to build on that experience,” said Elaine Campbell, FMA’s Director of Compliance.</p> <p>Licensing peer-to-peer lending services forms part of FMA’s brief to facilitate new capital-raising opportunities in New Zealand. It is also part of the Government’s business growth agenda.</p> <p>“FMA’s role is to regulate the companies providing peer-to-peer lending services. The service has great potential but lenders should also realise the risks are greater than putting money in a bank.  Lenders can lose money or not get the interest they expect if borrowers fail to repay the loans.”</p> <p>Peer-to-peer lending involves an intermediary, the peer-to-peer lending service, bringing borrowers and lenders together, and charging a fee for the service. Lenders and borrowers can find out more information on FMA’s website.</p> <p>“To meet the required standards, service providers must provide clear disclosure for lenders and have fair, orderly and transparent processes around how they deliver their service. Applicants must also demonstrate they’ll meet minimum standards of conduct. We are available during the process to help potential licensees understand their obligations,” said Ms Campbell.</p> <p>“Harmoney has shown itself capable of delivering the service and demonstrated how it intends to comply with its obligations as a licensee.”</p> <p>Under the regulations, borrowers are limited to raising no more than $2 million in any 12-month period through peer-to-peer lending services. This limit applies to both business and consumer borrowers – although individual service providers may impose lower limits on the amount that may be borrowed.  The regulations don’t impose any limits on the amount lenders can lend, although some service providers may impose limits. Lenders should remember they may not be able to withdraw their money at short notice.</p> <p>FMA’s role involves both licensing peer-to-peer lending services and monitoring their ongoing compliance with their legal obligations and licence conditions.</p> <p>Borrowers using the service will not be individually checked by FMA, but the Financial Markets Conduct Act 2013 prohibits borrowers from making false or misleading statements, or unsubstantiated claims.  Peer-to-peer lending services must exclude borrowers from using the service if they have reason to believe the borrower is in breach of these obligations.</p> <p>The peer-to-peer lending service must be a member of a dispute resolution scheme – which customers can use at no cost – and must also have a complaints handling process.</p> <p><a href="http://www.fma.govt.nz/help-me-invest/getting-the-right-information/brochures/">Tips for lenders and borrowers – a Guide to Peer-to-Peer lending </a></p> <p><a href="http://www.fma.govt.nz/help-me-comply/new-licences-for-financial-market-services/peer-to-peer-lending-services/applying-for-a-licence/">How to apply for a peer-to-peer licence</a><br><br></p> <p>ENDS<br><br><strong>Contact:</strong><br>Andrew Park<br>021 220 6770<br><a href="mailto:andrew.park@fma.govt.nz">andrew.park@fma.govt.nz</a></p> </div> </div> http://www.fma.govt.nz/keep-updated/newsroom/fma-updates/fma-update-10-july-2014 FMA Update - 10 July 2014 2014-09-04 09:17:29 Financial Markets Authority <h2>Peer-to-peer lending and crowd funding resources</h2> <p>We’ve recently published website resources to help investors understand two new investment options in New Zealand – <a href="http://www.fma.govt.nz/help-me-invest/peer-to-peer-lending/">peer-to-peer lending</a> and <a href="http://www.fma.govt.nz/help-me-invest/crowd-funding/">equity crowd funding</a>. We’ve also published information about the obligations for <a href="http://www.fma.govt.nz/help-me-comply/peer-to-peer-lending/">borrowers</a> and <a href="http://www.fma.govt.nz/help-me-comply/crowd-funding/">issuers</a>.<br>The services provide new opportunities for New Zealanders, but as with any investment do carry risk. Investors and those wishing to raise money should:</p> <ul> <li>Only use providers that are licensed by FMA.</li> <li>Carefully read the information and warnings provided by the licensed service provider.</li> <li>Be aware FMA only licenses and regulates the service provider platform - not the users (i.e. the borrowers and the lenders) of the service.</li> </ul> <p>See our media release '<a href="http://www.fma.govt.nz/keep-updated/newsroom/media-releases/2014/fma-issues-new-zealands-first-licence-for-peer-to-peer-lending-services">FMA issues New Zealand’s first licence for peer-to-peer lending services</a>' for more information.</p> <p> </p> <h2>FMA Website Survey – tell us what you think</h2> <p>We invite you to participate in an <a href="http://financialmarketsauthority.createsend1.com/t/r-l-mlkirkk-l-o/" target="_blank">online survey</a> to help us to improve the usability of our website <a href="http://financialmarketsauthority.createsend1.com/t/r-l-mlkirkk-l-b/" target="_blank">www.fma.govt.nz</a><br>There are 10 quick questions and the ability for you to add comments if you'd like to. Your responses will assist us to improve our website’s usefulness to you, your business and your industry, so please take a few minutes to <a href="http://financialmarketsauthority.createsend1.com/t/r-l-mlkirkk-l-n/" target="_blank">complete the survey</a>.<br>You can contact <a href="mailto:lucinda.haworth@fma.govt.nz" target="_blank">lucinda.haworth@fma.govt.nz</a> if you would like to discuss any aspect of the <a href="http://financialmarketsauthority.createsend1.com/t/r-l-mlkirkk-l-p/" target="_blank">survey</a>.<br>Thank you in advance for your support.</p> <p> </p> <h2>Annual AML/CFT Report submissions</h2> <p>All reporting entities are required to prepare an annual report on their risk assessment and AML/CFT programme, in accordance with the AML/CFT Act 2009.  The first report is for the period 1 July 2013 - 30 June 2014.<br><strong><span>Reports must be submitted through <a href="http://financialmarketsauthority.createsend1.com/t/r-l-mlkirkk-l-x/" target="_blank">FMA’s online portal</a> by 30 August 2014.</span></strong><br>More information on preparing and submitting reports can be found in the ‘Help me comply’ section on our <a href="http://www.fma.govt.nz/help-me-comply/anti-money-laundering-and-countering-financing-of-terrorism-reporting-entities/annual-amlcft-reporting/">website</a>.  If you have any further questions please email <a href="mailto:aml@fma.govt.nz" target="_blank">aml@fma.govt.nz</a></p> <p> </p> <h2>NZX General Obligations Review</h2> <p>The 2014 <a href="http://www.fma.govt.nz/assets/media/1988327/nzx-general-obligations-review-2014.pdf" target="_blank">NZX General Obligations Review</a> has been published. The report lists 11 actions that NZX will take, in order to achieve further improvements in its arrangements for operating the markets. If you are interested in finding out more please view the report on our <a href="http://www.fma.govt.nz/assets/media/1988327/nzx-general-obligations-review-2014.pdf" target="_blank">website</a>.</p> http://www.fma.govt.nz/keep-updated/newsroom/speeches/presentation-by-elaine-campbell-to-the-ifa-conference-2014 Presentation by Elaine Campbell to the IFA Conference 2014 2014-09-04 09:04:10 Financial Markets Authority <p><strong>What does success look like in the new regulatory environment?</strong></p> <p>Good Afternoon.</p> <p>I am grateful to speak to you today – as FMA’s adviser work has only recently been brought within my mandate.  So it’s a very timely opportunity to speak with you about how I’d like our regulatory relationship to be in the new environment we’re all facing. So I look forward to spending more time with you, during the breaks today and of course in the future. </p> <p>At most, there around 90 people delivering FMA’s compliance function – that’s across all of FMA’s licensed and monitored populations.</p> <p>This means as a regulator there are limits on what we can do directly. Because of this, much of our work depends on others to help deliver our message. People like you.</p> <p>The reality is that you are not going to help us if we’re not helping you. So it is fundamentally in my interests to be concerned by your concerns – because to deliver the outcomes we are trying to achieve in financial services is, to a considerable extent, in your hands. </p> <p>That we are motivated to engage with you, and address concerns you might have, is evidenced by our engagement with industry – across a range of issues. For example, the Information Return in the Regulatory Reporting Guide, the new regulation of DIMS and issues that have arisen during the implementation of the AML/CFT Annual Return. I’ll talk more about this later.</p> <p>To help me prepare for today, I wanted to get a deeper understanding of what advisers were saying about the current challenges and opportunities in their industry. I didn’t want to be entirely guided by headlines on blog sites, but wanted to hear in your own words the opportunities and challenges as you saw them.</p> <p>So over the past few weeks we spoke with a number of advisers asking questions on those two issues. There were some quite clear themes emerging from these discussions. Although moods in the market vary, on the whole those I spoke to were genuinely positive about the outlook for their business.</p> <p>What won’t come as a surprise to most, if not all of you in this room, is that many of those I spoke to voiced their concerns around the amount of time spent on compliance. I want to assure you that this is something we are well aware of. Our personal engagement reinforces the findings of most surveys you read, that regulatory burden is the top concern across the whole financial markets industry.</p> <p>That said, many who I spoke to, who are embracing the changes and getting on with embedding the requirements of the new regime, acknowledged that much of this change was needed and is vital to helping restore and rebuild investor confidence.  This is a view FMA clearly shares. </p> <p>But we appreciate that right now there is a point in time pain, for broader gain.  And this pain might be being felt most acutely now, as a number of obligations coalesce. But on balance, it is our view that the regulatory burden is about right. </p> <p>And as you can see in recent coverage from our surveys (reference to slides) that show investor confidence on the rise, we are starting to see some results. From where we sit, we are seeing green shoots of investor confidence which is encouraging for the adviser industry, and there is also a wider focus on building consumer and investor financial literacy.</p> <p>In any significant regulatory change, there are going to be teething problems, requirements might not quite work or achieve their intended purpose. In these circumstances we are committed to working with you to find solutions.</p> <p>One example of this has been our work with industry on the annual information return, soon to be submitted by AFAs as part of the Regulatory Reporting Guide. The regulation of DIMS is another area where we’re working together to develop a suitable framework that we can all work with. However, we all have more work to do if we want to see trends in increasing investor confidence continue and gain traction.</p> <p>So against this backdrop, today I’m going to cover five areas. Hopefully I can draw some threads together about what we look for in market participants and how you can you successfully embrace these regulatory changes from the regulator’s perspective. Then of course I’ll be happy to take any questions.</p> <p><strong>What does success mean?</strong></p> <p>For investors, success means having confidence in the market, making informed investment decisions based on sound advice and building their wealth.</p> <p>For advisers, success means giving sound investment advice – retaining and bringing on new customers and ultimately growing your business.</p> <p>And, for FMA success is about working together with industry to bring about willing compliance, having confident and informed participants and growing NZ’s capital markets.</p> <p>If we can align the interests of all three stakeholders then this is the true measure of success.</p> <p>Where we can help grow your business, creating confident, informed and well advised investors and grow the numbers of investors participating in our markets.</p> <p>Where businesses have access to capital.</p> <p>Where investors have confidence because they believe markets participants will do the right thing. </p> <p>Where FMA can work to assist participants to do the right thing; then that sounds like success to me.</p> <p>And really it is about those imperatives for success that have driven the regulatory change we see today.</p> <p><strong>Why change?</strong></p> <p>It all started with the Review of Securities laws in 2005. There was a need to modernise a complex collection of laws for financial products and markets. The existing regime dated back to the 1960s and 70s, resulting in several shortcomings. It provided an inconsistent set of investors’ rights depending on the legal form of investment or savings vehicles. This cannot be a good outcome if we are seeking to grow investor confidence.</p> <p>The new regime also seeks to implement recommendations from the Capital Markets Development Task force – aimed at growing NZ capital markets.</p> <p>The performance of financial markets regulators was also at issue. Regulators did not have the right set of tools to achieve successful outcomes. Tools such as licensing requirements and controls over authorisations were largely absent. Regulators also had limited effective enforcement tools.</p> <p>Under pinning all of this was low levels of investor confidence and trust in our financial markets – in part off the back of finance company failures, and low levels of capital raising with a high cost of capital for business looking for capital to grow.</p> <p>So the new regulatory environment is informed by a desire to:</p> <p>- address the criticisms of the past regime</p> <p>- to encourage investor confidence and participation</p> <p>- lower the cost of capital</p> <p>- and increase the breadth and depth of our markets.</p> <p>That is what success of the regime will be judged against –meeting these aims.</p> <p>So how exactly does the new regime intend to do that?</p> <p>To give you a practical example in one area where change is needed and will be delivered, is in respect of investor information, specifically IPO documents.</p> <p>The size of the documents produced for some of the larger IPOs that we’ve seen over the past year or so have been very long documents, with a legal compliance focus. Over 200 pages was almost the norm for IPO offer documents in 2013. It is easy to see these documents may be overwhelming and difficult for retail investors and in turn perhaps hard for you to communicate or promote to your clients.</p> <p>The size of these documents has an impact. A New Zealand investor survey recently conducted on behalf of FMA and NZX by Colmar Brunton supports our concerns that investors are alienated by large and complex offer documents. The survey focused on recent IPOs – which particularly set out to target retail investors and found that few people are reading all of the information and only 52% read most of it. But against all of that, the survey also showed investors want to be able to access the information in the offer document. In fact it was the top source of information for investors about the IPO.</p> <p>This gives you a practical example of the types of issues we’re trying to address in the new regulatory environment. There is no point in producing investor materials – and that is what they are, not legal compliance documents or risk management tools for directors – that investors don’t read. Our goal must be to ensure these documents serve the interests of the intended audience.</p> <p><strong>Growing market confidence</strong></p> <p>When we talk with market participants about the new regulatory environment, specifically the FMC Act, and about how the framework that the Act gives to us can help grow market confidence, we focus on five key change areas and the impact we seek to achieve in each of them.</p> <ul> <li>Clear information for investors through clear, concise and effective information in product disclosure statements supported by information on publicly searchable online registers and consistent financial information.</li> <li>Competent market services providers through licensing and ongoing monitoring, showing minimum competence to provide financial services.</li> <li>Fair conduct and dealing standards, an overlay that raises the bar for financial market participants and I am going to explain this in more detail shortly.</li> <li>New ways to raise capital through stepping stone financial markets, peer-to-peer lending and crowd funding.</li> <li>Participants held accountable through governing documents that are fit for purpose, with clear duties for issuers and supervision by ‘supervisors’ with clear duties and powers to act.</li> </ul> <p><strong>Embedding a new approach – Putting the interest of consumers first</strong></p> <p>The Act brings change right across financial services in New Zealand. In regard to conduct, it brings in a new fair dealing provision – a catch-all provision which applies right across financial services – and that provision prohibits misleading or deceptive conduct.</p> <p>It broadens the mandate for FMA and enables us to look at issues where we have concerns – it gives us an ‘in’. Boiled down, the conduct provisions of the new Act say to professionals:</p> <p>Make sure you put the concerns of the consumer first. Always.</p> <p>This is not a new concept to AFAs who have always had this obligation in Code Standard 1. But the FMC Act imposes new provisions which will bring the rest of the finance community up to the standards we already expect AFAs to be meeting.</p> <p>So what does putting the interests of consumers first mean?  Well you would have heard our views on this in the past – so I am going to paraphrase from Rob Everett, FMA’s Chief Executive.</p> <p>It does not just require truthfulness. Indeed, we would expect that as a minimum. It requires financial services professionals to go much further, and ask themselves questions such as:</p> <p>Is this really the right product or service for this client?</p> <p>Does this client really understand the downside risk and what that might mean to them in a material sense if that risk comes to pass?</p> <p>Should I be advising this client on other actions they can take, such as risk mitigation?</p> <p>Put another way – the entire financial services industry – needs to stop thinking about what the customer will pay for and start thinking about what they actually need and what will actually benefit them. In retail financial services – there is a big difference between what people can be persuaded they want and what they actually need.</p> <p><strong>Raising standards above the minimum</strong></p> <p>The new regulatory environment will challenge all of you to do more than just the minimum. If you do that, you will be successful in the new regulatory environment – at least from FMA’s perspective.</p> <p>So what do you get in return for this? If you are making genuine good faith attempts to reach good outcomes for markets and customers, we will be supportive and pragmatic. </p> <p>We will not be a regulator who applies regulation in a pedantic way – something to be endured and chipped away at. We won’t demand things that aren’t material – we will act where there are sound reasons to do so and in a manner that is proportionate to the risk we perceive.</p> <p>But we do expect you to play it straight – those who put their own interests first, who shrug in the face of harm to the market, or who decide not to co-operate with us (or to co-operate grudgingly and defensively) will see a very different face of the FMA.</p> <p><strong>What these changes mean for you?</strong></p> <p>The scope of FMC Act is incredibly broad but having been part of the first round of reforms with the Financial Advisers Act 2011, financial advisers aren’t in the forefront of the upcoming changes. </p> <p>There will however be some impacts on the law for you in the area of licensing for DIMS, and I will talk about that.  I will also talk about two other key changes that the FMC Act will deliver that are relevant to you – because these changes enable you to have a different conversation with your clients or potential investors. </p> <p>I’ll also outline some key areas of change outside the FMC Act that you will need to be on top of to remain compliant. </p> <p>My colleagues have recently been travelling the country reaching out to AFAs to explain how the changes to DIMS will affect you. The changes affect AFAs providing DIMS because, for the client, a discretionary service can have similar outcomes to a managed investment product.</p> <p>Again the aim is to raise standards of market conduct across the board, and improve investor confidence in these services. We recognise that these aims have to be balanced with the additional compliance costs put on your businesses. That’s why further changes have been made to the regime to allow certain limited discretionary services to be provided without having to meet new, higher, eligibility requirements.</p> <p>This new contingency DIMS exemption, together with the new transitional provisions that allow more time for businesses to adapt to the new regime, are a direct response to concerns raised by AFAs. The target of improving investor confidence remains the same, but changes have been made where regulation isn’t ‘fit for purpose’.</p> <p>As discussed earlier around IPOs, receiving clear information about investment opportunities helps investors make sound investment decisions. As part of the new regime, the provision of clear, concise and effective information for investors will be promoted by:</p> <ul> <li>Short page limits for Product Disclosure Statements (PDS) so investors receive clearer, more concise, retail investor-focused information.</li> <li>A level of prescription in the PDS to help make the offer documents accessible to retail investors and assist understanding of key information about the offer.</li> <li>Short and focused risk descriptions in the Key Information Summary at the front of the PDS, and a move away from disclosure of long lists of generic risks that are unlikely to be understood by retail investors.</li> </ul> <p>The register will provide a rich vein of supporting information for investors if they choose, and will enable you to carry out more in-depth research and analysis to better advise your clients. This new framework comes into effect on 1 December 2014.</p> <p>The other area of change relates to governance. Part 4 of the FMC Act resets the accountability framework for managed investment schemes and debt securities from 1 December 2014. These changes are important because they enable you to change the dialog with our clients. The key driver of this change is to address risk of loss to investors from:</p> <ul> <li>Mismanagement by product providers.</li> <li>Inadequate management systems and processes.</li> <li>Lack of accountability.</li> </ul> <p>Managers of managed investment schemes must now also act in the best interests of investors. All of which is good news for your clients. At a basic level, the new framework is about ensuring that the main risk faced by investors is the investment risk they agree to take on when they signed up – not operational risk on the part of issuers. This is vital to ensuring your clients have confidence in the management of the products they are investing in.</p> <p>A key point is that the issuer/manager’s role should be clearly set out and the supervisor (the front line regulatory in this space) holds them to account for doing it.  In turn, we’ll be holding the supervisor to account for their supervision.</p> <p><strong>Implementing the current regime</strong></p> <p>Much of today has focused on the FMC Act. However we know it is only one of many changes you are absorbing. Other changes are now a reality and success in the new regulatory environment means also being able to keep abreast and on top of those changes too. I’m going to briefly examine three other recent changes in your environment.</p> <ul> <li>AML/CFT Annual Return.</li> <li>AFA Information Return.</li> <li>New Code of Conduct.</li> </ul> <p><em><strong>AML/CFT Annual Return</strong></em></p> <p>We are aware this is an area where AFA’s are currently voicing concerns. We recently published <a href="http://www.fma.govt.nz/help-me-comply/anti-money-laundering-and-countering-financing-of-terrorism-reporting-entities/annual-amlcft-reporting/frequently-asked-questions-faqs/">additional guidance</a> to help you provide the correct information when answering Question 6.1 of the annual AML/CFT report. This includes what to consider when counting the number of transactions and value of transactions.</p> <p>We acknowledge that the question in the report was open to interpretation and that there are practical difficulties in collating this information. We have actively engaged with AFA industry bodies on this issue to find a mutually acceptable solution and we acknowledge that this solution has not been supported by everyone.</p> <p>For this reporting period all we require is an estimate. We do not intend to take any action as this requirement beds in, where best efforts are being applied to comply. We accept that some advisers have genuinely had a different view on what it will be necessary to report and we have advised that we will accept this.</p> <p>Ambiguity in what the law means or how we interpret and implement is not in either your or our interests. We will seek to have the law clarified to address this. We will also seek to make allowances for AFAs to provide any required AML/CFT information within one consolidated annual return.</p> <p>Why do we need this? I think this is useful for you to think about the purpose of providing the information to FMA. AFAs are within the regime due to the business they arrange. The annual reports will help us ensure that the information we have on your business is current; allow us to better understand your business and the controls you have in place to reduce the risk of money laundering and terrorist financing occurring through your organisation; and help us determine whether a compliance review or monitoring visit to your organisation is necessary.</p> <p><em><strong>AFA Information Return</strong></em></p> <p>The <a href="http://www.fma.govt.nz/help-me-comply/financial-advisers/your-obligations/regulatory-reporting-guide/afa-information-return/?utm_medium=email&amp;utm_campaign=AFA%20Update%20-%2016%20July%202014&amp;utm_content=AFA%20Update%20-%2016%20July%202014+CID_84100f005e1af860df9e9fd4447ea8e7&amp;utm_source=FMA%20Campaign%20Monitor%20Emails&amp;utm_term=Information%20Return">Information Return</a> is the first reporting requirement contained in the <a href="http://www.fma.govt.nz/help-me-comply/financial-advisers/your-obligations/regulatory-reporting-guide/">Regulatory Reporting Guide (RRG)</a>. It is an online tool that each AFA will need to complete and submit annually to FMA. </p> <p>It consists of a series of <a href="http://www.fma.govt.nz/assets/media/101/afa-information-return-questions-final.pdf" target="_blank">questions</a> about you, your business, your compliance approach and your approach to continuing professional development. The Information Return will assist us in our risk based approach to the monitoring and surveillance of AFAs and to allocate our resources effectively.</p> <p><em><strong>New Code of Conduct</strong></em></p> <p>Finally, I want to acknowledge that advisers are also dealing with the new Code of Conduct released in March. Changes to the Code centre around the standards relating to ethical behaviour, client care, competence, knowledge and skills, and continuing professional training so it is important that you focus on these key areas.</p> <p><strong>Our expectations</strong></p> <p>I have said earlier that success to FMA is about willingly compliant participants. We are seeking to foster a culture in which market participants proactively work to set appropriate standards, put in place a robust approach to managing and monitoring compliance, and willingly share information with us, including reporting breaches.</p> <p>Our monitoring isn’t designed ‘to catch you’ out on breaches, it is a path by which we can assess whether you are meeting the required standards and if not, take steps to ensure you do. Based on this we will work with market participants to help them willingly comply by:</p> <ul> <li>Developing a framework that encourages participants to promptly report and correct errors or breaches.</li> <li>Having direct engagement with participants – through consultation programs.</li> <li>Issuing guidance, factsheets, and setting clear expectations.</li> </ul> <p>However, where the misconduct is serious, where the customers interests have clearly been put behind your own, or we see participants who ignore investor harm, then we now have substantial powers to investigate and take action. </p> <p>So, having set out our expectations – what do you have to do to meet them? What does a ‘successfully’ compliant participant look like to FMA?</p> <p>This comes back to the earlier comments I made around embedding the new approach and this can be summarised by these two key points:</p> <ul> <li>Putting interests of consumers first.</li> <li>Raising standards above minimum.</li> </ul> <p>If you do these two things then from FMA’s perspective you have done what we have asked and you have hurdled our bar.</p> <p><strong>Helping you be successful</strong></p> <p>It is important to reiterate the fact that we’re not here to work against you, in fact it’s the opposite – we’re here to help. FMA values the role of advice and the adviser industry and we will continue to emphasise the importance of advisers and the professional advice advisers provide to investors.</p> <p>You would have seen this was central to our messaging on our recent licensing of Peer-to-Peer Lending services and the recent wave of IPO’s. Our message was clear – ‘this it isn’t for everyone so go get advice to see if this type of investment is right for you’.</p> <p>We are concerned by advisers leaving the industry, and the aging adviser population and a demographic that doesn’t represent your actual potential client pool. However, I was delighted today to be approving two quite young advisers and I do hope this is part of a continuing trend. </p> <p>There must be sufficient channels for New Zealanders to get the advice they need, when they need it, on the issues they need to be advised on. The challenge for us is to ensure that the gains of regulation outweigh the costs. We need to ensure regulation does not result in poor outcomes and we don’t stand in the way of growth of your industry and access to the advice that New Zealanders need.</p> <p>We will listen when things aren’t working (as we have with DIMS) and there’ll be a chance for you all to comment on how the FAA has gone next year when it’s reviewed. Take ownership of compliance and use it as a means to build your client’s confidence and secure the future of your business.  If what we are asking you is not clear – let us know.</p> <p>We don’t get it right all the time and we won’t always agree with you, but we will listen. So pick up the phone, call me, Rob, or my team and talk to us.</p> <p>On that note, it is time for me to listen to you.</p> <p>Thank you very much.</p> <hr> http://www.fma.govt.nz/keep-updated/newsroom/media-releases/2011/warning-fma-warns-superlife-in-relation-to-kiwisaver-sales-practices Warning: FMA warns SuperLife in relation to KiwiSaver sales practices 2014-09-03 19:54:50 Financial Markets Authority <p>21 June 2011</p> <p>The Financial Markets Authority has issued a warning to SuperLife Limited and SuperLife Trustees Limited (together 'SuperLife') to overhaul its KiwiSaver sales practices.<br> <br> FMA Chief Executive Sean Hughes said FMA was seriously concerned about a number of matters regarding SuperLife's sales practices, potential non-compliance with the law and apparent poor monitoring of the activities of its sales force.<br> <br> "From 1 July, FMA will monitor compliance by KiwiSaver providers with their obligations under the Financial Advisers Act.  We will not hesitate to take enforcement action against KiwiSaver providers who fail to ensure they comply with their legal requirements." <br> <br> On 9 June 2011, FMA urged investors to be wary of unacceptable sales practices being used by unregistered KiwiSaver sales representative Patrick Diack.<br> <br> Mr Diack's sales approaches included soliciting members of the public outside WINZ offices, offering them money to join a KiwiSaver scheme and signing them up to scheme membership without providing them with the investment statement - which is the disclosure document that provides investors with the information they need to make an informed decision.<br> <br> FMA was also concerned about the distribution practices of the SuperLife KiwiSaver Scheme represented by Mr Diack.  Particular concerns related to SuperLife's apparent failure to properly train its employees and monitor their compliance with the requirements of laws including the Securities Act and Financial Service Providers (Registration and Dispute Resolution) Act.<br> <br> After ongoing discussions with SuperLife, FMA continues to be particularly concerned that SuperLife:</p> <ul> <li>failed to ensure that its employees giving advice, such as Mr Diack, are registered on the Financial Service Providers Register as required from 31 March this year</li> </ul> <ul> <li>failed to rigorously train and test its employees in relation to the requirements of law</li> </ul> <ul> <li>failed to adequately monitor its employees' performance and to performance manage any employees who fell short of the standard required.</li> </ul> <p>FMA has warned SuperLife, and now emphasises to all KiwiSaver providers that:</p> <ul> <li>door-to-door selling of securities is illegal under the Securities Act</li> </ul> <ul> <li>any form of high pressure, coercive or misleading selling is inappropriate for KiwiSaver schemes</li> </ul> <ul> <li>FMA expects that before an application for membership of a scheme is accepted, the issuer will have taken reasonable steps to satisfy itself the applicant is aware of the nature and extent of the obligations they are incurring and has made the decision freely and on a properly informed basis</li> </ul> <ul> <li>KiwiSaver providers must comply with the Financial Advisers Act and Financial Service Providers (Registration and Dispute Resolution) Act and be aware of their effect on the requirements for distribution of their products.</li> </ul> <p>FMA is further concerned that SuperLife intends to continue distributing the SuperLife KiwiSaver Scheme without ensuring its representatives are Authorised Financial Advisers or QFE advisers as required by the Financial Advisers Act. FMA understands SuperLife is doing this on the basis that its employees are providing an 'information only' service. <br> <br> Mr Hughes said that the provision of factual information may amount to financial advice depending on the context.<br> <br> "The potential investor's expectation of the service, and the context in which those services are provided, need to be carefully considered.  <br> <br> "A person gives 'financial advice' if he or she makes a recommendation or gives an opinion in relation to acquiring or disposing of a financial product. <br> <br> "This definition is very broad. While the Financial Advisers Act does contain some exemptions and exceptions, these are limited in their application and will be carefully interpreted with Parliament's intention in mind."<br> <br> "We believe it is unlikely that a person presenting the merits of a particular KiwiSaver scheme to a person, in a workplace context or otherwise, will not give financial advice in the course of his or her discussions with a prospective member."<br> <br> Mr Hughes said FMA encourages all KiwiSaver providers to ensure their sales representatives are appropriately authorised.<br> <br> Investors who want to receive advice on what type of KiwiSaver investment is right for them should ask for personalised advice from an AFA or a QFE adviser. <br> <br> Ends<br> <br> Contact: Roger Marwick 04 471 7659 or Carole van Grondelle 04 474 2066<br> <br> <br> Note: A list of AFAs and QFEs is published on the FMA website www.fma.govt.nz. Investors can also check whether a person or firm offering a financial service is registered on the Financial Service Providers Register at www.fspr.govt.nz. Investors should also refer to information in the "Help me invest" section on FMA's website.</p> http://www.fma.govt.nz/keep-updated/newsroom/afa-updates/financial-markets-authority-afa-update-issue-26 Financial Markets Authority AFA Update: Issue # 26 2014-09-03 19:49:50 Financial Markets Authority <h2>AML/CFT Reporting – clarification on Question 6.1</h2> <p>We have published <a href="http://www.fma.govt.nz/help-me-comply/anti-money-laundering-and-countering-financing-of-terrorism-reporting-entities/annual-amlcft-reporting/frequently-asked-questions-faqs/">additional guidance</a> to help you provide the correct information when answering <strong>Question 6.1</strong> of the annual AML/CFT report. This includes what to consider when the adviser business counts the number of transactions and value of transactions. We emphasise that in determining the number and value of transactions during the year you only need to provide an <strong>estimate</strong>.  Remember, you can submit your report using our <a href="http://financialmarketsauthority.cmail2.com/t/r-l-mpihld-irjdulhulh-k/">online system</a> any time from now until <strong>30 August 2014</strong>.<br><br>More information on annual AML/CFT reports can be found on our <a href="http://www.fma.govt.nz/help-me-comply/anti-money-laundering-and-countering-financing-of-terrorism-reporting-entities/annual-amlcft-reporting/how-to-get-started/">website</a> but if you have any further questions please email us at <a href="mailto:aml@fma.govt.nz">aml@fma.govt.nz</a></p> <h2>Information Return – opens on 18 August 2014</h2> <p>We can now advise that the AFA Information Return will be available on our website to complete online from Monday 18 August.<br><br>Information Returns will need to be completed and submitted online by <strong>Tuesday 30 September for the period 1 July 2013 – 30 June 2014</strong> using your ‘RealMe’ login details.<br><br><strong>Please note the Information Return is not live yet. We’ll let you know via an AFA Update when it is live and provide you with a link so you can login.</strong><br><br>The <a href="http://www.fma.govt.nz/help-me-comply/financial-advisers/your-obligations/regulatory-reporting-guide/afa-information-return/">Information Return</a> is the first reporting requirement contained in the <a href="http://www.fma.govt.nz/help-me-comply/financial-advisers/your-obligations/regulatory-reporting-guide/">Regulatory Reporting Guide (RRG)</a> and is an online tool that each AFA will need to complete and submit annually.  It consists of a series of <a href="http://www.fma.govt.nz/assets/media/101/afa-information-return-questions-final.pdf" target="_blank">questions</a> about you, your business, your compliance approach and your approach to continuing professional development. Information provided in the Information Return will assist us in our risk based approach to monitoring and surveillance of AFAs and to allocate our resources effectively.<br><br>Today we have published information on our <a href="http://www.fma.govt.nz/help-me-comply/financial-advisers/your-obligations/regulatory-reporting-guide/">website</a>, including <a href="http://www.fma.govt.nz/help-me-comply/financial-advisers/your-obligations/regulatory-reporting-guide/frequently-asked-questions/">FAQs</a>.  You will also find <a href="http://www.fma.govt.nz/assets/media/1105037/regulatory-impact-statement-regulatory-reporting-requirements-for-afas.pdf" target="_blank">further information</a> that explains our rationale behind the decision to proceed with the RRG and the Information Return.<br><br><strong>To help you get ready we recommend you:</strong></p> <ol> <li>Read the <a href="http://www.fma.govt.nz/help-me-comply/financial-advisers/your-obligations/regulatory-reporting-guide/frequently-asked-questions/">FAQs</a> about the Information Return.</li> <li>Start reviewing the <a href="http://www.fma.govt.nz/assets/media/101/afa-information-return-questions-final.pdf" target="_blank">questions</a> that relate to the financial adviser services you offer that you will need to answer.</li> <li>Start collecting that information so you can complete and submit your Information Return on time.</li> <li>Check you have your RealMe login and password and FSP number.</li> </ol> <p>If you have any questions then please check our <a href="http://www.fma.govt.nz/help-me-comply/financial-advisers/your-obligations/regulatory-reporting-guide/frequently-asked-questions/">FAQs</a> first. If your question is not covered in the <a href="http://www.fma.govt.nz/help-me-comply/financial-advisers/your-obligations/regulatory-reporting-guide/frequently-asked-questions/">FAQs</a> please email your question to <a href="mailto:questions@fma.govt.nz">questions@fma.govt.nz</a> or call us on 0800 434 567.</p> <h2>FMA Website Survey – tell us what you think</h2> <p>We are currently conducting an <a href="http://financialmarketsauthority.cmail2.com/t/r-l-mpihld-irjdulhulh-z/">online survey</a> to help us to improve the usability of our website <a href="http://financialmarketsauthority.cmail2.com/t/r-l-mpihld-irjdulhulh-v/">www.fma.govt.nz</a><br><br>There are 10 quick questions and the ability for you to add comments if you'd like to. Your responses will assist us to improve our website’s usefulness to you, your business and your industry, so if you haven’t already, please take a few minutes to <a href="http://financialmarketsauthority.cmail2.com/t/r-l-mpihld-irjdulhulh-e/">complete our survey</a>.</p> <h2>Peer-to-peer lending and crowd funding resources</h2> <p>We’ve recently published website resources to help investors understand two new investment options in New Zealand – <a href="http://www.fma.govt.nz/help-me-invest/peer-to-peer-lending/">peer-to-peer lending</a> and <a href="http://www.fma.govt.nz/help-me-invest/crowd-funding/">equity crowd funding</a>. Our resources encourage people to talk to an Authorised Financial Adviser if they would like more information about the risks of investing in these new services. If you would like to order copies of our printed brochures to help you explain them, please <a href="http://www.fma.govt.nz/about-us/contact-us/ask-a-question/ask-a-question/">contact us</a> and let us know how many you need.</p> <h2>MBIE consultation on DIMS Regulations - closes 22 July</h2> <p>The Ministry of Business, Innovation &amp; Employment (MBIE) is <a href="http://financialmarketsauthority.cmail2.com/t/r-l-mpihld-irjdulhulh-yd/">consulting on the core content of the service disclosure statement and reporting obligations for DIMS providers</a>.  It also contains the proposed transitional provisions and other exemptions from DIMS licensing.  It’s especially relevant to anyone who intends to obtain a licence under the Financial Markets Conduct Act 2013 and AFAs who propose to provide personalised DIMS under the Financial Advisers Act 2008.  The <a href="http://financialmarketsauthority.cmail2.com/t/r-l-mpihld-irjdulhulh-yh/">consultation</a><strong> closes on Tuesday 22 July </strong>and we encourage submissions from any interested parties.</p> <hr> http://www.fma.govt.nz/keep-updated/newsroom/subscribe-to-continue-to-receive-updates Subscribe to continue to receive Updates 2014-09-03 19:49:21 Financial Markets Authority <p>The Financial Markets Authority (FMA) is the new Crown entity that has taken over the functions of the Securities Commission and the Government Actuary, and consolidates other regulatory functions from the Ministry of Economic Development. Visit <a href="http://www.fma.govt.nz/">www.fma.govt.nz</a> for more details.</p> <p>You are receiving this email because you were previously subscribed to email alerts from the Securities Commission.</p> <p>To continue to receive updates from FMA you will need to complete our subscribe form which can be found <a href="http://www.fma.govt.nz/keep-updated/subscribe-to-updates/">here</a>.</p> <p>If you do not wish to receive further updates from FMA then do nothing and you will automatically be removed from our update list.</p> http://www.fma.govt.nz/keep-updated/newsroom/releases-from-the-old-securities-commission/2011/joint-news-release-guide-for-trans-tasman-mutual-recognition-of-securities-offerings-updated Joint News Release: Guide for Trans-Tasman Mutual Recognition of Securities Offerings Updated 2014-09-03 19:43:56 Financial Markets Authority <p class="date"><img title="" src="http://www.fma.govt.nz/assets/Uploads/logo-secc-2010.gif" alt="" width="331" height="43"><img title="" src="http://www.fma.govt.nz/assets/Uploads/logo-asic.gif" alt="" width="234" height="136"></p> <p class="date">17 March 2011</p> <p>The Australian Securities and Investments Commission (ASIC) and New Zealand Securities Commission have jointly published updated guidance for Australian and New Zealand issuers offering shares, debentures or interests in managed or collective investment schemes in both countries. The guide explains the requirements under the mutual recognition of securities offerings scheme (MRSO) and the role the regulators play in relation to an offer..</p> <p>The guide also alerts issuers to the specific sections of Australian and New Zealand law that will continue to apply when offers are made under the MRSO, such as the prohibition of door-to-door selling in New Zealand and the securities hawking laws in Australia.</p> <p>Many of the updates are based on feedback received from the market and are aimed at assisting issuers using the scheme. Key updates provide:</p> <ul> <li>more detailed guidance by inserting references to underlying statutory requirements;</li> <li>information relating to relevant forms and lodgement processes;</li> <li>comment on the applicability of dispute resolution schemes;</li> <li>reference to certain relief powers that enable each regulator to declare a recognised offer where certain requirements are not met by issuers; and</li> <li>more guidance on the offers that can be recognised under the scheme where the issuer or offer has obtained relief in its home jurisdiction.</li> </ul> <p><a href="http://www.fma.govt.nz/keep-updated/reports-and-papers/offering-securities-in-new-zealand-and-australia-under-mutual-recognition">The guide is available</a><a title="Offering Securities in New Zealand and Australia under Mutual Recognition" href="http://www.fma.govt.nz/keep-updated/reports-and-papers/offering-securities-in-new-zealand-and-australia-under-mutual-recognition/"></a> on the Securities Commission's website (http://www.seccom.govt.nz/publications/documents/nz-aus/index.shtml) and on ASIC's website at <a title="www.asic.gov.au" href="http://www.asic.gov.au">www.asic.gov.au</a>.</p> <p><strong>Background</strong></p> <p>The MRSO enables issuers of securities to use one disclosure document to offer shares, debentures, or managed or collective investment schemes to investors on both sides of the Tasman, subject to meeting certain requirements. The scheme has proven to bring significant cost savings for issuers offering securities and also benefits investors by providing them with a wider range of investments. The scheme was first introduced in June 2008 as a significant step towards achieving a single economic market..</p> <p>Ends</p> <p>Contacts:</p> <table> <tbody> <tr> <td><strong>New Zealand</strong> <br> Roger Marwick<br> Securities Commission<br> Ph +64 4 471 7659 or +64 21 0204 7775</td> <td><strong>Australia</strong><br> ASIC Media Unit<br><a href="mailto:media.unit@asic.gov.au">media.unit@asic.gov.au</a> <br> Ph: 1300 208 215 or +61 3 9280 4455</td> </tr> </tbody> </table> <hr> http://www.fma.govt.nz/laws-we-enforce/enforcement/orders-reports-and-outcomes/nuplex-settlement-agreement Nuplex Settlement Agreement 2014-09-03 19:41:10 Financial Markets Authority http://www.fma.govt.nz/keep-updated/newsroom/fma-update-31-july-2014 FMA Update - 31 July 2014 2014-09-03 19:38:03 Financial Markets Authority <h2>'FMC Act into action' event</h2> <p><strong>FMA, in partnership with INFINZ and supported by NZFMA, will be holding an ‘FMC Act into action’ event.</strong></p> <p>Sessions will be held in Auckland on Tuesday 12 August and Wellington on Thursday 21 August, to help market participants understand what the Financial Markets Conduct Act 2013 means for their business.  Each session will break into two facilitated groups and attendees can join a session for issuers of debt and equity or issuers of derivatives.</p> <p>Directors, managers, line staff, legal investment bankers and advisers, and compliance professionals in corporates and banks issuing securities or offering derivative products will have the opportunity to ask questions of FMA representatives.  Attendees will qualify for two CPD hours.</p> <p>Further details on these sessions can be found <a href="http://www.infinz.com/Site/Events_and_Awards/Current/FMC_Act_into_Action.aspx" target="_blank">here</a>.</p> <p><strong>To register </strong>contact Iona Gibbs on <a href="mailto:admin@infinz.com" target="_blank">admin@infinz.com</a></p> <h2>Governance consultation paper</h2> <p>Thanks to everyone who provided feedback on this consultation paper.  We received 10 formal submissions on <a href="http://www.fma.govt.nz/laws-we-enforce/policy/closed-consultations/consultation-paper-the-new-accountability-framework-governance-under-part-4-of-the-fmc-act">the new accountability framework – Governance under Part 4 of the FMC Act.</a></p> <p>While some submitters expressed a view that FMA should be more involved in certain aspects of governance, others expressed the opposite view. Non-bank deposit takers were interested in the interaction between FMA and RBNZ and the implications from this interaction.  A number of submitters also raised issues around SIPOs and pricing errors.</p> <p>FMA will take these submissions into account as we finalise our Governance Guidance Note and we’ll be releasing a consultation paper soon with further detail on SIPOs and pricing errors.</p> <h2>Do you need a derivative issuer licence?</h2> <p>After 1 December 2014, only those who hold a new or transitional derivative issuer licence will be able to make regulated offers of derivatives (e.g. futures including future dated foreign exchange deals, forwards and options to retail clients).<br> FMA has published a flow chart to help derivatives issuers determine what they need and when. We’ve also introduced a processing deadline of 1 October 2014, for those who need a <a href="http://www.fma.govt.nz/assets/media/1054639/do-you-need-a-derivative-issuer-licence-from-1-december-2014.pdf" target="_blank">1 December derivative issuer licence</a>.</p> <h2>First crowd funding licences issued</h2> <p>The first equity crowd funding licences were issued today under the Financial Markets Conduct Act 2013. PledgeMe and Snowball Effect are New Zealand’s very first licensed providers of this new financial service. Read more <a href="http://www.fma.govt.nz/keep-updated/newsroom/media-releases/2014/fma-issues-first-equity-crowd-funding-licences">here.</a></p> <h2>New brochures on crowd funding and peer-to-peer lending</h2> <p>If you haven’t already read our new brochures on crowd funding and peer-to-peer lending, check them out here. Printed copies are available on request by emailing <a href="mailto:questions@fma.govt.nz" target="_blank">questions@fma.govt.nz</a></p> <h2>AFAs due to complete first AFA Information Return</h2> <p>Authorised Financial Advisers (AFAs) will soon be required to complete their first annual AFA Information Return as part of their reporting requirements. This information will assist us in our risk based approach to monitoring and allow us to allocate our resources more effectively. The AFA Information Return will open shortly and all AFAs will need to complete and submit theirs online, no later than Tuesday, 30 September. To find out more about the AFA Information Return, including key dates and what questions will b