Financial Markets Authority Financial Markets Authority http://www.fma.govt.nz 2015-03-05 16:00:43 http://www.fma.govt.nz/help-me-invest/kiwisaver/compare-kiwisaver-information/ Compare KiwiSaver information 2015-03-05 16:00:43 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/KiwiSaver-Consolidated-Data-files/fma-kds-web-quarterly-20130930-September-2013.xlsb" target="_blank">30 September 2013</a></p> <p><strong>Last updated 05/03/15</strong></p> </td> </tr> <tr> <td colspan="4"> <p class="AgendaHeadingLevel1" align="left"><a href="http://www.fma.govt.nz/assets/KiwiSaver-Consolidated-Data-files/fma-kds-web-quarterly-20131231-december-2013.xlsb" target="_blank">December 2013</a></p> <p class="AgendaHeadingLevel1" align="left"><strong>Last updated <strong>05/03/15</strong></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/KiwiSaver-Consolidated-Data-files/FMA-KDS-WEB-Quarterly-20140331-March-2014.xlsb" target="_blank">March 2014</a></p> <p><strong>Last updated <strong>05/03/15</strong></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 <strong>05/03/15</strong></strong></p> </td> </tr> <tr> <td> <p><a title="FMA KDS WEB Quaterly 20140930 September 2014" href="http://www.fma.govt.nz/assets/KiwiSaver-Consolidated-Data-files/FMA-KDS-WEB-Quarterly-20140930-September-2014.xlsb" target="_blank">September 2014</a></p> <p><strong>Last updated <strong>05/03/15</strong></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 <strong>05/03/15</strong></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/registers/list-of-licensed-derivatives-issuers/ List of Licensed Derivatives Issuers 2015-03-05 15:18:28 Financial Markets Authority <p>The Financial Markets Authority has issued new derivatives issuer licences and some former futures dealers are now treated as holding a transitional derivatives issuer licence.</p> <p>Until 28 February 2015, the requirement to be licensed does not apply to entities that have applied for a derivatives issuer licence until a decision has been made on the application. If a derivatives issuer you are dealing with is not licensed you may wish to confirm whether or not they have applied for a licence and ask them to advise you of the outcome of that application in due course.</p> <h3><strong>New derivatives issuer licences</strong></h3> <table> <tbody> <tr> <td> <h3>FSP No.</h3> </td> <td> <h3>Company Name</h3> </td> <td> <h3>Trading Name</h3> </td> <td> <h3>Authorised body*</h3> </td> </tr> <tr> <td>FSP13823</td> <td>Tuatara Management Limited</td> <td> </td> <td> </td> </tr> <tr> <td>FSP43662</td> <td>Centurion Finance Limited</td> <td>Fx International Payments, American Express</td> <td> </td> </tr> <tr> <td>FSP16781</td> <td>Direct FX Limited</td> <td> </td> <td> </td> </tr> <tr> <td>FSP4041</td> <td>Forex Limited</td> <td>Forex Limited</td> <td> </td> </tr> <tr> <td>FSP41187</td> <td>CMC Markets NZ Limited</td> <td> </td> <td> </td> </tr> <tr> <td>FSP197465</td> <td>MahiFX Limited</td> <td>MFX Compass, MahiFX</td> <td> </td> </tr> <tr> <td>FSP168204</td> <td>Western Union Business Solutions (Australia) Pty Ltd</td> <td>Western Union Business Solutions</td> <td> </td> </tr> <tr> <td><span>FSP18923</span></td> <td><span>IG Markets Limited</span></td> <td><span>IG, IG Markets</span></td> <td> </td> </tr> <tr> <td><span>FSP28944</span></td> <td><span>Pacific Financial Derivatives Limited</span></td> <td><span>PFD-NZ</span></td> <td> </td> </tr> </tbody> </table> <p>*An authorised body is a related body corporate that has been authorised by FMA to provide a service covered by the licence.</p> <p>You can find out further details including the licensee’s business address, name of their independent dispute resolution scheme and the conditions that their licence is subject to on the <a href="http://www.fspr.govt.nz/">Financial Service Providers Register</a>.</p> <h3>Transitional derivatives issuer licences</h3> <p>The entities listed below are treated as holding a derivatives issuer licence (a transitional derivatives issuer licence) in accordance with clause 45 of schedule 4 to the Financial Markets Conduct Act 2013 (‘FMC Act’) as they were authorised or approved to carry on the business of dealing in futures contracts under the Securities Markets Act 1988 immediately before 1 December 2014 and are required to hold a licence under the FMC Act.</p> <p>Transitional derivatives issuer licences are valid until 30 November 2016 (unless cancelled earlier). Transitional licence holders are licensed to deal in futures contracts on the same terms as their futures dealer authorisation (unless the conditions of their licence have been varied by the FMA). The Registered Banks listed below however are licensed to issue all derivatives.</p> <p>For the purposes of the Financial Service Providers Register, entities with a transitional derivatives issuer licence will be treated as providers of a ‘licensed market service’. See more about licensed market services on the <a href="http://www.business.govt.nz/fsp/about-the-fspr/licensed-services/licensed-market-services">Companies Office website</a>.</p> <table> <tbody> <tr> <td> <h3>FSP No.</h3> </td> <td> <h3>Company Name</h3> </td> <td> <h3>Previous Authorisation/Approval</h3> </td> </tr> <tr> <td>FSP94961</td> <td>HiFX Limited</td> <td>Authorised Futures Dealers (HiFX Limited) Notice 2013</td> </tr> <tr> <td>FSP1762</td> <td>KVB Kunlun New Zealand Limited</td> <td>Authorised Futures Dealers (KVB Kunlun New Zealand Limited) Notice 2013</td> </tr> <tr> <td>FSP365766</td> <td>Union Standard International Group Pty Limited</td> <td>Authorised Futures Dealers (Union Standard Group Limited) Notice 2014</td> </tr> <tr> <td> </td> <td>iPredict Limited</td> <td>Authorised Futures Dealers (iPredict Limited) Notice 2011</td> </tr> </tbody> </table> <p><strong>The following NZX participants are treated as holding a derivatives issuer licence:</strong></p> <table> <tbody> <tr> <td> <h3>FSP No.</h3> </td> <td> <h3>Company Name</h3> </td> <td> <h3>Previous Authorisation/Approval</h3> </td> </tr> <tr> <td>FSP15922 </td> <td>OM Financial Limited</td> <td>Approved by NZX, an authorised futures exchange, to carry on the business of dealing in futures contracts in accordance with the rules of the exchange (see Authorised Futures Exchange (NZX Limited) Notice 2012)</td> </tr> </tbody> </table> <p><strong>The following Registered Banks are treated as holding a derivatives issuer licence:</strong></p> <table> <tbody> <tr> <td> <h3>FSP No.</h3> </td> <td> <h3>Company Name</h3> </td> <td> <h3>Previous Authorisation/Approval</h3> </td> </tr> <tr> <td>FSP29003</td> <td> <p>ASB Bank Limited</p> </td> <td>Authorised Futures Dealers Notice (Registered Banks Futures Contracts) 2012</td> </tr> <tr> <td>FSP36250</td> <td>Westpac Banking Corporation</td> <td>Authorised Futures Dealers Notice (Registered Banks Futures Contracts) 2012</td> </tr> <tr> <td>FSP22621</td> <td>TSB Bank Limited</td> <td>Authorised Futures Dealers Notice (Registered Banks Futures Contracts) 2012</td> </tr> <tr> <td>FSP19941</td> <td>Kiwibank Limited</td> <td>Authorised Futures Dealers Notice (Registered Banks Futures Contracts) 2012</td> </tr> <tr> <td>FSP25101</td> <td>Bank of New Zealand</td> <td>Authorised Futures Dealers Notice (Registered Banks Futures Contracts) 2012</td> </tr> <tr> <td>FSP36405</td> <td>ANZ Bank New Zealand Limited</td> <td>Authorised Futures Dealers Notice (Registered Banks Futures Contracts) 2012</td> </tr> <tr> <td>FSP14181</td> <td>The Bank of Tokyo - Mitsubishi UFJ Limited</td> <td>Authorised Futures Dealers Notice (Registered Banks Futures Contracts) 2012</td> </tr> </tbody> </table> http://www.fma.govt.nz/laws-we-enforce/policy/closed-consultations/guidance-note-disclosing-non-gaap-financial-information Guidance Note: Disclosing non-GAAP financial information 2015-03-03 16:50:30 Financial Markets Authority <table> <tbody> <tr> <td> <p><b>Update: Financial Markets Conduct Act</b></p> <p><b>3 March 2015</b></p> <p>This guidance note Disclosing Non-GAAP financial information was published in September 2012 in relation to issuers and securities governed by the Securities Act 1978 and the Securities Markets Act 1988.</p> <p>The Financial Markets Conduct Act 2013 (the FMC Act) is now effective and contains transitional provisions allowing some offers of securities to continue to be made under the Securities Act 1978 Act up to 30 November 2016.  This guidance does not currently address the FMC Act requirements, but may still be useful to issuers making offers under the Securities Act 1978 pursuant to the transitional provisions in the FMC Act.</p> <p>For offers made under the new FMC Act regime the Financial Markets Conduct Regulations 2014 set out specific requirements that apply to issuers presenting non-GAAP financial information in offer documents.  These requirements will help to set new standards in relation to clear, concise and effective disclosure of financial information.</p> <p>We will continue to monitor whether there is a need for separate guidance on disclosure of non-GAAP financial information under the FMC Act and we encourage issuers to engage directly with us if they have any concerns about producing financial information for offers under the new FMC Act. For further information on how you can engage directly with us see <a href="http://www.fma.govt.nz/help-me-comply/new-offers-under-fmc-act/pre-registration-reviews/">here</a>.</p> </td> </tr> </tbody> </table> <p>This guidance note is intended for issuers, their directors and preparers of financial information. It sets out the Financial Market Authority's (FMA) expectations on the use of financial information in corporate documents, such as transaction documents and market communications, where that financial information is not presented in accordance with generally accepted accounting practice (GAAP) or is presented as an alternative to the statutory profit. We describe this as non-GAAP financial information.</p> <div id="content-area"> <p>This guidance note does not replace GAAP or the law.  Disclosure of financial information that does not follow this guidance note will not necessarily breach the law.  However, in our view, following this guidance note will increase the likelihood of compliance with regulatory requirements.  FMA will assess non-GAAP financial information disclosures against this guidance from 1 January 2013.</p> <p>The examples we use in this guidance note are for illustration only.  The examples are not exhaustive and do not impose or imply particular rules or requirements.</p> <p>Every issuer must comply with all regulatory requirements for financial reporting.  We do not repeat all regulatory requirements in this guidance note, although we refer to some where this is appropriate.</p> <p>This guidance note does not constitute legal advice. We encourage you to seek your own professional advice to find out how any applicable laws apply to you, as it is your responsibility to determine your obligations.</p> <p>This guidance note is based on regulatory requirements as at September 2012.</p> <div id="file-attachments"> <h2>File Attachments</h2> <ul> <li><a href="http://www.fma.govt.nz/assets/media/100/guidance-note-disclosing-non-gaap-financial-information.pdf" target="_blank">Guidance Note - Disclosing non-GAAP financial information (512 kB pdf)</a></li> <li><a href="http://www.fma.govt.nz/assets/media/100/response-to-submissions.pdf" target="_blank">Response_to_Submissions (417 kB pdf)</a></li> </ul> </div> </div> http://www.fma.govt.nz/help-me-comply/issuers/guidance-notes-and-reports/guidance-note-disclosing-non-gaap-financial-information/ Guidance Note: Disclosing non-GAAP financial information 2015-03-03 16:47:59 Financial Markets Authority <table> <tbody> <tr> <td> <p><b>Update: Financial Markets Conduct Act</b></p> <p><b>3 March 2015</b></p> <p>This guidance note Disclosing Non-GAAP financial information was published in September 2012 in relation to issuers and securities governed by the Securities Act 1978 and the Securities Markets Act 1988.</p> <p>The Financial Markets Conduct Act 2013 (the FMC Act) is now effective and contains transitional provisions allowing some offers of securities to continue to be made under the Securities Act 1978 Act up to 30 November 2016.  This guidance does not currently address the FMC Act requirements, but may still be useful to issuers making offers under the Securities Act 1978 pursuant to the transitional provisions in the FMC Act.</p> <p>For offers made under the new FMC Act regime the Financial Markets Conduct Regulations 2014 set out specific requirements that apply to issuers presenting non-GAAP financial information in offer documents.  These requirements will help to set new standards in relation to clear, concise and effective disclosure of financial information.</p> <p>We will continue to monitor whether there is a need for separate guidance on disclosure of non-GAAP financial information under the FMC Act and we encourage issuers to engage directly with us if they have any concerns about producing financial information for offers under the new FMC Act. For further information on how you can engage directly with us see <a href="http://www.fma.govt.nz/help-me-comply/new-offers-under-fmc-act/pre-registration-reviews/">here</a>.</p> </td> </tr> </tbody> </table> http://www.fma.govt.nz/keep-updated/newsroom/fma-updates/fma-update-25-february-2015 FMA Update - 25 February 2015 2015-03-03 12:25:23 Financial Markets Authority <h2><b>Consultation Paper - Proposed additional standard conditions for Authorised Financial Advisers - closes Friday 27 February</b></h2> <p>In November 2014 we consulted on additional standard conditions for Authorised Financial Advisers (AFAs) providing personalised DIMS.<br> <br> Following feedback received we have further amended the proposed conditions, which require further consultation.<br> <br> The main amendment is the removal of the mandatory audit requirement of the net tangible assets calculation for all AFA’s providing personalised DIMS.  The new proposed additional standard condition will only require AFAs providing personalised DIMS to have their net tangible asset calculations audited upon request of the FMA.<br> <br> <a href="http://financialmarketsauthority.cmail1.com/t/r-l-qtlauy-wbtdddg-i/">See the consultation paper here</a>.<br> <br> Submissions close 5pm, Friday 27 February 2015.</p> <h2><b>Governance information sheets</b></h2> <p>The FMA has released 4 new information sheets summarising key accountabilities and responsibilities, under the FMC Act, for the following areas:</p> <ul> <li><a href="http://financialmarketsauthority.cmail1.com/t/r-l-qtlauy-wbtdddg-d/">FMA certification process for the registration of new KiwiSaver, superannuation and workplace savings schemes</a>: Details the process for getting a certificate from the FMA to apply for registration of a new KiwiSaver, superannuation or workplace savings scheme.</li> <li><a href="http://financialmarketsauthority.cmail1.com/t/r-l-qtlauy-wbtdddg-h/">Custodians of managed investment schemes</a>:  Outlines the duties and responsibilities for custodians of registered managed investment schemes.</li> <li><a href="http://financialmarketsauthority.cmail1.com/t/r-l-qtlauy-wbtdddg-k/">Related-party transactions</a>: Discusses the rules on related-party transactions that apply to managed investment schemes.</li> <li><a href="http://financialmarketsauthority.cmail1.com/t/r-l-qtlauy-wbtdddg-u/">Reporting SIPO limit breaks</a>: Details the reporting obligations of a managed investment scheme manager if there has been a limit break under its Statement of Investment Policy and Objectives (SIPO).</li> </ul> <p>Soon we will also be publishing a information sheet about Issuers’ Registers of Regulated Products and the FMA’s Discretion under Section 224 so please check our <a href="http://financialmarketsauthority.cmail1.com/t/r-l-qtlauy-wbtdddg-o/">website</a> in the coming week. This information sheet outlines the requirements relating to issuers’ registers of regulated products under Subpart 4 of Part 4 of the FMC Act.</p> <h2><b>Non-filing of financial statements</b></h2> <p>In July 2014 the FMA published a <a href="http://financialmarketsauthority.cmail1.com/t/r-l-qtlauy-wbtdddg-b/">report</a> on its review of non-filing of financial statements from a sample of 416 limited liability companies that issued securities to the public with 31 March 2013 balance dates.<br> <br> That report found 73 per cent of entities filed their financial statements before the statutory due date, whilst a total of 43 entities had financial statements outstanding after the reminder notice deadline, which triggered further action by the FMA.<br> <br> A follow up report published on Friday 13 February 2015, shows the proportion of companies filing their financial statements on time has improved significantly and no new companies have been pinpointed for enforcement action for non-filing in 2014.<br> <br> <a href="http://financialmarketsauthority.cmail1.com/t/r-l-qtlauy-wbtdddg-n/">Read the latest non-filing of financial statements report here</a>.</p> <h2><b>Need help to work out your FMC balance date?</b></h2> <p>To help issuers meet their financial reporting filing obligations, the FMA has launched an <a href="http://financialmarketsauthority.cmail1.com/t/r-l-qtlauy-wbtdddg-p/">online tool</a> to help work out your FMC balance date.<br> <br> It is important reporting entities identify their balance date early so they can plan ahead to meet the shorter filing timeframes.<br> <br> Please note, when answering question 1 – a “regulated offer” is defined as “an offer of financial products to one or more investors where the offer to at least one of those investors requires disclosure under the provisions of Part 3 of the FMC Act – this usually means providing a product disclosure statement. For the legal definition see section 41 of the <a href="http://financialmarketsauthority.cmail1.com/t/r-l-qtlauy-wbtdddg-x/">FMC Act</a>.  Our <a href="http://financialmarketsauthority.cmail1.com/t/r-l-qtlauy-wbtdddg-m/">offer information page </a>summarises the disclosure required for regulated offers. Please note, if a <a href="http://financialmarketsauthority.cmail1.com/t/r-l-qtlauy-wbtdddg-c/">Schedule 1 exclusion</a> applies to all investors, then it’s not a regulated offer.<br> <br> <a href="http://financialmarketsauthority.cmail1.com/t/r-l-qtlauy-wbtdddg-q/">Check the online balance date tool here</a>.</p> <h2><b>Guidance note and response to submissions on the content and form of Disclose register information </b></h2> <p>The FMA has published a response to the submissions received from the recent ‘<a href="http://financialmarketsauthority.cmail1.com/t/r-l-qtlauy-wbtdddg-a/">Consultation Paper: Content and form of Disclose register information</a>’. We received 6 submissions in total and have published a summary of the key themes in our response, which you can read <a href="http://financialmarketsauthority.cmail1.com/t/r-l-qtlauy-wbtdddg-f/">here</a>.<br> <br> Those submissions have now been considered and integrated into a <a href="http://financialmarketsauthority.cmail1.com/t/r-l-qtlauy-wbtdddg-z/">guidance note</a>.<br> <br> The purpose of this guidance is to encourage issuers and their advisers to think about the content and form of their Disclose register entries.  It does not prescribe a single ‘best practice’ approach to register entries but rather encourages issuers and their advisers to use the flexibility in the FMC Act regime to develop appropriate market solutions.<br> <br> <a href="http://financialmarketsauthority.cmail1.com/t/r-l-qtlauy-wbtdddg-v/">You can read the guidance note here</a>.</p> <h2><b>AML/CFT Audit - getting yours underway</b></h2> <p>For most businesses that are reporting entities for Anti-Money Laundering and Countering Financing of Terrorism (AML/CFT), you must ensure your AML/CFT Audit is completed by <strong>29 June 2015</strong>.<br> <br> For most businesses this will be the first AML/CFT Audit to complete so we recommend starting early.  To help ensure you complete yours on time we have published information on our <a href="http://financialmarketsauthority.cmail1.com/t/r-l-qtlauy-wbtdddg-e/">website, including how to get started, guidelines and FAQs</a> that detail specific information on what is necessary to complete your audit.<br> <br> If you have any questions, please check our <a href="http://financialmarketsauthority.cmail1.com/t/r-l-qtlauy-wbtdddg-s/">FAQs</a> first. If your question is not covered there, you can contact us at <a href="mailto:aml@fma.govt.nz">aml@fma.govt.nz</a> for general AML/CFT queries. For any specific legal enquiries please consult your legal adviser.</p> <h2><b>Going Public - a director’s guide</b></h2> <p>We have also published a new handbook: <a href="http://financialmarketsauthority.cmail1.com/t/r-l-qtlauy-wbtdddg-g/">Going Public – a director’s guide</a>, following a recent consultation process. We received 6 written submissions which have been considered and integrated into the final handbook. They are summarised <a href="http://financialmarketsauthority.cmail1.com/t/r-l-qtlauy-wbtdddg-w/">here</a>.<br> <br> The handbook is intended to help directors assess whether going public is the right choice for their company and to provide an insight into the process of becoming a public company.  It should be read alongside the handbook <a href="http://financialmarketsauthority.cmail1.com/t/r-l-qtlauy-wbtdddg-yd/">Corporate Governance in New Zealand: Principles and Guidelines</a> which is a resource for directors, executives and advisers to help them understand what is expected of them more generally in their governance roles.<br> <br> Governance and culture has been identified as one of our strategic priorities that will guide our work over the coming 3 years.</p> <h2><b>FMA Media releases – over the last 2 months</b></h2> <ul> <li>17 February 2015 - <a href="http://financialmarketsauthority.cmail1.com/t/r-l-qtlauy-wbtdddg-yh/">FMA settlement reached over Westpac rural interest rate swaps</a></li> <li>13 February 2015 - <a href="http://financialmarketsauthority.cmail1.com/t/r-l-qtlauy-wbtdddg-yk/">Action against non-filing of financial statements pays off</a></li> <li>28 January 2015 - <a href="http://financialmarketsauthority.cmail1.com/t/r-l-qtlauy-wbtdddg-yu/">FMA and NZX sign Memorandum of Understanding</a></li> <li>23 January 2015 - <a href="http://financialmarketsauthority.cmail1.com/t/r-l-qtlauy-wbtdddg-jl/">FMA warns individual trader over online market manipulation</a></li> <li>1 December 2014 - <a href="http://financialmarketsauthority.cmail1.com/t/r-l-qtlauy-wbtdddg-jr/">Previous FMA Update</a></li> </ul> <h3><b>Questions?</b></h3> <p>For enquiries about any of these topics please 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/2015/fma-welcomes-opportunity-to-review-financial-advice-laws FMA welcomes opportunity to review financial advice laws 2015-03-03 11:15:08 Financial Markets Authority <p><b>Media Release<br> MR No. 2015 – 06<br> 3 March 2015</b></p> <p>The Financial Markets Authority (FMA) welcomes today’s announcement by the Minister of Commerce and Consumer Affairs, Paul Goldsmith, about the review of legislation governing financial advisers.</p> <p>The Minister today released the terms of reference for the review of the Financial Advisers Act 2008 (FA Act) and the Financial Service Providers (Registration and Dispute Resolution) Act 2008 (FSP Act).</p> <p>The release of the terms of reference signals the start of an eighteen-month review process.</p> <p>The results of this review will provide recommendations on how these two pieces of legislation could be improved. The Minister has asked for the views of the finance industry, consumers and stakeholders to ensure the review includes feedback from the widest possible range of voices.</p> <p>Mr Goldsmith said in a statement that: “it is important that we have the best regulatory system in place, one that facilitates quality financial advice and promotes confident and informed participation of businesses, investors, and consumers.”</p> <p>The FA Act is subject to a statutory review within five years of its implementation - that means the findings of the review must be reported back to the Minister by July 2016.</p> <p>The FMA is the regulator for financial advice and the sale of financial products, so the review of the laws in this area is of significant interest to the FMA’s strategic priorities.</p> <p>Liam Mason, FMA’s General Counsel, said the review of the financial advice laws provides an opportunity to find out what is working well in practice and identify areas that could work better for consumers and advisers.</p> <p>“This is a chance to examine whether the current regulation is delivering the right outcomes for New Zealanders. We want to find ways of ensuring that regulation in this area can adapt to the changing ways that consumers and investors access information and advice to help them make decisions about financial products,” said Mr Mason.</p> <p>The consultation process will start in May with the release of a discussion document.</p> <p>For more information and to view the terms of reference visit: <a href="http://www.mbie.govt.nz/what-we-do/review-of-financial-advisers-act-2008">http://www.mbie.govt.nz/what-we-do/review-of-financial-advisers-act-2008</a></p> <p><b>ENDS</b></p> <p><strong>Contact:</strong><b><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><b> </b></p> http://www.fma.govt.nz/keep-updated/newsroom/releases-from-the-minister-of-commerce/2015/review-of-financial-advice-laws-to-commence Review of financial advice laws to commence 2015-03-03 10:56:25 Financial Markets Authority <p><span><strong>Hon Paul Goldsmith</strong><br>3 March, 2015</span></p> <p>Commerce and Consumer Affairs Minister Paul Goldsmith today released the terms of reference for a review of the legislation governing how financial advice is provided.</p> <p>“We are starting an 18 month process to reach recommendations on how the Financial Advisers Act and the Financial Service Providers Act may be improved,” Mr Goldsmith says.</p> <p>“The review will be comprehensive and focused on whether the benefits of the regime outweigh the costs.</p> <p>“It is important that we have the best regulatory system in place, one that provides access to quality financial advice and promotes confident and informed participation of businesses, investors, and consumers.</p> <p>“We want to hear from the finance sector and consumers on how the legislation which has been in place since 2011 are working. It’s important that Government understands the industry’s perspective along with the needs and expectations of consumers when seeking financial advice.</p> <p>“I strongly encourage all those who are interested to participate in the review and submit on the public consultation documents when they are available.</p> <p>“These pieces of legislation are both integral to the effective functioning of New Zealand’s capital markets, one of the Government’s Business Growth Agenda goals,” Mr Goldsmith says</p> <p>The consultation process will start in May with the release of a discussion document.</p> <p>For more information and to view the Terms of Reference visit: <a href="http://www.mbie.govt.nz/what-we-do/review-of-financial-advisers-act-2008">www.mbie.govt.nz/what-we-do/review-of-financial-advisers-act-2008</a></p> <p><b>Media contact: Cameron Gray 04 817 8392 &amp; 021 763 970</b></p> http://www.fma.govt.nz/keep-updated/newsroom/releases-from-the-minister-of-commerce/2015/ 2015 2015-03-03 10:20:58 Financial Markets Authority http://www.fma.govt.nz/keep-updated/newsroom/releases-from-the-minister-of-commerce/2014/ 2014 2015-03-03 10:20:08 Financial Markets Authority http://www.fma.govt.nz/keep-updated/newsroom/releases-from-the-minister-of-commerce/2013/ 2013 2015-03-03 10:19:54 Financial Markets Authority http://www.fma.govt.nz/keep-updated/newsroom/releases-from-the-minister-of-commerce/2012/ 2012 2015-03-03 10:19:40 Financial Markets Authority http://www.fma.govt.nz/keep-updated/newsroom/releases-from-the-minister-of-commerce/2014/commencement-of-the-financial-markets-conduct-act Commencement of the Financial Markets Conduct Act 2015-03-03 10:19:11 Financial Markets Authority <div class="header"> <p><strong>Paul Goldsmith</strong><br>1 December, 2014</p> </div> <div class="content"> <p>Good evening,</p> <p>Thank you all for coming along to mark this important day for New Zealand’s financial markets.</p> <p>I want to start by welcoming Murray Jack to the role of chair of the FMA in this important period as it implements the second phase of the FMC Act regulations.</p> <p>And I’d like to thank out-going FMA chair, Simon Allen, for your contribution and commitment over the establishment period. You led a great team effort.</p> <p>So here we are, five years after Rob Cameron’s taskforce reported, at the moment when the final tranche of the massive changes to our legislative and regulatory framework for financial markets take effect.</p> <p>I know the changes wrought by the Financial Markets Conduct Act have meant a huge amount of work and cost for many in this room – some of you will happy about that, some less so.</p> <p>And we’ve only just begun. The next two years as we transition into full operation will be busy.</p> <p>So it’s worth reminding ourselves why we went to all this trouble?</p> <p>Fundamentally, these reforms have been about two things - increasing investor confidence and improving access to capital for businesses to grow.</p> <p>Together they’re important strands of the Government’s Business Growth Agenda, which seeks to increase New Zealand’s international competitiveness.</p> <p>You will recall the Cameron Taskforce’s key recommendations were law changes to improve the quality of disclosure to investors; to strengthen the governance of financial products; and to better enable innovative and flexible methods of capital raising.</p> <p>As the new Minister I feel like I’m coming on to the field a couple of minutes before the full-time whistle. So I want to acknowledge the efforts of my political fore-runners, Ministers Lianne Dalziel, Simon Power and Craig Foss.</p> <p>I’ve spent to past six weeks talking to as many participants in the markets as I could, and the feedback I’ve been getting has been broadly positive, that we’ve landed in a good space.</p> <p>What gives me most confidence is the tales I’ve heard of the extensive engagement across the board between officials at MBIE, the FMA, other agencies and the market participants.</p> <p>We’ll be hearing later from Jim McElwain of INFINZ, whose team has made a great contribution, as has so many other individuals and companies.</p> <p>So I want start by thanking everybody, inside and outside of government, who has contributed.</p> <p>Consultation with government is often thankless and tedious work – and a time-consuming distraction from your everyday business pressures, but done well it can make a great difference.</p> <p>That fact that we can engage so fully with active market players in the development of legislation and regulation is a function of our small size and intimacy as a nation. It is one of New Zealand’s competitive advantages, and it’s good to see in this case we’ve been making the most of it.</p> <p>Let me focus on a couple of things the second tranche of FMC regulations sets out to achieve.</p> <p>On the side of improving access to capital for business to grow, the Act does several things.</p> <p>It clarifies and widens the discloser exemptions that previously existed, particularly for smaller firms in the early stages of development.</p> <p>The regulatory burden for firms wanting to offer employee share schemes is significantly reduced.</p> <p>It allows for NXT - the new market that the NZX is launching, which the FMA has already licensed.</p> <p>As you know, NXT will be geared for fast-emerging firms that want to raise capital publicly, but which aren’t large enough to meet the requirements of the main listing board.</p> <p>We’re also providing for two new categories of financial services: peer-to-peer lending and equity crowd-funding.</p> <p>On a bigger scale, we’re providing for firms – whose debt or equity is quoted on the public market – to make same-class offers, with a lighter due diligence process, and without having to produce full disclosure documents.</p> <p>Those same-class offers are easier and more efficient, so that boards can get an offer to market swiftly and with less cost.</p> <p>Already, Auckland International Airport has raised $150 million in debt using those same-class arrangements.</p> <p>For investors, meantime, the Act sets out to improve disclosure so it is easier to make informed investment decisions.</p> <p>Prospectuses will now be shorter and will be subject to strict page limits from today.</p> <p>We can’t force investors to read anything, but we can and we should ensure product disclosure statements spell out what investors really need to know about the offer.</p> <p>And there’s a new online register which is going live this week.</p> <p>It will provide a central point where analysts, financial advisers, and investors can obtain everything they need to know about offers as they start being made under the provisions in the new Act.</p> <p>Also to build confidence, financial market service providers will now show through licensing that they meet basic capability requirements.</p> <p>More than eleven thousand firms, funds, markets, or professionals are under the FMA’s mandate in some way now.</p> <p>Frankly, this brings New Zealand into line with internationally expected norms.</p> <p>On internationalisation, meantime, we’re working on the Asian Region Funds Passport with governments in Australia, Singapore, Korea, Thailand, and the Philippines.</p> <p>That is part of the change package too – it’ll allow easier cross-recognition of managed funds between those countries.</p> <p>Today the final set of regulations come into force, but it’s only really the end of the beginning.</p> <p>The critical thing now is the successful implementation of the Act.</p> <p>I’ve every confidence that the FMA will do its best to allow, to guide and to encourage our markets to achieve those fundamental results that we’re looking for – increasing investor confidence and improving access to capital for businesses to grow – while being mindful of the costs that regulations impose.</p> <p>We know that in an ever-changing world the job is never entirely finished. I’m sure that in time imperfections and rough edges will be identified.</p> <p>For the Government’s part, we will continue to listen.</p> <p>I want to close by expressing the hope that as we continue to implement these changes we’ll see a continuation of the collaboration and consultative approach that has been a hallmark of these reforms so far.</p> <p>Thank you very much.</p> </div> http://www.fma.govt.nz/keep-updated/newsroom/releases-from-the-minister-of-commerce/2014/new-rules-for-financial-markets-to-take-effect New rules for financial markets to take effect 2015-03-03 10:18:03 Financial Markets Authority <div class="header"> <p><strong>Paul Goldsmith</strong><br>28 November, 2014</p> </div> <div class="content"> <p>Commerce and Consumer Affairs Minister Paul Goldsmith welcomes new rules taking effect from 1 December which will promote the growth of New Zealand’s financial markets and boost investor confidence.</p> <p>“I am pleased to announce the final stage of implementation of the Financial Markets Conduct Act 2013 which starts to come into force on 1 December,” says Mr Goldsmith.</p> <p>“The National Government wants financial markets to be supported by clear, predictable rules that enable investors to make confident judgements about the risks and returns from investment decisions.</p> <p>“In 2008 the Capital Markets Development Taskforce report found that existing financial markets legislation did not adequately promote investor confidence or provide a clear, predictable environment for businesses.</p> <p>“As a result, we made changes to our laws to improve the quality of disclosure to investors, strengthen the governance of financial products, and enable more innovative and flexible methods of capital raising.</p> <p>“This represents the culmination of an overhaul of the laws that govern our financial markets.</p> <p>“We have consulted extensively to produce a regime that will significantly enhance the performance of our capital markets. Businesses will find it easier to raise the capital they need to grow and there will be more investment opportunities in New Zealand.</p> <p>“I thank all those who worked to help shape this important piece of legislation,” Mr Goldsmith says.</p> <p>The new law covers:</p> <ul> <li>A consumer focussed disclosure regime, which is world-leading in its use of an online register for offers of financial products.</li> <li>New governance rules relating to managed investment schemes such as KiwiSaver. These will allow investors to make investment decisions according to the performance and risks of a financial product whilst being assured that basic governance standards are in place.</li> <li>Licensing obligations for certain financial markets participants will begin to apply from today, bringing New Zealand into line with other international regulatory regimes.</li> <li>Improved disclosure and reporting obligations will be provided to investors by services who manage portfolios on their behalf.</li> </ul> <p>These changes are in addition to those implemented under Phase 1 on 1 April 2014.</p> <p>“The reforms are a significant part of the Government’s Business Growth Agenda to restore confidence in our financial markets and allow firms to raise capital efficiently so they can grow their business and the economy,” Mr Goldsmith says.</p> <p>For more information visit <a href="http://www.fma.govt.nz/keep-updated/the-future-of-financial-markets/" target="_blank">http://www.fma.govt.nz/keep-updated/the-future-of-financial-markets/</a></p> </div> http://www.fma.govt.nz/help-me-comply/new-financial-reporting-requirements/frequently-asked-questions/ Frequently Asked Questions 2015-03-02 17:24:32 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">FMA has issued a notice to re-designate recipients of funds from conduit issuers and licensed derivative issuers to having higher public accountability is available <a href="http://www.fma.govt.nz/help-me-comply/new-financial-reporting-requirements/exemptions/">here</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.</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.</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 FMC 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 if you are still reporting using the Financial Reporting Act 1993. 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> make a regulated offer under the FMC Act 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 then 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). For your balance dates after the earlier of 1) 31 March 2015 or 2) when you've made a FMC regulated offer you will need to prepare financial statements 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 <span style="font-family: &quot;Helvetica&quot;,&quot;sans-serif&quot;; font-size: 10.5pt;">serve an infringement notice on <b>or</b> prosecute entities for failing to comply. The infringement fee for late filing is $7500.  The maximum fine a Court may impose following a successful prosecution is $50,000.</span> </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"> </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/help-me-comply/new-offers-under-fmc-act/guidance/ Guidance 2015-02-27 17:41:54 Financial Markets Authority <p>The following guidance has been published in relation to new offers made under the Financial Markets Conduct Act 2013 (FMC Act):</p> <ul> <li><a href="http://www.fma.govt.nz/assets/Report-and-Papers/Guidance/Offering-financial-products-in-New-Zealand-and-Australia-under-mutual-recognition.pdf" target="_blank">Offering financial products in New Zealand and Australia under mutual recognition</a></li> <li><a href="http://www.fma.govt.nz/assets/Report-and-Papers/Guidance/Content-and-form-of-Disclose-register-information-guidance-note.pdf" target="_blank">Guidance note: Content and form of Disclose register information</a></li> <li><a href="http://www.fma.govt.nz/assets/Report-and-Papers/Information-Sheets/150227-Issuers-registers-of-regulated-products-and-the-FMAs-discretion-under-section-224.pdf" target="_blank">Issuers’ registers of regulated products and the FMA’s discretion under section 224</a></li> </ul> <p>We have also issued the following consultation papers that will be relevant to making offers under the FMC Act:</p> <ul> <li><a href="http://www.fma.govt.nz/laws-we-enforce/policy/closed-consultations/consultation-paper-fund-update-template-and-guidance-for-calculating-risk-indicators">Consultation paper: Fund update template and guidance for calculating risk indicators</a></li> </ul> <p>In addition to guidance on offers made under the FMC Act, the FMA has published  guidance on corporate governance that will be relevant to issuers:</p> <ul> <li><a href="http://www.fma.govt.nz/assets/Report-and-Papers/Consultation/Corporate-Governance-Handbook-Principles-and-Guidelines.pdf">Handbook: Corporate Governance in New Zealand – Principles and Guidelines</a></li> <li><a href="http://www.fma.govt.nz/assets/Report-and-Papers/Guidance/150220-Going-Public-a-directors-guide.pdf" target="_blank">Going Public: A Director's guide to IPOs</a></li> </ul> <p>Our <a href="http://www.fma.govt.nz/help-me-comply/issuers/financial-reporting-updates-and-guidance-notes/">guidance on making offers under the Securities Act</a> is also broadly applicable to offers under the FMC Act.</p> <p>Our <a href="http://www.fma.govt.nz/keep-updated/the-future-of-financial-markets/how-can-i-get-involved/">How can I get involved webpage</a> lists other future FMC related consultation and guidance.</p> http://www.fma.govt.nz/help-me-comply/new-accountability-framework-for-financial-products/whats-changing/ What's Changing? 2015-02-27 17:40:16 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>If you are intending to launch a new KiwiSaver, Superannuation, or Workplace savings scheme you will need a certificate from the FMA before applying to register the scheme. See our <a href="http://www.fma.govt.nz/assets/Report-and-Papers/Information-Sheets/150224-information-sheet-The-FMA-certification-process-for-the-registration-of-new-KiwiSaver-superannuation-and-workplace-savings-schemes.pdf" target="_blank">information sheet</a> on the FMA certification process for registration of new KiwiSaver, Superannuation and Workplace savings schemes to find out how to get that certificate.</p> <p>Our governance and accountability information factsheets summarise the key accountabilities and responsibilities under the FMC Act:</p> <ul> <li><a href="http://www.fma.govt.nz/assets/Report-and-Papers/Information-Sheets/Updated-Info-Sheet-New-governance-accountability-framework-for-debt-issuers.pdf" target="_blank">Debt issuers and their licensed supervisors</a></li> <li><a href="http://www.fma.govt.nz/assets/Report-and-Papers/Information-Sheets/Updated-Info-Sheet-New-governance-and-accountability-framework-for-MIS-managers-May-2014-.pdf" target="_blank">MIS managers and their licensed supervisors</a></li> <li><a href="http://www.fma.govt.nz/assets/Report-and-Papers/Information-Sheets/Updated-Info-Sheet-New-governance-accountability-framework-restricted-schemes-their-trustees-May-2014.pdf" target="_blank">Restricted schemes and their trustees</a></li> <li><a href="http://www.fma.govt.nz/assets/Report-and-Papers/Information-Sheets/150224-information-sheet-Custodians-of-managed-investment-schemes.pdf" target="_blank">Custodians of managed investment schemes</a></li> <li><a href="http://www.fma.govt.nz/assets/Report-and-Papers/Information-Sheets/150224-information-sheet-Related-party-transactions-under-the-Financial-Markets-Conduct-Act-2013.pdf" target="_blank">Related party transactions</a></li> <li><a href="http://www.fma.govt.nz/assets/Report-and-Papers/Information-Sheets/150224-information-sheet-Reporting-SIPO-limit-breaks.pdf" target="_blank">Reporting SIPO limit breaks</a></li> <li><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">Reporting duties under Part 4 of the FMC Act</a></li> <li><a href="http://www.fma.govt.nz/assets/Report-and-Papers/Information-Sheets/150227-Issuers-registers-of-regulated-products-and-the-FMAs-discretion-under-section-224.pdf" target="_blank">Issuers’ registers of regulated products and the FMA’s discretion under section 224</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/keep-updated/warnings-alerts-and-scams/fmas-latest-warnings-and-alerts/2015/warning-warning-people-to-beware-of-a-company-as-eco-investments-group Warning: beware of a company trading as Eco Investments Group 2015-02-27 09:35:21 Financial Markets Authority <p>The Financial Markets Authority (FMA) is warning people to beware of a company offering a risk-free, high-return investment programme.</p> <p>The company trades as <strong>Eco Investments Group </strong>and the FMA warns anyone dealing with them to exercise extreme caution before obtaining any financial services, or acquiring any financial products.</p> <p>The FMA says that Eco Investments Group is regularly advertising in New Zealand newspapers offering what it says are guaranteed, high-returns for relatively little investment. The FMA has received several complaints about the company.</p> <p>Eco Investments Group is neither registered nor licensed to provide financial services in New Zealand.</p> <p>The FMA has contacted the company requesting them to stop advertising in New Zealand and has made contact with New Zealand newspaper publishers urging them to decline the company’s advertisements.</p> <p>The FMA encourages investors to seek professional financial advice that is personalised for their own circumstances.</p> <p>Eco Investments Group operates two websites: <a href="http://www.ecoinvestmentgroup.com">www.ecoinvestmentgroup.com</a> and <a href="http://www.ecovexcoinvestmentgroup.com/">www.ecovexcoinvestmentgroup.com/</a></p> http://www.fma.govt.nz/keep-updated/newsroom/media-releases/2015/fma-warns-public-to-be-wary-of-misleading-advertising-promoting-risk-free-money-back-investments FMA warns public to be wary of misleading advertising promoting “risk-free, money-back investments” 2015-02-27 09:29:01 Financial Markets Authority <p><b>Media Release<br>MR No. 2015 – 05<br>27 February 2015</b></p> <p>The Financial Markets Authority (FMA) is warning people to beware of a company offering a risk-free, high-return investment programme.</p> <p>The company trades as <strong>Eco Investments Group </strong>and the FMA warns anyone dealing with them to exercise extreme caution before obtaining any financial services, or acquiring any financial products.</p> <p>The FMA says that Eco Investments Group is regularly advertising in New Zealand newspapers offering what it says are guaranteed, high-returns for relatively little investment. The FMA has received several complaints about the company.</p> <p>Eco Investments Group is neither registered nor licensed to provide financial services in New Zealand.</p> <p>The FMA has contacted the company requesting them to stop advertising in New Zealand and has made contact with New Zealand newspaper publishers urging them to decline the company’s advertisements.</p> <p>Elaine Campbell, FMA Director Compliance said: “Any company promoting so-called risk free investments should set alarm bells ringing for consumers - especially when they offer exceptionally high returns on investments and a money-back guarantee.</p> <p>“If it sounds too good to be true, then it probably is, and we don’t want consumers to lose money unnecessarily when there are well-regulated products and services available from reputable providers in New Zealand.”</p> <p>The FMA encourages investors to seek professional financial advice that is personalised for their own circumstances.</p> <p>Eco Investments Group operates two websites: <a href="http://www.ecoinvestmentgroup.com">www.ecoinvestmentgroup.com</a> and <a href="http://www.ecovexcoinvestmentgroup.com/">www.ecovexcoinvestmentgroup.com/</a></p> <p>Ends</p> <p><strong>Contact:</strong><b><br></b>Shae Skellern<br>09 300 0­465<br>021 847 192<br><a href="mailto:shae.skellern@fma.govt.nz">shae.skellern@fma.govt.nz</a></p> http://www.fma.govt.nz/laws-we-enforce/enforcement/prosecutions-and-proceedings/question-and-answers-about-our-finance-company-investigations/ Question and Answers about Our Finance Company Investigations 2015-02-26 16:06:44 Financial Markets Authority http://www.fma.govt.nz/keep-updated/the-future-of-financial-markets/latest-news/ Latest News 2015-02-26 15:55:07 Financial Markets Authority <h2><b>FMC Act into action – Understanding Contingency DIMS<br></b></h2> <p><b>26 February 2015</b></p> <p>In this session we discuss the concept of contingency DIMS, the rules and how the investment authority and rebalancing aspects work.</p> <p>If you are considering offering contingency DIMS, come along to learn about how this option may be right for you and your clients.</p> <p>We are holding two workshops in Auckland, with spaces strictly limited to 30 people per session.</p> <p><strong>Monday 16 March 2015<br></strong>Session 1: 9:30AM to 11:00AM<br>Session 2: 12:30PM to 2:00PM</p> <p><strong>Location:<br></strong><strong>FMA Boardroom<br></strong>Level 5, Ernst &amp; Young Building<br>2 Tukatai Square, Britomart</p> <p><strong>How to register?</strong></p> <p>To register please email <a href="mailto:events@fma.govt.nz">events@fma.govt.nz</a> including which session you wish to attend.</p> <p>For more information please contact John Botica on 09 300 0448 or <a href="mailto:john.botica@fma.govt.nz">john.botica@fma.govt.nz<br><br></a></p> <h2>FMA DIMS session - Christchurch</h2> <p><strong>29 January 2015</strong></p> <p><strong>Date:</strong> Thursday 19 February 2015<br><strong>Time:</strong> 9.30 am – 11.30 am<br><strong>Location:</strong> Novotel Hotel – Cathedral Square</p> <p>Anyone who would like to attend can register now by sending an email to <a href="mailto:events@fma.govt.nz">events@fma.govt.nz</a> Numbers are strictly limited so register early.</p> <h2>New look FMC Act licensing guides</h2> <p><strong>28 November 2014</strong></p> <p>We have updated our FMC Act Licensing Guides, replacing the versions dated June 2014.</p> <p>Our new look guides reflect a change to FMA branding so the colour, and some design elements differ. However the content across all the guides has undergone only minor changes, largely based on user feedback. The specific changes that have been made are summarised <a href="http://www.fma.govt.nz/assets/Report-and-Papers/Licencing-Guides/New-look-FMC-Act-licensing-guides.pdf" target="_blank">here</a>.</p> <h2>New information sheet: Financial regulation and registration requirements for marinas</h2> <p><strong>18 November 2014</strong></p> <p>Under the FMC Act, marinas will generally not be regulated and will no longer need to register on the Financial Service Providers Register. From 1 December 2014, marinas can choose to be unregulated by opting in to the FMC Act from 1 December 2014. Unregulated marinas no longer need a statutory supervisor and won’t have financial reporting obligations. See our <a href="http://www.fma.govt.nz/assets/Report-and-Papers/Information-Sheets/Financial-regulation-and-registration-requirements-for-marinas.pdf" target="_blank">information sheet</a> for more details.</p> <h2>Companies Office Disclose register demonstrations</h2> <p><strong>12 November 2014<br><br></strong>The NZ Companies Office is facilitating demonstrations of the new Financial Markets Conduct Act 2013 (FMC Act) register, ‘Disclose’. This register will be the online tool for issuers and offerors to manage information about their registered offers and schemes and fulfil their compliance obligations. Find out more <a href="http://www.business.govt.nz/disclose/about-the-register/announcements/book-now-for-disclose-register-demonstrations">here</a>.</p> <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>Tea and coffee on arrival</td> </tr> <tr> <td>9:30 AM</td> <td>Short introduction</td> </tr> <tr> <td> <p>9:35 AM to<br>11:00 AM</p> </td> <td>Breakdown of FMC Act transition for fund managers</td> </tr> <tr> <td>11:00 AM to<br>11:30 Finish</td> <td>Questions</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" src="http://www.fma.govt.nz/assets/media/2002912/fma-master-logo-40mm-171x47.jpg" alt="FMA Logo"><img style="width: 79px; height: 85px;" title="NZFMA" src="http://www.fma.govt.nz/assets/media/2002902/nzfma-89x97.jpg" alt="NZFMA"> <img title="INFINZ" src="http://www.fma.govt.nz/assets/media/2002907/infinz-153x28.jpg" alt="INFINZ"></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 – FSP Number</li> <li>Home page menu options – overview, how to progress between screens, how to save</li> <li>Applying for a licence – multiple licence types; authority to apply; separate or related body</li> <li>Application skeleton – how the application form is structured</li> <li>Completing the licence application – 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>Changes ahead for financial reporting</h2> <p><strong>18 November 2013</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>We are now consulting on standards and conditions for new licences</h2> <p><strong>18 November 2013</strong></p> <p>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>.</p> <p>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.</p> <h2>MBIE releases first set of draft regulations</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>Update on consultation timetable</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/help-me-comply/new-accountability-framework-for-financial-products/guidance/ Guidance 2015-02-24 16:52:13 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 and addresses the need for governing documents to be effective and fit for purpose.</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> <p><strong><a href="http://www.fma.govt.nz/assets/Report-and-Papers/Guidance/Guidance-Note-Statements-of-Investment-Policy-and-Objectives-under-the-FMC-Act.pdf" target="_blank">Guidance note: Statements of Investment Policy and Objectives under the FMC Act</a></strong></p> <p>This guidance note outlines how we expect managers of managed investment schemes and their supervisors to approach SIPOs under Part 4 of the FMC Act.</p> <p>Also see our <a href="http://www.fma.govt.nz/assets/Report-and-Papers/Information-Sheets/150224-information-sheet-Reporting-SIPO-limit-breaks.pdf" target="_blank">Information sheet on Reporting SIPO limit breaks</a>.</p> http://www.fma.govt.nz/help-me-comply/financial-advisers/fees-and-levies/ Fees and Levies 2015-02-24 13:24:42 Financial Markets Authority <h2><b>Fees</b></h2> <p>To become an Authorised Financial Adviser (AFA) or Qualifying Financial Entity (QFE) you need to apply on the <a href="http://www.business.govt.nz/fsp/">Financial Service Providers Register</a>. Fees are payable, and will be collected as part of the application process. All fees are quoted in NZ dollars and are inclusive of GST).</p> <h2><b>AFA fees</b></h2> <p>(NZ $ inclusive GST)</p> <table> <tbody> <tr> <td><strong>Application for authorisation</strong></td> <td>Application fee: $ 1,144.89</td> </tr> <tr> <td><strong>Renewal of authorisation</strong></td> <td>Renewal fee: $ 572.45</td> </tr> <tr> <td><strong>Variation to terms and conditions or scope of an adviser’s authorisation: (Effective from 1 December 2014)</strong></td> <td>Fee: $115.00 plus $178.25 for every hour, or part-hour pro rata, of work carried out by a member or employee of the FMA in considering the application.</td> </tr> </tbody> </table> <h2><b>QFE fees</b></h2> <p>(NZ $ inclusive GST)</p> <table> <tbody> <tr> <td><strong>Application for a grant of QFE status</strong></td> <td>Application fee: $4,886.22</td> </tr> <tr> <td><strong>Renewal of a grant of QFE status</strong></td> <td>Renewal fee: $4,600.00</td> </tr> <tr> <td><strong>Variation to terms and conditions a grant of QFE status: (Effective from 1 December 2014)</strong></td> <td>Fee: $115.00 plus $178.25 for every hour, or part-hour pro rata, of work carried out by a member or employee of the FMA in considering the application.</td> </tr> </tbody> </table> <h2>Registration fees: RFAs, entities and brokers.</h2> <p>Individuals and entities required to be registered on FSPR will also need to pay fees. Visit the <a href="http://www.business.govt.nz/fsp/">Financial Service Providers Register</a> to find out what fees apply to registration.</p> 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) 2015-02-24 10:44:23 Financial Markets Authority <p>Current at 24 February 2015</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></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 and hearing to occur on 10 February 2015.</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. A hearing of 12 weeks has been allocated commencing  September 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). Matter has been transferred to the High Court. Defendants' next appearance on 4 February 2015.</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> <tr><th>36.</th> <td>South Canterbury Finance Limited</td> <td>Receivership</td> <td>June 2010</td> <td>Criminal investigation closed in 2011 and the FMA supports charges filed by the SFO.  Inquiries into potential civil claims closed in December 2014.</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 may be reopened, if new information comes to light.</td> </tr> </tbody> </table> http://www.fma.govt.nz/help-me-comply/new-licences-for-financial-market-services/derivatives-issuer/ Derivatives Issuer 2015-02-23 14:25:13 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> <p> </p> http://www.fma.govt.nz/laws-we-enforce/legislation/exemption-notices/applying-for-an-exemption/ Applying for an exemption 2015-02-20 15:58:58 Financial Markets Authority <p><strong>What exemptions can I apply for?</strong></p> <p>You can apply to the FMA for an exemption from some specific provisions of:</p> <ul> <li>Parts 2 to 7 and any of the schedules of the Financial Markets Conduct Act 2013 (FMC Act) and any regulations made under that Act</li> <li>Part 2 of the Securities Act 1978 and any regulations made under section 70(1) of that Act (to the extent applicable during the transition period)</li> <li>the Financial Reporting Act 1993 (to the extent applicable during the transition period)</li> <li>the Financial Advisers Act 2008 (or the Code of Professional Conduct for Authorised Financial Advisers). This also enables exemptions from the obligation to register for providing financial adviser services or broking services under the Financial Service Providers (Registration and Dispute Resolution) Act 2008.</li> </ul> <p><strong>How do I make an application?</strong><br>You apply for an exemption by <a href="mailto:compliance@fma.govt.nz">emailing</a> your application to us. A hard copy letter identifying your emailed application should also be forwarded, together with the cheque for the application fee. See here for <a href="http://www.fma.govt.nz/about-us/contact-us/office-details/">office address details</a>.</p> <p>Information to address in your exemption application is outlined <a href="http://www.fma.govt.nz/laws-we-enforce/legislation/exemption-notices/applying-for-an-exemption/information-to-include-with-your-exemption-application/">here</a>.  You must also include a draft exemption notice.</p> <p><strong>What are the charges?</strong><br>Exemption fees are set by regulations of the relevant legislation. You need to send a cheque to cover the application fee and an advance fee for fees and costs to be incurred as set out in the table below.  We will charge any additional time spent on an hourly basis as set out in the table.</p> <table> <tbody> <tr> <td><b>Exemption application type</b></td> <td><b>Application and advance fee (to be sent by cheque with your application)</b></td> <td><b>Application fee</b></td> <td><b>Hourly rate – FMA Board members</b></td> <td><b>Hourly rate – FMA staff</b></td> </tr> <tr> <td><b>Financial Markets Conduct Act 2013</b></td> <td>$1,265</td> <td>$115</td> <td>$230</td> <td>$178.25</td> </tr> <tr> <td><b>Securities Act 1978</b></td> <td>$1,265</td> <td>$115</td> <td>$230</td> <td>$178.25</td> </tr> <tr> <td><b>Financial Reporting Act 1993</b></td> <td>$1,265</td> <td>$115</td> <td>$230</td> <td>$166.62</td> </tr> <tr> <td><b>Financial Advisers Act 2008</b></td> <td>$1,265</td> <td>$115</td> <td>$230</td> <td>$166.62</td> </tr> </tbody> </table> <p>We can also recover the cost of obtaining expert assistance in relation to particular applications.</p> <p>Applicants must also reimburse us for the costs of notifying the exemption notice in the Gazette, where applicable.</p> <p><strong>How long does it take?</strong></p> <p>Individual exemption applications (that is applications relating to a particular person or transaction) generally take 4 to 6 weeks from the time we receive all the information we need. This may take longer if significant questions of policy arise.</p> <p>Exemption notices come into force as soon as we grant them. You do not need to wait for them to be notified in the Gazette.</p> <p>If your application is urgent, we will try to accommodate your request.  However, you must provide the timeframes within which the decision is needed and provide reasons for requesting an urgent exemption.</p> <p><strong>What exemptions won't be granted?</strong></p> <p>While the law gives us broad powers to exempt certain persons or transactions from compliance with specific provisions of those Acts, we consider that our exemption power only extends to compliance provisions, not to liability provisions.</p> <p>We are also unlikely to exempt issuers from the general prohibition in the FMC Act against the distribution of deceptive, misleading or confusing advertisements.</p> http://www.fma.govt.nz/laws-we-enforce/enforcement/management-bans-and-undertakings-of-non-participation/ Management bans and undertakings of non-participation 2015-02-20 15:17:44 Financial Markets Authority <p>Listed below are individuals who are precluded from engaging in certain activities in respect of the governance and/or management of companies as a consequence of action taken by the FMA.</p> <p>In the event that you become aware that an individual named below is or may be operating in breach of either their management ban or an enforceable undertaking, please contact the FMA by phone on 0800 434 566 (+64 3 962 2698 for overseas callers) or through our <a href="http://www.fma.govt.nz/about-us/contact-us/make-a-complaint/">website</a>.</p> <div> <h2><b>Management Bans</b></h2> </div> <p><b>Management Bans under the Securities Act 1978<br><br></b>If a person is convicted of an offence against section 58 of the Securities Act 1978 (<b>Securities Act</b>), under section 60E of the Securities Act they are automatically banned for a period of 5 years from the date they are convicted, from being:</p> <ul> <li>a director or promoter; or</li> <li>directly or indirectly concerned or taking part in the management of an incorporated or unincorporated body.</li> </ul> <p>The FMA considers that this means that they are not permitted to do any of the following:</p> <ul> <li>Occupy the position of director in relation to a company</li> <li>Be a partner in a partnership or a general partner in a special partnership or limited partnership</li> <li>Occupy a position comparable to a director of a company in relation to a corporate or unincorporated body</li> <li>Do any of the following in relation to securities offered to the public for subscription,— <ul> <li>Being instrumental in the formulation of a plan or programme pursuant to which the securities are offered to the public; and</li> <li>Being a director where the promoter is a body corporate</li> </ul> </li> <li>Make, or participate in making, decisions that affect the whole, or a substantial part of the business of the corporation</li> <li>Exercise the capacity to affect significantly the company’s financial standing</li> <li>Communicate instructions or wishes to the directors of the company where: <ul> <li>They are not acting merely in a professional capacity</li> <li>They know that the directors are accustomed to act in accordance with their instructions or wishes</li> <li>They intend that the directors will act in accordance with those instructions or wishes.</li> </ul> </li> </ul> <p>The following activities may be permitted:<a title="" href="http://www.fma.govt.nz/#_ftn1">[1]</a></p> <ul> <li>Executing decisions or carrying out directions as an employee / agent</li> <li>Merely administrative work of the kind performed by a company secretary or accountant</li> <li>Carrying out day-to-day routine functions in accordance with predetermined policies of the company</li> <li>Giving professional advice, where decisions in relation to the company are plainly made by others.</li> </ul> <p><b>Management bans under the Companies Act 1993</b></p> <p>If a person is convicted of a dishonesty offence under the Crimes Act 1961 they are automatically banned from being a director, promoter or taking part in the management of a company for a period of 5 years after the conviction/judgment by section 382 of the Companies Act 1993.</p> <p>If a person is convicted of offences under the Securities Act and the Crimes Act, they will be subject to Securities Act and Companies Act management bans, each running from the relevant date (date of conviction under the Securities Act, date of conviction or judgment under the Companies Act).</p> <p><a title="" href="http://www.fma.govt.nz/#_ftnref1">[1]</a> <a href="http://www.westlaw.co.nz/maf/wlnz/app/document?&amp;src=rl&amp;docguid=Ia911abd09fa611e0a619d462427863b2&amp;hitguid=I4b6b0b5f9e9f11e0a619d462427863b2&amp;snippets=true&amp;startChunk=1&amp;endChunk=1&amp;isTocNav=true&amp;tocDs=AUNZ_CASE_TOC&amp;extLink=false#anchor_I4b6b0b5f9e9f11e0a619d462427863b2">Tregurtha v Police</a> <a href="http://www.westlaw.co.nz/maf/wlnz/app/document?&amp;src=doc&amp;docguid=Ia911f9f09fa611e0a619d462427863b2&amp;snippets=true&amp;startChunk=1&amp;endChunk=1&amp;isTocNav=true&amp;tocDs=AUNZ_CASE_TOC&amp;extLink=false#anchor_I4b6b0b569e9f11e0a619d462427863b2">HC Auckland AP123/93, 15 October 1993</a>.</p> <h3><b>List of persons banned from managing entities as a result of action taken by the FMA</b></h3> <p>The table below lists those directors who are subject to a management ban pursuant to the Securities Act and/or Companies Act following action taken by the FMA (or commenced by the Securities Commission). A full list of all currently or previously banned directors is available on the Companies Office website: <a href="http://www.business.govt.nz/companies/learn-about/searching/disqualified-directors-prohibited-company-managers-search">http://www.business.govt.nz/companies/learn-about/searching/disqualified-directors-prohibited-company-managers-search</a></p> <table style="width: 1009px;" cellspacing="0" cellpadding="0"> <tbody> <tr> <td valign="top" width="253"> <p align="center"><b>Director </b><b></b></p> </td> <td valign="top" width="142"> <p align="center"><b>Date s60E Securities Act ban commenced</b><b></b></p> </td> <td valign="top" width="151"> <p align="center"><b>Date s60E Securities Act ban ends</b></p> </td> <td valign="top" width="151"> <p align="center"><b>Date s382 Companies Act ban commenced</b></p> </td> <td valign="top" width="151"> <p align="center"><b>Date s382 Companies Act ban ends</b></p> </td> <td valign="top" width="161"> <p align="center"><b>Sections convicted under</b></p> </td> </tr> <tr> <td valign="top" width="253"> <p>KIRK Nicholas</p> </td> <td valign="top" width="142"> <p>12/08/2010</p> </td> <td valign="top" width="151"> <p>12/08/2015</p> <p> </p> </td> <td valign="top" width="151"> <p align="center">21/12/2010</p> </td> <td valign="top" width="151"> <p align="center">21/12/2015</p> </td> <td valign="top" width="161"> <p align="center">Securities Act 1978 s58</p> </td> </tr> <tr> <td valign="top" rowspan="4" width="253"> <p>MACDONALD Marcus Arthur</p> </td> <td valign="top" rowspan="4" width="142"> <p>05/10/2010</p> </td> <td valign="top" rowspan="4" width="151"> <p>05/10/2015</p> </td> <td valign="top" rowspan="4" width="151"> <p align="center">21/12/2010</p> </td> <td valign="top" rowspan="4" width="151"> <p align="center">21/12/2015</p> </td> <td valign="top" width="161"> <p align="center">Crimes Act 1961 s220</p> </td> </tr> <tr> <td valign="top" width="161"> <p align="center">Securities Act 1978 s 58</p> </td> </tr> <tr> <td valign="top" width="161"> <p align="center">Financial Reporting Act 1993 s41</p> </td> </tr> <tr> <td valign="top" width="161"> <p align="center">Financial Reporting Act 1993 s41</p> </td> </tr> <tr> <td valign="top" width="253"> <p>WILLIAMS Neill</p> <p> </p> </td> <td valign="top" width="142"> <p>05/10/2010</p> </td> <td valign="top" width="151"> <p>05/10/2015</p> </td> <td valign="top" width="151"> <p align="center">N/A</p> </td> <td valign="top" width="151"> <p align="center">N/A</p> </td> <td valign="top" width="161"> <p align="center">Securities Act 1978 s58</p> </td> </tr> <tr> <td valign="top" width="253"> <p>HOTCHIN John Lawrence</p> <p> </p> </td> <td valign="top" width="142"> <p>25/02/2011</p> </td> <td valign="top" width="151"> <p>25/02/2016</p> </td> <td valign="top" width="151"> <p align="center">N/A</p> </td> <td valign="top" width="151"> <p align="center">N/A</p> </td> <td valign="top" width="161"> <p align="center">Securities Act 1978 s58</p> </td> </tr> <tr> <td valign="top" width="253"> <p>DOOLAN Mervyn</p> </td> <td valign="top" width="142"> <p>08/07/2011</p> </td> <td valign="top" width="151"> <p>08/07/2016</p> <p> </p> </td> <td valign="top" width="151"> <p align="center">N/A</p> </td> <td valign="top" width="151"> <p align="center">N/A</p> </td> <td valign="top" width="161"> <p align="center">Securities Act 1978 s58</p> </td> </tr> <tr> <td valign="top" width="253"> <p>MOSES Kenneth Roger</p> </td> <td valign="top" width="142"> <p>08/07/2011</p> </td> <td valign="top" width="151"> <p>08/07/2016</p> <p> </p> </td> <td valign="top" width="151"> <p align="center">N/A</p> </td> <td valign="top" width="151"> <p align="center">N/A</p> </td> <td valign="top" width="161"> <p align="center">Securities Act 1978 s58</p> </td> </tr> <tr> <td valign="top" width="253"> <p>YOUNG Donald Anthony Walker</p> </td> <td valign="top" width="142"> <p>08/07/2011</p> </td> <td valign="top" width="151"> <p>08/07/2016</p> <p> </p> </td> <td valign="top" width="151"> <p align="center">N/A</p> </td> <td valign="top" width="151"> <p align="center">N/A</p> </td> <td valign="top" width="161"> <p align="center">Securities Act 1978 s58</p> </td> </tr> <tr> <td valign="top" width="253"> <p>DAVIDSON Bruce Nelson</p> </td> <td valign="top" width="142"> <p>02/09/2011</p> </td> <td valign="top" width="151"> <p>02/09/2016</p> <p> </p> </td> <td valign="top" width="151"> <p align="center">N/A</p> </td> <td valign="top" width="151"> <p align="center">N/A</p> </td> <td valign="top" width="161"> <p align="center">Securities Act s58</p> </td> </tr> <tr> <td valign="top" width="253"> <p>URWIN Gary Kenneth</p> </td> <td valign="top" width="142"> <p>09/11/2011</p> </td> <td valign="top" width="151"> <p>09/11/2016</p> <p> </p> </td> <td valign="top" width="151"> <p align="center">N/A</p> </td> <td valign="top" width="151"> <p align="center">N/A</p> </td> <td valign="top" width="161"> <p align="center">Securities Act s58</p> </td> </tr> <tr> <td valign="top" rowspan="3" width="253"> <p>LUDLOW Trevor Allan</p> </td> <td valign="top" rowspan="3" width="142"> <p>13/12/2011</p> </td> <td valign="top" rowspan="3" width="151"> <p>13/12/2016</p> <p> </p> </td> <td valign="top" rowspan="3" width="151"> <p align="center">27/07/2011</p> </td> <td valign="top" rowspan="3" width="151"> <p align="center">27/07/2016</p> </td> <td valign="top" width="161"> <p align="center">Crimes Act 1961 s220</p> </td> </tr> <tr> <td valign="top" width="161"> <p align="center">Securities Act 1978 s58</p> </td> </tr> <tr> <td valign="top" width="161"> <p align="center">Financial Reporting Act 1993 s41</p> </td> </tr> <tr> <td valign="top" width="253"> <p>GRAHAM Sir Douglas</p> </td> <td valign="top" width="142"> <p>29/03/2012</p> <p> </p> </td> <td valign="top" width="151"> <p>29/03/2017</p> </td> <td valign="top" width="151"> <p align="center">N/A</p> </td> <td valign="top" width="151"> <p align="center">N/A</p> </td> <td valign="top" width="161"> <p align="center">Securities Act 1978 s58</p> </td> </tr> <tr> <td valign="top" width="253"> <p>REEVES Michael</p> </td> <td valign="top" width="142"> <p>29/03/2012</p> <p> </p> </td> <td valign="top" width="151"> <p>29/03/2017</p> </td> <td valign="top" width="151"> <p align="center">N/A</p> </td> <td valign="top" width="151"> <p align="center">N/A</p> </td> <td valign="top" width="161"> <p align="center">Securities Act 1978 s58</p> </td> </tr> <tr> <td valign="top" width="253"> <p>BRYANT Lawrence</p> </td> <td valign="top" width="142"> <p>29/03/2012</p> <p> </p> </td> <td valign="top" width="151"> <p>29/03/2017</p> </td> <td valign="top" width="151"> <p align="center">N/A</p> </td> <td valign="top" width="151"> <p align="center">N/A</p> </td> <td valign="top" width="161"> <p align="center">Securities Act 1978 s58</p> </td> </tr> <tr> <td valign="top" width="253"> <p>JEFFRIES William</p> </td> <td valign="top" width="142"> <p>29/03/2012</p> <p> </p> </td> <td valign="top" width="151"> <p>29/03/2017</p> </td> <td valign="top" width="151"> <p align="center">N/A</p> </td> <td valign="top" width="151"> <p align="center">N/A</p> </td> <td valign="top" width="161"> <p align="center">Securities Act 1978 s58</p> </td> </tr> <tr> <td valign="top" rowspan="4" width="253"> <p>PETRICEVIC Rodney Michael</p> </td> <td valign="top" rowspan="4" width="142"> <p>05/04/2012</p> </td> <td valign="top" rowspan="4" width="151"> <p>05/04/2017</p> </td> <td valign="top" rowspan="4" width="151"> <p align="center">18/07/2012</p> </td> <td valign="top" rowspan="4" width="151"> <p align="center">18/07/2017</p> </td> <td valign="top" width="161"> <p align="center">Securities Act 1978 s58</p> </td> </tr> <tr> <td valign="top" width="161"> <p align="center">Crimes Act 1961 s220</p> </td> </tr> <tr> <td valign="top" width="161"> <p align="center">Crimes Act 1961 s242</p> </td> </tr> <tr> <td valign="top" width="161"> <p align="center">Companies Act 1993 s377</p> </td> </tr> <tr> <td valign="top" rowspan="4" width="253"> <p>ROEST Cornelis Robert</p> </td> <td valign="top" rowspan="4" width="142"> <p>05/04/2012</p> </td> <td valign="top" rowspan="4" width="151"> <p>05/04/2017</p> <p> </p> </td> <td valign="top" rowspan="4" width="151"> <p align="center">17/08/2012</p> </td> <td valign="top" rowspan="4" width="151"> <p align="center">17/08/2017</p> </td> <td valign="top" width="161"> <p align="center">Securities Act 1958 s58</p> </td> </tr> <tr> <td valign="top" width="161"> <p align="center">Crimes Act 1961 s229A (now s242)</p> </td> </tr> <tr> <td valign="top" width="161"> <p align="center">Companies Act 1993 s377</p> </td> </tr> <tr> <td valign="top" width="161"> <p align="center">Securities Act 1978 s58</p> </td> </tr> <tr> <td valign="top" width="253"> <p>STEIGRAD Peter</p> </td> <td valign="top" width="142"> <p>05/04/2012</p> </td> <td valign="top" width="151"> <p>05/04/2017</p> <p> </p> </td> <td valign="top" width="151"> <p align="center">N/A</p> </td> <td valign="top" width="151"> <p align="center">N/A</p> </td> <td valign="top" width="161"> <p align="center">Securities Act s58</p> </td> </tr> <tr> <td valign="top" rowspan="4" width="253"> <p>BUCKLEY Shane Joseph</p> </td> <td valign="top" rowspan="4" width="142"> <p>20/05/2012</p> </td> <td valign="top" rowspan="4" width="151"> <p>20/05/2017</p> <p> </p> </td> <td valign="top" rowspan="4" width="151"> <p align="center">25/05/2012</p> </td> <td valign="top" rowspan="4" width="151"> <p align="center">25/05/2017</p> </td> <td valign="top" width="161"> <p align="center">Crimes Act 1961 s220</p> </td> </tr> <tr> <td valign="top" width="161"> <p align="center">Crimes Act 1961 s242</p> </td> </tr> <tr> <td valign="top" width="161"> <p align="center">Securities Act 1978 s58</p> </td> </tr> <tr> <td valign="top" width="161"> <p align="center">Companies Act s377</p> </td> </tr> <tr> <td valign="top" width="253"> <p>BRAITHWAITE Carol Anne</p> </td> <td valign="top" width="142"> <p>27/07/2012</p> </td> <td valign="top" width="151"> <p>27/07/2017</p> <p> </p> </td> <td valign="top" width="151"> <p align="center">N/A</p> </td> <td valign="top" width="151"> <p align="center">N/A</p> </td> <td valign="top" width="161"> <p align="center">Securities Act 1978 s58</p> </td> </tr> <tr> <td valign="top" width="253"> <p>BANBROOK Anthony David</p> </td> <td valign="top" width="142"> <p>24/08/2012</p> </td> <td valign="top" width="151"> <p>24/08/2017</p> <p> </p> </td> <td valign="top" width="151"> <p align="center">N/A</p> </td> <td valign="top" width="151"> <p align="center">N/A</p> </td> <td valign="top" width="161"> <p align="center">Securities Act 1978 s58</p> </td> </tr> <tr> <td valign="top" width="253"> <p>BOWDEN Anthony Walpole</p> </td> <td valign="top" width="142"> <p>17/09/2012</p> </td> <td valign="top" width="151"> <p>17/09/2017</p> <p> </p> </td> <td valign="top" width="151"> <p align="center">12/04/2012</p> </td> <td valign="top" width="151"> <p align="center">12/04/2017</p> </td> <td valign="top" width="161"> <p align="center">Securities Act 1978 s58</p> </td> </tr> <tr> <td valign="top" width="253"> <p>NICHOLLS Neal</p> <p> </p> </td> <td valign="top" width="142"> <p>15/02/2013</p> </td> <td valign="top" width="151"> <p>15/02/2018</p> </td> <td valign="top" width="151"> <p align="center">N/A</p> </td> <td valign="top" width="151"> <p align="center">N/A</p> </td> <td valign="top" width="161"> <p align="center">Securities Act 1978 s58</p> </td> </tr> <tr> <td valign="top" width="253"> <p>DOUGLAS Leslie Wayne</p> <p> </p> </td> <td valign="top" width="142"> <p>15/02/2013</p> </td> <td valign="top" width="151"> <p>15/02/2018</p> </td> <td valign="top" width="151"> <p align="center">N/A</p> </td> <td valign="top" width="151"> <p align="center">N/A</p> </td> <td valign="top" width="161"> <p align="center">Securities Act 1978 s58</p> </td> </tr> <tr> <td valign="top" rowspan="3" width="253"> <p>TALLENTIRE Owen</p> <p> </p> </td> <td valign="top" rowspan="3" width="142"> <p>15/03/2013</p> </td> <td valign="top" rowspan="3" width="151"> <p>15/03/2018</p> </td> <td valign="top" rowspan="3" width="151"> <p align="center">19/07/2012</p> </td> <td valign="top" rowspan="3" width="151"> <p align="center">19/07/2017</p> </td> <td valign="top" width="161"> <p align="center">Securities Act 1978 s58</p> </td> </tr> <tr> <td valign="top" width="161"> <p align="center">Crimes Act 1961 s220</p> </td> </tr> <tr> <td valign="top" width="161"> <p align="center">Crimes Act 1961 s242</p> </td> </tr> <tr> <td valign="top" width="253"> <p>RYAN Colin Gregory</p> <p> </p> </td> <td valign="top" width="142"> <p>15/03/2013</p> </td> <td valign="top" width="151"> <p>15/03/2018</p> </td> <td valign="top" width="151"> <p align="center">N/A</p> </td> <td valign="top" width="151"> <p align="center">N/A</p> </td> <td valign="top" width="161"> <p align="center">Securities Act 1978 s58</p> </td> </tr> <tr> <td valign="top" width="253"> <p>SUTHERLAND Robert Gordon</p> <p> </p> </td> <td valign="top" width="142"> <p>15/03/2013</p> </td> <td valign="top" width="151"> <p>15/03/2018</p> </td> <td valign="top" width="151"> <p align="center">N/A</p> </td> <td valign="top" width="151"> <p align="center">N/A</p> </td> <td valign="top" width="161"> <p align="center">Securities Act 1978 s58</p> </td> </tr> <tr> <td valign="top" rowspan="4" width="253"> <p>SMITH Stephen Charles</p> <p> </p> </td> <td valign="top" rowspan="4" width="142"> <p>17/04/2013</p> </td> <td valign="top" rowspan="4" width="151"> <p>17/04/2018</p> </td> <td valign="top" rowspan="4" width="151"> <p align="center">17/04/2013</p> </td> <td valign="top" rowspan="4" width="151"> <p align="center">17/04/2018</p> </td> <td valign="top" width="161"> <p align="center">Securities Act 1978 s58</p> </td> </tr> <tr> <td valign="top" width="161"> <p align="center">Crimes Act 1961, s242</p> </td> </tr> <tr> <td valign="top" width="161"> <p align="center">Companies Act 1993 s377</p> </td> </tr> <tr> <td valign="top" width="161"> <p align="center">Crimes Act 1961, s220</p> </td> </tr> <tr> <td valign="top" width="253"> <p>BUTLER Ann Kathleen</p> <p> </p> </td> <td valign="top" width="142"> <p>10/05/2013</p> </td> <td valign="top" width="151"> <p>10/05/2018</p> </td> <td valign="top" width="151"> <p align="center">N/A</p> </td> <td valign="top" width="151"> <p align="center">N/A</p> </td> <td valign="top" width="161"> <p align="center">Securities Act 1978 s58</p> </td> </tr> <tr> <td valign="top" width="253"> <p>WHALE Robert Barry</p> <p> </p> </td> <td valign="top" width="142"> <p>23/05/2013</p> </td> <td valign="top" width="151"> <p>23/05/2018</p> </td> <td valign="top" width="151"> <p align="center">N/A</p> </td> <td valign="top" width="151"> <p align="center">N/A</p> </td> <td valign="top" width="161"> <p align="center">Securities Act 1978 s 8</p> </td> </tr> <tr> <td valign="top" width="253"> <p>BETTLE Richard Gilbert</p> <p> </p> </td> <td valign="top" width="142"> <p>26/06/2013</p> </td> <td valign="top" width="151"> <p>26/06/2018</p> </td> <td valign="top" width="151"> <p align="center">N/A</p> </td> <td valign="top" width="151"> <p align="center">N/A</p> </td> <td valign="top" width="161"> <p align="center">Securities Act 1978 s58</p> </td> </tr> <tr> <td valign="top" width="253"> <p>ARKINSTALL Vance Eric</p> <p> </p> </td> <td valign="top" width="142"> <p>26/06/2013</p> </td> <td valign="top" width="151"> <p>26/06/2018</p> </td> <td valign="top" width="151"> <p align="center">N/A</p> </td> <td valign="top" width="151"> <p align="center">N/A</p> </td> <td valign="top" width="161"> <p align="center">Securities Act 1978 s58</p> </td> </tr> <tr> <td valign="top" width="253"> <p>FORSYTH Paul Winstone</p> <p> </p> </td> <td valign="top" width="142"> <p>26/06/2013</p> </td> <td valign="top" width="151"> <p>26/06/2018</p> </td> <td valign="top" width="151"> <p align="center">N/A</p> </td> <td valign="top" width="151"> <p align="center">N/A</p> </td> <td valign="top" width="161"> <p align="center">Securities Act 1978 s58</p> </td> </tr> <tr> <td valign="top" width="253"> <p>ROSS David Robert Gilmour</p> </td> <td valign="top" width="142"> <p> </p> </td> <td valign="top" width="151"> <p> </p> </td> <td valign="top" width="151"> <p align="center">15/11/2013</p> </td> <td valign="top" width="151"> <p align="center">15/11/2018</p> </td> <td valign="top" width="161"> <p align="center">Crimes Act 1961 s220</p> </td> </tr> <tr> <td valign="top" rowspan="4" width="253"> <p>HAMILTON Hugh Edward Staples</p> </td> <td valign="top" rowspan="4" width="142"> <p> </p> </td> <td valign="top" rowspan="4" width="151"> <p> </p> </td> <td valign="top" rowspan="4" width="151"> <p align="center">16/05/2014</p> </td> <td valign="top" rowspan="4" width="151"> <p align="center">16/05/2019</p> </td> <td valign="top" width="161"> <p align="center">Crimes Act 1961 s 220</p> </td> </tr> <tr> <td valign="top" width="161"> <p align="center">Crimes Act 1961 s242</p> </td> </tr> <tr> <td valign="top" width="161"> <p align="center">Companies Act 1993 s377</p> </td> </tr> <tr> <td valign="top" width="161"> <p align="center">Crimes Act 1961 s252/s260</p> </td> </tr> </tbody> </table> <div> <h2><b>Undertakings of non-participation as a director and/or promoter and/or in management of a company and/or public issuer</b></h2> <p>The individuals listed have provided undertakings to the FMA pursuant to s46 of the Financial Markets Authority Act 2011, not to be a director, promoter and/or involved in the management of either a company and/or a company which is an issuer of securities to the public for an agreed term.</p> </div> <p>Details of the undertakings are available <a href="http://www.fma.govt.nz/laws-we-enforce/enforcement/enforceable-undertakings">here</a>.</p> <h3>List of persons who have provided an enforceable undertaking not to participate in the management of entities</h3> <table style="width: 943px;" cellspacing="0" cellpadding="0"> <tbody> <tr> <td valign="top" width="253"> <p align="center"><b>Director </b><b></b></p> </td> <td valign="top" width="142"> <p align="center"><b>Date undertaking commenced</b><b></b></p> </td> <td valign="top" width="151"> <p align="center"><b>Date undertaking ends</b></p> </td> <td valign="top" width="397"> <p align="center"><b>Details of enforceable undertaking</b></p> </td> </tr> <tr> <td valign="top" width="253"> <p>HARDING Andrew John</p> </td> <td valign="top" width="142"> <p>16/07/2010</p> </td> <td valign="top" width="151"> <p>Permanent ban</p> <p> </p> </td> <td valign="top" width="397"> <p>Will not be a director or promoter of or in any way concerned in management of an incorporated or unincorporated body in New Zealand (except an overseas company or an incorporated or unincorporated body that does not carry on business in New Zealand).</p> </td> </tr> <tr> <td valign="top" width="253"> <p>SCHOLFIELD Murray</p> </td> <td valign="top" width="142"> <p>16/07/2010</p> </td> <td valign="top" width="151"> <p>Permanent ban</p> <p> </p> </td> <td valign="top" width="397"> <p>Will not be a director or promoter of or in any way concerned in management of an incorporated or unincorporated body in New Zealand (except an overseas company or an incorporated or unincorporated body that does not carry on business in New Zealand).</p> </td> </tr> <tr> <td valign="top" width="253"> <p>GREENSILL Rodney Seymour Roberts</p> <p> </p> </td> <td valign="top" width="142"> <p>13/12/2011</p> </td> <td valign="top" width="151"> <p>13/12/2016</p> </td> <td valign="top" width="397"> <p>Will not be a director or promoter of or in any way concerned in management of an issuer of debt securities.</p> </td> </tr> <tr> <td valign="top" width="253"> <p>LAMBERT Barry Noel</p> <p> </p> </td> <td valign="top" width="142"> <p>13/12/2011</p> </td> <td valign="top" width="151"> <p>13/12/2016</p> </td> <td valign="top" width="397"> <p>Will not be a director or promoter of or in any way concerned in management of an issuer of debt securities.</p> </td> </tr> <tr> <td valign="top" width="253"> <p>SIMKIN Christopher Bruce</p> </td> <td valign="top" width="142"> <p>13/12/2011</p> </td> <td valign="top" width="151"> <p>13/12/2016</p> </td> <td valign="top" width="397"> <p>Will not be a director or promoter of or in any way concerned in management of an issuer of debt securities.</p> </td> </tr> <tr> <td valign="top" width="253"> <p>ALCOCK Murray Rex</p> </td> <td valign="top" width="142"> <p>31/10/2014</p> </td> <td valign="top" width="151"> <p>31/10/2019</p> <p> </p> </td> <td valign="top" width="397"> <p>Will not be a director or promoter of or in any way concerned in management of a public issuer of securities.  Banned also from accepting appointment or employment as a Chief Executive Officer or Chief Financial Officer (or equivalent position) of a public issuer of securities.<sup>*</sup></p> </td> </tr> <tr> <td valign="top" width="253"> <p>KNIGHT Allister Ronald</p> </td> <td valign="top" width="142"> <p>31/10/2014</p> </td> <td valign="top" width="151"> <p>31/10/2019</p> <p> </p> </td> <td valign="top" width="397"> <p>Will not be a director or promoter of or in any way concerned in management of a public issuer of securities.  Banned also from accepting appointment or employment as a Chief Executive Officer or Chief Financial Officer (or equivalent position) of a public issuer of securities.<sup>*</sup></p> </td> </tr> </tbody> </table> <p><sup>1</sup> Subject to certain exclusions relating to Direct Property Investments (No 6) Limited as set out in clause 2of the Enforceable Undertaking offered by Kerry Finnigan, Graham Jackson, Marcel Lindale, Timothy Rich, Denis Thom and David Wolfenden (<span style="text-decoration: underline;"><a href="http://www.fma.govt.nz/laws-we-enforce/enforcement/enforceable-undertakings/enforceable-undertaking-from-strategic-finance-directors">http://www.fma.govt.nz/laws-we-enforce/enforcement/enforceable-undertakings/enforceable-undertaking-from-strategic-finance-directors</a></span>).</p> <p><sup>2</sup> Subject to certain exclusions relating to the SPI Entities as set out in clauses 3.1(e) to (f) of the Enforceable Undertaking offered by Murray Rex Alcock and Allister Ronald Knight (<a href="http://www.fma.govt.nz/laws-we-enforce/enforcement/enforceable-undertakings/enforceable-undertakings-from-spi-directors">http://www.fma.govt.nz/laws-we-enforce/enforcement/enforceable-undertakings/enforceable-undertakings-from-spi-directors</a>).</p> http://www.fma.govt.nz/laws-we-enforce/policy/closed-consultations/consultation-paper-going-public-a-directors-guide Consultation paper: Going Public – A Director’s Guide 2015-02-20 14:05:06 Financial Markets Authority <p><strong>New handbook now available: Going Public – a director’s guide</strong></p> <p>The FMA has published a new handbook:<span class="Apple-converted-space"> </span><a href="http://www.fma.govt.nz/assets/Report-and-Papers/Guidance/150220-Going-Public-a-directors-guide.pdf" target="_blank">Going Public – a director’s guide</a>, following a recent consultation process.</p> <p>We received six written submissions from a variety of market participants which have now been considered and integrated into the final handbook. We have published a summary on our<span class="Apple-converted-space"> </span><a href="http://www.fma.govt.nz/assets/Report-and-Papers/Guidance/150220-Response-to-submissions-Going-Public-a-directors-guide.pdf" target="_blank">response to submissions</a><span class="Apple-converted-space"> </span>which further details the specific areas of change.</p> <p>The handbook is intended to help directors assess whether going public is the right choice for their company and to provide an insight into the process of becoming a public company.  It should be read alongside the handbook<span class="Apple-converted-space"> </span><a href="http://www.fma.govt.nz/assets/Report-and-Papers/Consultation/Corporate-Governance-Handbook-Principles-and-Guidelines.pdf">Corporate Governance in New Zealand: Principles and Guidelines</a><span class="Apple-converted-space"> </span>which is a resource for directors, executives and advisers to help them understand what is expected of them more generally in their governance roles.  <br><br>Governance and culture has been identified as one of our strategic priorities that will guide our work over the coming three years.<br><br><b>You can contact us at: <br></b>Phone: 0800 434 567 <br>Email:<span class="Apple-converted-space"> </span><a href="mailto:questions@fma.govt.nz">questions@fma.govt.nz</a></p> http://www.fma.govt.nz/help-me-comply/issuers/guidance-notes-and-reports/ Guidance Notes and Reports 2015-02-20 13:53:13 Financial Markets Authority <table> <tbody> <tr> <td> <p>These guidance notes and reports relate to the Securities Act regime. From 1 December 2014, offers of financial products can be made under the new <a href="http://www.fma.govt.nz/keep-updated/the-future-of-financial-markets/new-offers-under-fmc-act/">Financial Markets Conduct Act (FMC Act) regime.</a></p> </td> </tr> </tbody> </table> <h3>Guidance Notes</h3> <ul> <li><a href="http://www.fma.govt.nz/help-me-comply/issuers/guidance-notes-and-reports/guidance-note-pre-prospectus-publicity-some-practical-guidance-for-issuers-and-their-advisers/">Pre-prospectus publicity - some practical guidance for issuers and their advisers</a></li> <li><a href="http://www.fma.govt.nz/help-me-comply/issuers/guidance-notes-and-reports/guidance-note-effective-disclosure/">Effective Disclosure</a></li> <li><a href="http://www.fma.govt.nz/help-me-comply/issuers/guidance-notes-and-reports/guidance-note-disclosing-non-gaap-financial-information/">Disclosing non-GAAP financial information</a></li> <li><a href="http://www.fma.govt.nz/keep-updated/reports-and-papers/offering-securities-in-new-zealand-and-australia-under-mutual-recognition">Offering Securities in New Zealand and Australia under Mutual Recognition</a></li> <li><a href="http://www.fma.govt.nz/assets/Report-and-Papers/Consultation/Corporate-Governance-Handbook-Principles-and-Guidelines.pdf" target="_blank">Handbook: Corporate Governance in New Zealand – Principles and Guidelines</a></li> <li><a href="http://www.fma.govt.nz/assets/Report-and-Papers/Guidance/150220-Going-Public-a-directors-guide.pdf" target="_blank">Going Public: A Director's Guide to IPOs</a></li> </ul> <h3> </h3> <h3><strong>Reports</strong></h3> <ul> <li><a href="http://www.fma.govt.nz/keep-updated/reports-and-papers/review-of-non-filing-of-financial-statements">Review of non-filing of financial statements</a></li> <li><a href="http://www.fma.govt.nz/keep-updated/reports-and-papers/going-concern-disclosures-in-financial-statements">Going Concern disclosures in financial statements</a> </li> <li><a href="http://www.fma.govt.nz/keep-updated/reports-and-papers/disclosure-of-fees-paid-to-auditors-by-listed-issuers">Disclosure of fees paid to auditors by listed issuers</a></li> <li><a href="http://www.fma.govt.nz/keep-updated/reports-and-papers/monitoring-of-kiwisaver-offer-documents">Monitoring of KiwiSaver offer documents</a></li> <li><a href="http://www.fma.govt.nz/assets/media/1105043/2013-financial-reports-focus.pdf" target="_blank">2013 financial reports focus</a></li> </ul> <p> </p> http://www.fma.govt.nz/laws-we-enforce/enforcement/enforceable-undertakings/enforceable-undertakings-anz-bank-new-zealand-limited-anz Enforceable undertakings - ANZ Bank New Zealand Limited (ANZ) 2015-02-20 11:29:26 Financial Markets Authority http://www.fma.govt.nz/laws-we-enforce/policy/closed-consultations/consultation-paper-content-and-form-of-disclose-register-information Consultation paper: Content and form of Disclose register information 2015-02-20 10:29:32 Financial Markets Authority <p><b>20 February 2015</b></p> <p>In November 2014 the FMA issued a consultation paper for issuers on how to approach the content and form of their Disclose register entry.</p> <p>Six submissions were received. A summary of the submission feedback can be downloaded below.</p> <p>Those submissions have now been considered and integrated into a guidance note.</p> <ul> <li><a href="http://www.fma.govt.nz/assets/Report-and-Papers/Guidance/Content-and-form-of-Disclose-register-information-guidance-note.pdf" target="_blank">Guidance note: Content and form of Disclose register information</a></li> <li><a href="http://www.fma.govt.nz/assets/Report-and-Papers/Guidance/Response-to-submissions-on-content-and-form-of-disclose-register-information.pdf" target="_blank">Response to submissions: Content and form of Disclose register information</a></li> </ul> http://www.fma.govt.nz/help-me-comply/financial-advisers/ Financial Advisers 2015-02-20 10:10:08 Financial Markets Authority <h3>All financial advisers must comply with the requirements of the Financial Advisers Act 2008.</h3> <table> <tbody> <tr> <td> <p><strong>Changes ahead for regulation of Personalised DIMS</strong><br><em>Updated 19 February 2015<br><br></em>The Financial Markets (Repeals and Amendments) Act 2013 introduced amendments to the Financial Advisers Act 2008 (the FA Act), which took effect from 1 December 2014. This means for a person to be authorised to provide a Personalised DIMS they must meet the prescribed eligibility criteria. New AFA’s must meet the criteria from 1 December 2014 and existing DIMS authorised AFA’s must meet the criteria from 1 June 2015, unless they apply for an FMC Act licence by 31 May 2015.<br><br>FMA has today published the following information for AFAs providing a personalised DIMS:</p> <ul> <li><a href="http://www.fma.govt.nz/assets/Report-and-Papers/Christchurch-DIMS-Seminar-FINAL.pdf" target="_blank">FMA DIMS seminar - PowerPoint presentation</a> (19 February 2015)</li> <li><a href="https://www.youtube.com/watch?v=e7N3E-QlGUo">FMA DIMS seminar – highlights video</a> (3 December 2014)</li> <li><a href="http://www.fma.govt.nz/assets/Report-and-Papers/FMC-Act-into-action-Understanding-DIMS-December-2014.pdf" target="_blank">FMA DIMS seminar - PowerPoint presentation</a> (3 December 2014)</li> <li><a href="http://www.fma.govt.nz/assets/Report-and-Papers/Information-Sheets/Information-Sheet-Transitional-provisions-for-AFAs-providing-a-Personalised-DIMS-December-2014.pdf" target="_blank">Information sheet - Transitional provisions for AFAs providing personalised DIMS</a></li> <li><a href="http://www.fma.govt.nz/assets/Report-and-Papers/Information-Sheets/Information-Sheet-Exemption-from-DIMS-licensing-requirements-for-AFAs-providing-a-contingency-DIMS-December-2014.pdf" target="_blank">Information sheet - Exemption from DIMS licensing requirements for AFAs providing a contingency DIMS</a> </li> <li><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/">Updated AFA Adviser Business Statement Guide</a><a href="http://www.fma.govt.nz/help-me-comply/financial-advisers/how-to-get-licensed/afa-application-resources-and-templates/afa-authorisation-guide/"></a></li> <li><a href="http://www.fma.govt.nz/help-me-comply/financial-advisers/how-to-get-licensed/afa-application-resources-and-templates/afa-authorisation-guide/">Updated AFA Authorisation Guide</a></li> <li><a href="http://www.fma.govt.nz/assets/Report-and-Papers/Guidance/Response-to-submissions-Consultation-paper-Personalised-DIMS.pdf" target="_blank">Response to consultation submissions</a></li> </ul> </td> </tr> </tbody> </table> http://www.fma.govt.nz/help-me-comply/auditors/how-to-get-licensed/ How to Get Licensed 2015-02-18 16:51:37 Financial Markets Authority <p>A person who acts as the auditor in respect of an issuer audit must hold a licence. Audit firms must be registered.</p> <h2><a id="NZAuditorLicensing" name="NZAuditorLicensing"></a>New Zealand auditor licensing</h2> <p>New Zealand based auditors need to apply for a standard licence from an accredited body they are a member of.</p> <p>CPA Australia and NZICA are currently the only accredited bodies.</p> <p><a href="http://www.nzica.com/contactus.aspx">Contact NZICA</a> for further details of how to apply for a standard licence.<a href="http://www.cpaaustralia.com.au/cps/rde/xchg/cpa-site/hs.xsl/about-contact-us.html"> </a></p> <p><a href="http://www.cpaaustralia.com.au/cps/rde/xchg/cpa-site/hs.xsl/about-contact-us.html">Contact CPA Australia</a> for further details of how to apply for a standard licence.</p> <h2><a id="NZAuditFirmRegistration" name="NZAuditFirmRegistration"></a>New Zealand audit firm registration</h2> <p>New Zealand audit firms are registered on the Auditors Register held at the Companies Office following approval by an accredited body.</p> <p><a href="http://www.nzica.com/contactus.aspx">Contact NZICA</a> for further details of how to apply for firm registration.</p> <p><a href="http://www.cpaaustralia.com.au/cps/rde/xchg/cpa-site/hs.xsl/about-contact-us.html">Contact CPA Australia</a> for further details of how to apply for a standard licence.</p> <h2><a id="OverseasAuditorLicensing" name="OverseasAuditorLicensing"></a>Overseas auditor licensing</h2> <p>Overseas auditors need to apply to FMA for a standard licence.</p> <p><a href="http://www.fma.govt.nz/help-me-comply/auditors/how-to-get-licensed/how-to-apply-for-a-licence-overseas-auditors/">See how to obtain a standard licence</a>.</p> <h2><a id="OverseasAuditFirmRegistration" name="OverseasAuditFirmRegistration"></a>Overseas audit firm registration</h2> <p>Overseas audit firms are registered with the Auditors Register held at the New Zealand Companies Office following approval by FMA.</p> <p><a href="http://www.fma.govt.nz/help-me-comply/auditors/how-to-get-licensed/how-to-apply-for-registration-overseas-audit-firms/">See how to apply for registration</a><a href="http://www.fma.govt.nz/help-me-comply/auditors/how-to-get-licensed/how-to-apply-for-a-licence-overseas-auditors/"></a>.</p> <h2>Prescribed minimum standards</h2> <p><a href="http://www.fma.govt.nz/assets/the-auditor-regulation-act-prescribed-minimum-standards-and-conditions-for-licensed-auditors-and-registered-audit-firms-notice-2012.pdf">The Auditor Regulation Act (Prescribed Minimum Standards and Conditions for Licensed Auditors and Registered Audit Firms) Notice 2012</a></p> <p>Sections 3(e) of the Auditor Regulation Act (Prescribed Minimum Standards and Conditions for Licensed auditors and Registered Firms) Notice 2012 requires that an auditor applying to be licensed as an auditor after 30 June 2014, must have successfully completed a professional course in auditing approved by FMA. FMA has approved the following professional courses in auditing.</p> <p><a href="http://www.fma.govt.nz/assets/notice-of-approval-of-professional-course-in-auditing.pdf" target="_blank">See Notice of approval of professional course in auditing</a><a href="http://www.fma.govt.nz/media/1968713/notice-of-approval-of-professional-course-in-auditing.pdf"></a></p> http://www.fma.govt.nz/laws-we-enforce/registers/list-of-qualifying-financial-entities-qfe/ List of Qualifying Financial Entities (QFE) 2015-02-18 15:57:18 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>FSP402807</td> <td>Generate Investment Holdings Limited</td> <td>Generate QFE Group</td> <td>Generate Investment Management Limited (FSP271005)</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>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>FSP38581</p> </td> <td> <p>Fisher Funds Management Limited</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>Smiths City Finance Limited <br><br><em>Previously Smithcorp Finance Limited</em></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/Registers/Current-QFE-List.pdf" target="_blank">Current QFE List</a></li> <li><a href="http://www.fma.govt.nz/assets/Registers/Previous-QFE-List.pdf" target="_blank">Previous QFE List</a></li> </ul> </div> http://www.fma.govt.nz/laws-we-enforce/registers/list-of-amlcft-designated-business-groups/ List of AML/CFT Designated Business Groups 2015-02-17 17:23:29 Financial Markets Authority <p><strong>List of AML/CFT Designated Business Groups (DBGs) notified to and supervised by the FMA</strong></p> <ol> <li>Businesses that appear on this list have formed a DBG in accordance with the Anti-Money Laundering and Countering Financing of Terrorism Act 2009 and have notified the FMA of the DBG formation in accordance with the Designated Business Group - Formation Guideline.</li> <li>Only entities that have completed the necessary forms for notifying the FMA of their election to form or join a DBG are included on this list.</li> <li>The list represents our current population of DBGs and will be subject to change from time to time.</li> <li>This list is for information only.</li> <li>The listing of a business does not imply that the Financial Markets Authority has approved of the activities of the business and does not certify compliance of the business with applicable legislation.</li> <li>Each reporting entity within the DBG must complete an annual AML/CFT report, however not all entities with a DBG are necessarily reporting entities. Where they are not reporting entities, we have highlighted them as such.</li> </ol> <p>More information on Designated Business Groups</p> <ul> <li><a href="http://www.fma.govt.nz/keep-updated/reports-and-papers/designated-business-group-scope-guideline">Designated Business Group - Scope Guideline</a>. This guideline is designed to assist reporting entities to understand which obligations may be shared by members of a designated business group (DBG).</li> <li><a href="http://www.fma.govt.nz/keep-updated/reports-and-papers/designated-business-group-formation-guideline">Designated Business Group - Formation Guideline</a>. This guideline is designed to help reporting entities forming a DBG understand the process for doing so.</li> <li><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 2009</a>, Section 5 - designated business group interpretation and sections 32 – 36 Reliance on third parties</li> <li><a href="http://www.legislation.govt.nz/regulation/public/2011/0222/latest/DLM3845896.html?search=ts_regulation_Anti+Money+Laundering_resel&amp;p=1">Anti-Money Laundering and Countering Financing of Terrorism (Definitions) Regulations 2011</a>. Definition of designated business group – clauses 6 to 9</li> </ul> <table style="width: 985px;" cellspacing="0" cellpadding="0"><colgroup><col> <col> <col> <col> </colgroup> <tbody> <tr height="20"> <td class="xl63" width="270" height="20"> <h3>DBG Name</h3> </td> <td class="xl63" width="424"> <h3>Financial institutions included in the DBG</h3> </td> <td class="xl64" width="122"> <h3>FSPR Number</h3> </td> <td class="xl64" width="169"> <h3>Reporting Entity</h3> </td> </tr> <tr height="20"> <td class="xl75" rowspan="3" height="60"><strong>Accordia Asset Management Limited DBG</strong></td> <td class="xl65" width="424">Accordia Asset Management Ltd</td> <td class="xl66" width="122">FSP3341</td> <td class="xl66" width="169">Y</td> </tr> <tr height="20"> <td class="xl65" width="424" height="20">Accordia Services Limited</td> <td class="xl66" width="122">FSP3361</td> <td class="xl66" width="169">Y</td> </tr> <tr height="20"> <td class="xl65" width="424" height="20">Capital Investment Planning Limited</td> <td class="xl66" width="122">FSP3301</td> <td class="xl66" width="169">Y</td> </tr> <tr height="20"> <td class="xl76" rowspan="5" width="270" height="100"><strong>AMP FSNZ DBG</strong></td> <td class="xl65" width="424">AMP Services (NZ) Limited</td> <td class="xl66" width="122">FSP38082</td> <td class="xl66" width="169">Y</td> </tr> <tr height="20"> <td class="xl65" width="424" height="20">Spicers Portfolio Management Limited</td> <td class="xl67">FSP26061</td> <td class="xl67">Y</td> </tr> <tr height="20"> <td class="xl65" width="424" height="20">AMP Wealth Management New Zealand Ltd</td> <td class="xl66" width="122">FSP25061</td> <td class="xl66" width="169">Y</td> </tr> <tr height="20"> <td class="xl65" width="424" height="20">Advicefirst Limited</td> <td class="xl66" width="122">FSP23242</td> <td class="xl66" width="169">Y</td> </tr> <tr height="20"> <td class="xl65" width="424" height="20">AMP Life Limited</td> <td class="xl66" width="122">FSP38141</td> <td class="xl66" width="169">Y</td> </tr> <tr height="20"> <td class="xl76" rowspan="3" width="270" height="60"><strong>Aon New Zealand DBG</strong></td> <td class="xl65" width="424">Aon New Zealand</td> <td class="xl66" width="122">FSP16841</td> <td class="xl66" width="169">Y</td> </tr> <tr height="20"> <td class="xl65" width="424" height="20">Superannuation Management Nominees Limited</td> <td class="xl66" width="122">FSP16861</td> <td class="xl66" width="169">Y</td> </tr> <tr height="20"> <td class="xl65" width="424" height="20">Aon Saver Limited</td> <td class="xl66" width="122">FSP 243965</td> <td class="xl66" width="169">Y</td> </tr> <tr height="20"> <td class="xl76" rowspan="3" width="270" height="60"><strong>APEX Group DBG</strong></td> <td class="xl65" width="424">Apex Advice Group Ltd</td> <td class="xl66" width="122">FSP44869</td> <td class="xl66" width="169">Y</td> </tr> <tr height="20"> <td class="xl65" width="424" height="20">Apex Insurance Brokers Ltd</td> <td class="xl66" width="122">FSP311286</td> <td class="xl66" width="169">Y</td> </tr> <tr height="20"> <td class="xl65" width="424" height="20">Apex Succession Planning</td> <td class="xl66" width="122">FSP363206</td> <td class="xl66" width="169">Y</td> </tr> <tr height="20"> <td class="xl75" rowspan="2" height="120"><strong>Augusta DBG</strong></td> <td class="xl65" width="424">Augusta Capital Limited</td> <td class="xl68" width="122">FSP31941</td> <td class="xl68" width="169">Y</td> </tr> <tr height="20"> <td class="xl69" width="424" height="20">Augusta Funds Management Limited</td> <td class="xl68" width="122">FSP209185</td> <td class="xl68" width="169">Y</td> </tr> <tr height="20"> <td class="xl76" rowspan="3" width="270" height="60"><strong>BNP Paribas NZ DBG</strong></td> <td class="xl65" width="424">BNP Paribas Securities Services (Australia Branch)</td> <td class="xl66" width="122">NA</td> <td class="xl66" width="169">N</td> </tr> <tr height="20"> <td class="xl65" width="424" height="20">BNP Paribas Fund Services Australasia PTY Ltd</td> <td class="xl67">FSP42061</td> <td class="xl67">Y</td> </tr> <tr height="20"> <td class="xl65" width="424" height="20">BNP Paribas Nominees (NZ) Limited</td> <td class="xl66" width="122">FSP42162</td> <td class="xl66" width="169">Y</td> </tr> <tr height="20"> <td class="xl75" rowspan="32" height="640"><strong>Capital Group DBG</strong></td> <td class="xl70">Capitalgroup (Addison) Limited</td> <td class="xl66" width="122">FSP321586</td> <td class="xl66" width="169">Y</td> </tr> <tr height="20"> <td class="xl70" height="20">Capitalgroup (Anselm) Limited</td> <td class="xl66" width="122">FSP334866</td> <td class="xl66" width="169">Y</td> </tr> <tr height="20"> <td class="xl65" width="424" height="20">Capitalgroup (Beachlands) Limited</td> <td class="xl66" width="122">FSP334886</td> <td class="xl66" width="169">Y</td> </tr> <tr height="20"> <td class="xl65" width="424" height="20">Capitalgroup (Brickworks) Limited</td> <td class="xl66" width="122">FSP341627</td> <td class="xl66" width="169">Y</td> </tr> <tr height="20"> <td class="xl65" width="424" height="20">Capitalgroup (Browns Bay) Limited</td> <td class="xl66" width="122">FSP335026</td> <td class="xl66" width="169">Y</td> </tr> <tr height="20"> <td class="xl65" width="424" height="20">Capitalgroup (Celestion) Limited</td> <td class="xl66" width="122">FSP335046</td> <td class="xl66" width="169">Y</td> </tr> <tr height="20"> <td class="xl65" width="424" height="20">Capitalgroup (EOQ) Limited</td> <td class="xl66" width="122">FSP335066</td> <td class="xl66" width="169">Y</td> </tr> <tr height="20"> <td class="xl65" width="424" height="20">Capitalgroup (Ford) Limited</td> <td class="xl66" width="122">FSP398826</td> <td class="xl66" width="169">Y</td> </tr> <tr height="20"> <td class="xl65" width="424" height="20">Capitalgroup (Forest Glen) Limited</td> <td class="xl66" width="122">FSP395846</td> <td class="xl66" width="169">Y</td> </tr> <tr height="20"> <td class="xl65" width="424" height="20">Capitalgroup (Gin Point) Limited</td> <td class="xl66" width="122">FSP335086</td> <td class="xl66" width="169">Y</td> </tr> <tr height="20"> <td class="xl65" width="424" height="20">Capitalgroup (Guard) Limited</td> <td class="xl66" width="122">FSP395809</td> <td class="xl66" width="169">Y</td> </tr> <tr height="20"> <td class="xl65" width="424" height="20">Capitalgroup (KK) Holdings Limited</td> <td class="xl66" width="122">FSP335166</td> <td class="xl66" width="169">Y</td> </tr> <tr height="20"> <td class="xl65" width="424" height="20">Capitalgroup (Omokoroa) Limited</td> <td class="xl66" width="122">FSP335206</td> <td class="xl66" width="169">Y</td> </tr> <tr height="20"> <td class="xl65" width="424" height="20">Capitalgroup (Orewa) Limited</td> <td class="xl66" width="122">FSP335207</td> <td class="xl66" width="169">Y</td> </tr> <tr height="20"> <td class="xl65" width="424" height="20">Capitalgroup (PEB) Limited</td> <td class="xl66" width="122">FSP335246</td> <td class="xl66" width="169">Y</td> </tr> <tr height="20"> <td class="xl65" width="424" height="20">Capitalgroup (Pines) Limited</td> <td class="xl66" width="122">FSP413727</td> <td class="xl66" width="169">Y</td> </tr> <tr height="20"> <td class="xl65" width="424" height="20">Capitalgroup (Taradale) Limited</td> <td class="xl66" width="122">FSP405666</td> <td class="xl66" width="169">Y</td> </tr> <tr height="20"> <td class="xl65" width="424" height="20">Capitalgroup (Tatapouri) Limited</td> <td class="xl66" width="122">FSP335266</td> <td class="xl66" width="169">Y</td> </tr> <tr height="20"> <td class="xl65" width="424" height="20">Capitalgroup (Whenuapai) Limited</td> <td class="xl66" width="122">FSP407506</td> <td class="xl66" width="169">Y</td> </tr> <tr height="20"> <td class="xl65" width="424" height="20">Capitalgroup (Whitaker) Limited</td> <td class="xl66" width="122">FSP389986</td> <td class="xl66" width="169">Y</td> </tr> <tr height="20"> <td class="xl65" width="424" height="20">Capitalgroup Cash Management Trust Limited</td> <td class="xl66" width="122">FSP341726</td> <td class="xl66" width="169">Y</td> </tr> <tr height="20"> <td class="xl65" width="424" height="20">Capitalgroup Finance Limited</td> <td class="xl66" width="122">FSP341706</td> <td class="xl66" width="169">Y</td> </tr> <tr height="20"> <td class="xl65" width="424" height="20">Capitalgroup Nominees Limited</td> <td class="xl66" width="122">FSP335286</td> <td class="xl66" width="169">Y</td> </tr> <tr height="20"> <td class="xl65" width="424" height="20">Capitalgroup Steele Limited</td> <td class="xl66" width="122">FSP335306</td> <td class="xl66" width="169">Y</td> </tr> <tr height="20"> <td class="xl65" width="424" height="20">CBD Mortgages Limited</td> <td class="xl66" width="122">FSP135264</td> <td class="xl66" width="169">Y</td> </tr> <tr height="20"> <td class="xl65" width="424" height="20">Omokoroa Investments Limited</td> <td class="xl66" width="122">FSP335346</td> <td class="xl66" width="169">Y</td> </tr> <tr height="20"> <td class="xl65" width="424" height="20">Sing Yee 23 Limited</td> <td class="xl66" width="122">FSP334926</td> <td class="xl66" width="169">Y</td> </tr> <tr height="20"> <td class="xl65" width="424" height="20">Sing Yee 24 limited</td> <td class="xl66" width="122">FSP335146</td> <td class="xl66" width="169">Y</td> </tr> <tr height="20"> <td class="xl65" width="424" height="20">Sing Yee 25 Limited</td> <td class="xl66" width="122">FSP335486</td> <td class="xl66" width="169">Y</td> </tr> <tr height="20"> <td class="xl65" width="424" height="20">Sing Yee 26 Limited</td> <td class="xl66" width="122">FSP335107</td> <td class="xl66" width="169">Y</td> </tr> <tr height="20"> <td class="xl65" width="424" height="20">Sing Yee 27 Limited</td> <td class="xl66" width="122">FSP335006</td> <td class="xl66" width="169">Y</td> </tr> <tr height="20"> <td class="xl65" width="424" height="20">Sing Yee 28 Limited </td> <td class="xl66" width="122">FSP335186</td> <td class="xl66" width="169">Y</td> </tr> <tr height="20"> <td class="xl76" rowspan="11" width="270" height="220"><strong>Craigs DBG</strong></td> <td class="xl65" width="424">Craigs Investments Partners Limited</td> <td class="xl66" width="122">FSP29641</td> <td class="xl66" width="169">Y</td> </tr> <tr height="20"> <td class="xl65" width="424" height="20">Custodial Services Limited</td> <td class="xl66" width="122">FSP40066</td> <td class="xl66" width="169">Y</td> </tr> <tr height="20"> <td class="xl65" width="424" height="20">Craigs Investment Partners Investment Management Limited</td> <td class="xl66" width="122">FSP40150</td> <td class="xl66" width="169">Y</td> </tr> <tr height="20"> <td class="xl65" width="424" height="20">Craigs Investment Partners Superannuation Management Limited</td> <td class="xl66" width="122">FSP39980</td> <td class="xl66" width="169">Y</td> </tr> <tr height="20"> <td class="xl71" width="424" height="20">Craigs Investment Partners Portfolio Lending Limited</td> <td class="xl72" width="122">FSP40148</td> <td class="xl72" width="169">Y</td> </tr> <tr height="20"> <td class="xl65" width="424" height="20">CIP Cash Management Nominees Limited</td> <td class="xl67">FSP250285</td> <td class="xl67">Y</td> </tr> <tr height="20"> <td class="xl65" width="424" height="20">Hendry Nominees Limited</td> <td class="xl66" width="122">FSP250267</td> <td class="xl66" width="169">Y</td> </tr> <tr height="20"> <td class="xl65" width="424" height="20">NZSIF Management Limited</td> <td class="xl66" width="122">FSP40071</td> <td class="xl66" width="169">Y</td> </tr> <tr height="20"> <td class="xl65" width="424" height="20">Pohutukawa Management Limited</td> <td class="xl66" width="122">FSP40165</td> <td class="xl66" width="169">Y</td> </tr> <tr height="20"> <td class="xl65" width="424" height="20">Pohutukawa II Management Limited</td> <td class="xl66" width="122">FSP40144</td> <td class="xl66" width="169">Y</td> </tr> <tr height="20"> <td class="xl65" width="424" height="20">Deutsche Craigs Limited</td> <td class="xl66" width="122">FSP318966</td> <td class="xl66" width="169">Y</td> </tr> <tr height="20"> <td class="xl76" rowspan="8" width="270" height="180"><strong>DBG</strong></td> <td class="xl65" width="424">Forsyth Barr Limited</td> <td class="xl66" width="122">FSP24848</td> <td class="xl66" width="169">Y</td> </tr> <tr height="20"> <td class="xl65" width="424" height="20">Forsyth Barr Group Limited</td> <td class="xl66" width="122">FSP296946</td> <td class="xl66" width="169">Y</td> </tr> <tr height="20"> <td class="xl65" width="424" height="20">Forsyth Barr Custodians Limited</td> <td class="xl66" width="122">FSP25083</td> <td class="xl66" width="169">Y</td> </tr> <tr height="20"> <td class="xl65" width="424" height="20">Forsyth Barr KiwiSaver Limited</td> <td class="xl66" width="122">FSP25021</td> <td class="xl66" width="169">Y</td> </tr> <tr height="20"> <td class="xl65" width="424" height="20">Forsyth Barr Esam Cushing Limited</td> <td class="xl66" width="122">FSP24845</td> <td class="xl66" width="169">Y</td> </tr> <tr height="40"> <td class="xl65" width="424" height="40">Forsyth Barr Cash Management<br> Nominees Limited</td> <td class="xl66" width="122">FSP260845</td> <td class="xl66" width="169">Y</td> </tr> <tr height="20"> <td class="xl65" width="424" height="20">Forsyth Barr Funds Management Limited</td> <td class="xl66" width="122">FSP24961</td> <td class="xl66" width="169">Y</td> </tr> <tr height="20"> <td class="xl65" width="424" height="20">Leveraged Equities Finance Limited</td> <td class="xl66" width="122">FSP25161</td> <td class="xl66" width="169">Y</td> </tr> <tr height="20"> <td class="xl76" rowspan="6" width="270" height="120"><strong>GEK Property Management DBG</strong></td> <td class="xl65" width="424">GEK Property Management limited</td> <td class="xl67">FSP35826</td> <td class="xl67">Y</td> </tr> <tr height="20"> <td class="xl65" width="424" height="20">Mortgage Holdings Limited</td> <td class="xl67">FSP394706</td> <td class="xl67">Y</td> </tr> <tr height="20"> <td class="xl65" width="424" height="20">Mortgage Investment Limited Partnership</td> <td class="xl67">FSP395286</td> <td class="xl67">Y</td> </tr> <tr height="20"> <td class="xl65" width="424" height="20">Property Syndicates Issuer Limited</td> <td class="xl67">FSP35861</td> <td class="xl67">Y</td> </tr> <tr height="20"> <td class="xl65" width="424" height="20">Elderslea Hospital Syndicates Limited</td> <td class="xl67">FSP303306</td> <td class="xl67">Y</td> </tr> <tr height="20"> <td class="xl65" width="424" height="20">Nesdale Wiri Syndicate Limited</td> <td class="xl67">FSP365426</td> <td class="xl67">Y</td> </tr> <tr height="20"> <td class="xl76" rowspan="2" width="270" height="40"><strong>Goldman Sachs NZ DBG</strong></td> <td class="xl65" width="424">Goldman Sachs New Zealand Limited</td> <td class="xl66" width="122">FSP37443</td> <td class="xl66" width="169">Y</td> </tr> <tr height="20"> <td class="xl65" width="424" height="20">Goldman Sachs New Zealand Private Equity Limited</td> <td class="xl66" width="122">FSP37453</td> <td class="xl66" width="169">Y</td> </tr> <tr height="20"> <td class="xl76" rowspan="4" width="270" height="80"><strong>Goodman Property Trust DBG</strong></td> <td class="xl65" width="424">Goodman (NZ) Limited</td> <td class="xl66" width="122">FSP36542</td> <td class="xl66" width="169">Y</td> </tr> <tr height="20"> <td class="xl65" width="424" height="20">GMT Bond Issuer Limited</td> <td class="xl66" width="122">FSP36625</td> <td class="xl66" width="169">Y</td> </tr> <tr height="20"> <td class="xl65" width="424" height="20">GMT Wholesale Bond Issuer Limited</td> <td class="xl66" width="122">NA</td> <td class="xl66" width="169">Y</td> </tr> <tr height="20"> <td class="xl65" width="424" height="20">Goodman Property Services (NZ) Limited</td> <td class="xl67">FSP287465</td> <td class="xl67">Y</td> </tr> <tr height="20"> <td class="xl76" rowspan="5" width="270" height="100"><strong>Grosvenor DBG</strong></td> <td class="xl65" width="424">Grosvenor Custodial Administration Services Limited</td> <td class="xl66" width="122">FSP28324</td> <td class="xl66" width="169">Y</td> </tr> <tr height="20"> <td class="xl65" width="424" height="20">Grosvenor Investment Management Limited</td> <td class="xl66" width="122">FSP28142</td> <td class="xl66" width="169">Y</td> </tr> <tr height="20"> <td class="xl65" width="424" height="20">Grosvenor Investment Services Limited</td> <td class="xl66" width="122">FSP28245</td> <td class="xl66" width="169">Y</td> </tr> <tr height="20"> <td class="xl65" width="424" height="20">Asset Custodian Nominees Limited </td> <td class="xl66" width="122">FSP35541</td> <td class="xl66" width="169">Y</td> </tr> <tr height="20"> <td class="xl65" width="424" height="20">Grosvenor Financial Services Group Limited</td> <td class="xl66" width="122">FSP28287</td> <td class="xl66" width="169">Y</td> </tr> <tr height="20"> <td class="xl76" rowspan="2" width="270" height="40"><strong>HiFXGroup DBG</strong></td> <td class="xl65" width="424">HiFX Limited</td> <td class="xl66" width="122">FSP94961</td> <td class="xl66" width="169">Y</td> </tr> <tr height="20"> <td class="xl65" width="424" height="20">HiFX Australia Pty Limited</td> <td class="xl66" width="122">NA</td> <td class="xl66" width="169">N</td> </tr> <tr height="20"> <td class="xl76" rowspan="3" width="270" height="60"><strong>JBWere NZ DBG</strong></td> <td class="xl65" width="424">JBWere (NZ) PTY Limited</td> <td class="xl67">FSP33141</td> <td class="xl67">Y</td> </tr> <tr height="20"> <td class="xl65" width="424" height="20">Margin Lending (NZ) Limited</td> <td class="xl66" width="122">FSP33202</td> <td class="xl66" width="169">Y</td> </tr> <tr height="20"> <td class="xl65" width="424" height="20">JBWere (NZ) Nominees Limited</td> <td class="xl66" width="122">FSP33164</td> <td class="xl66" width="169">Y</td> </tr> <tr height="20"> <td class="xl75" rowspan="7" height="140"><strong>Macquarie DBG</strong></td> <td class="xl65" width="424">Macquarie Securities (NZ) Ltd</td> <td class="xl66" width="122">FSP14521</td> <td class="xl66" width="169">Y</td> </tr> <tr height="20"> <td class="xl65" width="424" height="20">Macquarie Capital (New Zealand) Ltd</td> <td class="xl66" width="122">FSP4621</td> <td class="xl66" width="169">Y</td> </tr> <tr height="20"> <td class="xl65" width="424" height="20"><span>Macquarie</span> <span>Equities</span> New Zealand Limited</td> <td class="xl66" width="122">FSP29782</td> <td class="xl66" width="169">Y</td> </tr> <tr height="20"> <td class="xl65" width="424" height="20">Macquarie Equities Custodians Ltd</td> <td class="xl66" width="122">FSP30284</td> <td class="xl66" width="169">Y</td> </tr> <tr height="20"> <td class="xl65" width="424" height="20">Macquarie Equipment Finance Ltd</td> <td class="xl66" width="122">FSP37621</td> <td class="xl66" width="169">Y</td> </tr> <tr height="20"> <td class="xl65" width="424" height="20">NZ Mortgages Pty Ltd</td> <td class="xl66" width="122">FSP214565</td> <td class="xl66" width="169">Y</td> </tr> <tr height="20"> <td class="xl65" width="424" height="20">Macquarie Group Holdings New Zealand Limited</td> <td class="xl66" width="122">NA</td> <td class="xl66" width="169">N</td> </tr> <tr height="20"> <td class="xl76" rowspan="3" width="270" height="60"><strong>MAS DBG</strong></td> <td class="xl65" width="424">Medical Assurance Society New Zealand Limited</td> <td class="xl67">FSP35849</td> <td class="xl67">Y</td> </tr> <tr height="20"> <td class="xl65" width="424" height="20">Medical Securities Limited</td> <td class="xl67">FSP39382</td> <td class="xl67">Y</td> </tr> <tr height="20"> <td class="xl65" width="424" height="20">Medical Funds Management Limited</td> <td class="xl67">FSP39643</td> <td class="xl67">Y</td> </tr> <tr height="20"> <td class="xl76" rowspan="2" width="270" height="40"><strong>Mercer DBG</strong></td> <td class="xl65" width="424">Mercer (NZ) Limited</td> <td class="xl66" width="122">FSP42742</td> <td class="xl66" width="169">Y</td> </tr> <tr height="20"> <td class="xl70" height="20">Mercer Investment Nominees (NZ) Limited</td> <td class="xl67">FSP42613</td> <td class="xl67">Y</td> </tr> <tr height="20"> <td class="xl79" rowspan="3" height="60"><strong>Milford DBG</strong></td> <td class="xl65" width="424">Milford Asset Management Limited </td> <td class="xl66" width="122">FSP21043</td> <td class="xl66" width="169">Y</td> </tr> <tr height="20"> <td class="xl65" width="424" height="20">Milford Funds Limited </td> <td class="xl66" width="122">FSP36001</td> <td class="xl66" width="169">Y</td> </tr> <tr height="20"> <td class="xl65" width="424" height="20">Milford Private Wealth Limited</td> <td class="xl66" width="122">FSP391786</td> <td class="xl66" width="169">Y</td> </tr> <tr height="20"> <td class="xl75" rowspan="4" height="80"><strong>Murray &amp; CO DBG</strong></td> <td class="xl65" width="424">Murray &amp; Company Wealth Management Limited</td> <td class="xl66" width="122">FSP23361</td> <td class="xl66" width="169">Y</td> </tr> <tr height="20"> <td class="xl65" width="424" height="20">Murray Capital Limited</td> <td class="xl66" width="122">FSP30903</td> <td class="xl66" width="169">Y</td> </tr> <tr height="20"> <td class="xl65" width="424" height="20">Murray &amp; Company Investment Advisers Limited</td> <td class="xl66" width="122">FSP147544</td> <td class="xl66" width="169">Y</td> </tr> <tr height="20"> <td class="xl65" width="424" height="20">FDJ Murray &amp; Company Holdings Limited</td> <td class="xl66" width="122">NA</td> <td class="xl66" width="169">N</td> </tr> <tr height="20"> <td class="xl79" rowspan="3" height="60"><strong>New Ground Capital DBG</strong></td> <td class="xl65" width="424">New Ground Capital Limited</td> <td class="xl68" width="122">FSP358706</td> <td class="xl68" width="169">Y</td> </tr> <tr height="20"> <td class="xl69" width="424" height="20">NZ Residential Property Fund Limited</td> <td class="xl68" width="122">NA</td> <td class="xl68" width="169">Y</td> </tr> <tr height="20"> <td class="xl69" width="424" height="20">New Ground SME Partnerships Fund Limited</td> <td class="xl68" width="122">NA</td> <td class="xl68" width="169">Y</td> </tr> <tr height="40"> <td class="xl76" rowspan="2" width="270" height="60"><strong>NZAM DBG</strong></td> <td class="xl65" width="424">New Zealand Assets Management Ltd</td> <td class="xl66" width="122"><br> FSP20861</td> <td class="xl66" width="169">Y</td> </tr> <tr height="20"> <td class="xl65" width="424" height="20">NZAM Funds Ltd</td> <td class="xl66" width="122">FSP252545</td> <td class="xl66" width="169">Y</td> </tr> <tr height="20"> <td class="xl75" rowspan="12" height="240"><strong>New Zealand Post Group DBG</strong></td> <td class="xl65" width="424">Kiwi Wealth Limited </td> <td class="xl66" width="122">FSP46761</td> <td class="xl66" width="169">Y</td> </tr> <tr height="20"> <td class="xl65" width="424" height="20">KB Custodial Services Limited</td> <td class="xl66" width="122">FSP23903</td> <td class="xl66" width="169">Y</td> </tr> <tr height="20"> <td class="xl65" width="424" height="20">Kiwi Capital Securities Limited</td> <td class="xl66" width="122">2413869</td> <td class="xl66" width="169">Y</td> </tr> <tr height="20"> <td class="xl65" width="424" height="20">Kiwi Investment Management Limited</td> <td class="xl66" width="122">FSP23941</td> <td class="xl66" width="169">Y</td> </tr> <tr height="20"> <td class="xl65" width="424" height="20">New Zealand Post Group Finance Limited</td> <td class="xl66" width="122">NA</td> <td class="xl66" width="169">Y</td> </tr> <tr height="20"> <td class="xl65" width="424" height="20">New Zealand Post Trust Management Services Limited</td> <td class="xl66" width="122">FSP264985</td> <td class="xl66" width="169">Y</td> </tr> <tr height="20"> <td class="xl65" width="424" height="20">GMI Wealth Limited</td> <td class="xl66" width="122">FSP364706</td> <td class="xl66" width="169">Y</td> </tr> <tr height="20"> <td class="xl65" width="424" height="20">Portfolio Custodial Nominees Limited</td> <td class="xl66" width="122">FSP349126</td> <td class="xl66" width="169">Y</td> </tr> <tr height="20"> <td class="xl65" width="424" height="20">Kiwi Asset Finance Limited (supervised by DIA)</td> <td class="xl66" width="122">FSP54122</td> <td class="xl66" width="169">Y</td> </tr> <tr height="20"> <td class="xl65" width="424" height="20">Kiwibank Limited (supervised by RBNZ)</td> <td class="xl66" width="122">FSP19941</td> <td class="xl66" width="169">Y</td> </tr> <tr height="20"> <td class="xl65" width="424" height="20">Kiwibank Nominees Limited (supervised by RBNZ)</td> <td class="xl66" width="122">FSP23923</td> <td class="xl66" width="169">Y</td> </tr> <tr height="20"> <td class="xl65" width="424" height="20">New Zealand Post Limited (supervised by DIA)</td> <td class="xl66" width="122">FSP30741</td> <td class="xl66" width="169">Y</td> </tr> <tr height="20"> <td class="xl76" rowspan="3" width="270" height="60"><strong>NZ Funds DBG</strong></td> <td class="xl65" width="424">New Zealand Funds Management Limited</td> <td class="xl66" width="122">FSP27062</td> <td class="xl66" width="169">Y</td> </tr> <tr height="20"> <td class="xl65" width="424" height="20">New Zealand Funds Superannuation Limited</td> <td class="xl66" width="122">NA</td> <td class="xl66" width="169">Y</td> </tr> <tr height="20"> <td class="xl65" width="424" height="20">New Zealand Administration Services Limited</td> <td class="xl66" width="122">FSP27084</td> <td class="xl66" width="169">Y</td> </tr> <tr height="20"> <td class="xl76" rowspan="9" width="270" height="180"><strong>NZGT DBG</strong></td> <td class="xl65" width="424">NZ International Trustee Company Limited</td> <td class="xl66" width="122">FSP40162</td> <td class="xl66" width="169">Y</td> </tr> <tr height="20"> <td class="xl65" width="424" height="20">Guardian Trust Investment Nominees Limited</td> <td class="xl66" width="122">NA</td> <td class="xl66" width="169">Y</td> </tr> <tr height="20"> <td class="xl65" width="424" height="20">Guardian Trust Investment Nominees (RWT) Limited</td> <td class="xl66" width="122">NA</td> <td class="xl66" width="169">Y</td> </tr> <tr height="20"> <td class="xl65" width="424" height="20">The New Zealand Guardian Trust Company Limited </td> <td class="xl66" width="122">FSP33501</td> <td class="xl66" width="169">Y</td> </tr> <tr height="20"> <td class="xl65" width="424" height="20">NZGT (FP) Trustee Limited</td> <td class="xl66" width="122">FSP172364</td> <td class="xl66" width="169">Y</td> </tr> <tr height="20"> <td class="xl65" width="424" height="20">NZGT (IF) Trustee Limited</td> <td class="xl66" width="122">FSP215685</td> <td class="xl66" width="169">Y</td> </tr> <tr height="20"> <td class="xl65" width="424" height="20">New Zealand Guardian Trust  (Harmoney) Trustee Limited</td> <td class="xl66" width="122">FSP399566</td> <td class="xl66" width="169">Y</td> </tr> <tr height="20"> <td class="xl65" width="424" height="20">Propertyfinance Funding Nominees Limited</td> <td class="xl66" width="122">FSP43488</td> <td class="xl66" width="169">Y</td> </tr> <tr height="20"> <td class="xl65" width="424" height="20">NZGT Trust Management Limited</td> <td class="xl66" width="122">FSP40665</td> <td class="xl66" width="169">Y</td> </tr> <tr height="20"> <td class="xl75" rowspan="2" height="40"><strong>Oyster Group DBG</strong></td> <td class="xl65" width="424">Oyster Property Group Limited</td> <td class="xl66" width="122">FSP38884</td> <td class="xl66" width="169">Y</td> </tr> <tr height="20"> <td class="xl65" width="424" height="20">Oyster Management Limited</td> <td class="xl66" width="122">FSP38803</td> <td class="xl66" width="169">Y</td> </tr> <tr height="20"> <td class="xl75" rowspan="6" height="120"><strong>Public Trust DBG</strong></td> <td class="xl69" width="424">Public Trust</td> <td class="xl68" width="122">FSP24561</td> <td class="xl68" width="169">Y</td> </tr> <tr height="20"> <td class="xl69" width="424" height="20">New Zealand Permanent Trustee Limited</td> <td class="xl68" width="122">FSP252805</td> <td class="xl68" width="169">Y</td> </tr> <tr height="20"> <td class="xl69" width="424" height="20">ANZNZ Covered Bond Trust Limited (ANZNZ CBG)</td> <td class="xl68" width="122">NA</td> <td class="xl68" width="169">Y</td> </tr> <tr height="20"> <td class="xl69" width="424" height="20">ASB Covered Bond Trustee Limited</td> <td class="xl68" width="122">NA</td> <td class="xl68" width="169">Y</td> </tr> <tr height="20"> <td class="xl69" width="424" height="20">CBG Trustee Company Limited (BNZ CBG)</td> <td class="xl68" width="122">NA</td> <td class="xl68" width="169">Y</td> </tr> <tr height="20"> <td class="xl65" width="424" height="20">Kiwi Covered Bond Trustee Limited (Kiwi CBG)</td> <td class="xl66" width="122">NA</td> <td class="xl66" width="169">Y</td> </tr> <tr height="20"> <td class="xl75" rowspan="2" height="40"><strong>Salt Funds DBG</strong></td> <td class="xl70">Salt Funds Management Limited</td> <td class="xl66" width="122">FSP288565</td> <td class="xl66" width="169">Y</td> </tr> <tr height="20"> <td class="xl65" width="424" height="20">Salt Investment Funds Limited</td> <td class="xl66" width="122">FSP349726</td> <td class="xl66" width="169">Y</td> </tr> <tr height="20"> <td class="xl75" rowspan="2" height="40"><strong>Somerset Smith Partners DBG</strong></td> <td class="xl65" width="424">Somerset Smith Partners</td> <td class="xl66" width="122">FSP12342</td> <td class="xl66" width="169">Y</td> </tr> <tr height="20"> <td class="xl65" width="424" height="20">Somsmith Nominees Limited</td> <td class="xl66" width="122">FSP284405</td> <td class="xl66" width="169">Y</td> </tr> <tr height="20"> <td class="xl75" rowspan="3" height="60"><strong>Southern Cross Finance DBG</strong></td> <td class="xl65" width="424">Southern Cross Finance Limited</td> <td class="xl66" width="122">FSP5561</td> <td class="xl66" width="169">Y</td> </tr> <tr height="20"> <td class="xl65" width="424" height="20">SCFL Nominees Limited </td> <td class="xl66" width="122">FSP16204</td> <td class="xl66" width="169">Y</td> </tr> <tr height="20"> <td class="xl65" width="424" height="20">SCFL Management Limited </td> <td class="xl66" width="122">FSP16281</td> <td class="xl66" width="169">Y</td> </tr> <tr height="20"> <td class="xl75" rowspan="3" height="60"><strong>UBS DBG</strong></td> <td class="xl65" width="424">UBS New Zealand Limited</td> <td class="xl66" width="122">FSP44063</td> <td class="xl66" width="169">Y</td> </tr> <tr height="20"> <td class="xl65" width="424" height="20">Debenture Nominees Limited</td> <td class="xl66" width="122">FSP44142</td> <td class="xl66" width="169">Y</td> </tr> <tr height="20"> <td class="xl65" width="424" height="20">UBS Securities New Zealand Limited</td> <td class="xl66" width="122">FSP42121</td> <td class="xl66" width="169">Y</td> </tr> <tr height="20"> <td class="xl76" rowspan="3" width="270" height="60"><strong>Wyndham NZ DBG</strong></td> <td class="xl65" width="424">Wyndham Vacation Resorts (NZ) Ltd </td> <td class="xl66" width="122">FSP41966</td> <td class="xl66" width="169">Y</td> </tr> <tr height="20"> <td class="xl65" width="424" height="20">Finance by Wyndham Pty Ltd</td> <td class="xl66" width="122">FSP41984</td> <td class="xl66" width="169">Y</td> </tr> <tr height="20"> <td class="xl65" width="424" height="20">Wyndham Vacation Resorts Asia Pacific Pty Ltd</td> <td class="xl66" width="122">NA</td> <td class="xl66" width="169">N</td> </tr> </tbody> </table> http://www.fma.govt.nz/keep-updated/newsroom/media-releases/2015/fma-settlement-reached-over-westpac-rural-interest-rate-swaps FMA settlement reached over Westpac rural interest rate swaps 2015-02-17 08:58:58 Financial Markets Authority <p><b>Media Release<br></b><b>MR No. 2015 – 04<br></b><b>17 February 2015</b></p> <p>The Financial Markets Authority (FMA) has reached a settlement with Westpac regarding the sale, promotion and marketing of interest rate swaps to some rural customers.</p> <p>The settlement follows the FMA’s engagement with Westpac in relation to its processes for selling and marketing interest rate swaps to rural customers from 2005 to 2012. </p> <p>The FMA’s settlement agreement has been reached alongside a separate settlement between the Commerce Commission (the Commission) and Westpac, also announced today.</p> <p>Under the Commission’s settlement, Westpac will make available a total of $2.47 million to the 38 eligible customers who registered their complaints with the Commission. Westpac will also pay $250,000 towards the Commission’s costs and another $250,000 to Rural Support Trusts.</p> <p>Westpac has said it does not accept the Commission’s conclusions, but has admitted that some of its conduct breached section 9 of the Fair Trading Act in relation to some of its rural customers.</p> <p>The FMA did not carry out a separate investigation in this case.  However, arising from the Commission’s conclusions, the FMA had concerns about potentially misleading conduct by Westpac, relating to the sale and marketing of interest rate swaps to some rural customers.</p> <p>The FMA acknowledges that neither its concerns nor the Commission’s conclusions have been tested in Court.</p> <p>As part of the settlement agreement with the FMA, Westpac has agreed to appoint an independent third-party to review its sale, promotion and marketing of two sample products being interest rate swaps and its Notice Saver PIE.</p> <p>The report from a third-party will be provided to Westpac and then to the FMA. Following consultation with the FMA, Westpac will implement the recommendations in the review, where appropriate, across all relevant products and services.</p> <p>“One of the FMA’s key objectives, set out in our Strategic Risk Outlook, is to ensure that sales processes and advice services reflect the best interests of customers. This settlement is based on our concerns that consumers should receive full and accurate information when purchasing financial products or services,” said the FMA’s General Counsel, Liam Mason.</p> <p>“The FMA is the regulator of conduct in this area, so the settlement also recognises our concerns about the imbalance of information that can exist between customers and financial service providers. The purpose of the independent review required by this settlement is to help ensure robust sales and advice processes are in place, including the disclosure of all relevant information, and that they meet the standards of the new regulatory framework.”</p> <p>Under the Financial Markets Conduct Act 2013, from 1 April 2014 the FMA has responsibility for regulating misleading and deceptive conduct in relation to any dealing in financial products or services.</p> <p>The settlement agreement is available <a href="http://www.fma.govt.nz/assets/Settlement-Decisions/Westpac-settlement-agreement.pdf" target="_blank">here</a>.</p> <p>ENDS </p> <p>Contact:<br>Shae Skellern<br>09 300 0465<br>021 847 192<br><a href="mailto:Shae.skellern@fma.govt.nz">Shae.skellern@fma.govt.nz</a></p> http://www.fma.govt.nz/keep-updated/newsroom/media-releases/2015/action-against-non-filing-of-financial-statements-pays-off Action against non-filing of financial statements pays off 2015-02-17 08:41:26 Financial Markets Authority <p><b>Media Release<br> MR No. 2015 – 03<br> 13 February 2015</b></p> <p>A new report released today by the Financial Markets Authority (FMA) shows the proportion of companies filing their financial statements on time has improved significantly since the FMA’s initial review in 2014.</p> <p>Eighty-two per cent of the companies reviewed had filed their statements by the due date, up from 73 per cent in the FMA’s 2014 report.</p> <p>Additionally, the proportion of statements that remained outstanding after receiving a reminder notice decreased, from 10 per cent to six per cent.</p> <p>The FMA’s 2015 report reviewed a similar sample of companies as the last report. These are companies who raise money from the public by issuing debt or equity securities to investors.</p> <p>“These results demonstrate the success of the FMA’s approach to improving regulatory outcomes and ensuring investors have good access to financial information.  The combined effort of both the compliance and enforcement teams is raising standards of compliance among companies that issue securities to the public.</p> <p>“We’ve taken a range of actions to improve compliance, including judicial action where we see the greatest harm to investors and the markets, and this has improved results overall,” said the FMA’s Director of Compliance, Elaine Campbell.</p> <p>“Audited financial statements are an important reporting and communication tool and provide the public with an up-to-date picture of a company’s financial position and future prospects, allowing them to make informed financial decisions about their investments. Failure to meet filing obligations limits the availability of information to investors, the markets and the regulator,” she said.</p> <p>The report also noted that no new companies were pinpointed for enforcement action for non-filing in 2014.</p> <p>In addition to the significant amount of engagement carried out with companies, which has led to higher filing rates, the FMA has brought four cases to court against seven directors of eight companies. One director pleaded guilty to eight charges of non-filing under sections 18(1) and 38(b) of the Financial Reporting Act (FRA) and was fined $30,000. Another two directors pleaded guilty to four charges each of non-filing under sections 18(1) and 38(b) of the FRA and were fined $35,000 each. Two cases remain before the court and will be heard this year.</p> <p>“We’re pleased with the results we’ve achieved from focussing our attention in this area. Not only does our work help to improve the availability of financial information for investors, the market and the FMA, it encourages better compliance and conduct and helps to increase confidence in New Zealand’s markets,” said Ms Campbell.</p> <p>The full report is available <a href="http://www.fma.govt.nz/keep-updated/reports-and-papers/non-filing-of-financial-statements">here</a>.</p> <p> </p> <p><b>ENDS</b></p> <p><strong>Contact:</strong><b><br> </b>Shae Skellern<br> 09 300 0­465<br> 021 847 192<br> <a href="mailto:shae.skellern@fma.govt.nz">shae.skellern@fma.govt.nz</a><b> </b></p> <p><strong>BACKGROUND</strong><b><br> </b>The sample of companies reviewed was the same as those reviewed in our last report.  The sample size has reduced as some companies have either had a change in their reporting balance date or are no longer issuers. The companies reviewed for this report have a 31 March balance date and were required to have their 2014 financial statements audited and filed with the Registrar of Companies by 26 September 2014.</p> <table cellspacing="0" cellpadding="0"> <tbody> <tr> <td width="293" valign="top"> <p><b>Balance date</b></p> </td> <td width="132" valign="top"> <p><b>31 March 2013</b></p> </td> <td width="142" valign="top"> <p><b>31 March 2014</b></p> </td> </tr> <tr> <td width="293" valign="top"> <p>Sample of companies reviewed</p> </td> <td width="132" valign="top"> <p>416</p> </td> <td width="142" valign="top"> <p>368</p> </td> </tr> <tr> <td width="293" valign="top"> <p>Financial statements filed by the due date</p> </td> <td width="132" valign="top"> <p>305 (73%)</p> </td> <td width="142" valign="top"> <p>300 (82%)</p> </td> </tr> <tr> <td width="293" valign="top"> <p>Financial statements not filed by the due date</p> </td> <td width="132" valign="top"> <p>111 (27%)</p> </td> <td width="142" valign="top"> <p>68 (18%)</p> </td> </tr> <tr> <td width="293" valign="top"> <p>Financial statements filed before the deadline in the reminder notice</p> </td> <td width="132" valign="top"> <p>68 (16%)</p> </td> <td width="142" valign="top"> <p>44 (12%)</p> </td> </tr> <tr> <td width="293" valign="top"> <p>Financial statements outstanding after the deadline in the reminder notice</p> </td> <td width="132" valign="top"> <p>43 (10%)</p> </td> <td width="142" valign="top"> <p>24 (6%)</p> </td> </tr> </tbody> </table> <p>New financial reporting requirements came into effect on 1 April 2014, as part of the Financial Markets Conduct Act 2013 (FMC Act).The new regime retains the importance of filing financial statements but has new requirements and introduces a new penalty regime.</p> <p>Under the FMC Act, if an FMC reporting entity fails to lodge financial statements, it may face a maximum fine of $50,000 (under the FRA the director faces a maximum fine of $100,000). Under the FMC Act, in addition to a fine on the entity, a director of an FMC reporting entity may be liable for a civil pecuniary penalty of up to $1 million in the event of a failure to lodge financial statements with the Registrar.</p> <p>Under the FRA, issuers have five months for preparation and audit and an additional 20 working days for filing. Under the FMC Act, they will have four months to prepare, audit and file their financial statements. More information can be found <a href="http://www.fma.govt.nz/help-me-comply/new-financial-reporting-requirements/when-will-you-need-to-comply/">here.</a></p> <p>The <a href="http://www.fma.govt.nz/keep-updated/newsroom/media-releases/2014/directors-fined-for-not-filing-financial-statements">five companies that have been before the courts</a> as a result of the FMA’s review of March 2013 balance date include: Prosper Hills (2004) Limited, Prosper Hills (2006) Limited, NZFIL3 Limited, Heritage Park Taupo Limited and Prudential Real Estate Investments Limited. </p> http://www.fma.govt.nz/help-me-comply/financial-advisers/who-needs-to-comply/ Who Needs to Comply 2015-02-16 15:54:12 Financial Markets Authority <p>All financial advisers must comply with the requirements of the Financial Advisers Act 2008. This includes disclosure obligations which are set out in regulations.</p> <p>Financial advisers are people who give advice about investing and other financial services and products as part of their job or business. They include financial planners, mortgage and insurance brokers and people working for insurance companies, banks and building societies that provide advice about money, financial products and investing.</p> <p>The compliance requirements for financial advisers depend on the <a href="http://www.fma.govt.nz/help-me-comply/financial-advisers/who-needs-to-comply/what-type-of-financial-adviser-am-i/">type of services</a> you provide. If you are an individual, you can use our <a href="http://www.fma.govt.nz/assets/media/169535/flowchart-what-type-financial-adviser.pdf" target="_blank">flowchart</a> to work what type of financial adviser you are.</p> <h2>Types of financial adviser</h2> <h3>Registered Financial Advisers (RFAs)</h3> <p>RFAs are individuals and they can give financial advice in relation to a category 2 product. They can also provide class advice and investment planning services to retail clients and financial adviser services to wholesale clients.</p> <p><a href="http://www.fma.govt.nz/help-me-comply/financial-advisers/who-needs-to-comply/registered-financial-advisers/">Find out more about registering and your obligations</a></p> <h3>Authorised Financial Advisers (AFAs)</h3> <p>AFAs can provide the same services as an RFA, but can also provide services in relation to category 1 products, and can provide an investment planning service.</p> <p><a href="http://www.fma.govt.nz/help-me-comply/financial-advisers/who-needs-to-comply/authorised-financial-advisers/">Find out more about AFAs</a></p> <h3>Qualifying Financial Entities (QFEs)</h3> <p>QFEs are businesses that provide financial adviser services. QFEs take responsibility for the conduct of the financial advisers they employ and any nominated representatives.</p> <p><a href="http://www.fma.govt.nz/help-me-comply/financial-advisers/who-needs-to-comply/qualifying-financial-entities/">Find out more about QFEs</a></p> <h3>QFE Advisers</h3> <p>A QFE Adviser is an employee or a nominated representative of a QFE.</p> <p><a href="http://www.fma.govt.nz/help-me-comply/financial-advisers/who-needs-to-comply/qualifying-financial-entities/what-products-can-qfe-advisers-sell/">Find out more about QFE advisers and what they can sell</a></p> <h3>Other business providing financial adviser services</h3> <p>Other (non-QFE) businesses providing financial adviser services have to be registered as a financial service provider. They may only provide personalised services to retail clients through an individual who is appropriately authorised or registered.</p> <p><a href="http://www.fma.govt.nz/help-me-comply/financial-service-providers/who-needs-to-comply/">Find out more about registering</a></p> <h2>Brokers</h2> <p>A broker is an individual or a company that receives, holds, pays or transfers client money or property acting as an intermediary for a client. All brokers need to be registered and must also comply with the brokers' conduct and disclosure obligations in the Financial Advisers Act. These provisions apply to anyone providing broking services, whether they are a financial adviser or not. <a href="http://www.fma.govt.nz/help-me-comply/brokers-custodians/">See more about brokers</a>.</p> <h2>Who is not covered by the Financial Advisers Act?</h2> <p>The Act provides exemptions for specific groups of people who only provide financial adviser services in the ordinary course of their jobs or as incidental to their jobs. Their adviser activities fall outside the scope of the regulatory regime. <a href="http://www.fma.govt.nz/help-me-comply/financial-advisers/who-needs-to-comply/who-is-not-covered-by-the-financial-advisers-act-2008/">See more</a>.</p> <h2>Overseas advisers and overseas clients</h2> <p>See the provisions that apply. <a href="http://www.fma.govt.nz/help-me-comply/financial-advisers/who-needs-to-comply/overseas-advisers-and-overseas-clients/">Overseas advisers and overseas clients </a></p> <p>Also read about the exemptions for <a href="http://www.fma.govt.nz/help-me-comply/financial-advisers/who-needs-to-comply/australian-advisers/">Australian advisers</a>.</p> http://www.fma.govt.nz/help-me-comply/financial-advisers/guidance-notes/ Guidance Notes 2015-02-16 14:40:15 Financial Markets Authority <ul> <li><a href="http://www.fma.govt.nz/assets/Report-and-Papers/Information-Sheets/Information-Sheet-Exemption-from-DIMS-licensing-requirements-for-AFAs-providing-a-contingency-DIMS-December-2014.pdf" target="_blank">Exemption from DIMS licensing requirements for AFAs providing a contingency DIMS</a> (December 2014)</li> <li><a href="http://www.fma.govt.nz/assets/Report-and-Papers/Information-Sheets/Information-Sheet-Transitional-provisions-for-AFAs-providing-a-Personalised-DIMS-December-2014.pdf" target="_blank">Transitional provisions for AFAs providing personalised DIMS</a> (December 2014)</li> <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/media/1054639/understanding-the-regulation-of-dims-frequently-asked-questions.pdf" target="_blank">Understanding the regulation of DIMS - Frequently asked questions </a>(March 2014) -<strong> This document is currently under review</strong></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 - <strong>Please now refer to <a href="http://www.fma.govt.nz/help-me-comply/financial-advisers/">DIMS information sheets and FAQs</a>)</strong></li> <li><a href="http://www.fma.govt.nz/assets/guidance-note-limited-personalised-advice-revised-june-2014.pdf" target="_blank">Guidance Note: Limited personalised advice</a> (<strong>Revised June 2014</strong>)</li> <li><a href="http://www.fma.govt.nz/assets/guidance-note-limited-personalised-advice-dec-2013-final.pdf" target="_blank">Guidance Note: Limited personalised advice</a> (December 2013)</li> <li><a href="http://www.fma.govt.nz/assets/guidance-note-client-communications-and-record-keeping-revised-june-2014.pdf" target="_blank">Guidance Note: Client communications and record-keeping</a> (<strong>Revised June 2014</strong>)</li> <li><a href="http://www.fma.govt.nz/assets/client-communications-guidance-note-final.pdf" target="_blank">Guidance Note: Client communications and record-keeping</a> (December 2013)</li> <li><a href="http://www.fma.govt.nz/assets/guidance-note-discretionary-investment-management-services-revised-june-2014.pdf" target="_blank">Guidance Note: Discretionary Investment Management Services</a> (<strong>Revised June 2014 - Please now refer to <a href="http://www.fma.govt.nz/help-me-comply/financial-advisers/">DIMS information sheets and FAQs</a></strong>)</li> <li><a href="http://www.fma.govt.nz/assets/guidance-note-dims-24-october-2013.pdf" target="_blank">Guidance Note: Discretionary Investment Management Services</a> (October 2013)</li> <li><a href="http://www.fma.govt.nz/assets/guidance-note-sale-and-distribution-of-kiwisaver.pdf" target="_blank">Guidance Note: Sale and Distribution of KiwiSaver</a> (October 2012)</li> <li><a href="http://www.fma.govt.nz/help-me-comply/financial-advisers/guidance-notes/guidance-note-code-standard-6-c-analysis-before-recommendation/">Guidance Note: Code Standard 6 (d) - Analysis before recommendation</a> (December 2011)</li> <li><a href="http://www.fma.govt.nz/laws-we-enforce/legislation/exemption-notices/current-exemption-notices/financial-advisers-act-2008-exemptions/financial-advisers-act-2008-australian-licensees-exemption-notice">Note for Australian Licensees on Financial Advisers (Australian Licensees) Exemption Notice</a> (July 2011)</li> <li><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: Financial Advisers Act 2008</a> (March 2011)</li> <li><a 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</a> (November 2010)</li> <li><a href="http://www.fma.govt.nz/help-me-comply/financial-advisers/guidance-notes/q-a/">Answers to technical questions</a><a href="http://www.fma.govt.nz/assets/Code-of-Professional-Conduct-for-AFAs/guide-to-licensing-small-dims-businesses.pdf" target="_blank"></a></li> </ul> <h2>Links to topical guidance on other pages</h2> <h3>Who Needs to Comply?</h3> <ul> <li><a href="http://www.fma.govt.nz/help-me-comply/financial-advisers/who-needs-to-comply/who-is-not-covered-by-the-financial-advisers-act-2008/"> Does the Financial Advisers Act apply to investment property consultants?</a></li> </ul> <h3>How to Get Licensed</h3> <ul> <li><a href="http://www.fma.govt.nz/help-me-comply/financial-advisers/how-to-get-licensed/afa-application-resources-and-templates/afa-competence-and-assessment/"> Competence alternatives and the eligibility sunset</a></li> </ul> <h3>Your Obligations</h3> <ul> <li><a href="http://www.fma.govt.nz/help-me-comply/financial-advisers/your-obligations/disclosure-obligations/"> Disclosure obligations for RFAs and AFAs</a></li> <li><a href="http://www.fma.govt.nz/help-me-comply/financial-advisers/your-obligations/advertising/"> AFA advertising and Standard Condition 7</a></li> <li><a href="http://www.fma.govt.nz/help-me-comply/financial-advisers/guidance-notes/q-a/"> Can mortgage brokers refer to KiwiSaver in their advertising?</a></li> <li><a href="http://www.fma.govt.nz/help-me-comply/financial-advisers/your-obligations/authorised-financial-advisers-obligations/continuing-professional-development-cpd/"> Continuing Professional Development requirements for AFAs</a></li> <li><a href="http://www.fma.govt.nz/help-me-comply/brokers-custodians/broker-obligations/"> Use of the term stockbroker</a></li> <li><a href="http://www.fma.govt.nz/assets/Code-of-Professional-Conduct-for-AFAs/Code-of-Professional-Conduct-for-AFAs-May-2014.pdf" target="_blank">View the Code of Professional Conduct</a><span> (May 2014).</span></li> <li><a href="http://www.fma.govt.nz/assets/Report-and-Papers/Corporate-Publications/afa-code-of-conduct-December-2010.pdf" target="_blank">View the Code of Professional Conduct</a><span> (December 2010).</span></li> </ul> <h3>Monitoring and Surveillance</h3> <ul> <li><a href="http://www.fma.govt.nz/help-me-comply/financial-advisers/monitoring-and-surveillance/authorised-financial-advisers/monitoring-visits-and-standard-condition-4/"> AFA monitoring visits and Standard Condition 4</a></li> <li><a href="http://www.fma.govt.nz/help-me-comply/financial-advisers/monitoring-and-surveillance/authorised-financial-advisers/monitoring-feedback-and-tips/"> AFA monitoring feedback and tips</a></li> <li><a href="http://www.fma.govt.nz/keep-updated/reports-and-papers/afa-survey-2012">AFA Survey - summary of findings and FMA response</a>. </li> </ul> <h3>Useful links</h3> <ul> <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 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> </ul> http://www.fma.govt.nz/keep-updated/reports-and-papers/non-filing-of-financial-statements Non-filing of Financial Statements 2015-02-13 10:56:34 Financial Markets Authority http://www.fma.govt.nz/laws-we-enforce/policy/current-consultations/consultation-proposed-additional-standard-conditions-for-authorised-financial-advisers Consultation: Proposed additional standard conditions for Authorised Financial Advisers 2015-02-13 10:29:05 Financial Markets Authority <p><strong>29 January 2015</strong></p> <p>In November 2014 we consulted on the minimum standards for an Authorised Financial Advisers (AFA) providing personalised Discretionary Investment Management Services (DIMS). In that consultation paper we included proposed additional standard conditions. In response to submissions we have received we now propose the additional standard conditions set out in this <a href="http://www.fma.govt.nz/assets/Report-and-Papers/Consultation/Consultation-paper-Proposed-additional-standard-conditions-for-Authorised-Financial-Advisers.pdf" target="_blank">consultation paper</a>, in place of those set out in the November 2014 paper.</p> <p>The proposed additional standard conditions will be incorporated into the standard conditions on 1 June 2015. The proposed additional standard conditions will only apply to AFAs authorised to provide personalised DIMS.</p> <p>We invite you to review our proposed additional standard conditions and share your feedback with us. <br><br>Please use this <a href="http://www.fma.govt.nz/assets/Report-and-Papers/Consultation/Feedback-form-Proposed-additional-standard-conditions-for-Authorised-Financial-Advisers.docx" target="_blank">feedback form</a>. This is also on the final page of the <a href="http://www.fma.govt.nz/assets/Report-and-Papers/Consultation/Consultation-paper-Proposed-additional-standard-conditions-for-Authorised-Financial-Advisers.pdf" target="_blank">consultation paper</a> and gives you details of what you need to do.</p> <p><strong>Submissions close on Friday 27 February 2015 at 5pm.</strong></p> http://www.fma.govt.nz/laws-we-enforce/registers/ Registers 2015-02-10 14:50:15 Financial Markets Authority <p><strong>The Financial Markets Authority oversees a number of registers.</strong></p> <p><a href="http://www.fma.govt.nz/laws-we-enforce/registers/complying-superannuation-fund-register/">Complying Superannuation Fund Register</a></p> <p><a href="http://www.fma.govt.nz/laws-we-enforce/registers/kiwisaver-exempt-employer-listing/">KiwiSaver Exempt Employer Listing</a></p> <p><a href="http://www.fma.govt.nz/laws-we-enforce/registers/kiwisaver-schemes-register/">KiwiSaver Schemes Register</a></p> <p><a href="http://www.fma.govt.nz/laws-we-enforce/registers/list-of-qualifying-financial-entities-qfe/">List of Qualifying Financial Entities</a></p> <p><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/">List of Authorised Financial Advisers</a></p> <p><a href="http://www.fma.govt.nz/laws-we-enforce/registers/list-of-aml-reporting-entities/">List of AML/CFT Reporting Entities</a></p> <p><a href="http://www.fma.govt.nz/laws-we-enforce/registers/list-of-amlcft-designated-business-groups/">List of AML/CFT Designated Business Groups</a></p> <p><a href="http://www.business.govt.nz/companies/auditors-register">Auditors Register</a></p> <p><a href="http://www.fma.govt.nz/help-me-comply/supervisors/licensed-supervisors/">List of Licensed Trustees and Statutory Supervisors</a></p> <p><a href="http://www.fma.govt.nz/help-me-comply/peer-to-peer-lending/list-of-licensed-peer-to-peer-lending-services/">List of Licensed Peer-to-Peer Lending Services</a></p> <p><a href="http://www.fma.govt.nz/help-me-comply/crowd-funding/list-of-licensed-crowd-funding-services/">List of Licensed Crowd Funding Services</a></p> <p><a href="http://www.fma.govt.nz/laws-we-enforce/registers/list-of-licensed-derivatives-issuers/">List of Licensed Derivatives Issuers</a></p> <p><a href="http://www.fma.govt.nz/laws-we-enforce/registers/list-of-licensed-peer-to-peer-lending-services/">List of Licensed Independent Trustees</a></p> http://www.fma.govt.nz/help-me-comply/anti-money-laundering-and-countering-financing-of-terrorism-reporting-entities/amlcft-audit/ AML/CFT Audit 2015-02-10 14:15:10 Financial Markets Authority <h2><b>Meeting your AML/CFT Audit obligation</b></h2> <p>The Anti-Money Laundering and Countering Financing of Terrorism Act 2009 (the Act), requires all businesses who are reporting entities (REs) to have their risk assessment and AML/CFT programme audited every 2 years, or at any other time at the request of the relevant AML/CFT supervisor.</p> <p>This means, for <strong>most</strong> REs, your first audit report must be completed by 29 June 2015, where your financial activities were captured by the Act as at 30 June 2013.</p> <p>If your business was established after 30 June 2013, you will have 2 years from the date your financial activities are captured by the Act to have your audit report completed.</p> <p><b>IMPORTANT – You do not need to submit your audit report to us unless we request to see it.</b></p> <h2><b>How to get started</b></h2> <ol> <li><b>Engage an independent and qualified auditor early</b> – this is to ensure one is available to assist you.</li> <li><b>Review and address issues</b> in your risk assessment (RA), AML/CFT compliance programme (CP) and supporting policies and procedures internally <b>before the independent audit</b>.</li> <li><b>Refer to the guidelines and reports</b> (see below) that detail specific information on what is necessary to complete your AML/CFT audit.   </li> <li><b>Don’t leave this to the last minute -</b> bear in mind, it will take time for your auditor to review your RA, CP, test supporting evidence and prepare an audit report.  You should also <b>allow time</b> (sometimes up to several weeks) for senior management to review the recommendations provided by your auditor, and agree the final report.</li> </ol> <h2><b>Frequently asked questions (FAQs)</b></h2> <ol> <li><a href="http://www.fma.govt.nz/#One"><strong>Where can I get more information?</strong></a></li> <li><a href="http://www.fma.govt.nz/#Two"><b><b>The FMA recently visited us to examine our AML/CFT compliance. Does that count as an AML/CFT audit?</b></b></a></li> <li><b><a href="http://www.fma.govt.nz/#Three">When exactly do I need to have my audit report completed by?</a> </b></li> <li><a href="http://www.fma.govt.nz/#Four"><b><b>Why does the Act require an audit report to be done on a 2-yearly basis?</b></b></a></li> <li><b><a href="http://www.fma.govt.nz/#Five">What does an audit report need to include?</a> </b></li> <li><a href="http://www.fma.govt.nz/#Six"><b><b>What period should my audit report cover?</b></b></a></li> <li><b><a href="http://www.fma.govt.nz/#Seven">Does the FMA have a list of recommended auditors?</a> </b></li> <li><a href="http://www.fma.govt.nz/#Eight"><b><b>How do I know if the auditor is suitably qualified to conduct the audit?</b></b></a></li> <li><b><a href="http://www.fma.govt.nz/#Nine">How can I ensure the auditor is independent?</a> </b></li> <li><b><b><a href="http://www.fma.govt.nz/#Ten">How will the FMA use the data received from the audit reports it has requested?</a> </b></b></li> <li><b><a href="http://www.fma.govt.nz/#Eleven">What response can I expect from the FMA if my auditor identifies issues?</a> </b></li> <li><b><b><a href="http://www.fma.govt.nz/#Twelve">How quickly will I need to remedy issues raised by my auditor?</a> </b></b></li> <li><b><a href="http://www.fma.govt.nz/#Thirteen">Can I apply for an exemption from having an AML/CFT audit performed?</a> </b></li> <li><b><b><a href="http://www.fma.govt.nz/#Fourteen">Can I apply for an extension for an AML/CFT audit report?</a> </b></b></li> <li><a href="http://www.fma.govt.nz/#Fifteen"><b>Do I need to complete and audit for the risk assessment and AML/CFT programme if my business is being wound up before 30 June 2015?</b></a></li> </ol> <p><b style="line-height: 20px;"><a name="One"></a>1. Where can I get more information?<br></b>Refer to the following guides and reports:</p> <ul> <li><a href="http://www.fma.govt.nz/assets/media/1339626/guideline-for-audits-of-risk-assessments-and-aml-cft-programmes.pdf">Guideline for audits of risk assessments and AML/CFT programmes</a> - designed to help you manage the requirement to audit your AML/CFT RA and AML/CFT programme</li> <li><a href="http://www.fma.govt.nz/assets/Report-and-Papers/Information-Sheets/Getting-the-best-outcome-from-your-AMLCFT-Audit.pdf" target="_blank">Getting the best outcome from your AML/CFT Audit</a> guide<a href="http://www.fma.govt.nz/assets/Report-and-Papers/Information-Sheets/Getting-the-best-outcome-from-your-AMLCFT-Audit.pdf" target="_blank"></a> has a great deal of information regarding AML/CFT audits - includes a comprehensive table to help businesses get value from their AML/CFT audit</li> <li>Our <a href="http://www.fma.govt.nz/assets/Report-and-Papers/AMLCFT-Monitoring-Report-2014.pdf">2014 AML/CFT monitoring report</a> - provides general commentary on some of the AML/CFT audits we have examined</li> </ul> <p>You can contact us at <a href="mailto:aml@fma.govt.nz">aml@fma.govt.nz</a> for general AML/CFT queries, however, for any specific legal enquiries please consult your legal advisers. </p> <p><b><a name="Two"></a>2. The FMA recently visited us to examine our AML/CFT compliance. Does that count as an AML/CFT audit?<br></b>No.</p> <p><b><a name="Three"></a>3. When exactly do I need to have my audit completed by?<br></b>That will depend on when the financial activities of your business were first captured under section 5 of the Act or additional Regulations.  Consider the examples below:</p> <ol> <li>If your business was captured by the Act / Regulations as at 30 June 2013, then you must complete your audit by <b>29 June 2015</b>.  <b>This is regardless of when you formally implemented your AML/CFT compliance programme.</b></li> <li>If you are a new business and your financial activities were captured by the Act / Regulations at a later date then you have 2 years from that date to have your audit completed.</li> <li>Thereafter, businesses have 2 years from the date of their last AML/CFT audit to have their next AML/CFT audit completed. We suggest you use the audit reference date to determine the due date of your next audit.</li> </ol> <p>What do we mean by the phrase “<b>audit completed by date</b>”? For businesses captured by the Act at 30 June 2013 this means:</p> <ul> <li>You will need to have an audit reference date of no later than 29 June 2015 – i.e. the audit must review information up to a date no later than 29 June 2015.</li> <li>The audit work should be completed (i.e. the auditor should do their review/testing) by 29 June 2015. </li> </ul> <p><b><a name="Four"></a>4. Why does the Act require an audit report to be done on a 2-yearly basis?<br></b>This is to ensure that reporting entities have, and will continue to have, robust systems and processes in place to detect and deter money laundering and the financing of terrorism.<b> </b></p> <p><b><a name="Five"></a>5. What does an audit report need to include?<br></b>Although the Act does not prescribe what must be included in an audit report, to help you achieve the best possible result from your audit, we have prepared the following documents to assist:</p> <ul> <li><a href="http://www.fma.govt.nz/assets/media/1339626/guideline-for-audits-of-risk-assessments-and-aml-cft-programmes.pdf">Guideline for audits of risk assessments and AML/CFT programmes</a>.</li> <li>Getting the best outcome from your AML/CFT Audit guide has a great deal of information regarding <a href="http://www.fma.govt.nz/assets/Report-and-Papers/Information-Sheets/Getting-the-best-outcome-from-your-AMLCFT-Audit.pdf" target="_blank">AML/CFT audits</a> and includes information what we expect to see in your audit report.</li> <li><a href="http://www.fma.govt.nz/keep-updated/reports-and-papers/anti-money-laundering-and-countering-financing-of-terrorism-monitoring-report">2014 AML/CFT Monitoring Report</a></li> </ul> <p><b><a name="Six"></a>6. What period should my audit report cover?<br></b>The audit report will provide an opinion by the auditor at a point in time. To support the opinion the auditor will examine evidence stretching back from that date (possibly as far back as 30 June 2013). The report will specify the period the audit is applicable to.</p> <p><b><a name="Seven"></a>7. Does the FMA have a list of recommended auditors?<br></b>We do not have a list of recommended auditors. The Act requires the auditor to be independent and suitably qualified – refer to our <a href="http://www.fma.govt.nz/keep-updated/reports-and-papers/anti-money-laundering-and-countering-financing-of-terrorism-monitoring-report">2014 AML/CFT Monitoring Report</a> for more information on this.  </p> <p>Businesses offering AML/CFT audit services include:</p> <ul> <li>AML/CFT specialist consultant firms and individuals</li> <li>specialist regulatory compliance consultant firms and individuals</li> <li>audit and accounting firms</li> <li>other reporting entities </li> </ul> <p><b><a name="Eight"></a>8. How do I know if the auditor is suitably qualified to conduct the audit?<br></b>You should expect that your auditor has the required expertise of the Act and its Regulations. Your audit will be more effective if your auditor understands your industry and has audit experience. It is imperative you are comfortable with the auditor you appoint as we may request that you provide necessary evidence to demonstrate to us how your auditor is appropriately qualified.  Please refer to our <a href="http://www.fma.govt.nz/keep-updated/reports-and-papers/anti-money-laundering-and-countering-financing-of-terrorism-monitoring-report">monitoring report</a>.</p> <p><b><a name="Nine"></a>9. How can I ensure the auditor is independent?<br></b>Your audit report should confirm the auditor’s independence and any other services they may have provided in addition to the audit. The Act states that the person who conducts the audit must be independent, and not involved in the development of a RE’s AML/CFT risk assessment, or the establishment, implementation or maintenance of its AML/CFT programme. Please refer to our <a href="http://www.fma.govt.nz/keep-updated/reports-and-papers/anti-money-laundering-and-countering-financing-of-terrorism-monitoring-report">monitoring report</a> for more information on auditor independence. You should record your consideration of the auditor’s independence as we may ask you to provide this to us. </p> <p><b><a name="Ten"></a>10. How will the FMA use the data received from the audit reports it has requested?<br></b><b>You do not need to submit the audit report to the FMA unless we request you to do so.</b>  Upon review of your audit report, we will contact you directly if we need to clarify anything. Information collected from the audit report will help us:</p> <ul> <li>identify where education may be required in the market</li> <li>determine where additional guidance material may be required</li> <li>prepare our future monitoring reports</li> <li>plan for future AML/CFT monitoring visits.</li> </ul> <p><b><a name="Eleven"></a>11. What response can I expect from the FMA if my auditor identifies issues?<br></b>Given the AML/CFT regime only came into full effect in June 2013, your auditor will almost certainly identify issues with your risk assessment and/or AML/CFT programme. We expect most REs will continue to have issues until their programme matures. The audit is an opportunity for you to have those issues identified and subsequently corrected.  If there are significant issues identified we encourage you to engage with us early to discuss the matter and to review the actions you propose to take. If we select you for a monitoring visit, we are likely to request a copy of your remediation plan and check your progress. In cases where significant issues are appropriately addressed we are unlikely to engage further. </p> <p><b><a name="Twelve"></a>12. How quickly will I need to remedy issues raised by my auditor?<br></b>If your auditor has identified a breach of the Act or material/significant issues, the expectation is that you commence taking a corrective action immediately to remediate the issue(s). Serious breaches should be reported to us by the RE along with proposed corrective actions regardless if we have requested the audit report be provided to us. </p> <p><b><a name="Thirteen"></a>13. Can I apply for an exemption from having an AML/CFT audit performed?<br></b>We are not in a position to grant a waiver or exemption from having an AML/CFT audit performed. If you are a RE you must have an audit performed within 2 years of your financial activities being captured by the Act. </p> <p><b><a name="Fourteen"></a>14. Can I apply for an extension for completing an AML/CFT audit?<br></b>Except when we have brought forward your AML/CFT audit on request, we are unable to offer extensions. We encourage REs to engage with their auditors early to ensure they can meet their AML/CFT obligations. </p> <p><b><a name="Fifteen"></a>15. Do I need to complete and audit for the risk assessment and AML/CFT programme if my business is being wound up before 30 June 2015?<br></b>No.  However, if there is some uncertainty when the business will close and it’s possible that it may extend beyond 29 June 2015, then we strongly recommend you have your audit report completed.  If your business is still a reporting entity as at 29 June 2015, then you must have it completed.</p> http://www.fma.govt.nz/help-me-comply/superannuation/fees-and-levies/ Fees and Levies 2015-02-03 17:17:57 Financial Markets Authority <h3>Registered Superannuation Schemes</h3> <p>Fees are payable to the Financial Markets Authority under the <a href="http://legislation.govt.nz/regulation/public/1992/0284/latest/DLM166594.html?search=ts_act%40bill%40regulation%40deemedreg_(Fees)+Regulations+1992_resel_25_a&amp;p=1">Superannuation Schemes</a> (Fees) Regulations 1992 and the <a href="http://www.legislation.govt.nz/regulation/public/2014/0110/latest/DLM6001542.html?search=ta_regulation_F_rc%40rinf%40rnif_an%40bn%40rn_25_a&amp;p=2">Financial Markets Conduct (Fees) Regulations 2014</a>.</p> <p>These fees can be paid either by posting a cheque to: FMA KiwiSaver and Superannuation, PO Box 1179, Wellington 6140 together with the documentation or directly crediting the Financial Markets Authority Superannuation bank account. Bank details: 030584-0198005-01 Swift Code: WPACNZ2W (include scheme registration number in the particulars e.g. AS/xxxx).</p> <p><strong>Financial Markets Conduct (Fees) Regulations 2014</strong></p> <table> <tbody> <tr> <td><strong>Schedule 2 Part 1</strong></td> <td><strong>Fee Description</strong></td> <td><strong>Fee Amount (incl gst)</strong></td> </tr> <tr> <td>1.</td> <td>Request to  approve a scheme as a Schedule 3 scheme under clause 2, Schedule 3 of the Financial Markets Conduct Act 2013</td> <td><strong>$178.25</strong></td> </tr> </tbody> </table> <p>For more information on fees for superannuation schemes that have transitioned to the new regime see the <a href="http://www.legislation.govt.nz/regulation/public/2014/0110/latest/DLM6001542.html?search=ta_regulation_F_rc%40rinf%40rnif_an%40bn%40rn_25_a&amp;p=2">Financial Markets Conduct (Fees) Regulations 2014</a>.</p> <table class="fees"><caption><strong>Superannuation Schemes (Fees) Regulations 1992</strong></caption> <thead> <tr><th>Clause No.</th><th>Fee Description</th><th>Fee Amount (incl gst)</th></tr> </thead> <tbody> <tr> <td>1.</td> <td>For an application for approval of a transfer under section 9BAA of the Act, for each half-hour spent by FMA considering the application</td> <td><strong>$102.22</strong></td> </tr> <tr> <td>2.</td> <td>For lodging an amendment to a trust deed under section 12 (2) of the Act</td> <td><strong>$51.11</strong></td> </tr> <tr> <td>3.</td> <td>For filing an annual report under section 14 (3) of the Act</td> <td> <p><strong>$102.22</strong> if the net assets* of the scheme are less than $3,000,000 and no actuarial report is required to be filed under section 15(3) of the Act;</p> <p><strong>$357.78</strong> if the net assets of the scheme are greater than $3,000,000 and no actuarial report is required to be filed under section 15(3) of the Act;</p> <p><strong>$511.11</strong> if the net assets of the scheme are less than $3,000,000 and an actuarial report is required to be filed under section 15(3) of the Act;</p> <p><strong>$766.67</strong> if the net assets of the scheme are greater than $3,000,000 and an actuarial report is required to be filed under section 15(3) of the Act</p> </td> </tr> <tr> <td>4.</td> <td>On application under section 19 (2) of the Act to cancel registration</td> <td><strong>$255.55</strong></td> </tr> <tr> <td>5.</td> <td>For filing under section 21(1)(d)(i) of the Act the final accounts of a scheme that is wound up</td> <td><strong>$255.55</strong></td> </tr> <tr> <td>6.</td> <td>For requesting consent to the reversion of assets to an employer in accordance with section 22 of the Act, for each half-hour spent by FMA considering the request</td> <td><strong>$102.22</strong></td> </tr> </tbody> </table> <p class="table-footnote"><sub>* Net assets means the market value of the assets of the scheme, net of borrowings, at the close of the financial year to which the annual report refers. It includes - where the assets of the scheme include policies or contracts of life insurance and annuities on the lives of scheme members and beneficiaries - the aggregate of the amounts assessed by the insurer as the current value of those policies or contracts at the close of the financial year to which the annual report refers. The term <em>policies or contracts of life insurance and annuities</em> excludes any policy or contract which provides only for a lump sum payment on death or disablement or both.</sub></p> <table class="fees"><caption><strong>Fees payable for miscellaneous matters</strong></caption> <thead> <tr><th>Clause No.</th><th>Fee Description</th><th>Fee Amount (incl gst)</th></tr> </thead> <tbody> <tr> <td>1.</td> <td>On application to classify a superannuation scheme as a qualifying superannuation scheme under section EY 11 of the Income Tax Act 2007, for each half-hour spent by the FMA considering the application if the scheme is <strong>not</strong> required to file an actuarial report under section15(3) of the Act</td> <td><strong>$51.11</strong></td> </tr> </tbody> </table> <h2> </h2> <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/kiwisaver/fees-and-levies/ Fees 2015-02-03 15:11:03 Financial Markets Authority <p>Fees are payable to FMA. For more information on fees for KiwiSaver schemes that have transitioned to the new regime see the <a href="http://www.legislation.govt.nz/regulation/public/2014/0110/latest/DLM6001542.html?search=ta_regulation_F_rc%40rinf%40rnif_an%40bn%40rn_25_a&amp;p=2">Financial Markets Conduct (Fees) Regulations 2014</a>.</p> <p><strong>KiwiSaver Schemes fees</strong></p> <table class="fees"> <thead> <tr><th> </th><th>Fee Description</th><th>Fee Amount (incl gst)</th></tr> </thead> <tbody> <tr> <td>1.</td> <td>On application to register a KiwiSaver scheme under section 131 of the Act</td> <td><strong>$102.22</strong></td> </tr> <tr> <td>2.</td> <td>For an application for approval of a transfer under section 119G of the Act</td> <td><strong>$102.22</strong> for each half-hour spent by FMA considering the application</td> </tr> <tr> <td>3.</td> <td>For lodging an amendment to a trust deed under section 129 of the Act</td> <td><strong>$51.11</strong></td> </tr> <tr> <td>4.</td> <td>For providing an annual report under section 123 of the Act</td> <td><strong>$102.22</strong> if net assets* of the scheme are less than $3,000,000<br><br><strong>$357.78</strong> if net assets of the scheme are $3,000,000 or more</td> </tr> <tr> <td>5.</td> <td>For requesting consent to the reversion of assets to an employer for the purposes of section 129B or 130 of the Act</td> <td><strong>$102.22</strong> for each half-hour spent by FMA considering the request</td> </tr> <tr> <td>6.</td> <td>On application under section 168(c) of the Act for cancellation of registration of a KiwiSaver scheme</td> <td><strong>$255.55</strong></td> </tr> <tr> <td>7.</td> <td>For filing, under section 174 of the Act, the final accounts of a KiwiSaver scheme that is wound up.</td> <td><strong>$255.55</strong></td> </tr> </tbody> </table> <p class="table-footnote">* Net assets means the market value of the assets of the scheme, net of borrowings, at the close of the financial year to which the annual report relates.</p> <h2 class="table-footnote">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/new-offers-under-fmc-act/who-needs-to-comply/ Who needs to comply 2015-01-30 11:42:08 Financial Markets Authority <p>Anyone offering financial products for sale needs to comply with financial markets legislation. The Financial Markets Conduct Act 2013 (FMC Act) defines these people as issuers and other offerors.</p> <h3>Issuers</h3> <p>Issuers are people who are involved in first making a financial product available. For the legal definition see section <a href="http://www.legislation.govt.nz/act/public/2013/0069/latest/DLM4090929.html">11</a> of the FMC Act. They include:</p> <ul> <li>the main debtor in relation to a debt security</li> <li>the entity to which an equity security relates</li> <li>the manager of a managed investment scheme</li> <li>Any party that is in the business of entering into derivatives.</li> </ul> <h3>Other offerors</h3> <p>People who are offering a financial product for sale who aren’t the Issuer.</p> <h3>The FMC Act defines 4 types of financial products.</h3> <table> <tbody> <tr> <td><strong>Product type</strong></td> <td><b>Description</b></td> <td><b>Link to the legal definition</b></td> </tr> <tr> <td>Debt security</td> <td>A product where there is a right to be repaid money or paid interest on money.</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;"><a href="http://www.legislation.govt.nz/act/public/2013/0069/latest/DLM4090911.html"><span style="line-height: 115%; font-size: 10.5pt; mso-fareast-font-family: &quot;Times New Roman&quot;; mso-bidi-font-family: Helvetica; mso-fareast-language: EN-NZ;">Section 8 (1)</span></a></span></td> </tr> <tr> <td>Equity security</td> <td>A share in a company, industrial and provident society or building society. </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;"><a href="http://www.legislation.govt.nz/act/public/2013/0069/latest/DLM4090911.html"><span style="line-height: 115%; font-size: 10.5pt; mso-fareast-font-family: &quot;Times New Roman&quot;; mso-bidi-font-family: Helvetica; mso-fareast-language: EN-NZ;">Section 8 (2)</span></a></span></td> </tr> <tr> <td>Managed investment product</td> <td> <p>An interest in a managed investment scheme that allows investors to participate in, or receive, financial benefits produced principally by the efforts of another person under the scheme. There are two types of managed investment schemes:</p> <ul> <li><strong>Managed fund</strong><br>Schemes where either the interests are ordinarily continuously offered and redeemed on a basis calculated wholly or mainly on the value of the scheme property, or where at least 80% of the scheme’s assets are in certain specified liquid assets.</li> <li><strong>Other managed investment schemes</strong><br>Examples of managed investment schemes that are not managed funds could include forestry partnerships and property syndicates.</li> </ul> </td> <td> <p><a href="http://www.legislation.govt.nz/act/public/2013/0069/latest/DLM4090921.html">Section 9</a></p> <p> </p> <p><br><a href="http://www.legislation.govt.nz/regulation/public/2014/0326/latest/DLM6292909.html?search=qs_act%40bill%40regulation%40deemedreg_financial+markets+conduct+regulations_resel_25_h&amp;p=1">Regulation 5</a></p> </td> </tr> <tr> <td>Derivative</td> <td> <p>A product where an agreement is reached under which consideration may be required at a future time, and the value of the agreement or consideration is linked to something else, for example an asset, a rate, an index or a commodity. This covers a wide range of products including:</p> <ul> <li>Futures contracts and forwards<br>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.<br>The definition is also wide enough to catch new derivatives products as they are developed.</li> </ul> </td> <td> <p><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;"><a href="http://www.legislation.govt.nz/act/public/2013/0069/latest/DLM4090911.html"><span style="line-height: 115%; font-size: 10.5pt; mso-fareast-font-family: &quot;Times New Roman&quot;; mso-bidi-font-family: Helvetica; mso-fareast-language: EN-NZ;">Section 8(4)</span></a></span></p> </td> </tr> </tbody> </table> <h3>What it means to make a ‘regulated offer’ under the FMC Act</h3> <p>A regulated offer means an offer of financial products to one or more investors where the offer to at least one of those investors requires disclosure under the provisions of Part 3 of the FMC Act.  For the legal definition see section 41 of the FMC Act .</p> <p>Our <a href="http://www.fma.govt.nz/help-me-comply/new-offers-under-fmc-act/offer-information/">offer information page </a>summarises the disclosure required for regulated offers.  </p> <p>If a <a href="http://www.fma.govt.nz/help-me-comply/new-offers-under-fmc-act/schedule-1-offers/">Schedule 1 exclusion </a>applies to all investors, then it isn’t a regulated offer.</p> http://www.fma.govt.nz/keep-updated/newsroom/media-releases/2015/fma-and-nzx-sign-memorandum-of-understanding FMA and NZX sign Memorandum of Understanding 2015-01-28 14:02:11 Financial Markets Authority <p><b>Media Release<br> MR No. 2015 – 02<br> 28 January 2015</b></p> <p>The Financial Markets Authority (FMA) and NZX have this week signed a Memorandum of Understanding (MoU). The MoU sets out the framework for engagement and co-operation between the FMA and NZX, taking into account their complementary regulatory responsibilities for New Zealand’s capital markets.</p> <p>The FMA and NZX have developed a cooperative operational relationship to help deliver the most effective regulation of New Zealand’s capital markets, and this MoU formalises and enhances that collaboration.</p> <p>In addition to the FMA’s statutory requirement to undertake and publish a review of NZX’s performance of its regulatory functions on an annual basis (under the Financial Markets Conduct Act 2013), the MoU confirms the structure for the ongoing dialogue between the FMA and NZX in respect of NZX’s day-to-day regulatory functions.  The MoU also points to the mutual commitment to the wider development of New Zealand’s capital markets and to contributing to the protection of shareholders and investors’ interests.</p> <p>The MoU focuses on four key areas and formalises protocols and structures to enable greater collaboration. These areas are:</p> <p class="BodyCopy">(a)       relationship governance<br>(b)       oversight review process<br>(c)       operational interaction between NZX and the FMA<br>(d)       public statements.</p> <p>The MoU also confirms the inauguration of two important joint NZX/FMA committees, one for oversight matters and the other for operational functions.</p> <p>The MoU demonstrates the ongoing commitment from both the FMA and NZX to ensure that effective frontline regulation of New Zealand’s capital markets remains a priority for both organisations. Particular areas of focus to ensure the markets remain fair, orderly and transparent are:</p> <p class="BodyCopy">(a)    live market issues<br>(b)    continuous disclosure (investigations and waiver/rulings)<br>(c)    insider trading and market manipulation surveillance and investigation<br>(d)    investigations and complaints concerning market participants<br>(e)    market rules approval<br>(f)     review of offer documents.</p> <p>The MoU has been published on the <a href="http://www.fma.govt.nz/assets/MoU/FMA-NZX-MoU-2015.pdf">FMA</a> and NZX websites.</p> <p>ENDS</p> <p><b>Contact:</b><br> <b>Andrew Park, FMA</b><br> 021 220 6770<br> <a href="mailto:andrew.park@fma.govt.nz">andrew.park@fma.govt.nz</a><br> <br> <b>Kate McLaughlin, NZX</b><br> 027 533 4529<br> <a href="mailto:kate.mclaughlin@nzx.com">kate.mclaughlin@nzx.com</a></p> http://www.fma.govt.nz/laws-we-enforce/policy/closed-consultations/consultation-paper-fund-update-template-and-guidance-for-calculating-risk-indicators Consultation Paper: Fund update template and guidance for calculating risk indicators 2015-01-27 08:36:32 Financial Markets Authority <p>1 December 2014</p> <p class="Default">This <a href="http://www.fma.govt.nz/assets/Report-and-Papers/Consultation/Consultation-Paper-Fund-update-template-and-guidance-for-calculating-risk-indicators.pdf" target="_blank">consultation paper</a> is for market participants that manage funds and for their supervisors and investors. It explains how we propose to use two of the tools available to the FMA under the Financial Markets Conduct Act 2013 (FMC Act) and the Financial Markets Conduct Regulations 2014 (Regulations) to support the new offers regime for managed funds. We are consulting on a proposed ‘frameworks or methodologies’ (FM) template for fund updates and new guidance for calculating risk indicators.</p> <p>We invite you to review our proposals and share your feedback with us. We welcome general comments and have also included a number of questions seeking specific feedback. Your response will inform the final (and binding) fund update template as well as the final risk indicator guidance note. It may also provide the FMA with further areas where FMs or guidance may be useful or necessary.</p> <p><b>Submissions close on 16 January 2015. </b></p> <p>Please use this <a href="http://www.fma.govt.nz/assets/Report-and-Papers/Consultation/Feedback-form-Fund-update-and-risk-indicator-guidance.docx" target="_blank">feedback form</a>. This is also on the final page of the consultation paper and gives you details of what you need to do.</p> http://www.fma.govt.nz/keep-updated/newsroom/media-releases/2015/fma-warns-individual-trader-over-online-market-manipulation FMA warns individual trader over online market manipulation 2015-01-27 08:36:21 Financial Markets Authority <p><b>Media Release<br></b><b>MR No. 2015 – 01<br></b><b>23 January 2015</b></p> <p>The Financial Markets Authority (FMA) has issued a warning to an individual online trader in relation to suspected market manipulation trading conduct.</p> <p>Following an investigation, the FMA concluded that the individual has likely breached the market manipulation prohibitions contained in sections 11B and 11C of the Securities Markets Act 1988.</p> <p>The FMA has reached the view that the person engaged in trading that resulted in no change in beneficial ownership in the shares they traded.  This is presumed to be market manipulation under the Securities Markets Act.</p> <p>The FMA also considers that the individual engaged in ‘bait-and-switch’ trading conduct. The FMA considers that the trades were likely to have the effect of creating a false or misleading appearance about the extent of active trading in, supply of, price for, or value of the shares traded. Such conduct may attract other traders into the market. This type of conduct is also prohibited under the market manipulation prohibition provisions in the Securities Markets Act.</p> <p>In reaching its decision to issue a formal warning, on a no names basis, the FMA took into account a number of factors including:</p> <ul> <li>the individual was an inexperienced trader, and was not aware that trading with themselves was prohibited</li> <li>the online trading platforms used by the individual did not provide guidance on permitted and prohibited trading activity</li> <li>the trading occurred over a short period of time and the individual did not enjoy any significant personal gain  </li> <li>the individual co-operated with the FMA through the investigation</li> <li>the individual is now seeking  professional advice about their investments and trading.</li> </ul> <p>“We welcome trading in secondary markets, but we want to ensure that those who trade are aware of and follow the rules that are designed to ensure that the secondary markets operate efficiently and fairly. People who trade must ensure that they know what conduct is prohibited, before they trade,” said the FMA’s Director of Enforcement and Investigations, Belinda Moffat.</p> <p>“We consider that a warning in this case is a proportionate and effective response to the activity identified. Investigating and taking action against conduct such as insider trading and market manipulation that undermines the integrity and reputation of our markets is one of the FMA’s key strategic priorities,” she said.</p> <p>The FMA will work closely with NZX and online trading platform providers to increase the information available to casual online traders and to raise awareness and understanding of the rules and prohibitions relating to trading conduct.</p> <p>This case was referred to the FMA by NZX. The warning can be viewed <a href="http://www.fma.govt.nz/keep-updated/warnings-alerts-and-scams/fmas-latest-warnings-and-alerts/2015/notification-of-warning-individual-trader-market-manipulation">here</a>.</p> <p><strong>Contact:<br></strong>Shae Skellern<br>09 300 0465<br>021 847 192<br><a href="mailto:Shae.skellern@fma.govt.nz">Shae.skellern@fma.govt.nz</a></p> <p><b>Background</b></p> <p>There are criminal and civil remedies available for breach of the market manipulation provisions of the Securities Markets Act.</p> <p>Criminal liability for false or misleading appearance of trading is contained in section 11D of the Securities Markets Act, which provides that a person who contravenes section 11B commits an offence if the person has actual knowledge that the act or omission will have, or is likely to have the effect of creating, or causing the creation of, a false or misleading appearance:</p> <p>a)      with respect to the extent of active trading in the securities of the market issuer; or</p> <p>b)      with respect to the supply of, demand for, price for trading in, or value of those securities.</p> <p>The maximum penalty under section 43 of the Securities Markets Act is 5 years imprisonment or a fine not exceeding $300,000 for an individual or $1,000,000 fine for a body corporate.</p> <p>Under section 42R of the Securities Markets Act, the FMA can also apply for a civil pecuniary penalty order and declaration of contravention of the market manipulation provisions of the Securities Markets Act.  The maximum amount of a pecuniary penalty is the greater of:</p> <p>a)      the consideration for the transaction that constituted the contravention (if any); or</p> <p>b)      3 times the amount of the gain made, or the loss avoided, by the person in carrying out the conduct; or</p> <p>c)      $1,000,000.</p> http://www.fma.govt.nz/keep-updated/newsroom/media-releases/2015/ 2015 2015-01-23 11:13:09 Financial Markets Authority http://www.fma.govt.nz/keep-updated/warnings-alerts-and-scams/fmas-latest-warnings-and-alerts/2015/notification-of-warning-individual-trader-market-manipulation Notification of Warning: individual trader – market manipulation 2015-01-23 11:08:03 Financial Markets Authority <p>The Financial Markets Authority (<b>FMA</b>) has issued a warning to an individual in relation to suspected market manipulation. Following an investigation by the FMA, it concluded that trading by the individual in question has likely breached the Securities Markets Act 1988 (the <b>Act</b>) in the following ways:</p> <ul> <li>The individual entered a number of buy and sell orders for a publically listed security, resulting in four trades with no change in beneficial ownership.  Section 11C of the Act creates a presumption of market manipulation where trades are conducted that result in no change in beneficial ownership.</li> <li>An initial sell order placed by the individual exceeded the current best asking price for the shares at the time.  The individual’s trades represented over half of the on-market trading volume for the shares at the time of trading and the trades also resulted in an increase in the market price for the shares.  Section 11B of the Act prohibits acts that have or are likely to have an effect of creating a false or misleading appearance of the extent of active trading in publically issued securities, or the supply, demand, trading price or value of those securities.</li> </ul> <p>The FMA has assessed the conduct involved and notwithstanding its conclusion that the Act has likely been breached, it has determined that the appropriate and proportionate response in this case is to issue a warning to the individual.  Factors specific to this case that were taken into account in making this decision included:</p> <ul> <li>The individual was an inexperienced trader and was unaware that trades resulting in no change in beneficial ownership (i.e. trading with yourself) were not permitted.  This is not a defence, but the individual has since sought legal and other professional advice regarding their investment activity.</li> <li>The individual traded using online trading platforms which did not provide any guidance as to permitted or prohibited trading behaviour.</li> <li>The trading occurred over a short period of time and no financial gain was made.</li> <li>The individual co-operated with the FMA during the course of the FMA’s investigation.</li> <li>The individual has confirmed that they are now seeking professional advice with respect to their financial investments and trading.</li> </ul> <p>While the Act does not protect those who engage in market manipulation from liability on the basis of being inexperienced traders or being unaware of the legislative provisions, the FMA considered that this was nonetheless relevant to assessing intention and in determining the appropriate and proportionate regulatory response.</p> <p>The purpose of the publication of the basis for the warning and the facts involved is to increase awareness of the required conduct around trading of shares in New Zealand’s financial markets. The object of the market manipulation provisions in the Act is to protect and preserve the integrity of the share market against activities which will result in artificial or managed manipulation.  The provisions seek to ensure that the market reflects the forces of genuine supply and demand.  The type of misconduct that the FMA has identified in this case is illustrative of conduct which has potential to have a serious impact on the fairness, efficiency, transparency and development of financial markets.  The conduct may have given a false or misleading appearance of the volume and/or price of the shares in question.</p> <p>It is important that the FMA takes action that denounces and deters such conduct in order to protect the integrity of the market and to ensure that those who trade are aware of the requirements and consequences.</p> http://www.fma.govt.nz/keep-updated/warnings-alerts-and-scams/fmas-latest-warnings-and-alerts/2015/ 2015 2015-01-23 10:55:45 Financial Markets Authority http://www.fma.govt.nz/keep-updated/reports-and-papers/corporate-governance-in-new-zealand-principles-and-guidelines Corporate Governance in New Zealand – Principles and Guidelines 2015-01-21 17:17:28 Financial Markets Authority <p><a href="http://www.fma.govt.nz/assets/Report-and-Papers/Consultation/Corporate-Governance-Handbook-Principles-and-Guidelines.pdf" target="_blank">Corporate Governance in New Zealand – Principles and Guidelines</a></p> http://www.fma.govt.nz/laws-we-enforce/enforcement/prosecutions-and-proceedings/fma-cases-before-the-court/ FMA cases before the Court 2015-01-21 15:43:53 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>31 October 2014</strong></td> <td>Messrs Alock and Knight appeared in the Auckland District Court and each entered guilty pleas to 3 charges under the Financial Reporting Act relating to a failure to deliver financial statements for SPI Property Limited. Sentencing will take place on 29 January 2015 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>10 December 2014</strong></td> <td>FMA filed replies to the HIL and Archer statements of defence. A Case Management Conference will take place in the High Court at Auckland on 26 March 2015.</td> </tr> <tr> <td><strong>28 November 2014</strong></td> <td>HIL and Archer each filed statements of defence.</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 Apple Fields 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>20 February 2015</strong></td> <td>The Judge will issue a decision in the Christchurch District Court.</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>10 February 2015</strong></td> <td>A Case Management Conference will take place in the High Court at Auckland.</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>20 April 2015</strong></td> <td> <p>2 week trial commences.</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/help-me-comply/new-financial-reporting-requirements/when-will-you-need-to-comply/ When will you need to comply? 2015-01-20 14:57:55 Financial Markets Authority <p>The new financial reporting requirements in Part 7 of the Financial Markets Conduct Act 2013 (FMC Act) came into effect on 1 April 2014. These affect all <a href="http://www.fma.govt.nz/help-me-comply/new-financial-reporting-requirements/who-needs-to-comply/">FMC reporting entities</a> however, the new requirements will apply to different entities at different points in time. This depends on:</p> <ul> <li>when an entity becomes a FMC reporting entity (a trigger event); and</li> <li>how the entity becomes a FMC reporting entity.</li> </ul> <p>The date you must prepare your first full year financial statements under the FMC Act is your first 'FMC balance date'. It's important to identify this date early so you can plan ahead to meet the shorter filing timeframes (now four months from the end of your financial year). Below is an online tool to help you work out your FMC balance date - you may also want to see our <a href="http://www.fma.govt.nz/help-me-comply/new-financial-reporting-requirements/frequently-asked-questions/">FAQs</a>.</p> <p></p><div class="TransitionalReportingCalculator"> <p>Please wait...</p> </div> <p></p> <p>You may also wish to talk to your legal and accounting advisers, or refer to the key transitional provisions in the legislation - particularly if your entity's situation is complex. The key provisions are set out in the FMC Act, <a href="http://www.legislation.govt.nz/act/public/2013/0069/latest/DLM4702346.html?search=qs_act%40bill%40regulation%40deemedreg_transitional+provisions_resel_25_h&amp;p=1">Schedule 4 Transition Provisions</a>, Clause 17-19, and the <a href="http://www.legislation.govt.nz/act/public/2013/0101/latest/whole.html">Financial Reporting Act 2013</a> sections 55-57.</p> <h2>When is your first FMC balance date?</h2> <p><img class="leftAlone" title="FMC Balance date" src="http://www.fma.govt.nz/assets/media/1969027/fmc-balance-date.png" alt="FMC Balance date"></p> <p>We have developed a <a href="http://www.fma.govt.nz/assets/media/1105046/financial-reporting-for-fmc-entities-transition-timeline.pdf" target="_blank">transition timetable</a> to help you understand when you will need to comply. The key points include:</p> <ol> <li>Your existing reporting requirements continue until the date you have to start reporting under the FMC Act.                                                                                                          </li> <li>Your first FMC balance date can't be before 1 December 2014 - and generally the new FMC requirements can only apply to periods beginning on or after 1 April 2014, that is if you're part way through an accounting period on 1 April, you'll usually complete that period under your existing reporting requirements. However if your balance date falls in the period from 1 December 2014 to 30 March 2015, it will become an FMC balance date if (before that balance date) you:</li> <ul> <li>Issue financial products under Part 3 of the FMC Act </li> <li>Opt-in early for securities you offered under the Securities Act</li> <li>Become the recipient of funds from conduit issuers (with regard to the two situations above).</li> </ul> <li>For all balance dates on or after 31 March 2015 where you are a FMC reporting entity    you will need to prepare financial statements under the FMC Act. Therefore 31 March 2015 will be the first FMC balance date for many entities that had a trigger event prior to that date. For more detail on trigger events see our <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 table below</a>. Please note that several trigger events can apply to you and following our table could give you several different first FMC balance dates. If this applies to you, you will need to comply for the earliest FMC balance date.</li> <li>Some unlisted issuers won't become a FMC reporting entity until 1 December 2016. As such they will only have their first FMC balance date after 1 December 2016.</li> <li>If your entity doesn't transition to the FMC Act at all - i.e. you don't meet the definition of a FMC reporting entity - (most existing issuers will) - you'll continue to report under the Financial Reporting Act 1993 (FRA93) until 1 April 2019, unless an earlier date is set by Regulation. After that date other requirements will apply to you.</li> </ol> <p><strong>Key documents:</strong></p> <ul> <li><a href="http://www.fma.govt.nz/assets/media/1105046/financial-reporting-for-fmc-entities-transition-timeline.pdf" target="_blank">Financial reporting for FMC entities: transition timeline</a></li> <li><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: When do you become an FMC reporting entity?</a></li> </ul> <h3>Some extra points to note if.....</h3> <p><strong>You are a licensed MIS manager</strong></p> <p>Licensed MIS managers must prepare financial statements under the FMC Act for:</p> <ul> <li>yourself as a licensed entity, and</li> <li>schemes you've registered under the FMC Act, and</li> <li>schemes you were required to report for under the FRA93.</li> </ul> <p>It's important to note that once you're a FMC reporting entity you must report under the FMC Act for all your schemes. This includes schemes registered under the FMC Act and those you were required to report under the FRA93. It means you and your schemes will all have the same FMC financial reporting requirements, including having to lodge financial statements within the new four month deadline.</p> <p>This applies regardless of how you became a FMC reporting entity. For example the trigger event could be because you're a licensed manager, a registered bank or a listed issuer.</p> <p><strong>You make an FMC offer during the transitional period</strong></p> <p>During the transitional period some parts of the FMC Act may apply to you before others. This means that while the financial reporting provisions of Part 7 of the FMC Act may apply to you, other requirements may not apply at the same time (for example governance or offer requirements). We'll provide more information later this year about making offers during the transitional period.</p> <p><strong>You make 'small offers' under Schedule 1 of the FMC Act</strong></p> <p>There are exclusions under Schedule 1 of the FMC Act that allow for some offers to be made without you having to provide all the usual documentation required under Part 3 of the Act (such as product disclosure statements).</p> <p>One of those exclusions is for small personal offers of debt and equity (see clause 12 of Schedule 1). It allows you to make small offers over a 12 month period that can, <strong>in total</strong>, involve up to 20 investors and raise up to $2 million without having to produce full documentation. Any offer that would result in you exceeding either or both those limits requires full documentation under Part 3.</p> <p>If over several 12 month periods you gain more than 50 shareholders <em>from small offers</em> you'll become a FMC reporting entity - you next balance date will become your first FMC balance date.</p> http://www.fma.govt.nz/help-me-comply/financial-advisers/how-to-get-licensed/afa-application-resources-and-templates/afa-adviser-business-statement-guide/ AFA Adviser Business Statement Guide 2015-01-20 11:00:13 Financial Markets Authority <p>The AFA ABS Guide was last updated in January 2015.  The main changes from the previous version of the guide have been to reflect recent changes to the Code and the addition of information regarding the eligibility criteria for AFAs providing Personalised DIMS under the Financial Advisers Act.  Advisers providing Personalised DIMS will need to ensure that their ABS contains all of the required information with respect to Personalised DIMS.  All other advisers should be mindful of the changes brought about by the amendments to the Code when they next update their ABS.</p> <p>Read the <a href="http://www.fma.govt.nz/assets/media/321873/afa-adviser-business-statement-guide-dec-2014.pdf" target="_blank">AFA Adviser Business Statement Guide</a>.</p> <p><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/"> You must annually confirm your ABS is current.</a></p> http://www.fma.govt.nz/help-me-comply/financial-advisers/how-to-get-licensed/afa-application-resources-and-templates/ AFA Application Resources and Templates 2015-01-16 14:25:22 Financial Markets Authority <ul> <li><a href="http://www.fma.govt.nz/assets/Report-and-Papers/PROFESSIONAL-BODY-CERTIFICATE-OF-STANDING.pdf" target="_blank">Professional Body - Certificate of Standing</a></li> <li><a title="AFA Authorisation Guide" href="http://www.fma.govt.nz/help-me-comply/financial-advisers/how-to-get-licensed/afa-application-resources-and-templates/afa-authorisation-guide/">Authorised Financial Adviser (AFA) Authorisation Guide</a> - a full reference guide to the process</li> <li><a title="AFA Competence and Assessment" href="http://www.fma.govt.nz/help-me-comply/financial-advisers/how-to-get-licensed/afa-application-resources-and-templates/afa-competence-and-assessment/">Description of competence standards</a> advisers must meet</li> <li><a title="Authorised Financial Advisers" href="http://www.fma.govt.nz/help-me-comply/financial-advisers/your-obligations/authorised-financial-advisers-obligations/">AFA obligations</a></li> <li><a title="AFA Testimonial Templates and Guidelines" href="http://www.fma.govt.nz/help-me-comply/financial-advisers/how-to-get-licensed/afa-application-resources-and-templates/afa-testimonial-templates-and-guidelines/">Testimonials templates and guidelines</a> for completing proof of character requirements</li> <li><a title="AFA Adviser Business Statement Guide" 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/">AFA Adviser Business Statement Guide</a></li> <li><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/"> List of Authorised Financial Advisers (AFA)</a></li> <li><a href="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 and suspensions</a></li> <li><a title="Period of Authorisation" href="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</a></li> <li><a title="Categories of Licences for AFAs" href="http://www.fma.govt.nz/help-me-comply/financial-advisers/who-needs-to-comply/authorised-financial-advisers/categories-of-licences-for-afas/">Categories of licence for AFAs</a> (FAS scopes)</li> <li><a title="Code of Professional Conduct for AFAs" href="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</a> for Authorised Financial Advisers</li> <li><a title="Useful Contacts and Links" href="http://www.fma.govt.nz/help-me-comply/financial-advisers/how-to-get-licensed/afa-application-resources-and-templates/useful-contacts-and-links/">Useful contacts and links</a></li> </ul> http://www.fma.govt.nz/help-me-invest/risks-involved-in-investing/ Risks Involved in Investing 2015-01-15 16:55:44 Financial Markets Authority <div> <h2><a id=" Understanding risk-2" name="Understanding%20risk-2"></a> Understanding risk</h2> <p>Successful investors understand the main types of risk that can hit their investments. If you do, you will have a much better chance of avoiding the 'ouch' factor from taking too many risks.</p> </div> <p>The specific risks to keep an eye on depend on your needs and the type of investments you make.<strong> </strong></p> <h3><strong>Short-term savers</strong></h3> <p>If you want to spend your money within 3 years, your main concern will be to protect your capital. A high interest savings account, with a registered deposit-taking institution, carries minimal risk and your money will be available when you need it.</p> <p>The <a href="http://www.fma.govt.nz/help-me-invest/risks-involved-in-investing/case-study-short-term-saving/"><span>short-term saving</span> <span>case study</span></a> looks at how to manage these risks.<strong> </strong></p> <h3><strong>Long-term investors</strong></h3> <p>If you're investing for the long term, say more than 10 years, you want your capital to grow in value. Risks you face include:</p> <ul> <li>Inflation may erode the purchasing power of your money (this means that a fixed amount of money will buy fewer things in the future).</li> <li>The timing of your decisions may cause lower returns or loss of capital (buying at a market peak, selling when the market is down).</li> </ul> <p>The <a href="http://www.fma.govt.nz/help-me-invest/risks-involved-in-investing/case-study-capital-growth/"> <span>capital growth</span> <span>case study</span></a> gives examples of how to deal with such risks.</p> <h3><strong>Retirees</strong></h3> <p>As a retiree you rely on your investments to give you money to live on. You need them to give you regular, reliable income payments. The risks you face include:</p> <ul> <li>Your investments will not produce a regular, consistent income. For example, share dividends are usually only paid twice a year and are not always paid out. Interest rates can go down, reducing your income.</li> <li>Inflation may erode the purchasing power of your money.</li> </ul> <p>The <a href="http://www.fma.govt.nz/help-me-invest/risks-involved-in-investing/case-study-regular-income/"> <span>regular income</span> <span>case study</span></a> tells one retiree's investing story.</p> <p><strong>Check Sorted's website for more information about</strong> <a href="https://www.sorted.org.nz/a-z-guides/retirement-planning"><strong> planning for retirement</strong></a> <strong>and <a href="https://www.sorted.org.nz/a-z-guides/retirement-income">retirement income.</a></strong></p> <p> </p> <h2><a id="Common risks to be aware of" name="Common%20risks%20to%20be%20aware%20of"></a><strong><a id="Common risks to be aware of-2" name="Common%20risks%20to%20be%20aware%20of-2"></a>Common risks to be aware of</strong></h2> <p>There are other types of risk that can hurt your investments if not managed properly. Interest rate changes, currency movements and changes in the law can all affect how your investments perform. The types of risk that routinely affect investments include:</p> <ul> <li>Interest rate risk: when interest rates rise after you lock in your money, meaning you don't earn as much on your money as you would have if you'd invested at the higher rate</li> <li>Liquidity risk: there might not be buyers interested in your investment when you want to sell</li> <li>Credit risk: the organisation may not be able to repay its debts, and you might lose your money. <a href="http://www.fma.govt.nz/help-me-invest/investing-basics/managing-problems-with-your-investments/">Find out more how to sort out problems with your investment.</a></li> <li>Economic risk: the economy may or may not be doing well, which could affect the value of your investment</li> <li>Industry risk: risks affecting a particular industry, like shortages of raw materials or changes in consumer preferences</li> <li>Currency risk: your investment is affected by changes in the value of the New Zealand dollar</li> <li>Inflation risk: your investment doesn't earn enough to keep up with inflation.</li> </ul> <p>Every investment has its own combination of risks and it's important to understand them before you hand over any money. There may be other risks specific to the type of investment or market, in particular, you should always read the 'risks' section of the investment statement, or ask your financial adviser to explain these to you.</p> <h2><a id="Use tactics to manage risk-2" name="Use%20tactics%20to%20manage%20risk-2"></a>Use tactics to manage risk</h2> <p>As a general principle, the lower the risk, the lower the likely rate of return. You'll need to take some investment risk to end up with a healthy return over time.</p> <p>A good plan meets your goals, protects your capital and maximises returns, without exposing yourself to too much danger.</p> <p>You can do this by:</p> <ul> <li>Choosing investments that match your needs and investment timeframes</li> <li>Sticking with mainstream strategies, investment types and providers</li> <li>Diversifying - you'll kick yourself if you lose half your money by putting it all in one place, e.g. one type of investment or one financial institution. <a href="http://www.fma.govt.nz/help-me-invest/risks-involved-in-investing/diversification/"> See <span>diversification</span></a></li> <li>Having some of your investments in low risk assets (such as interest-bearing deposits) that you can draw money from when markets are performing badly</li> </ul> <h2><a id="Watch out for investment scams-2" name="Watch%20out%20for%20investment%20scams-2"></a>Watch out for investment scams</h2> <div>There are no shortcuts to investing success. The combination of high returns and low risk does not exist. The golden rule is 'if it sounds too good to be true, it probably is too good to be true'.</div> <p><a href="http://www.fma.govt.nz/keep-updated/warnings-alerts-and-scams/being-alert-to-scams/"> Being alert to scams</a> will help you stay safe.  Scammers will go to great lengths to come between you and your money so stay one step ahead by checking our <a href="http://www.fma.govt.nz/keep-updated/warnings-alerts-and-scams/">latest warnings, alerts and scams.</a> You can also check the <a href="http://www.consumeraffairs.govt.nz/scams/">Ministry of Consumer Affairs website for their latest scam information</a>.</p> <p><strong>Investing is never going to be risk free. With careful planning, you can identify and manage the risks that are most likely to trip you up. <a href="http://www.fma.govt.nz/help-me-invest/risks-involved-in-investing/diversification/"> Diversification</a></strong> <strong>is the best tool you have for overcoming investment risk.</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/investing-basics/goals-and-risk-tolerance/ Goals and Risk Tolerance 2015-01-13 13:50:12 Financial Markets Authority <div> <h2><a id="Get to know yourself Everybody is different. To choose the right investment strategy, you need to be clear about your own needs and what you are trying to achieve. Speaking to a Financial Adviser can help get you started because there are lots of things to think about. Start by setting your goals. Then think about your investment timeframe - when do you want to spend the money? Then think about your attitude to risk. Knowing these things will help you identify what types of investment are suitable for you. ? Set your goals and timeframes ? How much time have you got? ? How do you feel about risking your money? ? How much risk should you accept? Set your goals and timeframes Investing is about putting your money to work to achieve your personal goals. So start by identifying what you want to achieve by when. Choose goals that are realistic and ones that you can set a dollar value against. For example; if you were saving for a deposit on a house think about how much you can afford to put away. Setting goals forces you to plan, and having a clear goal -ideally written down - helps motivate you to stick to your plan. Think about your goals first. Perhaps you are saving for a holiday, for a home deposit or to pay for a child&#039;s education. Or your goal may be to boost retirement savings. You can see that different goals have different timeframes. You may only have 6 months or a year to save for a holiday but if you are saving for your retirement you might have 25 or 50 years. Setting a timeframe for each goal helps you stay on track. You may have several goals, each with a different timeframe. Allocating a timeframe to each investment goal will enable you to think about how much you can afford to invest and how long it will realistically take you to reach your goal. Check Sorted&#039;s website to find out more about setting financial goals or speak to a Financial Adviser to help you get started. Sample goals and timeframes Goal Short term (up to 3 years) Medium term (4-9 years) Long term (more than 9 years) Holiday $3000 Save for child&#039;s education $40,000 Boost retirement savings $100,000 When do you want to spend the money? In 2 years Starting in 5 years Starting in 25 years How much time have you got? Setting a timeframe for each goal will help you work out how much investment risk you can afford to take. If you are saving money over a short period of time it may be tempting to use higher-risk investments because they often come with higher returns. But growth investments, such as shares, are not appropriate for short investment timeframes as their value might drop suddenly, just when you need your money. But if you are saving for a long-term goal, such as retirement in 25 years, then you have time to ride out the ups and downs in the market. This means you can take on a higher level of investment risk. pHow do you feel about risking your money? Risk tolerance also depends on your ability to cope with dips in the value of your investments. Factors that can influence your risk tolerance include your age, your financial and emotional ability to recover from capital losses and your health. To decide where you fit on the risk tolerance scale, ask yourself this question: " name="Get%20to%20know%20yourself%20Everybody%20is%20different.%20To%20choose%20the%20right%20investment%20strategy,%20you%20need%20to%20be%20clear%20about%20your%20own%20needs%20and%20what%20you%20are%20trying%20to%20achieve.%20Speaking%20to%20a%20Financial%20Adviser%20can%20help%20get%20you%20started%20because%20there%20are%20lots%20of%20things%20to%20think%20about.%20Start%20by%20setting%20your%20goals.%20Then%20think%20about%20your%20investment%20timeframe%20-%20when%20do%20you%20want%20to%20spend%20the%20money?%20Then%20think%20about%20your%20attitude%20to%20risk.%20Knowing%20these%20things%20will%20help%20you%20identify%20what%20types%20of%20investment%20are%20suitable%20for%20you.%20%E2%80%A2%20Set%20your%20goals%20and%20timeframes%20%E2%80%A2%20How%20much%20time%20have%20you%20got?%20%E2%80%A2%20How%20do%20you%20feel%20about%20risking%20your%20money?%20%E2%80%A2%20How%20much%20risk%20should%20you%20accept?%20Set%20your%20goals%20and%20timeframes%20Investing%20is%20about%20putting%20your%20money%20to%20work%20to%20achieve%20your%20personal%20goals.%20So%20start%20by%20identifying%20what%20you%20want%20to%20achieve%20by%20when.%20Choose%20goals%20that%20are%20realistic%20and%20ones%20that%20you%20can%20set%20a%20dollar%20value%20against.%20For%20example;%20if%20you%20were%20saving%20for%20a%20deposit%20on%20a%20house%20think%20about%20how%20much%20you%20can%20afford%20to%20put%20away.%20Setting%20goals%20forces%20you%20to%20plan,%20and%20having%20a%20clear%20goal%20-ideally%20written%20down%20-%20helps%20motivate%20you%20to%20stick%20to%20your%20plan.%20Think%20about%20your%20goals%20first.%20Perhaps%20you%20are%20saving%20for%20a%20holiday,%20for%20a%20home%20deposit%20or%20to%20pay%20for%20a%20child&#039;s%20education.%20Or%20your%20goal%20may%20be%20to%20boost%20retirement%20savings.%20You%20can%20see%20that%20different%20goals%20have%20different%20timeframes.%20You%20may%20only%20have%206%20months%20or%20a%20year%20to%20save%20for%20a%20holiday%20but%20if%20you%20are%20saving%20for%20your%20retirement%20you%20might%20have%2025%20or%2050%20years.%20Setting%20a%20timeframe%20for%20each%20goal%20helps%20you%20stay%20on%20track.%20You%20may%20have%20several%20goals,%20each%20with%20a%20different%20timeframe.%20Allocating%20a%20timeframe%20to%20each%20investment%20goal%20will%20enable%20you%20to%20think%20about%20how%20much%20you%20can%20afford%20to%20invest%20and%20how%20long%20it%20will%20realistically%20take%20you%20to%20reach%20your%20goal.%20Check%20Sorted&#039;s%20website%20to%20find%20out%20more%20about%20setting%20financial%20goals%20or%20speak%20to%20a%20Financial%20Adviser%20to%20help%20you%20get%20started.%20Sample%20goals%20and%20timeframes%20Goal%20Short%20term%20(up%20to%203%20years)%20Medium%20term%20(4-9%20years)%20Long%20term%20(more%20than%209%20years)%20Holiday%20%243000%20Save%20for%20child&#039;s%20education%20%2440,000%20Boost%20retirement%20savings%20%24100,000%20When%20do%20you%20want%20to%20spend%20the%20money?%20In%202%20years%20Starting%20in%205%20years%20Starting%20in%2025%20years%20How%20much%20time%20have%20you%20got?%20Setting%20a%20timeframe%20for%20each%20goal%20will%20help%20you%20work%20out%20how%20much%20investment%20risk%20you%20can%20afford%20to%20take.%20If%20you%20are%20saving%20money%20over%20a%20short%20period%20of%20time%20it%20may%20be%20tempting%20to%20use%20higher-risk%20investments%20because%20they%20often%20come%20with%20higher%20returns.%20But%20growth%20investments,%20such%20as%20shares,%20are%20not%20appropriate%20for%20short%20investment%20timeframes%20as%20their%20value%20might%20drop%20suddenly,%20just%20when%20you%20need%20your%20money.%20But%20if%20you%20are%20saving%20for%20a%20long-term%20goal,%20such%20as%20retirement%20in%2025%20years,%20then%20you%20have%20time%20to%20ride%20out%20the%20ups%20and%20downs%20in%20the%20market.%20This%20means%20you%20can%20take%20on%20a%20higher%20level%20of%20investment%20risk.%20pHow%20do%20you%20feel%20about%20risking%20your%20money?%20Risk%20tolerance%20also%20depends%20on%20your%20ability%20to%20cope%20with%20dips%20in%20the%20value%20of%20your%20investments.%20Factors%20that%20can%20influence%20your%20risk%20tolerance%20include%20your%20age,%20your%20financial%20and%20emotional%20ability%20to%20recover%20from%20capital%20losses%20and%20your%20health.%20To%20decide%20where%20you%20fit%20on%20the%20risk%20tolerance%20scale,%20ask%20yourself%20this%20question:%20"></a> <a id="Set your goals and timeframes" name="Set%20your%20goals%20and%20timeframes"></a>Set your goals and timeframes</h2> <p>Investing is about putting your money to work to achieve your personal goals. So start by identifying what you want to achieve by when. Choose goals that are realistic and ones that you can set a dollar value against. For example; if you were saving for a deposit on a house think about how much you can afford to put away.  Setting goals forces you to plan, and having a clear goal - ideally written down - helps motivate you to stick to your plan.</p> <p>Think about your goals first. Perhaps you are saving for a holiday, for a home deposit or to pay for a child's education. Or your goal may be to boost retirement savings. You can see that different goals have different timeframes. You may only have 6 months or a year to save for a holiday but if you are saving for your retirement you might have 25 or 50 years.</p> <p>Setting a timeframe for each goal helps you stay on track. You may have several goals, each with a different timeframe. Allocating a timeframe to each investment goal will enable you to think about how much you can afford to invest and how long it will realistically take you to reach your goal.</p> <p><strong>Check Sorted's website to find out more about</strong> <a href="https://www.sorted.org.nz/a-z-guides/setting-goals?next-steps=yes&amp;from=/calculators/goals-worksheethttp://fmawpddms02/OTCS/llisapi.dll?func=ll&amp;objId=654028&amp;objAction=versions&amp;nexturl=%2FOTCS%2Fllisapi%2Edll%3Ffunc%3Dll%26objaction%3Doverview%26objid%3D654028"> <strong>setting financial goals</strong></a> <strong>or speak to a financial adviser to help you get started. </strong></p> <p><strong>Sample goals and timeframes</strong></p> </div> <table> <tbody> <tr> <td> <p><strong>Goal</strong></p> </td> <td> <p><strong>Short term (up to 3 years)</strong></p> </td> <td> <p><strong>Medium term (4-9 years)</strong></p> </td> <td> <p><strong>Long term (more than 9 years)</strong></p> </td> </tr> <tr> <td> <p>Holiday</p> </td> <td> <p>$3000</p> </td> <td> </td> <td> </td> </tr> <tr> <td> <p>Save for child's education</p> </td> <td> </td> <td> <p>$40,000</p> </td> <td> </td> </tr> <tr> <td> <p>Boost retirement savings</p> </td> <td> </td> <td> </td> <td> <p>$100,000</p> </td> </tr> <tr> <td> <p>When do you want to spend the money?</p> </td> <td> <p>In 2 years</p> </td> <td> <p>Starting in 5 years</p> </td> <td> <p>Starting in 25 years</p> </td> </tr> </tbody> </table> <div> <h2><a id="How much time have you got?" name="How%20much%20time%20have%20you%20got?"></a>How much time have you got?</h2> </div> <p>Setting a timeframe for each goal will help you work out how much investment risk you can afford to take.</p> <p>If you are saving money over a short period of time it may be tempting to use higher-risk investments because they often come with higher returns. But growth investments, such as shares, are not appropriate for short investment timeframes as their value might drop suddenly, just when you need your money.</p> <p>But if you are saving for a long-term goal, such as retirement in 25 years, then you have time to ride out the ups and downs in the market. This means you can take on a higher level of investment risk.</p> <h2><a id="How do you feel about risking your money?" name="How%20do%20you%20feel%20about%20risking%20your%20money?"></a><a id="How do you feel about risking your money?" name="How%20do%20you%20feel%20about%20risking%20your%20money?"></a>How do you feel about risking your money?</h2> <p>Risk tolerance also depends on your ability to cope with dips in the value of your investments. Factors that can influence your risk tolerance include your age, your financial and emotional ability to recover from capital losses and your health.</p> <p>To decide where you fit on the risk tolerance scale, ask yourself this question: "How would I feel if I woke up tomorrow and found my investment balance had dropped from $10,000 to $7,000 within a month of investing it?"</p> <p>If this drop would cause you to worry a lot and pull out of the investment, then a high risk investment is not for you. This is because you could pull out at the worst possible time and actually compound your losses.</p> <p>If, on the other hand, a drop in the market causes you to start looking for bargain buys, then you are probably very comfortable with market fluctuations. You will be comfortable with a higher level of investment risk.</p> <p>Your comfort level could be somewhere in between.</p> <h2><a id="How much risk should you accept?-2" name="How%20much%20risk%20should%20you%20accept?-2"></a>How much risk should you accept?</h2> <p>Your overall risk tolerance is the lesser of the risk you are comfortable with and the risk your timeframe will allow you to take. Use the investment grid below to work out where you fit on the investment risk scale. Cash is low risk and growth is high risk.</p> <p>Your partner may not have the same risk tolerance as you. If you are considering a joint investment, you may need to compromise on an investment option you are both comfortable with.<strong> </strong></p> <h3><strong>How comfortable are you?  </strong></h3> <p><strong><em> </em></strong><strong><em><img class="leftAlone" style="width: 522px; height: 223px;" title="Investment table" src="http://www.fma.govt.nz/assets/media/1701035/investment-picture-500x215.jpg" alt="Investment table"></em></strong></p> <h2><strong><a id="What we mean by growth, balanced and conservative" name="What%20we%20mean%20by%20growth,%20balanced%20and%20conservative"></a><a id="What we mean by growth, balanced and conservative" name="What%20we%20mean%20by%20growth,%20balanced%20and%20conservative"></a>What we mean by growth, balanced and conservative</strong></h2> <p>When we use 'growth', 'balanced', 'conservative' and 'cash' here, this is what we mean.</p> <ul> <li>Growth - invests 70-90% in shares or property. Aims for higher average returns over the long term.</li> <li>Balanced - invests 50-70% in shares or property, and the rest in fixed interest and cash. Aims for reasonable returns, but less than growth funds to reduce risk of losses in bad years.</li> <li>Conservative - invests 30-50% in shares and property with the majority in fixed interest and cash. Aims to reduce the risk of loss and therefore accepts a lower return over the long term.</li> <li>Cash - invests 100% in deposits with New Zealand deposit-taking institutions. Aims for stable returns over a short term.</li> </ul> <p>Different funds may have different names for their portfolios and asset allocations may not be the same as ours. Read the fund's Investment Statement or Prospectus to find out how money will be allocated for each investment option.<strong> </strong></p> <p><strong>Check</strong> <a href="http://www.fma.govt.nz/[sitetree_link,id=]" target="_blank"><strong> Sorted's investment planner</strong></a> <strong>to help you work out how much risk you can afford to take or speak to a financial adviser.</strong></p> <h2><strong><a id=" Case study: Caroline plays it safe" name="Case%20study:%20Caroline%20plays%20it%20safe"></a> Case study: Caroline plays it safe</strong></h2> <p>Caroline is studying and working part-time. She is saving for a post-graduation trip but she is extremely cautious because she doesn't want any risk of losing her capital. She is happy to accept a steady rate of return from a high interest online savings account.</p> <p>"I may not be getting the same returns as a share investment in the good times but I want to take this holiday when I graduate in 2 years time, so preserving my capital is my main concern. The share market? Not at the moment. I don't have time to get back any losses."<em> </em></p> <h6><em>Reproduced and adapted with permission of ASIC.  Source: MoneySmart website</em> <em><a href="http://www.moneysmart.gov.au">www.moneysmart.gov.au</a></em> <em> 31 August 2012.</em><strong> </strong></h6> http://www.fma.govt.nz/laws-we-enforce/guidance/ Guidance 2015-01-12 13:56:01 Financial Markets Authority <p><strong>Our guidance:</strong></p> <ul> <li>explains when and how we will exercise specific powers under legislation</li> <li>explains how we interpret the law</li> <li>describes the principles underlying our approach</li> <li>gives practical examples about how to meet obligations.</li> </ul> <p class="Default"><strong>GUIDANCE NOTES:</strong> provide guidance on a topic or topic theme. Typically we will seek industry feedback via a public consultation paper, or more targeted consultation before we release a guidance note.</p> <p class="Default"><strong>INFORMATION SHEETS:</strong> provide concise guidance on a specific process or compliance issue or an overview of detailed guidance.</p> <p>You might also like to check our past <a href="http://www.fma.govt.nz/keep-updated/reports-and-papers/">reports and papers</a> section. For example, our monitoring reports describe actual practice we are seeing and our comments on this.<a href="http://www.fma.govt.nz/help-me-comply/issuers/guidance-notes-and-reports/"></a></p> <p><strong>See guidance for:</strong></p> <p><a href="http://www.fma.govt.nz/help-me-comply/issuers/guidance-notes-and-reports/">Issuers</a></p> <p><a href="http://www.fma.govt.nz/help-me-comply/supervisors/guidance-notes/"> Trustees</a><a href="http://www.fma.govt.nz/help-me-comply/financial-advisers/guidance-notes/"></a></p> <p><a href="http://www.fma.govt.nz/help-me-comply/financial-advisers/guidance-notes/"> Financial Advisers</a><a href="http://www.fma.govt.nz/help-me-comply/brokers-custodians/guidance-notes/"></a></p> <p><a href="http://www.fma.govt.nz/help-me-comply/brokers-custodians/guidance-notes/">Brokers and Custodians</a></p> <p><a href="http://www.fma.govt.nz/help-me-comply/superannuation/guidance-notes/"> Superannuation</a></p> <p><a href="http://www.fma.govt.nz/help-me-comply/kiwisaver/guidance-notes/"> KiwiSaver</a></p> <p><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/">AML/CFT Guidelines and Codes of Practice</a></p> <p><a href="http://www.fma.govt.nz/help-me-comply/financial-service-providers/who-needs-to-comply/">Financial Service Providers</a></p> <p><a href="http://www.fma.govt.nz/keep-updated/reports-and-papers/offering-securities-in-new-zealand-and-australia-under-mutual-recognition"><span>Offers under mutual recognition</span></a></p> <p><span><a href="http://www.fma.govt.nz/assets/Report-and-Papers/Consultation/Corporate-Governance-Handbook-Principles-and-Guidelines.pdf" target="_blank">Corporate Governance in New Zealand – Principles and Guidelines</a><br></span></p> http://www.fma.govt.nz/help-me-comply/new-financial-reporting-requirements/exemptions/ Exemptions 2015-01-12 13:49:06 Financial Markets Authority <p>We have regulatory powers to:<br>• <a href="http://www.fma.govt.nz/#Financialreportingexemptions">grant financial reporting exemptions</a><br>• <a href="http://www.fma.govt.nz/#Publicaccountabilitydesignations">vary financial reporting public accountability designations</a>.</p> <p>We can only use these powers to support the purposes of the Financial Markets Conduct Act 2013 (FMC Act). Our aim is to find a balance between ensuring the provision of appropriate financial information for those who need it and, minimising undue costs for those providing it.</p> <h3><strong><a name="Financialreportingexemptions"></a>Financial reporting exemptions</strong></h3> <p>Under the Financial Reporting Act 1993 (FR Act) the FMA could only grant exemptions to overseas issuers and recipients of funds from conduit issuers. Additionally entities could lodge financial statements in New Zealand if the Registrar considered their financial reporting to be broadly equivalent to New Zealand financial reporting.</p> <p>Under the FMC Act, the Registrar’s discretion has been removed. However the FMA has the power to grant financial reporting exemptions to any FMC reporting entity (including New Zealand entities). This includes the ability to grant exemptions for accounting periods that have already ended, provided it is before the date the financial statements were due to be lodged with the Registrar.</p> <p>During the transition period entities can continue to rely on any relevant FR Act exemptions, to the extent they still apply and have not expired, until they become FMC reporting entities. At that point, a number of initial class exemptions, as outlined below, will be available.</p> <p>If overseas entities do not meet the terms and conditions of our initial class exemptions, they can consider if they have a good basis to apply for an individual exemption.</p> <p>Entities currently relying on individual FR Act notices will also need to consider whether they can now comply with the financial reporting requirements of the FMC Act regime, rely on a new FMC Act class exemption, or have a good basis to apply for an individual exemption under the FMC Act.</p> <ul> <li><a href="http://www.fma.govt.nz/laws-we-enforce/legislation/exemption-notices/current-exemption-notices/">See current exemption notices </a></li> <li><a href="http://www.fma.govt.nz/laws-we-enforce/legislation/exemption-notices/applying-for-an-exemption/">Apply for an exemption </a></li> <li><a href="http://www.fma.govt.nz/help-me-comply/new-offers-under-fmc-act/exemptions/">Find out about exemptions currently under consideration</a></li> <li><a href="http://www.fma.govt.nz/#Overseasentityclass">Overseas entity class exemptions in progress </a></li> <li><a href="http://www.fma.govt.nz/help-me-comply/issuers/exemptions/">FMC Act exemptions under consideration</a></li> </ul> <p> </p> <h3><a name="Overseasentityclass"></a>Overseas entity class exemptions in progress</h3> <p>Our general regulatory policy for financial reporting exemptions under the FMC Act was outlined in our February 2014 <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> <p>Broadly speaking the FMC Act exemptions policy is similar to our policy under the FR Act. Following that consultation, we have been working on a number of class exemptions that have the broad effect of permitting certain overseas entities to use their overseas financial reporting to meet their New Zealand financial reporting obligations.</p> <p><strong>Preparation exemptions<br></strong>The class exemptions will specify the GAAPs and jurisdictions that have been assessed by us as acceptable. Overseas issuers regulated in those specified jurisdictions and preparing financial statements using one of the specified GAAPs will be able to rely on one of the FMC class exemptions.</p> <table> <tbody> <tr> <td><strong>Specified jurisdictions</strong></td> <td><strong>Specified GAAP</strong></td> </tr> <tr> <td> <ul> <li>Australia</li> <li>United States of America</li> <li>Ontario, Canada</li> <li>United Kingdom</li> <li>Republic of Ireland</li> <li>France</li> <li>Germany</li> <li>The Netherlands</li> <li>Switzerland</li> <li>Singapore</li> <li>South Africa</li> </ul> </td> <td> <ul> <li>Australian IFRS</li> <li>US GAAP</li> <li>Canadian IFRS</li> <li>EU IFRS</li> <li>IFRS (unmodified international standards)</li> <li>Singapore Financial Reporting Standards</li> <li>Hong Kong FRS</li> </ul> </td> </tr> </tbody> </table> <p><strong>Audit exemptions<br></strong>Entities that have made incidental offers or have a secondary listing in New Zealand will be exempt from the obligation to use a New Zealand licensed auditor.</p> <p><strong>Full exemptions for offers under mutual recognition<br></strong>Under the Securities (Mutual Recognition of Securities Offerings – Australia) Regulations 2008 (MRSO), and an equivalent recognition regime incorporated in the FMC Regulations, Australian entities can extend their offers in Australia to New Zealand without triggering any ongoing New Zealand reporting obligations. However, some entities made similar offers prior to the introduction of the MRSO that did trigger reporting obligations in New Zealand. We will provide financial reporting exemptions that treat these entities as if they had offered under the MRSO.</p> <p><strong>Lodgement exemptions<br></strong>Entities that have made incidental offers in New Zealand will be exempted from having to lodge financial statements in New Zealand.</p> <p><strong>Branch financial statements<br></strong>Any FMC reporting entity carrying on business in NZ will still be required to lodge branch financial statements for their NZ operations. However, if they rely on our exemptions they may be permitted to use a specified GAAP or overseas auditor.</p> <p><strong>Timeframe<br></strong>We anticipate these new FMC Act financial reporting class exemptions will be in place by March 2015 to enable entities to use their overseas GAAP financial statements to meet their FMC Act reporting obligations.</p> <h3><a name="Publicaccountabilitydesignations"></a>Public accountability designations</h3> <p>The concept of FMC reporting entity is wider than the concept of an issuer under the FR Act. To reflect this, and the different reasons FMC reporting entities are required to report, Parliament introduced the concept of different levels of public accountability.</p> <p>All FMC reporting entities have a designated level of public accountability. This influences which tier of the External Reporting Board Accounting Standards Framework the entity must report in, and, in turn, whether it must use full accounting standards (e.g. NZ IFRS) or reduced accounting standards (e.g. NZ RDR) when preparing it’s financial statements.</p> <p>The FMC Act 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 the FMA can vary designations for either individual FMC reporting entities, or classes of FMC reporting entities. Generally speaking entities to which investors have a direct investment in have higher public accountability than other entities.</p> <table> <tbody> <tr> <td colspan="2"><b>At a glance: public accountability</b></td> </tr> <tr> <td> <p><strong>Higher public accountability</strong><br>Based on XRB Accounting Standards Framework full accounting standards will apply</p> <p>Full NZ IFRS for for-profit entities, or full PBE standards for public benefit entities</p> </td> <td> <ul> <li>Equity issuers who make a regulated offer (and have more than 50 shareholders)</li> <li>Debt issuers who make a regulated</li> <li>Licensed derivative issuers*</li> <li>Licensed MIS managers (in respect of the financial</li> <li>statements of the MIS they manage)</li> <li>Listed issuers</li> <li>Recipients of money from a conduit issuer*</li> <li>Registered banks</li> <li>Licensed insurers</li> <li>Credit unions</li> <li>Building societies</li> </ul> </td> </tr> <tr> <td> <p><strong>Lower public accountability</strong><br>Based on XRB Accounting Standards Framework reduced accounting standards will apply</p> <p>NZ IFRS RDR for for-profit entities, or PBE standards RDR for most public benefit entities</p> </td> <td> <ul> <li>Licensed MIS managers (in respect of the manager’s own</li> <li>financial statements)</li> <li>Licensed providers of DIMS (under the FMC Act)</li> <li>Licensed peer-to-peer lending service providers</li> <li>Licensed crowd funding service providers</li> <li>Licensed supervisors</li> <li>Licensed market operators (domestic)</li> </ul> </td> </tr> </tbody> </table> <p>* FMA has issued a notice to re-designate recipients of funds from conduit issuers and licensed derivative issuers to having higher public accountability. This is available <a href="http://www.fma.govt.nz/laws-we-enforce/legislation/notices/financial-markets-conduct-fmc-reporting-entities-with-higher-level-of-public-accountability-notice-2014/">here</a>.</p> http://www.fma.govt.nz/keep-updated/reports-and-papers/offering-securities-in-new-zealand-and-australia-under-mutual-recognition Offering Securities in New Zealand and Australia under Mutual Recognition 2015-01-12 12:27:34 Financial Markets Authority <table> <tbody> <tr> <td> <p>These requirements relate to offers under either the Securities Act regime or the new Financial Markets Conduct Act (FMC Act) regime.</p> </td> </tr> </tbody> </table> <p>18 December 2014</p> <p><b>About this Guide</b></p> <p>This is a joint guide published by the Australian Securities and Investments Commission (ASIC) and the New Zealand Financial Markets Authority (FMA).</p> <p>This is a guide for New Zealand and Australian issuers offering financial products including interests in managed or collective investment schemes in both countries. It explains what issuers have to do under the trans-Tasman mutual recognition scheme for offers of financial products.</p> <p>This guide takes into account the Financial Markets Conduct Act 2013 (FMC Act) and the Financial Markets Conduct Regulations 2014 (FMC Regulations), and updates the previous guide, <em>Offering securities in New Zealand and Australia under mutual recognition</em>, jointly issued in March 2011 by ASIC and the (then) Securities Commission.</p> <p>As New Zealand’s financial markets regime has undergone significant reform since the previous version of this guide, this guide also covers transitional arrangements that are in place until 1 December 2016.</p> <p>View the <a href="http://www.fma.govt.nz/assets/Report-and-Papers/Guidance/Offering-financial-products-in-New-Zealand-and-Australia-under-mutual-recognition.pdf" target="_blank">Offering financial products in New Zealand and Australia under mutual recognition</a> guidance.</p> <p><b>Transitional Arrangements for Australian Issuers</b></p> <p>From 1 December 2014, Australian issuers will need to consider whether to make offers of financial products to New Zealand investors under the New Zealand Securities Act 1978 and the relevant regulations, or under the FMC Act and FMC Regulations.</p> <p>In the period from 1 December 2014 to 30 November 2016, Australian issuers may make an offer to New Zealand investors under the mutual recognition scheme under the New Zealand Securities Act regime. For such offers, the Australian issuer can refer to Section E of this guide.  Alternatively, Australian issuers can opt for the FMC regime to apply to the offer of those financial products. Refer to the transitional arrangements discussed in the guide.</p> <p>From 1 December 2016, all offers of financial products by Australian issuers to New Zealand investors must be made under the FMC regime.</p> <p><b>Transitional Arrangements for New Zealand Issuers</b></p> <p>In the period from 1 December 2014 to 30 November 2016, New Zealand issuers may make an offer to Australian investors under the mutual recognition scheme under the FMC Act. Alternatively, New Zealand issuers can register a prospectus and elect for the New Zealand Securities Act regime to apply to the offer of those securities.</p> <p>From 1 December 2016, all offers of financial products by New Zealand issuers to Australian investors must be made under the FMC regime.</p> <p>For more information on the transitional arrangements relating to the trans-Tasman mutual recognition scheme for offers of financial products, please refer to the joint guidance issued in December 2014.</p> <p> </p> http://www.fma.govt.nz/keep-updated/newsroom/afa-updates/financial-markets-authority-afa-update-issue-34 Financial Markets Authority AFA Update: Issue # 34 2015-01-12 12:26:22 Financial Markets Authority <h3><b>Information sheets – DIMS</b></h3> <p>A <a href="http://financialmarketsauthority.cmail1.com/t/r-l-ckryhyk-iijdyuujdl-t/">highlights video</a> of the FMA DIMS seminar held in Auckland on the 3rd of December is now available. The seminar included three key segments: understanding DIMS, becoming licensed or authorised, and putting it all together.<br> <br> Some AFAs attending the seminar had questions concerning both contingency DIMS and also the transitional provisions that apply to AFAs who only intend to offer personalised DIMS under the Financial Advisers Act.<br> <br> Accordingly, we have published two DIMS information sheets that outline the detail provided at the session:</p> <ul> <li><a href="http://financialmarketsauthority.cmail1.com/t/r-l-ckryhyk-iijdyuujdl-k/">Transitional provisions for AFAs providing personalised DIMS</a></li> <li><a href="http://financialmarketsauthority.cmail1.com/t/r-l-ckryhyk-iijdyuujdl-u/">Exemption from DIMS licensing requirements for AFAs providing a contingency DIMS</a></li> </ul> <p>For further details on what we expect to see in your ABS if you provide personalised DIMS, please refer to the following updated documents:</p> <ul> <li><a href="http://financialmarketsauthority.cmail1.com/t/r-l-ckryhyk-iijdyuujdl-o/">AFA Adviser Business Statement Guide</a></li> <li><a href="http://financialmarketsauthority.cmail1.com/t/r-l-ckryhyk-iijdyuujdl-b/">AFA Authorisation Guide</a></li> <li><a href="http://financialmarketsauthority.cmail1.com/t/r-l-ckryhyk-iijdyuujdl-n/">Response to consultation submissions</a></li> </ul> http://www.fma.govt.nz/keep-updated/the-future-of-financial-markets/how-can-i-get-involved/ How Can I Get Involved? 2015-01-09 13:47:42 Financial Markets Authority <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 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><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/crowd-funding/list-of-licensed-crowd-funding-services/ List of Licensed Crowd Funding Services 2014-12-22 16:23:15 Financial Markets Authority <p>The Financial Markets Authority has issued a licence to provide crowd funding services to the following providers:</p> <table> <tbody> <tr> <td> <h3>FSP No.</h3> </td> <td> <h3>Company name</h3> </td> <td> <h3>Trading name</h3> </td> <td> <h3>Authorised body* </h3> </td> </tr> <tr> <td>359926</td> <td>Pledgeme Limited</td> <td>pledge me</td> <td> </td> </tr> <tr> <td>350046</td> <td>The Snowball Effect Limited</td> <td>Snowball Effect</td> <td> </td> </tr> <tr> <td>360186</td> <td>Crowdarm Limited</td> <td>Crowdcube</td> <td> </td> </tr> <tr> <td>380626</td> <td>Equitise Pty Ltd</td> <td>Equitise Pty Ltd</td> <td> </td> </tr> </tbody> </table> <p>*An authorised body is a related body corporate that has been authorised by FMA to provide a service covered by the licence.</p> <p>You can find out further details including the provider's business address, list of services and the name of their independent dispute scheme on the <a href="http://www.fspr.govt.nz/">Financial Service Providers Register</a>.</p> <p>Note, if you have come across a New Zealand based equity crowd funding website that is not on our list, please <a href="http://www.fma.govt.nz/about-us/contact-us/make-a-complaint/">let us know</a>.</p> http://www.fma.govt.nz/help-me-comply/supervisors/licensed-supervisors/ Licensed Supervisors 2014-12-22 12:20:18 Financial Markets Authority <p>Securities trustees and statutory supervisors (Supervisors) have to be licensed under the Securities Trustees and Statutory Supervisors Act 2011. From 1 December 2014 this Act will be renamed the Financial Markets Supervisors Act 2011.</p> <p>The entities listed below have been granted a licence. You can find out more about each licence certificate, including the licence conditions.</p> <p>To apply for a new licence or vary your existing licence during the period of transition before the FMC Act new requirements are effective from 1 December 2014, please phone us.</p> <h2>Related Files</h2> <ul> <li><a href="http://www.fma.govt.nz/assets/media/1105052/stss-certificate-anchorage-trustee-services-limited.pdf">Anchorage Trustee Services Limited</a></li> <li><a href="http://www.fma.govt.nz/assets/media/1233353/stss-certificate-corporate-trust-limited.pdf">Corporate Trust Limited </a></li> <li><a href="http://www.fma.govt.nz/assets/Uploads/covenant-trustee-services-limited.pdf">Covenant Trustee Services Limited</a></li> <li><a href="http://www.fma.govt.nz/assets/media/1105031/stss-certificate-new-zealand-permanent-trustees-limited.pdf">New Zealand Permanent Trustees Limited </a></li> <li><a href="http://www.fma.govt.nz/assets/media/1105028/stss-certificate-public-trust.pdf"> Public Trust </a></li> <li><a href="http://www.fma.govt.nz/assets/media/1105046/stss-certificate-the-new-zealand-guardian-trust-company-limited.pdf"> The New Zealand Guardian Trust Company Limited </a></li> <li><a href="http://www.fma.govt.nz/assets/media/1105043/stss-certificate-trustees-executors-limited.pdf"> Trustees Executors Limited</a></li> </ul> http://www.fma.govt.nz/laws-we-enforce/policy/closed-consultations/consultation-paper-update-of-guidance-note-effective-disclosure Consultation Paper: Update of Guidance Note: Effective Disclosure 2014-12-22 12:03:15 Financial Markets Authority <p><strong>22 December 2014</strong></p> <p>In October / November 2014, the FMA consulted on an update of our guidance note on effective disclosure.</p> <p>Eight submissions were received. A summary of the submission feedback can be downloaded below.</p> <p>Amendments were incorporated into the final version of the updated <a href="http://www.fma.govt.nz/help-me-comply/issuers/guidance-notes-and-reports/guidance-note-effective-disclosure/">guidance note</a>.</p> <h2>File attachments</h2> <ul> <li><a href="http://www.fma.govt.nz/assets/Report-and-Papers/Consultation-Guidance-Note-Effective-Disclosure-Guidance-FINAL.pdf" target="_blank">Consultation Paper: Update of Guidance Note: Effective Disclosure</a></li> <li><a href="http://www.fma.govt.nz/assets/Report-and-Papers/Guidance/Response-to-submissions-on-the-update-of-Guidance-Note-Effective-Disclosure.pdf" target="_blank">Response to submissions - Consultation paper: Update of Guidance Note: Effective Disclosure</a></li> </ul> http://www.fma.govt.nz/help-me-comply/issuers/guidance-notes-and-reports/guidance-note-effective-disclosure/ Effective Disclosure 2014-12-22 11:37:00 Financial Markets Authority <p>This guidance note was originally released in June 2012. We have now updated the guidance note to incorporate changes to reflect the Financial Markets Conduct Act 2013 (FMC Act), recent changes to our approach and changes to market practice in preparing disclosure documents since the original guidance was published.</p> <ul> <li>Read the <a href="http://www.fma.govt.nz/assets/Report-and-Papers/Guidance/Guidance-Note-Effective-Disclosure.pdf" target="_blank">updated guidance note (December 2014)</a>.</li> <li>See our <a href="http://www.fma.govt.nz/laws-we-enforce/policy/closed-consultations/consultation-paper-update-of-guidance-note-effective-disclosure">consultation information</a> on this updated version, including our consultation paper and our response to the submissions on this consultation.</li> </ul> http://www.fma.govt.nz/keep-updated/newsroom/media-releases/2014/fma-welcomed-onto-global-forum-for-independent-auditor-oversight FMA welcomed onto global forum for independent auditor oversight 2014-12-22 11:08:20 Financial Markets Authority <p><b>Media Release<br></b><b>MR No. 2014 – 048<br></b><b>22 December 2014</b></p> <p>The Financial Markets Authority (FMA) has been accepted on to the International Forum of Independent Audit Regulators (IFIAR), in recognition of the robust oversight system the FMA has established in New Zealand.</p> <p>IFIAR was established in 2006 by independent audit regulators from 18 jurisdictions. It has now grown to 51 members with the establishment of new independent audit regulators in different jurisdictions around the globe.</p> <p>The FMA joins 50 other countries on the International Forum, which aims to improve audit quality standards and regulation through international cooperation.</p> <p>“We’re pleased to be accepted onto the International Forum as this recognises the standards and systems we’ve set up for the regulatory oversight of New Zealand’s auditors” said FMA’s Director of Compliance, Elaine Campbell.</p> <p>“Membership on the international forum allows us to ensure our oversight is aligned and consistent with other leading developed countries. We look forward to collaborating and sharing knowledge and best practice with independent audit regulators from around the globe,” said Ms. Campbell.</p> <p>ENDS</p> <p><strong>Contact:</strong><br>Shae Skellern<br>09 300 0465<br>021 847 192<br><a href="mailto:Shae.skellern@fma.govt.nz">Shae.skellern@fma.govt.nz</a></p> <p><b>Background:<br></b>New Zealand auditors must be licensed by the Accredited Bodies (CPA Australia and New Zealand Institute of Chartered Accountants), these are the frontline regulators for the auditing profession. Under the Auditor Regulation Act 2011, the FMA is required to oversee the work of the Accredited Bodies. The FMA is responsible for quality reviews of registered audit firms and is required to report annually on the quality of the reviews that have been carried out in that year. </p> http://www.fma.govt.nz/laws-we-enforce/policy/closed-consultations/consultation-corporate-governance-in-new-zealand-principles-and-guidelines Consultation: Corporate Governance in New Zealand – Principles and Guidelines 2014-12-19 13:56:54 Financial Markets Authority <h3>Revised version now available: Corporate Governance in New Zealand – Principles and Guidelines</h3> <p style="font: 14px/20px &quot;Helvetica Neue&quot;, Helvetica, Arial, sans-serif; margin: 0px 0px 20px; color: rgb(0, 0, 0); text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">The FMA has published a revised version of the handbook: <a href="http://www.fma.govt.nz/assets/Report-and-Papers/Consultation/Corporate-Governance-Handbook-Principles-and-Guidelines.pdf" target="_blank">Corporate Governance in New Zealand – Principles and Guidelines</a>, following a recent consultation process.</p> <p style="font: 14px/20px &quot;Helvetica Neue&quot;, Helvetica, Arial, sans-serif; margin: 0px 0px 20px; color: rgb(0, 0, 0); text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">We received 28 written submissions from a variety of market participants which have now been considered and integrated into the revised version where appropriate. We have published a <a href="http://www.fma.govt.nz/assets/Report-and-Papers/Consultation/Response-to-submissions-Corporate-Governance-in-New-Zealand-Principles-and-Guidelines.pdf" target="_blank">summary on our response to submissions</a> which further details the specific areas of change. For ease of reference, we have also made available a plain version of the handbook that shows the changes made as part of the consultation process: <a href="http://www.fma.govt.nz/assets/Report-and-Papers/Consultation/Corporate-Governance-Handbook-Consultation-changes.pdf" target="_blank">consultation and review of the Corporate Governance in New Zealand – Principles and Guidelines</a>.  </p> <p style="font: 14px/20px &quot;Helvetica Neue&quot;, Helvetica, Arial, sans-serif; margin: 0px 0px 20px; color: rgb(0, 0, 0); text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">The handbook is intended as a reference guide for directors, executives and advisers, to help them decide how best to apply the nine key corporate governance principles.  </p> <p style="font: 14px/20px &quot;Helvetica Neue&quot;, Helvetica, Arial, sans-serif; margin: 0px 0px 20px; color: rgb(0, 0, 0); text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">Governance and culture has been identified as one of our strategic priorities that will guide our work over the coming three years. Our future work on this area may result in a new version of this handbook being released, or separate, more targeted corporate governance guidance being produced.</p> <p style="font: 14px/20px &quot;Helvetica Neue&quot;, Helvetica, Arial, sans-serif; margin: 0px 0px 20px; color: rgb(0, 0, 0); text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; white-space: normal; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;">We are happy to engage directly with submitters or other interested parties on any aspects of the principles as we carry out further work in this area in 2015.<br><br><b>You can contact us at:<br></b>Phone: 0800 434 567<br>Email:<span class="Apple-converted-space"> </span><a style="color: rgb(0, 174, 240); text-decoration: underline;" href="mailto:questions@fma.govt.nz">questions@fma.govt.nz</a></p> http://www.fma.govt.nz/keep-updated/the-future-of-financial-markets/when-will-you-need-to-comply/financial-product-transition-information-sheets/ Financial product transition information sheets 2014-12-18 16:51:47 Financial Markets Authority <p>To help providers of financial products understand how and when they will need to transition to the FMC Act regime, we have developed a series of information sheets. Each sheet includes a working example of the key activities for each product type and indicative timings, including useful tools that will help to address each step of the transition.</p> <p>As we develop additional guidance and tools we will update each information sheet.</p> <ul> <li><a href="http://www.fma.govt.nz/assets/Report-and-Papers/Information-Sheets/Information-Sheet-Other-types-MIS.pdf" target="_blank">Other types - Managed investment schemes</a></li> <li><a href="http://www.fma.govt.nz/assets/Report-and-Papers/Information-Sheets/Information-Sheet-Superannuation-MIS.pdf" target="_blank">Superannuation - Managed investment schemes</a></li> <li><a href="http://www.fma.govt.nz/assets/Report-and-Papers/Information-Sheets/Information-Sheet-Unit-Trusts-MIS.pdf" target="_blank">Unit Trusts - Managed investment schemes</a></li> <li><a href="http://www.fma.govt.nz/assets/Report-and-Papers/Information-Sheets/Information-Sheet-KiwiSaver-MIS.pdf" target="_blank">KiwiSaver - Managed investment schemes</a></li> <li><a href="http://www.fma.govt.nz/assets/Report-and-Papers/Information-Sheets/Information-Sheet-Corporate-debt-issuers-continuous-or-open-offers.pdf" target="_blank">Corporate debt issuers (continuous or open offers)</a></li> <li><a href="http://www.fma.govt.nz/assets/Report-and-Papers/Information-Sheets/Information-Sheet-Corporate-debt-issuers.pdf" target="_blank">Corporate debt issuers</a></li> <li><a href="http://www.fma.govt.nz/assets/Report-and-Papers/Information-Sheets/Information-Sheet-Debt-offers-continuous.pdf" target="_blank">Debt offers - continuous</a></li> <li><a href="http://www.fma.govt.nz/assets/Report-and-Papers/Information-Sheets/Information-Sheet-Debt-offers-one-off.pdf" target="_blank">Debt offers - one off</a></li> <li><a href="http://www.fma.govt.nz/assets/Report-and-Papers/Information-Sheets/Information-Sheet-Equity-Issuers-continuous.pdf" target="_blank">Equity Issuers - continuous</a></li> <li><a href="http://www.fma.govt.nz/assets/Report-and-Papers/Information-Sheets/Information-Sheet-Equity-Issuers-one-off.pdf" target="_blank">Equity Issuers - one-off</a></li> <li><a href="http://www.fma.govt.nz/assets/Report-and-Papers/Information-Sheets/Information-Sheet-Non-bank-deposit-takers-NBDTs.pdf" target="_blank">Non-bank deposit takers (NBDTs)</a></li> </ul> http://www.fma.govt.nz/keep-updated/reports-and-papers/accredited-body-report-certified-public-accountants-australia Accredited Body Report - CPA Australia 2014-12-18 15:40:30 Financial Markets Authority <p><a href="http://www.fma.govt.nz/assets/Report-and-Papers/Corporate-Publications/Accredited-Body-Report-Certified-Public-Accountants-Australia.pdf" target="_blank">Accredited Body Report - CPA Australia</a></p> http://www.fma.govt.nz/keep-updated/reports-and-papers/accredited-body-report-new-zealand-institute-of-chartered-accountants Accredited Body Report – New Zealand Institute of Chartered Accountants 2014-12-18 14:44:18 Financial Markets Authority <p><a href="http://www.fma.govt.nz/assets/Report-and-Papers/Corporate-Publications/Accredited-Body-Report-New-Zealand-Institute-of-Chartered-Accountants.pdf" target="_blank">Accredited Body Report – New Zealand Institute of Chartered Accountants</a></p> http://www.fma.govt.nz/keep-updated/newsroom/media-releases/2014/fma-warns-beware-of-misleading-advertising-promoting-uk-pension-scheme-transfers FMA warns: beware of misleading advertising promoting UK pension scheme transfers 2014-12-18 13:07:06 Financial Markets Authority <p><b>Media Release<br></b><b>MR No. 2014 – 047<br></b><b>18 December 2014</b></p> <p>The Financial Markets Authority (FMA) is warning people to be cautious of potentially misleading and deceptive advertising about transferring United Kingdom pension scheme entitlements to New Zealand.</p> <p>The FMA has been monitoring promotional materials and advertisements that encourage people to transfer their UK pension scheme entitlements, and has requested that certain materials be removed from publication. Some of these materials appear designed to alarm people about changes to the tax treatment of their UK pension scheme entitlements in New Zealand and the accessibility of their entitlements due to proposed changes to UK legislation in April 2015.</p> <p>“We are concerned that people are feeling press-ganged into transferring their pension scheme entitlements from the UK and being put under pressure to act now,” said Elaine Campbell, FMA's Director of Compliance.</p> <p>“For people thinking about transferring their UK pension scheme entitlements, those savings are likely to be one of the most substantial assets accumulated over their working life. Before making a significant decision like this, it’s essential they seek professional financial advice that is personalised for their own circumstances - and also consider talking to a tax specialist,” said Ms. Campbell.</p> <p>A guiding principle of Inland Revenue’s approach on taxing foreign superannuation in New Zealand states, “from a New Zealand tax perspective, the tax outcome for a person who migrates with a foreign superannuation scheme should be broadly the same irrespective of whether the person transferred their funds to a New Zealand superannuation scheme on day one, or left it with the foreign scheme provider. This reflects the principle that tax should not distort a person’s economic decision-making.”<a title="" href="file:///C:/Users/Renee.Ji/AppData/Local/Microsoft/Windows/Temporary%20Internet%20Files/Content.Outlook/8C3HBT5G/141217_FMA_MR_UK__pensions_PR_final.docx#_edn1">[i]</a></p> <p>Ms. Campbell said, “We are concerned that tax issues and a misleading sense of urgency are being exploited by some providers to scare people into transferring their money, without offering a balanced view of the potential pros and cons involved.”</p> <p>The FMA recommends that anybody considering transferring their UK pension scheme entitlements should seek personalised financial advice and make sure they are confident that transferring their entitlements from the UK is in their best interests.</p> <p>The FMA notes that ‘old age’ state pensions provided by the UK government at retirement are not transferrable, so this warning does not apply to these pensions.</p> <p>Under the Financial Markets Conduct Act 2013, financial market participants must not engage in misleading or deceptive conduct, including in statements made in advertising.</p> <p>ENDS</p> <p><strong>Contact:</strong><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> <div><hr> <div> <p><a title="" href="file:///C:/Users/Renee.Ji/AppData/Local/Microsoft/Windows/Temporary%20Internet%20Files/Content.Outlook/8C3HBT5G/141217_FMA_MR_UK__pensions_PR_final.docx#_ednref1">[i]</a> <a href="http://www.ird.govt.nz/technical-tax/legislation/2014/2014-04/2014-04-taxation-foreign-super/">IRD website info on taxation of foreign super</a> -<a href="http://www.ird.govt.nz/technical-tax/legislation/2014/2014-04/2014-04-taxation-foreign-super">www.ird.govt.nz/technical-tax/legislation/2014/2014-04/2014-04-taxation-foreign-super</a></p> <p><b>Further information:</b></p> <p><a href="http://www.fma.govt.nz/help-me-invest/getting-the-right-information/uk-pension-transfers-faqs/">UK Pension Transfers FAQs</a></p> <p><a href="http://www.fma.govt.nz/help-me-invest/">FMA investing and receiving financial advice in New Zealand</a></p> <p><a href="https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/332714/pensions_response_online.pdf">Proposed UK legislative changes to pensions<b> </b>and proposed changes affecting some UK pension entitlements</a></p> <p><a href="http://www.ird.govt.nz/technical-tax/legislation/2014/2014-04/2014-04-taxation-foreign-super">Foreign superannuation</a></p> <p>For New Zealand based tax matters, please contact <a href="http://www.ird.govt.nz/">IRD</a></p> </div> </div> http://www.fma.govt.nz/help-me-invest/getting-the-right-information/uk-pension-transfers-faqs/ UK Pension Transfers FAQs 2014-12-18 13:00:28 Financial Markets Authority <p>The FMA has concerns about some promotional materials and advertisements about the transfer of UK pension scheme entitlements. Some of these materials appear designed to alarm people about changes to the tax treatment of their transferred UK pension entitlements in New Zealand and the accessibility of their UK pension scheme entitlements due to proposed changes to UK legislation in April 2015.</p> <p>We are concerned people will feel rushed into making a decision without seeking personalised financial advice and tax advice about whether a transfer is in their best interests.</p> <p>See our warning <a href="http://www.fma.govt.nz/keep-updated/newsroom/media-releases/2014/fma-warns-beware-of-misleading-advertising-promoting-uk-pension-scheme-transfers">here</a>.</p> <h3><b>What are the proposed changes to UK legislation regarding transfers of UK pension scheme entitlements?</b></h3> <p>The UK Government is proposing to remove the ability of some people to transfer their pension entitlements except in limited circumstances.  However they are not locking people out of their pensions – you will still be able to remain invested in the UK until your retirement and then receive your pension payments from the UK scheme.</p> <p>More information on the proposed UK legislative changes to pensions is available <a href="http://www.gov.uk/government/uploads/system/uploads/attachment_data/file/332714/pensions_response_online.pdf">here</a>.</p> <h2><strong><em>Who to talk to</em></strong></h2> <h3><b>How do I know whether transferring is best for my personal situation?</b></h3> <p>The FMA recommends you seek professional financial advice that is personalised for your own circumstances - and also consider talking to a tax specialist. When seeking advice look for the following:</p> <p><strong><em>Type of adviser</em></strong></p> <ul> <li>Check any financial adviser you are dealing with is permitted to provide personalised financial advice on such transfers.  Only Authorised Financial Advisers (AFAs) and certain Qualifying Financial Entity (QFE) advisers can provide personalised financial advice in relation to category 1 products.</li> <li>Ask them whether they have the necessary expertise, knowledge, skills and competence to provide personalised advice on transfers of foreign superannuation schemes such as UK pensions.</li> <li>Ask them whether they can provide advice tailored for your personal circumstances. Note that: <ul> <li>some financial advisers provide advice on UK pension transfers but only on a ‘class’ basis. This means they advise you about what is usually suitable for people like you, but they won’t take into account your personal situation</li> <li>some advisers/transfer agents/Qualifying Registered Overseas Pension Scheme (QROPS) providers provide ‘execution only’ services where no advice is provided at all, instead only information is provided or a recommendation or opinion is made in relation to the procedure for acquiring or disposing of a financial product. Therefore an execution only service does not consider whether or not the transfer is in your best interests.</li> </ul> </li> </ul> <ul> <li>Note that unless a tax specialist is an AFA or a certain type of QFE adviser, tax specialists are not permitted to provide personalised financial advice regarding such transfers.  However a tax specialist can provide advice on tax impacts and how a transfer may affect you. </li> </ul> <p>That is why the FMA is recommending that you seek personalised financial advice and also talk to a tax specialist.</p> <p><strong><em>Things to ask</em></strong></p> <ul> <li><strong>What are the benefits of transferring my UK pension scheme entitlements given my situation?</strong> <ul> <li>Ask how the benefits of the UK pension scheme you are currently in compares to the benefits of the proposed NZ QROPS.</li> <li>Some UK pension schemes have a facility for early retirement. Ask at what age you can take UK pension benefits compared to any proposed NZ QROPS.</li> <li>Note there may not be a tax benefit - IRD’s policy on taxation of foreign superannuation is that there should be no incentive or disincentive to transfer superannuation to New Zealand compared to leaving savings overseas. Source: <a href="http://taxpolicy.ird.govt.nz/publications/2013-ris-arfsrm-bill/taxation-foreign-superannuation">http://taxpolicy.ird.govt.nz/publications/2013-ris-arfsrm-bill/taxation-foreign-superannuation</a></li> </ul> </li> </ul> <ul> <li><b>What are the risks and costs of transferring my UK pension scheme entitlements given my situation?</b> <ul> <li>Some UK pension scheme transfers could be more high risk than others. (See our question and answer below on defined benefit scheme transfers).  It’s important the adviser you are talking to has specialist knowledge of UK pension schemes.</li> <li>Find out if there are any benefits that you will lose because they cannot be replicated when transferring to a NZ QROPS.</li> <li>Costs will vary depending on the service and providers that are engaged. Find out: <ul> <li>the charges that currently apply to your scheme in the UK</li> <li>any penalties/exit fees (if any) associated with transferring out of your scheme in the UK</li> <li>the potential charges of arranging your transfer, foreign exchange and any ongoing service and NZ QROPS scheme charges in NZ.</li> </ul> </li> </ul> </li> </ul> <ul> <li><b>Can I transfer my UK pension scheme to my KiwiSaver?</b> <ul> <li>While you can do this, it may affect the age at which you can access your UK pension entitlements.  Except in certain limited circumstances, KiwiSaver savings cannot be accessed, until the age of entitlement to NZ Superannuation (currently 65).  </li> <li>Check whether there are any potential issues for you, such as taxation in the UK on any ‘unauthorised payments’ should you access transferred savings before age 65 (for example funds accessed via a first home buyer’s withdrawal).</li> </ul> </li> </ul> <p><strong><em>What your adviser should provide</em></strong></p> <ul> <li>A written recommendation showing: <ul> <li>An analysis of the existing UK based scheme, including (but not limited to): <ul> <li>A thorough assessment of any guarantees or associated benefits</li> <li>Investment fund options and scheme features</li> <li>Funding and income options</li> <li>A balanced  comparison of any other features with the proposed NZ QROPS.</li> </ul> </li> </ul> </li> <li>Personalised information that describes: <ul> <li>Your personal financial needs and financial goals</li> <li>The risks of the proposed transfer and benefits of the proposed transfer that will apply in your personal situation</li> <li>A comment on any alternative strategies that have been considered.<br><br></li> </ul> </li> </ul> <h3><b>Will I be able to get more money if I transfer my savings now, if I’m in a defined benefit scheme?</b></h3> <p>This will depend on the scheme you are in, so you should seek personalised financial advice about your individual circumstances. However the UK Government’s paper on <a href="https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/332714/pensions_response_online.pdf">Freedom and choice in pensions: government response to the consultation July 2014</a>  states: ‘For the majority of individuals, retained membership of a defined benefit pension scheme is likely to be their best option, as defined benefit pensions offer a level of security and guaranteed indexation that defined contribution pensions do not. Furthermore, the transfer values offered when requesting to transfer out are often less than the net present value of the benefits that an individual would ultimately receive from their defined benefit pension’.</p> <h3><b>Are there any good reasons to transfer my UK pension scheme entitlements? </b></h3> <p>There may be good reasons to transfer your UK pension scheme entitlements in certain circumstances, such as if you have a relatively small holding, are in poor health, etc.  This is why it’s important to seek personalised financial advice about your individual circumstances.</p> <h3><b>Is there anything wrong with the pension transfer companies in New Zealand?</b></h3> <p>New Zealand companies offering transfers to a Qualifying Registered Overseas Pension Scheme (QROPS) are offering a legitimate service.   The FMA has oversight of these activities under relevant NZ legislation such as the Financial Markets Conduct Act and, where such transfer companies provide financial adviser services, the Financial Advisers Act.</p> <p>Our concern is the way in which some UK pension transfers services are being promoted and sold to investors.  This is why we have issued a <a href="http://www.fma.govt.nz/keep-updated/newsroom/media-releases/2014/fma-warns-beware-of-misleading-advertising-promoting-uk-pension-scheme-transfers">warning</a>.</p> <h3><b>I have already transferred my pension. Have I made a mistake?</b></h3> <p><b> </b>Once your pension has been transferred it may be very difficult to transfer it back.  If you have concerns about a transfer you have made in the first instance you should talk to your financial adviser/transfer agent/QROPS provider. To assist with an assessment you may need to refer to the paperwork completed at the time of your transfer.</p> <h3><b>How do I make a complaint if I am unhappy with my pension transfer?</b></h3> <p>All financial service providers who offer financial services to retail clients must belong to an independent dispute resolution scheme. You will find the name of their scheme in their disclosure documents. </p> <h3><b>Does the warning in the media release relate to UK social security payments (the ‘state’/’old age’ pension)?</b></h3> <p>No, this warning relates to employment-based (public sector and private sector) pension scheme arrangements.  Foreign social security arrangements are generally based on citizenship or residence.</p> <h3><b>Does the warning in the media release relate to Australian pension transfers?</b></h3> <p>No, this warning relates specifically to UK pension scheme transfers.  The FMA has separately issued information relating to <a href="http://www.fma.govt.nz/help-me-invest/kiwisaver/transferring-your-overseas-superannuation-savings-to-kiwisaver">Australian pension scheme transfers</a>. </p> <h3><b>Does this warning relate to UK pensions already being paid?</b></h3> <p>No, this warning relates only to people considering transferring their UK pension scheme entitlements prior to pension payments beginning.</p> <h3><b>Can I also get advice from the UK or from my UK scheme provider?</b></h3> <p>You can try contacting your UK scheme provider who may have a scheme administrator/adviser licensed to advise on these matters under UK legislation. There are many independent advisers in the UK that may be able to assist.</p> <h3><b>Where can I find out more?</b></h3> <ul> <li>Information on <a href="http://www.fma.govt.nz/help-me-invest">investing and receiving financial advice in NZ</a> <b></b></li> <li>Information on the <a href="http://www.ird.govt.nz/technical-tax/legislation/2014/2014-04/2014-04-taxation-foreign-super">NZ taxation of foreign superannuation</a></li> <li>Information on the <a href="http://www.gov.uk/government/uploads/system/uploads/attachment_data/file/332714/pensions_response_online.pdf">proposed changes affecting some UK pension entitlements</a></li> </ul> <p>For information on NZ based tax matters contact <a href="http://www.ird.govt.nz/">IRD</a></p> http://www.fma.govt.nz/keep-updated/newsroom/media-releases/2014/fma-closes-south-canterbury-finance-limited-inquiries FMA closes South Canterbury Finance Limited inquiries 2014-12-18 10:50:59 Financial Markets Authority <p><b>Media Release<br> MR No. 2014 – 046<br></b><b>17 December 2014</b></p> <p>The Financial Markets Authority (FMA) has closed its inquiries into potential civil claims relating to South Canterbury Finance Limited (SCF). After careful consideration the FMA has decided not to take any further action.</p> <p>In making its decision, the FMA took into account that Crown Asset Management Limited (CAML) had taken civil proceedings against the directors of SCF, for failing to comply with their duties as directors and that a large number of investors have received payment under the Crown Retail Deposit Guarantee Scheme.</p> <p>The FMA’s Director of Enforcement, Belinda Moffat, says the FMA conducted thorough inquiries into several aspects of SCF. These included whether SCF had met its continuous disclosure obligations, and the respective roles of the trustee and the auditor. The FMA has not found sufficient evidence that would justify the significant additional costs of taking further proceedings.</p> <p>“Given CAML’s civil case and the criminal case that has recently been before the courts, the FMA doesn’t believe further proceedings are appropriate,” Ms Moffat said.</p> <p>Ms Moffat said further recoveries for investors, or the taxpayer, were unlikely from the FMA proceedings.</p> <p>“The FMA has made the decision to close these inquiries after very careful consideration of our responsibility to act in the best interests of the public. This decision does not diminish in any way the losses suffered by investors, taxpayers or preference shareholders, many of whom will continue to feel the ramifications of the collapse of SCF for years to come.”</p> <p>ENDS</p> <p><strong>Contact:</strong> <br> Andrew Park<br> 09 967 1215<br> 021 220 6770<br> andrew.park@fma.govt.nz</p> http://www.fma.govt.nz/help-me-invest/investing-basics/ Investing Basics 2014-12-17 11:49:25 Financial Markets Authority <p>Successful investing requires planning and being armed with the right information before you part with your hard earned money. A smart investor takes time to understand the basic principles of investing and takes time to get financial advice to help develop and stick to a sound investment plan.</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 2014-12-17 11:25:40 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 which will be heard on 10 February 2015.</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 was sentenced on 12 December 2014 to 12 months' home detention and 400 hours community service.</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. Not guilty pleas were entered by each of the defendants on 29 September 2014.</span></p> <p><span>The matter has been transferred to the High Court and the next appearance is due to occur on 4 February 2015.</span></p> </td> </tr> </tbody> </table> http://www.fma.govt.nz/laws-we-enforce/policy/closed-consultations/consultation-paper-personalised-dims-under-the-financial-advisers-act-2008 Consultation paper: Personalised DIMS under the Financial Advisers Act 2008 2014-12-16 14:45:08 Financial Markets Authority <p>We are now consulting on the <a href="http://www.fma.govt.nz/assets/Report-and-Papers/Consultation/Consultation-paper-Personalised-DIMS-under-the-Financial-Advisers-Act-2008.pdf" target="_blank">draft eligibility criteria and new standard conditions for AFAs authorised to provide a Personalised Discretionary Investment Management Service (Personalised DIMS).</a></p> <p>The Financial Markets (Repeals and Amendments) Act 2013 introduces amendments to the Financial Advisers Act 2008 (the FA Act). This means for a person to be authorised to provide a Personalised DIMS they must meet the prescribed eligibility criteria.</p> <p>These criteria are set out in the Financial Advisers (Personalised DIMS) Regulations 2014. To be eligible you must be capable of effectively performing the Personalised DIMS. The FMA will assess capability against minimum standards.</p> <p>Advisers who provide Personalised DIMS will also be expected to ensure ongoing compliance with additional Standard Conditions which reflect the minimum standards.</p> <p>This paper outlines the proposed minimum standards the FMA will use to assess eligibility to provide Personalised DIMS. The paper also outlines the proposed additional standard conditions. We invite you to review these and share your feedback with us.</p> <p><b>Submissions close on Tuesday 9 December at 5pm.</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/Consultation/Feedback-Form-Personalised-DIMS-under-the-Financial-Advisers-Act-2008.docx" target="_blank">feedback form</a> to record your input. All feedback should be submitted to <a href="mailto:consultation@fma.govt.nz">consultation@fma.govt.nz</a> with the subject line: Personalised DIMS under the Financial Advisers Act 2008</p> http://www.fma.govt.nz/keep-updated/newsroom/releases-from-the-minister-of-commerce/2013/continuing-drive-to-restore-investor-confidence Continuing drive to restore investor confidence 2014-12-15 17:10:44 Financial Markets Authority <p><strong>Craig Foss</strong><br><br> 14 February, 2013<br><br> The Financial Markets Conduct Bill passed its second reading in parliament today.<br><br> Commerce Minister Craig Foss says the FMC Bill provides a once-in-a-generation opportunity to make New Zealand's financial markets more efficient.<br><br> "Vibrant financial markets that work for all market participants are crucial to New Zealand's future prosperity," says Mr Foss.<br><br> The Bill is the result of a comprehensive review of securities law and builds on recommendations from Capital Market Taskforce, the effects of the global financial crisis, and the failure of finance companies.<br><br> "It's crucial that the Bill strikes the right balance between holding people to account, while encouraging businesses to come to market.<br><br> "This Bill will play a key role in restoring investor confidence by providing better information and protections for investors, as well as setting clearer rules for companies wishing to raise capital."<br><br> Improving confidence in New Zealand's capital markets is a key aspect of the government's Business Growth Agenda.<br><br> For further information:<br> <a href="http://www.parliament.nz/enNZ/PB/Legislation/Bills/4/a/8/00DBHOH_BILL11150_1-Financial-Markets-Conduct-Bill.htm">http://www.parliament.nz/enNZ/PB/Legislation/Bills/4/a/8/00DBHOH_BILL11150_1-Financial-Markets-Conduct-Bill.htm</a></p> <hr> http://www.fma.govt.nz/keep-updated/newsroom/speeches/ Speeches 2014-12-15 17:10:01 Financial Markets Authority <p>Read speeches given by the Chief Executive and board on the financial markets and the work of the Financial Markets Authority.</p> http://www.fma.govt.nz/keep-updated/newsroom/releases-from-the-minister-of-commerce/2013/simon-allen-reappointed-chair-of-fma Simon Allen reappointed Chair of FMA 2014-12-15 17:08:53 Financial Markets Authority <div class="content"> <p><strong>Craig Foss</strong><br><br>23 April, 2013<br><br>Commerce Minister Craig Foss has welcomed the reappointment of Simon Allen as Chair of the Financial Markets Authority (FMA).<br><br>“I am delighted Mr Allen has been reappointed. He has been very successful in guiding the FMA through its initial period of operation since 1 May 2011.<br><br>“Over this time, the FMA has gained credibility from the public and the industry and has delivered on its role of rebuilding confidence in our financial markets following the global financial crisis.<br><br>“Mr Allen is highly-regarded across both Government and the industry.  With more than 25 years’ experience in financial markets management and senior governance roles, he has the right credentials to ensure that the FMA continues to be an effective financial sector regulator,” says Mr Foss.<br><br>Mr Allen has been reappointed for an eighteen-month term, commencing 1 May 2013.<br><br>Further information on the Financial Markets Authority can be located at: <a href="http://www.fma.govt.nz/">http://www.fma.govt.nz/</a><a href="http://www.fma.govt.nz/"><br><br></a><strong>Background</strong><br><br>Simon Allen is the current Chair of Crown Fibre Holdings Limited and Auckland Council Investments Limited.  He is Deputy Chair of St Cuthbert’s College in Auckland and director of Snowvision Charitable Trust.  Previously, he was also the Chair of NZX Limited from 2001 to 2008.<br><br>The FMA is an independent Crown entity established under the Financial Markets Authority Act 2011. It enforces securities, financial reporting, and company law as they apply to financial services and securities markets.  It is the primary regulator for securities exchanges, financial advisers and brokers, and trustees and issuers – including issuers of KiwiSaver and superannuation schemes.  The FMA’s main objective is to promote and facilitate the development of fair, efficient and transparent financial markets.</p> </div> <hr> http://www.fma.govt.nz/keep-updated/newsroom/releases-from-the-minister-of-commerce/2013/improved-access-to-advice-for-credit-union-members Improved access to advice for credit union members 2014-12-15 17:08:09 Financial Markets Authority <p><strong>Craig Foss</strong><br><br> 26 February, 2013<br><br> Commerce Minister Craig Foss today announced the re-categorisation of low-risk credit union savings products, in a move to cut regulation and improve consumer access to financial advice.<br><br> "The current categorisation of certain low-risk credit union savings products imposes stricter regulation and unnecessary costs when providing personalised advice. These costs can restrict consumer access to advice on these products.<br><br> "The change in category will allow all financial advisers to give advice on certain credit union non-call savings products and term deposits, in line with their relatively low level of complexity and risk," says Mr Foss.<br><br> The changes are expected to come into force in the first half of this year, through regulations made under the Financial Advisers Act 2008.<br><br> "These changes are part of a government focus on making sure that levels of regulation are appropriate and consistent.<br><br> "It will improve credit union members' access to financial advice and encourage them to improve their levels of savings and investment," says Mr Foss.</p> <hr> http://www.fma.govt.nz/keep-updated/newsroom/releases-from-the-minister-of-commerce/2013/drive-to-complete-capital-markets-overhaul Drive to complete capital markets overhaul 2014-12-15 17:06:32 Financial Markets Authority <p><strong>Craig Foss</strong><br><br> 27 February, 2013<br><br> Commerce Minister Craig Foss says the Government is progressing a comprehensive set of reforms this year to restore investor confidence and encourage investment.<br><br> "From street corner loan sharks to large investment funds, the Government is rewriting the rules for the full spectrum of credit and investment law. This regulatory overhaul will help restore investor and consumer confidence.<br><br> "The Business Growth Agenda Building Capital Markets report released today outlines the Government's plan to ensure investors are better informed and offered better protections. The rules are being made clearer and those who break the rules will be held to account.<br><br> "In the coming months we intend to pass the Financial Markets Conduct Bill which will result in a total rewrite of securities law. Consumer credit reforms will be introduced and simplified disclosure requirements for KiwiSaver providers will be released.<br><br> "The Government has established the Financial Markets Authority, regulated financial service providers and introduced licensing and monitoring of trustees," says Mr Foss.<br><br> Mr Foss says improved financial literacy is an important step in building confidence in capital markets.<br><br> "Regulations are just one part of the equation. Along with better rules and protections, we need to improve financial literacy so consumers and investors can make informed judgements and decisions on the use and management of their money," says Mr Foss.<br><br> The report is available at www.mbie.govt.nz/bga</p> <hr> http://www.fma.govt.nz/keep-updated/reports-and-papers/fma-strategic-risk-outlook-2015 FMA Strategic Risk Outlook 2015 2014-12-15 14:19:18 Financial Markets Authority <p><a href="http://www.fma.govt.nz/assets/Report-and-Papers/Corporate-Publications/FMA-Strategic-Risk-Outlook-2015.pdf" target="_blank">FMA Strategic Risk Outlook 2015</a></p> http://www.fma.govt.nz/keep-updated/newsroom/media-releases/2014/fma-publishes-its-first-medium-term-strategic-risk-outlook FMA publishes its first medium-term strategic risk outlook 2014-12-15 14:19:18 Financial Markets Authority <p><b>Media Release<br> MR No. 2014 - 045<br></b><b>11 December 2014</b></p> <p>The Financial Markets Authority (FMA) today published its seven-point strategic risk outlook, identifying the areas where it will apply the majority of its regulatory effort in the medium-term. The priorities will direct the FMA’s work in licensing, supervision, compliance and enforcement.</p> <p>The FMA’s chief executive, Rob Everett, said the strategic risks partly reflect the FMA’s mandate under the Financial Markets Conduct Act 2013, which has taken effect progressively this year.</p> <p>“We have to make choices about where we will focus our efforts in order to deliver the maximum results, taking into account our expanded mandate,” Mr Everett said.</p> <p>“The FMA’s overarching objective is to promote and facilitate fair, efficient and transparent financial markets. Defining the risks that pose the most significant barriers to us achieving our main objectives means we can focus our resources strategically.</p> <p>“Firms and professionals within our mandate should anticipate us paying attention to the seven priorities over the next two to three years. Also, representatives of the finance professions – including directors, auditors, legal counsel and financial advisers – can expect us to work with them constructively on these areas to improve outcomes and build confidence.”</p> <p>In summary, the seven priorities are:</p> <p>-          Governance and culture: boards and directors leading strategy, culture and values</p> <p>-          Conflicted conduct: firms and professionals managing conflicts of interest effectively</p> <p>-          Capital market growth and integrity: facilitating capital market growth and supporting market integrity</p> <p>-          Sales and advice: sales and advisory services reflecting the best interests of investors and consumers</p> <p>-          Investor decision-making: investors having access to tools that help them make informed financial decisions</p> <p>-          Effective frontline regulators: ensuring frontline regulators are effective</p> <p>-          The FMA maximising its own effectiveness and efficiency as a regulator.</p> <p>Mr Everett said these priorities don’t exclude the FMA from looking at other areas of the market and financial services. “But these are the areas where we see the greatest risks and therefore the most potential to improve trust and confidence in our markets,” he said.</p> <p>The priorities are the result of FMA’s analysis of the underlying drivers of risk. The FMA identified the market structures, behaviours and tensions that could lead to poor results for investors, firms, professionals and for the economy.</p> <p>“Our main aim, as a regulator, is to work with firms and professionals to prevent things going wrong. Generally, it’s more effective to address causes rather than remedying poor results after they have happened,” Mr Everett said.</p> <p>The FMA’s strategic priorities and the drivers of risks are set out in more detail in the ‘Strategic Risk Outlook 2015’ that is published on the <a href="http://fma.govt.nz/keep-updated/reports-and-papers/fma-strategic-risk-outlook-2015">FMA’s website</a>.</p> <p>ENDS</p> <p><strong>Contact:</strong><br> Andrew Park<br> 09 967 1215<br> 021 220 6770<br> <a href="mailto:shae.skellern@fma.govt.nz">andrew.park@fma.govt.nz</a></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 2014-12-12 10:52:00 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://fma.govt.nz/assets/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/laws-we-enforce/legislation/acts-and-regulations/ Acts and Regulations 2014-12-12 10:50:25 Financial Markets Authority <p>Below is the range of financial markets legislation we oversee and administer.    </p> <ul> <li><a href="http://legislation.govt.nz/act/public/2013/0069/latest/DLM4090578.html?src=qs">Financial Markets Conduct Act 2013</a></li> <li><a href="http://legislation.govt.nz/regulation/public/2014/0050/latest/DLM5956701.html?search=ts_act%40bill%40regulation%40deemedreg_phase+1_resel_25_a&amp;p=1">Financial Markets Conduct (Phase 1) Regulations 2014</a></li> <li><a href="http://legislation.govt.nz/regulation/public/2014/0110/latest/DLM6001542.html?search=ts_act%40bill%40regulation%40deemedreg_Financial+Markets+Conduct+(Fees)+Regulations+2014_resel_25_a&amp;p=1">Financial Markets Conduct (Fees) Regulations 2014</a></li> <li><a href="http://legislation.govt.nz/act/public/2013/0070/latest/DLM5561104.html?search=sw_096be8ed80c1d8ae_%22repeals+and+amendments%22_25_se&amp;p=1">Financial Markets (Repeals and Amendments) Act 2013</a></li> <li><a href="http://www.fma.govt.nz/laws-we-enforce/legislation/acts-and-regulations/financial-markets-authority-act-2011/">Financial Markets Authority Act 2011</a></li> <li><a href="http://www.legislation.govt.nz/regulation/public/2012/0121/latest/DLM4491301.html?search=ts_act%40bill%40regulation%40deemedreg_%e2%80%a2%09Financial+Markets+Authority+(Levies)+Regulations+2012_resel_25_h&amp;p=1"> Financial Markets Authority (Levies) Regulations 2012</a></li> <li><a href="http://www.legislation.govt.nz/regulation/public/2011/0280/latest/DLM3939301.html">Financial Markets Authority (Fees) Regulations 2011</a></li> <li><a title="Securities Act 1978 and Securities Regulations 2009" href="http://www.fma.govt.nz/laws-we-enforce/legislation/acts-and-regulations/securities-act-1978-and-securities-regulations-2009/">Securities Act 1978 (and Securities Regulations 2009)</a></li> <li><a href="http://www.legislation.govt.nz/act/public/2008/0091/latest/DLM1584202.html?search=ts_act%40bill%40regulation%40deemedreg_Financial+Advisers+Act+2008_resel_25_a&amp;p=1">Financial Advisers Act 2008</a></li> <li><a href="http://legislation.govt.nz/regulation/public/2010/0234/latest/DLM3143816.html?src=qs">Financial Advisers (Fees) Regulations 2010</a></li> <li><a href="http://www.fma.govt.nz/help-me-comply/financial-advisers/your-obligations/authorised-financial-advisers-obligations/code-of-professional-conduct-for-afas/">Financial Advisers (Code of Professional Conduct for Authorised Financial Advisers) Notice 2010</a></li> <li><a href="http://legislation.govt.nz/regulation/public/2014/0048/latest/DLM5946801.html?src=qs">Financial Advisers (Custodians of FMCA Financial Products) Regulations 2014</a></li> <li><a href="http://www.legislation.govt.nz/act/public/2006/0040/latest/DLM378372.html?src=qs">KiwiSaver Act 2006 (Part 4 and Schedule 1)</a></li> <li><a href="http://www.legislation.govt.nz/regulation/public/2006/0358/latest/DLM418375.html">KiwiSaver Regulations 2006</a></li> <li><a href="http://www.legislation.govt.nz/act/public/2011/0010/latest/DLM2651118.html?src=qs">Financial Markets Supervisors Act 2011</a></li> <li><a href="http://www.legislation.govt.nz/regulation/public/2014/0335/latest/DLM6289771.html">Financial Markets Supervisors Regulations 2014</a></li> <li><a href="http://www.fma.govt.nz/laws-we-enforce/legislation/acts-and-regulations/auditor-regulation-act-2011/">Auditor Regulation Act 2011</a> (and <a href="http://legislation.govt.nz/regulation/public/2012/0075/latest/DLM4413401.html?src=qs">Auditor Regulations 2012</a>)</li> <li><a href="http://www.legislation.govt.nz/act/public/1989/0044/latest/DLM160809.html">Public Finance Act 1989 (Sections 45U and 45V)</a></li> </ul> <p>We also monitor compliance, investigate and enforce conduct that may constitute a contravention of other financial markets legislation listed below, where such legislation applies to financial market participants.</p> <ul> <li><a href="http://www.fma.govt.nz/laws-we-enforce/legislation/acts-and-regulations/governance-reporting-and-supervision-legislation/">Companies Act 1993</a></li> <li><a href="http://www.legislation.govt.nz/act/public/2013/0101/latest/DLM4632829.html?src=qs">Financial Reporting Act 2013</a></li> <li><a href="http://www.legislation.govt.nz/act/public/1989/0011/latest/DLM144264.html?src=qs"> Corporations (Investigation and Management) Act 1989</a></li> <li><a href="http://www.legislation.govt.nz/act/public/2009/0035/latest/DLM2140720.html?src=qs"> Anti-Money Laundering and Countering Financing of Terrorism Act 2009</a></li> <li><a href="http://www.legislation.govt.nz/regulation/results.aspx?search=ts_regulation_Anti+Money+Laundering_resel&amp;p=1"> Anti-Money Laundering and Countering Financing of Terrorism Regulations</a></li> <li><a href="http://www.legislation.govt.nz/act/public/1965/0022/latest/DLM367768.html?src=qs">Building Societies Act 1965</a></li> <li><a href="http://www.legislation.govt.nz/act/public/1996/0024/latest/DLM376810.html?src=qs">Co-operative Companies Act 1996</a></li> <li><a href="http://www.legislation.govt.nz/act/public/1961/0043/latest/DLM327382.html?search=ts_act%40bill%40regulation%40deemedreg_crimes+act_resel_25_a&amp;p=1">Crimes Act (Sections 220, 228, 229, 240, 242, and 256 to 260)</a></li> <li><a href="http://www.legislation.govt.nz/act/public/1982/0118/latest/DLM59732.html?src=qs"> Friendly Societies and Credit Unions Act 1982</a></li> <li><a href="http://www.legislation.govt.nz/act/public/1908/0081/latest/DLM144406.html?src=qs"> Industrial and Provident Societies Act 1908</a></li> <li><a href="http://www.legislation.govt.nz/act/public/2008/0001/latest/DLM1139102.html?src=qs">Limited Partnerships Act 2008</a></li> <li><a href="http://www.legislation.govt.nz/act/public/1989/0157/latest/DLM199364.html?src=qs">Reserve Bank of New Zealand Act 1989 (Part 5C)</a></li> <li><a href="http://www.legislation.govt.nz/act/public/1967/0035/latest/DLM381180.html?src=qs">Trustee Companies Act 1967</a></li> <li><a href="http://www.legislation.govt.nz/regulation/public/2010/0378/latest/DLM3306746.html?src=qs">Financial Advisers (Disclosure) Regulations 2010</a></li> </ul> http://www.fma.govt.nz/keep-updated/the-future-of-financial-markets/timeline-for-change/ Timeline for Change 2014-12-08 14:14:58 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: #333333; line-height: 115%; font-family: &#039;Helvetica&#039;,&#039;sans-serif&#039;; font-size: 10.5pt; mso-fareast-font-family: &#039;Times New Roman&#039;; mso-fareast-language: EN-NZ; mso-ansi-language: EN-NZ; mso-bidi-language: AR-SA;">You should also look at</span><span style="color: #333333; line-height: 115%; font-family: &#039;Helvetica&#039;,&#039;sans-serif&#039;; font-size: 11pt; mso-fareast-font-family: Calibri; mso-fareast-language: EN-US; mso-ansi-language: EN-NZ; mso-bidi-language: AR-SA; mso-fareast-theme-font: minor-latin;"> 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 26 November 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>3 November 2014</strong></td> <td> <p>FMC regulations receive Royal Assent.</p> </td> </tr> <tr> <td><strong>1 December 2014</strong></td> <td>Phase 2 of FMC Act and full FMC 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 26 November 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?<br></strong>(see the Financial Markets Legislation (Phase 2) Commencement Order 2014 for a list of the sections of the FMC Act and FM (RA) Act that come into effect on this date).</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 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 cover.</p> <p>Transition periods apply for some market participants/activities. <a href="http://www.med.govt.nz/business-law/current-business-law-work/financial-markets-conduct-act">See for more details on transition</a>.</p> </td> <td> </td> </tr> <tr> <td> </td> <td> <p>In addition to the main FMC regulations, there are a number of consequential amendments to other regulations that also come into force on 1 December to implement the new FMC regime. These include:</p> <ul> <li><a href="http://www.legislation.govt.nz/regulation/public/2014/0327/latest/DLM6299601.html?search=ts_act%40bill%40regulation%40deemedreg_%e2%80%a2%09Financial+Markets+Conduct+(Fees)+Amendment+Regulations+(No+2)+2014_resel_25_a&amp;p=1" target="_blank">Financial Markets Conduct (Fees) Amendment Regulations (No 2) 2014</a></li> <li><a href="http://www.legislation.govt.nz/regulation/public/2014/0329/latest/DLM6287007.html?search=ts_act%40bill%40regulation%40deemedreg_%e2%80%a2%09Financial+Advisers+(Custodians+of+FMCA+Financial+Products)+Amendment+Regulations+2014_resel_25_a&amp;p=1" target="_blank">Financial Advisers (Custodians of FMCA Financial Products) Amendment Regulations 2014</a></li> <li><a href="http://www.legislation.govt.nz/regulation/public/2014/0330/latest/DLM6286322.html?search=ts_act%40bill%40regulation%40deemedreg_%e2%80%a2%09Financial+Advisers+(Definitions%2c+Voluntary+Authorisation%2c+Prescribed+Entities%2c+and+Exemptions)+Amendment+Regulations+(No+2)+2014_resel_25_a&amp;p=1" target="_blank">Financial Advisers (Definitions, Voluntary Authorisation, Prescribed Entities, and Exemptions) Amendment Regulations (No 2) 2014</a></li> <li><a href="http://www.legislation.govt.nz/regulation/public/2014/0331/latest/DLM6292128.html" target="_blank">Financial Advisers (Disclosure) Amendment Regulations 2014</a></li> <li><a href="http://www.legislation.govt.nz/regulation/public/2014/0332/latest/DLM6287613.html?search=ts_act%40bill%40regulation%40deemedreg_%e2%80%a2%09Financial+Advisers+(Fees)+Amendment+Regulations+2014_resel_25_a&amp;p=1" target="_blank">Financial Advisers (Fees) Amendment Regulations 2014</a></li> <li><a href="http://www.legislation.govt.nz/regulation/public/2014/0333/latest/DLM6290558.html?src=qs" target="_blank">Financial Advisers (Personalised DIMS) Amendment Regulations 2014</a></li> <li><a href="http://www.legislation.govt.nz/regulation/public/2014/0334/latest/DLM6288701.html?search=ts_act%40bill%40regulation%40deemedreg_%e2%80%a2%09Financial+Markets+Authority+(Levies)+Amendment+Regulations+(No+2)+2014_resel_25_a&amp;p=1" target="_blank">Financial Markets Authority (Levies) Amendment Regulations (No 2) 2014</a></li> <li><a href="http://www.legislation.govt.nz/regulation/public/2014/0335/latest/DLM6289771.html?search=ts_act%40bill%40regulation%40deemedreg_%e2%80%a2%09Financial+Markets+Supervisors+Regulations+2014_resel_25_a&amp;p=1" target="_blank">Financial Markets Supervisors Regulations 2014</a></li> <li><a href="http://www.legislation.govt.nz/regulation/public/2014/0336/latest/DLM6286518.html?search=ts_act%40bill%40regulation%40deemedreg_%e2%80%a2%09Financial+Service+Providers+(Exemption)+Amendment+Regulations+2014_resel_25_a&amp;p=1" target="_blank">Financial Service Providers (Exemption) Amendment Regulations 2014</a></li> <li><a href="http://www.legislation.govt.nz/regulation/public/2010/0235/latest/versions.aspx" target="_blank">Financial Service Providers (Registration) Amendment Regulations 2014</a></li> <li><a href="http://www.legislation.govt.nz/regulation/public/2014/0338/latest/DLM6287750.html?search=ts_act%40bill%40regulation%40deemedreg_%e2%80%a2%09KiwiSaver+Amendment+Regulations+2014_resel_25_a&amp;p=1" target="_blank">KiwiSaver Amendment Regulations 2014</a></li> <li><a href="http://www.legislation.govt.nz/regulation/public/2014/0339/latest/DLM6286861.html?src=qs" target="_blank">Securities Amendment Regulations (No 2) 2014</a></li> <li><a href="http://www.legislation.govt.nz/regulation/public/2014/0340/latest/DLM6288544.html?search=ts_act%40bill%40regulation%40deemedreg_%e2%80%a2%09Takeovers+Code+Approval+Amendment+Regulations+2014_resel_25_a&amp;p=1" target="_blank">Takeovers Code Approval Amendment Regulations 2014</a></li> <li><a href="http://legislation.govt.nz/regulation/public/2014/0331/latest/DLM6292128.html?search=ts_act%40bill%40regulation%40deemedreg_%e2%80%a2Financial+Advisers+(Disclosure)+Amendment+Regulations+2014_resel_25_a&amp;p=1">Financial Advisers (Disclosure) Amendment Regulations 2014</a></li> <li>Financial Advisers (Fees) Admendment Regulations 2014</li> <li><a href="http://legislation.govt.nz/regulation/public/2014/0333/latest/DLM6290558.html?search=ts_act%40bill%40regulation%40deemedreg_Financial+Advisers+(Personalised+DIMS)+Regulations+2014_resel_25_a&amp;p=1">Financial Advisers (Personalised DIMS) Regulations 2014</a></li> </ul> </td> <td> </td> </tr> <tr> <td> </td> <td> <p><span style="font-family: &#039;Calibri&#039;,&#039;sans-serif&#039;; font-size: 12.5pt; mso-fareast-font-family: Calibri; mso-fareast-language: EN-US; mso-ansi-language: EN-NZ; mso-bidi-language: AR-SA; mso-fareast-theme-font: minor-latin;">The Financial Markets Legislation (Phase 2) Commencement Order 2014 see <a href="http://www.legislation.govt.nz/regulation/public/2014/0325/latest/DLM6286001.html?search=ts_act%40bill%40regulation%40deemedreg_Financial+Markets+Legislation+(Phase+2)+Commencement+Order+2014_resel_25_a&amp;p=1#DLM6286008">here</a>.</span></p> </td> <td> </td> </tr> <tr> <td> </td> <td> <p>On 1 December the new Financial Markets Conduct Register for financial products and managed investment schemes under the FMCA known as '<a href="http://www.business.govt.nz/disclose">Disclose</a>' will be launched.</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/keep-updated/newsroom/media-releases/2014/fma-releases-audit-quality-review-report FMA releases Audit Quality Review Report 2014-12-08 12:17:56 Financial Markets Authority <p><b>Media Release<br></b><b>MR No. 2014 – 44<br></b><b>4 December 2014</b></p> <p>The Financial Markets Authority (FMA) says its latest Audit Quality Review Report confirms the majority of the profession is meeting minimum compliance standards. However, the findings in 2014 are similar to last year’s report, with significant room for improvement identified among the firms that were monitored.</p> <p>The 2014 Audit Quality Review Report assessed the individual audit files and internal systems, policies and processes of 17 audit firms.</p> <p>Elaine Campbell, FMA’s Director of Compliance, said the overall level of audit quality for the majority of audit firms was either good or acceptable, however improvement is still required.</p> <p>“While some firms have started to invest time and resources into improving their audit quality processes since last year’s report, we recognise that these efforts are unlikely to be visible in this year’s report due to the auditing and financial reporting cycle. Thirty-three percent of the audit files we monitored do require significant improvements to ensure they meet minimum standards,” she said.</p> <p>Ms Campbell said auditing firms play a significant role in ensuring investors have confidence in financial statements and supporting good governance processes within a business.  She also encouraged directors and the audit committees on boards of issuers to engage with their auditor and ensure they were involved in the quality control of the auditing process.</p> <p>The key areas for firms that need attention are:</p> <ul> <li>monitoring of audit quality</li> <li>auditor independence</li> <li>professional scepticism</li> <li>going concern statements</li> <li>use of management or audit experts</li> <li>auditing of revenue</li> <li>audit sampling</li> <li>analytical procedures</li> <li>level of audit evidence for audit opinion.</li> </ul> <p>The FMA is required to deliver a report on its quality review of audit firms each year under the Auditor Regulation Act. These reports help professionals understand the FMA’s compliance expectations and are designed to help improve standards among auditing firms.</p> <p>Ms Campbell said the FMA would work closely with the small number of audit firms that had unsatisfactory audit measures to ensure they met the standards. “We encourage firms that have not yet been subject to a review to consider this report and any areas for improvement.”</p> <p>The Audit Quality Review Report can be found <a href="http://fma.govt.nz/keep-updated/reports-and-papers/audit-quality-review-report-2014">here</a>.</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> 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 2014-12-08 12:12:45 Financial Markets Authority <p>This guidance note explains the approach taken to granting exemptions under the Financial Advisers Act 2008. It is intended to provide answers to commonly asked question in relation to exemptions and to provide information to potential applicants on the process for making an application.</p> <h2>Related Files</h2> <ul> <li><a href="http://www.fma.govt.nz/assets/Report-and-Papers/Guidance/Guidance-Note-Exemptions-Financial-Advisers-Act-2008-December-2014.pdf" target="_blank">Guidance Note on Financial Advisers Act Exemptions (December 2014)</a></li> <li><a href="http://www.fma.govt.nz/assets/media/161302/faa-guidance.pdf" target="_blank">Guidance Note on Financial Advisers Act Exemptions (November 2010)</a></li> </ul> http://www.fma.govt.nz/help-me-invest/kiwisaver/transferring-your-australian-superannuation-savings-to-kiwisaver/ Transferring your Australian superannuation savings to KiwiSaver 2014-12-05 15:29:24 Financial Markets Authority <p><strong style="color: inherit; font-family: inherit;">Get all the facts <em>before </em>transferring your overseas superannuation savings to KiwiSaver - guidance for consumers.</strong></p> <p>New Zealand residents can now transfer their Australian superannuation savings to an approved scheme here in New Zealand - in this case a KiwiSaver scheme.</p> <p>This also means KiwiSaver members who permanently move to Australia can transfer their KiwiSaver savings to an Australian complying superannuation scheme.</p> <table> <tbody> <tr> <td><strong>But just because you can transfer your savings to KiwiSaver doesn't mean you should.</strong></td> </tr> </tbody> </table> <p>If you are thinking of transferring your Australian superannuation savings to your KiwiSaver scheme there are a number of important things you should consider before making the decision to initiate the transfer; because once the funds are transferred you won't be able to change your mind and reverse the decision.</p> <h3>Seek financial advice</h3> <p>We strongly encourage anyone thinking about transferring their Australian superannuation savings to seek <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/">independent financial advice</a> before deciding to transfer and to not to feel pressured or rushed into any decision - after all, it's your hard-earned retirement savings and you'll want to be certain it's invested wisely.</p> <p>To help you decide whether or not to transfer your money from your Australian provider(s) to KiwiSaver here is a simple check-list of initial questions you should ask yourself to help make an informed decision.</p> <table> <tbody> <tr> <td> <p><strong>Transferring from another overseas country?</strong></p> <p>If you are thinking of transferring your overseas superannuation savings from another jurisdiction e.g. UK or South Africa to a KiwiSaver scheme, then these questions may still apply.</p> </td> </tr> </tbody> </table> <h2>Questions to ask yourself before deciding to transfer your money</h2> <p><strong>1. What is the amount of money I'm planning to transfer?</strong></p> <p>Whether it's $5,000 you want to transfer or $500,000, everybody will have a different idea of how important that money is. In other words what is a small amount of money for you could be a large amount to someone else. Depending on your circumstances your amount could influence your decision.</p> <p>Firstly, check with your Australian superannuation provider(s) to find out what your 'rollover' value is - that's the full amount you are entitled to. You may decide that the amount is small enough to consolidate without the need to undertake extensive research or that the cost to transfer is fair and reasonable.</p> <p>If your superannuation is a large sum, we strongly encourage you to take more time to fully understand the implications of the transfer. If you're not sure who your provider is check the <a href="http://www.ato.gov.au/Super/APRA-regulated-funds/Reporting-and-administrative-obligations/Lost-members/Lost-members-register/">Australian Tax Office's Lost Member Register</a> or use its SuperSeeker tool, which can be found at <a href="http://www.ato.gov.au/superseeker">www.ato.gov.au/superseeker</a></p> <p><strong>2. How do the fees and transfer costs compare between my Australian superannuation scheme and KiwiSaver provider?</strong></p> <p><strong>Fees</strong></p> <p>Most investments will have a variety of fees. Some are likely to be fixed charges, e.g. monthly fees, and some are likely to be a percentage of the value of your investment. There may be performance fees paid to some fund managers for 'outperforming' the benchmark. You should ensure you understand all the fees that apply across all of your investments especially between your Australian and KiwiSaver providers so you can consider whether you are better off consolidating the funds or not.</p> <p><strong>Transfer costs</strong></p> <p>There are also potential costs to transfer your funds. Your Australian provider(s) may charge a fee to transfer the funds and likewise your KiwiSaver provider may charge a fee to arrange it. Currency exchange rate fees are likely to apply so find out exactly what you will be charged as this could influence your decision.</p> <p><strong>3. What benefits (if any) will I be giving up if I transfer my money to KiwiSaver?</strong></p> <p>You may have benefits linked to your Australian superannuation savings. For example, some overseas schemes offer additional benefits such as life, total and permanent disability or income protection insurance. And some schemes have guarantees when it comes to the amount of money paid out once you reach retirement age. These will depend on how much you have contributed and for how long but they are sometimes referred to as a company final salary, accumulation fund or combination of these. It always pays to check what (if any) benefits you may have and the value of these - you may decide you don't want to give these up.</p> <p><strong>4. Are there any tax implications to transfer my savings to KiwiSaver from Australia?</strong></p> <p>The way you pay tax on your investments will be different between Australia and New Zealand. It will depend on your individual funds and circumstances as to where it is more favourable to keep your superannuation savings. For example our current understanding is:</p> <ul> <li><strong>Tax on transfers:</strong> Neither country will tax the transfer of retirement savings to the other country.</li> </ul> <ul> <li><strong>Tax on earnings:</strong> Australia generally has a flat rate of 15% on earnings from superannuation schemes. New Zealand's tax rate on superannuation earnings can range from 10.5% to 28% depending on your own Prescribed Investor Rate (PIR). However Australia taxes capital gains in superannuation schemes on equities whereas New Zealand does not tax capital gains on Australasian equities.</li> </ul> <p>To help you understand how the tax implications will affect you, we strongly recommend you visit the <a href="http://taxpolicy.ird.govt.nz/publications/2013-other-trans-tasman-retirement-savings-portability/how-new-rules-work">Inland Revenue Department</a> and the <a href="http://www.ato.gov.au/super/">Australian Tax Office</a> websites.</p> <p><strong>5. What other things should I compare between my Australian provider(s) and my KiwiSaver provider?</strong></p> <ul> <li>You should always compare the types of funds or assets in which you are able to invest.  Chances are it will vary between your Australian provider(s) and your KiwiSaver provider so make sure you are aware of all the options available so you are comfortable with the level of choice on offer.</li> <li>Think about how much control you have over your investments in one country compared to the other. Australian superannuation providers do offer a greater variety of options for choosing your own investments. Check what they are as you may not be able to invest in the same range of options within current KiwiSaver schemes.</li> <li>Think about how you can access information and advice about your investments. For example, do you like to have regular face-to- face contact with your providers or are you happy to discuss your requirements by telephone, email or over the internet?  Or are you happy just to receive statements in the mail?  Some of these methods may suit you better than others, and some may be easier than others depending where you live, and where your funds are held. Think about what works best for you.</li> </ul> <table> <tbody> <tr> <td> <div> <p><strong>IMPORTANT:</strong> For superannuation savings originating from Australia, once those funds have been transferred to your KiwiSaver account they will be available when you have reached age 60 and you satisfy the Australian definition of retirement at that age. For superannuation transfers into KiwiSaver from countries other than Australia, you will not have access to the funds until you reach the New Zealand retirement age (currently 65), and you have been in KiwiSaver for a minimum of five years.</p> <p>See <a href="http://www.kiwisaver.govt.nz">www.kiwisaver.govt.nz</a> for more information about access eligibility.</p> </div> </td> </tr> </tbody> </table> <h2>What to do if you decide to transfer your money to KiwiSaver</h2> <p>If you have decided to transfer your money to your KiwiSaver scheme then there are some other important things you need to consider to make the most of your transfer.</p> <p><strong>KiwiSaver scheme provider</strong></p> <p>If you are already enrolled in a KiwiSaver scheme you will need to check they are able to receive the funds. Whether or not they are, this could be a good opportunity to review your fund allocations or even your scheme provider and compare other KiwiSaver providers to see if they would better suit your needs.</p> <p>For information to compare KiwiSaver providers please visit:</p> <p><a href="http://www.consumer.org.nz">www.consumer.org.nz</a></p> <p><a href="http://www.sorted.org.nz">www.sorted.org.nz</a></p> <p><a href="http://www.kiwisaver.govt.nz">www.kiwisaver.govt.nz</a></p> <p>Remember, you can switch your KiwiSaver provider at any time by contacting your new chosen provider, but you can only be a member of one at any one time.</p> <p>A <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/">Financial Adviser</a> can help you with decisions about your current KiwiSaver provider and the risks and benefits of switching providers or types within schemes.</p> <p><strong>Exchange Rate</strong></p> <p>Just like using overseas currency, the amount of money you bring back will be affected by the exchange rate at the time you transfer it. Think about at what rate you would like to bring back your superannuation savings over so you preserve as much as possible.</p> <p>Now that the new rules are in place, you can initiate the transfer at a time that suits you (subject to your KiwiSaver provider being able to receive it).  Remember there will be currency exchange rate fees built into any transfer so take those into account too.</p> <p><strong>Transfer Costs</strong></p> <p>There are potential costs to transfer your funds. Your Australian provider(s) may charge a fee to transfer the funds and likewise your KiwiSaver provider may charge a fee to arrange it.</p> <table> <tbody> <tr> <td> <div> <p><strong>Remember, once you have transferred your superannuation savings across you cannot reverse the decision unless you decide to permanently move back to Australia. This is an important financial decision so take as much time as you need to understand how it will affect you and consult an Authorised Financial Adviser to help you understand the risks, benefits and options available to you if you decide to transfer your funds. A list of Authorised Financial Advisers can be found <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>.</strong></p> </div> </td> </tr> </tbody> </table> http://www.fma.govt.nz/keep-updated/reports-and-papers/audit-quality-review-report-2014 Audit Quality Review Report 2014 2014-12-04 14:12:05 Financial Markets Authority <p><a href="http://www.fma.govt.nz/assets/Report-and-Papers/Corporate-Publications/Audit-Quality-Review-Report-2014.pdf" target="_blank"><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-ansi-language: EN-NZ; mso-fareast-language: EN-US; mso-bidi-language: AR-SA;">Audit Quality Review Report 2014</span></a></p> http://www.fma.govt.nz/keep-updated/newsroom/media-releases/2014/fma-reaches-settlement-with-anz-over-rural-interest-rate-swaps FMA reaches settlement with ANZ over rural interest rate swaps 2014-12-03 09:06:36 Financial Markets Authority <p><b>Media Release<br></b><b>MR No. 2014 – 043<br></b><b>3 December 2014</b></p> <p>The Financial Markets Authority (FMA) said today it has reached a settlement with ANZ Bank New Zealand Limited (ANZ) regarding the sale, promotion and marketing of rural interest rate swaps to rural customers. </p> <p>The settlement follows an FMA investigation into ANZ’s process for selling and marketing interest rate swaps to rural customers from 2005 to 2009, particularly focusing on requirements under the Securities Act 1978. </p> <p>The FMA’s settlement agreement reached with ANZ is alongside a settlement also announced today between the Commerce Commission and ANZ.</p> <p>The Commission has concluded its own investigation into ANZ’s sale and marketing of interest rate swaps. That settlement will see ANZ establish a payment fund of $18.5 million, to be used to make payments to eligible rural customers who registered their complaints with the Commerce Commission.  ANZ has also agreed to make in-court civil admissions in relation to its conduct.</p> <p>The FMA considered that ANZ’s conduct relating to the sale and marketing of interest rate swaps to certain rural customers was misleading, with particular reference to:</p> <ul> <li>statements that interest rate swaps were like fixed-rate loans, but more flexible</li> <li>a failure to disclose a right to charge margins without any intervening event</li> <li>a failure to disclose materially different early termination amounts for the swap agreement compared to a break fee on a  fixed-rate loan.</li> </ul> <p>ANZ does not accept the FMA’s views set out above and states further that it has various defences available to it.</p> <p>As part of the settlement agreement ANZ has provided the FMA with enforceable undertakings in relation to ANZ’s future conduct.  Specifically, the undertakings require ANZ to engage a third-party to review its processes and procedures for future sales and marketing of interest rate swaps and forex forward contracts.</p> <p>The report from the third-party will be provided to ANZ and then to the FMA. Following consultation with the FMA, ANZ will implement the recommendations in the review.</p> <p>The FMA’s Head of Litigation, Paul O’Neil, said: “This settlement reflects the FMA’s focus on members of the public receiving full and accurate information when purchasing financial products or services. </p> <p>“As the undertakings relate to ANZ’s future conduct, the settlement recognises our role as the regulator of conduct in this area, and a commitment to achieve practical and effective outcomes requiring businesses to ensure their products are sold using acceptable practices and disclosure.”</p> <p>Under the Financial Markets Conduct Act 2013, from 1 April 2014 the FMA has responsibility for regulating misleading and deceptive conduct in relation to any dealing in financial products or services.</p> <p>The settlement agreement and enforceable undertakings are available <a href="http://www.fma.govt.nz/assets/Settlement-Decisions/ANZ-and-FMA-Final-Settlement-Agreement-3-Dec-2014.pdf" target="_blank">here</a>.</p> <p>ENDS</p> <p>Contact:<br>Shae Skellern<br>09 300 0465<br>021 847 192<br><a href="mailto:Shae.skellern@fma.govt.nz">Shae.skellern@fma.govt.nz</a></p> http://www.fma.govt.nz/laws-we-enforce/registers/list-of-aml-reporting-entities/ List of AML/CFT Reporting Entities 2014-12-02 16:14:24 Financial Markets Authority <p><strong>Supervised by the Financial Markets Authority as required by the <a href="http://www.legislation.govt.nz/act/public/2009/0035/latest/DLM2140720.html">Anti-Money Laundering and Countering Financing of Terrorism Act 2009</a> (the Act)</strong></p> <p>The information in this list is drawn from the Financial Service Providers Register and those that have come to the attention of the FMA by other means (such as providing us with annual AML/CFT reports). Visit <a href="http://www.fspr.govt.nz">www.fspr.govt.nz</a> to see additional information including the reporting entities business address and list of services. Entities shown on this list must be compliant with the Act.</p> <ol> <li>Businesses that appear on this list have been identified as reporting entities, supervised by the Financial Markets Authority, under section 5 of the <a href="http://www.legislation.govt.nz/act/public/2009/0035/latest/DLM2140720.html">Anti-Money Laundering and Countering Financing of Terrorism Act 2009</a>. Others are captured by <a href="http://www.legislation.govt.nz/regulation/public/2011/0222/latest/DLM3845896.html?search=ts_regulation_Anti+Money+Laundering_resel&amp;p=1">Anti-Money Laundering and Countering Financing (definitions) Regulations 2011</a>.</li> <li>Businesses supervised by the Financial Markets Authority include issuers of securities, trustee companies, futures dealers, collective investment schemes, brokers, financial advisers, crowd funding services and peer to peer lending services.</li> <li>The list represents our current assessment and will be subject to changes made from time to time.</li> <li>This list is not complete, exhaustive nor conclusive. Businesses that do not appear on this list but do meet the definition of reporting entity under the Act will be subject to the obligations created by that Act. If you own, or know of a business that falls within the definition of reporting entity under the Act, and is one of the types of businesses described above, that is not on the list please contact the Financial Markets Authority by emailing details to <a href="mailto:aml@fma.govt.nz">aml@fma.govt.nz</a></li> <li>If your business is on this list and you do not agree that it falls within the definition of reporting entity under the Act please contact the Financial Markets Authority by emailing details to <a href="mailto:aml@fma.govt.nz">aml@fma.govt.nz</a></li> <li>Banks, life insurers and non-bank deposit takers are supervised by the Reserve Bank of New Zealand and can access information at <a href="http://www.rbnz.govt.nz">www.rbnz.govt.nz</a>. Casinos, money service businesses (including currency exchange and money remittance/transfer), payroll remittance, lending and other services (including non-bank non-deposit-taking lenders, debt collection and factoring), financial leasing, cash transporters, safe deposit/cash storage, and issuing and managing means of payment (including non-bank credit card providers) and any other reporting entities not supervised by the Reserve Bank of New Zealand or the Financial Markets Authority are supervised by the Department of Internal Affairs and can access information at <a href="http://www.dia.govt.nz">www.dia.govt.nz</a></li> <li>This list is not an official or statutory register of reporting entities. It is for information only.</li> <li>The listing of a business does not imply that the Financial Markets Authority has approved of the activities of the business and does not certify compliance of the business with applicable legislation.</li> </ol> <p>This list does not constitute the Financial Service Providers Register under the <a href="http://www.legislation.govt.nz/act/public/2008/0097/latest/DLM1109427.html">Financial Service Providers (Registration and Dispute Resolution) Act 2008 No 97 (as at 01 April 2011), Public Act</a></p> http://www.fma.govt.nz/help-me-comply/financial-advisers/exemptions/ Exemptions 2014-12-01 16:58:16 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, regulations or the Code of Conduct. We will limit the use of our powers to cases that meet prescribed statutory criteria and all exemptions will be based soundly on the policy of the law.</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</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 practice</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 how to <a href="http://www.fma.govt.nz/laws-we-enforce/legislation/exemption-notices/applying-for-an-exemption/">apply for an exemption</a></li> </ul> <h2>Financial Advisers (Australian Licensees) Exemption Notice</h2> <p>The <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">Financial Advisers (Australian Licensees) Exemption Notice</a> 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. </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/kiwisaver/who-needs-to-comply/ Who Needs to Comply 2014-12-01 16:44:48 Financial Markets Authority <p>Anyone offering a KiwiSaver scheme must comply with their obligations under the KiwiSaver Act 2006 (the Act) until they transition to the new regime.</p> <p>KiwiSaver providers must also comply with any <a href="http://www.fma.govt.nz/help-me-comply/issuers/your-obligations/">obligations they have as issuers</a>.</p> <h2>Default providers</h2> <p>There are currently 9 default KiwiSaver providers.</p> <p>On 28 March 2014, Commerce Minister Craig Foss announced the selection of nine KiwiSaver default providers for a seven year term starting 1 July 2014.  For more information read the <a href="http://www.beehive.govt.nz/release/kiwisaver-default-providers-announced">Minister's announcement</a>.</p> <p>When an employee starts a new job, if they do not already belong to KiwiSaver and are eligible to join, they will be automatically enrolled in KiwiSaver, unless their employer is exempt from KiwiSaver automatic enrolments. If the employer has not chosen a preferred KiwiSaver provider, the employee will be allocated to a default provider. Default providers operate under special-purpose terms and conditions covered in the documents that were used to appoint them, which are known as Instruments of Appointment.</p> <p><a href="http://www.fma.govt.nz/help-me-comply/kiwisaver/who-needs-to-comply/default-providers/">See a list of default providers and their Instruments of Appointment.</a></p> <p><a href="http://www.fma.govt.nz/laws-we-enforce/registers/kiwisaver-exempt-employer-listing/">Find out if an employer is exempt from KiwiSaver automatic enrolments</a>.</p> http://www.fma.govt.nz/help-me-comply/new-accountability-framework-for-financial-products/timeline-for-change/ Timeline for Change 2014-12-01 16:41:03 Financial Markets Authority <p>The new FMC Act Part 4 accountability requirements came into effect on 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/Report-and-Papers/Information-Sheets/Updated-Info-Sheet-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/help-me-comply/kiwisaver/your-obligations/ Your Obligations 2014-12-01 16:35:17 Financial Markets Authority <p>The core obligations of KiwiSaver providers are set out in the KiwiSaver Act 2006 (the Act).</p> <p>In summary, these obligations include the need to:</p> <ul> <li>lodge a copy of the trust deed and other documents with the FMA, as set out in the Schedule 2 to the Act.</li> <li>prepare statistics-based annual returns and lodge these with FMA (section 125)</li> <li>provide members with annual personalised statements of contributions and balances (section 125A)</li> <li>lodge copies of amendments to the trust deed within 14 days of execution (section 129)</li> <li>when they wind up a scheme, follow the processes in the Act (sections 173-176).</li> </ul> <h2>Financial Markets Conduct Act 2013 provisions</h2> <p>You can read more about the FMC Act 2013 provisions and new obligations and responsibilities for KiwiSaver schemes, managers and supervisors <a href="http://www.fma.govt.nz/keep-updated/the-future-of-financial-markets/">here</a>.</p> <h2>Quarterly and annual disclosure statements</h2> <p>The KiwiSaver (Periodic Disclosure) Regulations 2013 (Regulations) are designed to facilitate access to information and promote transparency and comparability of KiwiSaver schemes. They came into force on 1 July 2013.</p> <p>The Regulations require KiwiSaver scheme managers to produce Quarterly Disclosure Statements (QDS) and Annual Disclosure Statements (ADS) for each KiwiSaver fund (as defined in the Regulations) within a non-restricted KiwiSaver scheme. These statements must be made publicly available on the KiwiSaver scheme manager's website with a hyperlink to an electronic Comma Separated Values (CSV) data file.</p> <p>QDS, ADS and related data files must also be submitted to FMA, within 15 working days of the respective quarter end for a QDS, and 60 working days of the respective year end for an ADS.</p> <p>FMA has developed a process guide to help managers of non-restricted KiwiSaver schemes prepare and file their disclosure statements. </p> <p>The process guide:</p> <ul> <li>outlines file format and data requirements that you will need to consider when preparing a QDS or ADS and related data files</li> <li>details the options available to you for filing your disclosure statements and data files with FMA.</li> </ul> <p>See the <a href="http://www.fma.govt.nz/assets/media/1925640/kiwisaver-disclosure-regs-process-guide.pdf" target="_blank">process guide</a>.</p> <p>See also FMA's '<a href="http://www.fma.govt.nz/assets/media/1925643/kiwisaver-disclosure-regs-helpful-hints-and-qas.pdf" target="_blank">Helpful Hints</a>' document which clarifies aspects of the Regulations and provides some helpful hints to ensure your disclosure statements are compliant.</p> <h2>Transfers between KiwiSaver schemes</h2> <p><strong>No requirement for a signed application form</strong></p> <p>A person can transfer between KiwiSaver schemes without having to physically sign an application form to join the new scheme. The contract between the prospective member and the new scheme can be made electronically by meeting the requirements for a valid contract and those applicable to electronic contracts.</p> <p><strong>Transfers between KiwiSaver schemes</strong></p> <p><strong>Can the manager of an old scheme refuse to transfer a member's balance to the new scheme if an application form is not provided by the manager of the new scheme?</strong></p> <p>Section 56(2) of the <a href="http://www.legislation.govt.nz/act/public/2006/0040/latest/DLM378372.html?src=qs">KiwiSaver Act 2006</a> requires the manager of the new scheme give evidence to the manager of the old scheme that the member wants to transfer. Therefore, there are 2 important points managers should consider: </p> <ol> <li>The manager of the old scheme is entitled to require evidence that supports the transfer request. This is important to ensure the manager properly meet its duties under the <a href="http://www.legislation.govt.nz/act/public/2006/0040/latest/DLM378372.html?src=qs">KiwiSaver Act 2006</a>.</li> <li>While the evidence required is not specified, it must be sufficient to confirm the member wishes to transfer. Section 56(2) does not require evidence the member has joined the new scheme, but that the member wishes to transfer. This should not allow the manager of the old scheme to insist upon receiving a copy of an application form, or other evidence of the member contracting to join the new scheme.</li> </ol> <p style="padding-left: 30px;">The type of evidence required under section 56(2) must be sufficient for the manager to satisfy itself the member is a member of the old scheme and that they wish to transfer.</p> <p>The manager of the old scheme is entitled to ensure the member transferring is a member of the old scheme and the transfer is legitimate.  But the standard of evidence required should not be set so high that it results in unnecessary or prolonged delays for members. It's equally important managers of the new scheme ensure any application to join a new scheme is legitimate and initiated by the member.</p> <p>This doesn't relieve managers of their requirements to comply with obligations under the <a href="http://www.legislation.govt.nz/act/public/2009/0035/latest/DLM2140720.html?src=qs">Anti-Money Laundering and Countering Financing of Terrorism Act 2009.</a></p> <h2>Other information about obligations</h2> <p>All KiwiSaver schemes (other than certain employer and restricted-entry schemes) must have:</p> <ul> <li>a manager who is the issuer for the purposes of the Securities Act 1978</li> <li>a licensed external trustee whose main function is to supervise the manager.</li> </ul> <h2>Prospectus registration</h2> <p>Providers must also comply with obligations that apply to all issuers. This includes the need for most KiwiSaver schemes to have a registered prospectus. The only exceptions are certain existing employer schemes that are exempted under the Securities Act (Employer Superannuation Schemes) Exemption Notice 2004.</p> <p>See <a href="http://www.fma.govt.nz/help-me-comply/issuers/">How to comply - issuers</a> for more information.</p> <p>Find out how FMA interprets KiwiSaver obligations in our section on <a href="http://www.fma.govt.nz/help-me-comply/kiwisaver/guidance-notes/">guidance notes</a>.</p> http://www.fma.govt.nz/laws-we-enforce/registers/list-of-licensed-peer-to-peer-lending-services/ List of Licensed Independent Trustees 2014-12-01 16:17:15 Financial Markets Authority <p>The Financial Markets Authority has issued a licence to provide independent trustee services to the following providers:</p> <table> <tbody> <tr> <td> <h3>FSP No.</h3> </td> <td> <h3>Name</h3> </td> <td> <h3>Trading name</h3> </td> <td> <h3>Authorised body*</h3> </td> </tr> <tr> <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-US; mso-bidi-language: AR-SA;">FSP367606</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-US; mso-bidi-language: AR-SA;">Bruce John Kerr</span></td> <td> </td> <td> </td> </tr> <tr> <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-US; mso-bidi-language: AR-SA;">FSP382106</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-US; mso-bidi-language: AR-SA;">Timothy Patrick<br>McGuinness</span></td> <td> </td> <td> </td> </tr> <tr> <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-US; mso-bidi-language: AR-SA;">FSP401826 </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-US; mso-bidi-language: AR-SA;">Gordon Charles<br>Sproule</span></td> <td> </td> <td> </td> </tr> <tr> <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-US; mso-bidi-language: AR-SA;">FSP403366</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-US; mso-bidi-language: AR-SA;"><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-US; mso-bidi-language: AR-SA;">Charles Bertram Cahn</span></span></td> <td> </td> <td> </td> </tr> <tr> <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-US; mso-bidi-language: AR-SA;">FSP387968 </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-US; mso-bidi-language: AR-SA;">Brian Leonard Mason</span></td> <td>B L Mason &amp; Associates Ltd</td> <td> </td> </tr> </tbody> </table> <p>*An authorised body is a related body corporate that has been authorised by FMA to provide a service covered by the licence.</p> <p>You can find out further details including the provider's business address and list of services on the <a href="http://www.fspr.govt.nz/">Financial Service Providers Register</a>.</p> http://www.fma.govt.nz/help-me-comply/new-offers-under-fmc-act/exemptions/ Exemptions 2014-12-01 16:07:50 Financial Markets Authority <p>The Financial Markest Conduct Act (FMC Act) offer regime is simpler and more efficient than the previous Securities Act regime. Most issuers and offerors will be able to make offers under either:</p> <ul> <li>the standard regime for <a href="http://www.fma.govt.nz/keep-updated/the-future-of-financial-markets/new-offers-under-fmc-act/who-needs-to-comply/">regulated offers</a>, or </li> <li>a <a href="http://www.fma.govt.nz/keep-updated/the-future-of-financial-markets/new-offers-under-fmc-act/schedule-1-offers/">Schedule 1 exclusion</a></li> </ul> <p>However in some cases businesses may encounter difficulties offering financial products under the FMC Act regime. In some circumstances exemptive relief from a regulatory or disclosure requirement may be appropriate. For example:</p> <ul> <li>Instances where the standard offer information, or ongoing compliance, requirements are not effectively tailored for a unique financial product</li> <li>Instances where specific information usually required in an offer document can’t be obtained, but alternative information that can be provided instead</li> <li>Overseas issuers seeking to offer on the basis of an appropriate recognised foreign regime</li> <li>Interests caught within the definition of financial products that are not financial products in the conventional sense such that the offer information requirements usually applying to financial products is not justified</li> <li>Offers made in similar circumstances to offers under the Schedule 1 excluded offer regime, or an overseas recognition regime, which for technical reasons cannot rely on the statutory relief</li> </ul> <p>For additional information about FMA exemptions <a href="http://www.fma.govt.nz/laws-we-enforce/legislation/exemption-notices/">click here</a>.</p> <p>If you think there may be a basis for relief from the standard regulated offers regime, and that is not provided for by a Schedule 1 exclusion, consider:</p> <ul> <li>Can you rely on a current FMC Act exemption?</li> <li>Are you interested in an FMC Act exemption already under consideration by the FMA?</li> <li>Do you have a sound basis to apply for a new FMC Act exemption?</li> </ul> <p> </p> <h3>Current FMC Act exemptions</h3> <p>Notices currently in force are listed here.  You can browse the list of Notices currently in force, or search using the above search box, to find a notice of interest to you.</p> <h3>FMC Act exemptions under consideration</h3> <h4> </h4> <h4>Exemptions that may be required</h4> <p>The FMA is aware there are a number of issues that may arise for market participants operating under the FMC Act regime. Exemptions may be required in some cases. We propose to publish an outline of these issues early in 2015 and consult on them in the first quarter of next year.</p> <h4>Exemptions that are no longer required</h4> <p>Many of the technical difficulties participants encounter operating under the Securities Act regime are avoided or addressed by the FMC Act regime. Exemptions covering these difficulties will no longer be required.</p> <p>Our table, <a href="http://www.fma.govt.nz/assets/Exemptions/Issues-that-no-longer-arise-under-the-FMC-Act-.pdf" target="_blank">Issues that no longer arise under the FMC Act regime</a>, summarises why we believe new equivalent FMC Act exemptions are not required.</p> <p>Businesses can continue to rely on these exemptions, to the extent they still apply and have not expired, during the transition period for any offers made under the Securities Act regime. (Please note, regardless of the expiry date of these exemptions, all these exemptions become redundant at the end of the relevant transition period (30 November 2015 or 30 November 2016) because you will no longer be able to offer or manage securities under the Securities Act regime.)</p> <p>Please contact us if you would like to discuss these exemptions.</p> <h3>Do you have a sound basis to apply for a new FMC Act exemption?</h3> <p>We have wide powers to exempt persons (or types of persons) or transactions (or types of transactions) from some requirements in the FMC Act and associated regulations. Any exemptions we grant must promote one or more of the purposes of the FMC Act regime:</p> <ul> <li>confident and informed participation in financial markets</li> <li>development of fair, efficient and transparent financial markets</li> <li>to provide for timely, accurate, and understandable information to assist investment decisions</li> <li>to ensure appropriate governance arrangements apply to financial products and services that allow for effective monitoring and reduce governance risks  </li> <li>to avoid unnecessary compliance costs</li> <li>to promote innovation and flexibility in the financial markets Additionally the extent of the exemption must not be broader than necessary to address the matters than gave rise to it.</li> </ul> <p>Additionally, the extent of the exemption must not be broader than necessary to address the matters than gave rise to it. Read more about <a href="http://www.fma.govt.nz/laws-we-enforce/legislation/exemption-notices/">how to make an FMC Act exemption application.</a></p> http://www.fma.govt.nz/help-me-comply/issuers/exemptions/ Exemptions 2014-12-01 15:49:10 Financial Markets Authority <p>For offers made under the Securities Act during the transition from the Securities Act to the Financial Markets Conduct Act 2013 (FMC Act) regime, businesses can continue to rely on Securities Act regime exemptions, to the extent they still apply and have not expired,</p> <p>All existing Securities Act exemptions become redundant at the end of the relevant transition period, regardless of their expiry date, because you will no longer be able to offer or manage securities under the Securities Act regime.</p> <p>Many existing exemptions address issues that will no longer be difficulties under the FMC Act offers regime. Our table <a href="http://www.fma.govt.nz/assets/Exemptions/Issues-that-no-longer-arise-under-the-FMC-Act-.pdf" target="_blank">Issues that no longer arise under the FMC Act regime</a> summarises why the circumstances addressed by a number of current Securities Act class exemptions no longer raise issues.</p> <p>If you have an existing individual exemption that expires before the end of the transition period, you can apply to have your exemption extended. However we will discuss with you whether you can move more quickly into the FMC regime instead.</p> <p><a title="Exemption Notices" href="http://www.fma.govt.nz/laws-we-enforce/legislation/exemption-notices/"><strong><span style="color: rgb(0, 102, 204);">See a full list of Exemption Notices</span></strong></a></p> <h3>New exemptions</h3> <p>We don’t propose to develop any new class exemptions from the Securities Act regime. Instead you should look to move to the new FMC Act regime as promptly as you are able. </p> <p>You can continue to apply for new individual exemptions from the Securities Act regime, however, before accepting your application, we will discuss the alternative approach of moving more quickly into the FMC Act regime.</p> <p>See our <a href="http://www.fma.govt.nz/laws-we-enforce/legislation/exemption-notices/">exemption pages </a>for how to apply.</p> <p> </p> <p> </p> http://www.fma.govt.nz/help-me-invest/risks-involved-in-investing/being-alert-to-scams/checking-the-financial-service-providers-register/ Checking the Financial Service Providers Register 2014-12-01 15:44:42 Financial Markets Authority <p>Financial service providers with a place of business in New Zealand must be registered on a public online register called the <a href="http://www.business.govt.nz/fsp">Financial Service Providers Register (FSPR).</a></p> <p>The <a href="http://www.business.govt.nz/fsp">FSPR</a> will tell you the service provider's business address and list the financial services they are registered to provide.  They can't offer you services not on this list. <br><br>The <a href="http://www.business.govt.nz/fsp">FSPR</a> will also tell you the name of their dispute resolution scheme.  This is a free service that will help you resolve any disputes you may have in future with the company or person.<br><br>If the financial service provider you are dealing with doesn't appear on the <a href="http://www.business.govt.nz/fsp">FSPR</a>, you should be wary of dealing with them. However, the register is not a list of the individuals and entities that FMA regulate. While the registration process includes checks on certain people involved with the provision of the financial services, for example, whether those people have been convicted of specific criminal offences or are undischarged bankrupts, there are no checks around competence, qualifications or good character.</p> <p>Where financial service providers have been licensed or authorised by the FMA, this will be described on their FSPR entry.<br><br>Find out more about the <a href="http://www.business.govt.nz/fsp/about-the-fspr/what-is-the-fspr">FSPR and our role in monitoring it</a>.</p> <h2>How to check the register</h2> <ol> <li>Go to <a href="http://www.fspr.govt.nz">www.fspr.govt.nz</a></li> <li>In the box on the top right hand side (search the register), type in your provider's surname or company name.This will generate a list of all the people or company with that name.</li> <li>Click on the one you are dealing with to see a screen of information about them. Make sure you scroll down to see the services they can offer you and the name of their dispute resolution scheme.<br><br>Please note, financial advisers who work for a Qualifying Financial Entity (QFE) don't have to be listed individually on the register but the financial service company they work for must be there.</li> </ol> <p><a href="http://www.fma.govt.nz/help-me-invest/getting-financial-advice/find-an-adviser/">See more about looking up financial advisers on the register</a>.</p> <p>See <a href="http://www.fma.govt.nz/keep-updated/warnings-alerts-and-scams/names-of-firms-and-individuals-to-be-wary-of/">names and firms to be wary of.</a></p> <p> </p> <h2>Our powers in relation to the FSPR</h2> <p>We have the power to prevent people from registering on the FSPR if the registration is likely to create a false or misleading impression about the extent to which the person is regulated in New Zealand, or providing services from or in New Zealand, or if the registration is otherwise likely to damage the integrity or reputation of New Zealand’s financial markets or law or regulatory arrangements. We also have the power to direct the Registrar to deregister a person who is already registered.<br><br>Where a company or person should be on the register but isn't, we may also take action. <br><br>It's important to note, while being a registered financial service provider means there is a dispute service and, for financial advisers, that they must offer clients service with care, diligence and skill, it carries no other quality assurance.  Registered financial service providers are not required to be monitored by us simply as a result of registration.</p> http://www.fma.govt.nz/keep-updated/newsroom/fma-updates/fma-update-1-december-2014 FMA Update - 1 December 2014 2014-12-01 15:04:46 Financial Markets Authority <h2><b>Welcome to a new era in New Zealand’s financial markets</b></h2> <p>Today marks an important milestone for New Zealand’s financial markets now that phase two of the Financial Markets Conduct Act 2013 (FMC Act) has come into effect.<br> <br> The new regulations are designed to build confidence in our financial markets and allow firms to raise capital efficiently so they can grow their business and the economy.<br> <br> The phase two regulations cover:</p> <ul> <li>new disclosure requirements</li> <li>go-live of the online registers</li> <li>the governance of financial products and</li> </ul> <p>additional detail supporting the remainder of the FMC Act.</p> <h2><b>Improving our communication</b></h2> <p>To help you move quickly and efficiently into the new FMC Act environment, we have been progressively publishing new information and guides on our website, and running workshops on a range of topics.<br> <br> We are also publishing information for market participants, such as marinas, who can now choose to be unregulated. <a href="http://financialmarketsauthority.cmail2.com/t/r-l-citdllk-wbtdddg-t/">Information for marinas</a> is now available on our website.<br> <br> Over the coming months we’ll be finalising more written guidance, as we take into account the feedback we receive via the consultation process.<br> <br> We’re also working to improve our key communication channels – in the first quarter of 2015 we will be launching a new website, making improvements to the FMA Update and publishing a consultation calendar.</p> <h2><b>Here are some useful links to information and guides:</b></h2> <ul> <li><a href="http://financialmarketsauthority.cmail2.com/t/r-l-citdllk-wbtdddg-k/">Offering under the FMC Act</a> - for businesses making new offers.</li> <li><a href="http://financialmarketsauthority.cmail2.com/t/r-l-citdllk-wbtdddg-u/">Application guides</a> for the new FMC Act licences (<a href="http://financialmarketsauthority.cmail2.com/t/r-l-citdllk-wbtdddg-o/">recently updated</a>).</li> <li><a href="http://financialmarketsauthority.cmail2.com/t/r-l-citdllk-wbtdddg-b/">Guidance</a> on the new accountability framework for financial products.</li> <li><a href="http://financialmarketsauthority.cmail2.com/t/r-l-citdllk-wbtdddg-n/">Information</a> on new financial reporting requirements under the FMC Act.</li> </ul> <h2><b>How to improve financial statements</b></h2> <p>Earlier today we released a report that addresses disclosure challenges within the New Zealand environment. The <a href="http://financialmarketsauthority.cmail2.com/t/r-l-citdllk-wbtdddg-p/">report identifies ways to improve financial statements</a> so they are a clear and effective reporting and communications tool.<br> <br> We encourage entities to be bold and reduce the clutter by removing standardised and immaterial disclosures, and focus on the areas covered in this <a href="http://financialmarketsauthority.cmail2.com/t/r-l-citdllk-wbtdddg-x/">report</a>.<br> <br> This work follows a half-day discussion forum we hosted in Auckland during September – ‘<a href="http://financialmarketsauthority.cmail2.com/t/r-l-citdllk-wbtdddg-m/">Beyond International Financial Reporting Standards (IFRS): Quality Financial Reporting</a>’.</p> <h2><b>Changes for Futures Dealers </b></h2> <p>Existing authorisations for futures dealers cease today (1 December 2014). Transitional provisions in the FMC Act however provide for transitional derivatives issuer licences for those entities that were authorised futures dealers immediately prior to 1 December 2014 and who need to be licensed under the FMC Act. See our <a href="http://financialmarketsauthority.cmail2.com/t/r-l-citdllk-wbtdddg-c/">derivatives issuer licence list</a>.</p> <h2><b>Disclose register</b></h2> <p>The new register for products and schemes, <a href="http://financialmarketsauthority.cmail2.com/t/r-l-citdllk-wbtdddg-q/">Disclose</a>, is now available. Information about using the register is available on the <a href="http://financialmarketsauthority.cmail2.com/t/r-l-citdllk-wbtdddg-a/">disclose website</a>. Our <a href="http://financialmarketsauthority.cmail2.com/t/r-l-citdllk-wbtdddg-f/">consultation</a> on the content and form of register entries closes on Friday 12 December.</p> <h2><b>Seminars and workshops</b></h2> <p>Our upcoming seminars focus on AFAs and personalised DIMS. Our ‘<a href="http://financialmarketsauthority.cmail2.com/t/r-l-citdllk-wbtdddg-z/">How can I get involved</a>’ web page details the seminars currently available.</p> <h2><b>Current Consultations</b></h2> <ul> <li><a href="http://financialmarketsauthority.cmail2.com/t/r-l-citdllk-wbtdddg-v/">Consultation paper: Fund Updates and Guidance on Risk Indicators</a> – <strong>closes 16 January 2015</strong><br> Released today, this paper seeks your feedback on a proposed ‘frameworks or methodologies’ (FM) template for fund updates and new guidance for calculating risk indicators.</li> <li><a href="http://financialmarketsauthority.cmail2.com/t/r-l-citdllk-wbtdddg-e/">Consultation paper: Corporate Governance in New Zealand – Principles and Guidelines</a> - <strong>closes Monday 1 December</strong>.</li> <li><a href="http://financialmarketsauthority.cmail2.com/t/r-l-citdllk-wbtdddg-s/">Consultation paper: Going Public – A Director’s Guide</a> – <strong>closes Monday 8 December.</strong></li> <li><a href="http://financialmarketsauthority.cmail2.com/t/r-l-citdllk-wbtdddg-g/">Consultation paper: Personalised DIMS under the Financial Advisers Act 2008</a> – <strong>closes Tuesday 9 December.</strong></li> <li><a href="http://financialmarketsauthority.cmail2.com/t/r-l-citdllk-wbtdddg-w/">Consultation paper: Content and form of Disclose register information</a> – <strong>closes Friday 12 December</strong>.</li> </ul> <h2><b>FMA in the media - over the last month</b></h2> <ul> <li><a href="http://financialmarketsauthority.cmail2.com/t/r-l-citdllk-wbtdddg-yd/">Phase two of financial markets law completes long-term overhaul</a> - 28 Nov 2014</li> <li><a href="http://financialmarketsauthority.cmail2.com/t/r-l-citdllk-wbtdddg-yh/">New Chair of Financial Markets Authority</a> - 26 Nov 2014</li> <li><a href="http://financialmarketsauthority.cmail2.com/t/r-l-citdllk-wbtdddg-yk/">TVNZ Q&amp;A Programme – CEO Rob Everett on what’s changed for Kiwi Investors</a> - 23 Nov 2014</li> <li><a href="http://financialmarketsauthority.cmail2.com/t/r-l-citdllk-wbtdddg-yu/">The FMA reports on its 12 month performance</a> - 20 Nov 2014</li> <li><a href="http://financialmarketsauthority.cmail2.com/t/r-l-citdllk-wbtdddg-jl/">Financial Markets Authority AFA Update: Issue # 33</a> - 20 Nov 2014</li> <li><a href="http://financialmarketsauthority.cmail2.com/t/r-l-citdllk-wbtdddg-jr/">Three new members for Financial Advisers Code Committee</a> - 14 Nov 2014</li> </ul> <p><strong><a href="http://financialmarketsauthority.cmail2.com/t/r-l-citdllk-wbtdddg-jy/">Previous FMA Update</a> - 11 November 2014</strong></p> <h2><b>Questions?</b></h2> <p>For enquiries about any of these topics please email us at<strong> <a href="mailto:questions@fma.govt.nz">questions@fma.govt.nz</a></strong></p> http://www.fma.govt.nz/keep-updated/reports-and-papers/quality-financial-reporting-how-to-improve-financial-statements Quality Financial Reporting - How To Improve Financial Statements 2014-12-01 14:54:35 Financial Markets Authority <h3>How to improve financial statements</h3> <p>In September 2014 the FMA hosted a half-day discussion forum in Auckland titled ‘Beyond International Financial Reporting Standards (IFRS): Quality Financial Reporting’. The forum aimed to facilitate a clearer understanding of disclosure challenges within the New Zealand environment. Discussions also included ways to improve financial statements so they are a clear and effective reporting and communications tool.</p> <p>Following this event we produced a summary of the main themes raised at the forum. Our primary message is that financial statement information should focus on the specific needs of its primary users. We encourage entities to be bold and reduce immaterial disclosures. The summary report on how to improve financial statements is for all those involved in the preparation, audit and review of financial statements.</p> <p><a href="http://www.fma.govt.nz/assets/Report-and-Papers/Corporate-Publications/Quality-Financial-Reporting-How-To-Improve-Financial-Statements.pdf" target="_blank">Read the full report</a>.</p> http://www.fma.govt.nz/help-me-comply/new-offers-under-fmc-act/offer-information/ Offer information 2014-12-01 14:38:20 Financial Markets Authority <p>Information about ‘regulated offers’ must be disclosed in a product disclosure statement (PDS) and the publicly accessible <a href="http://www.business.govt.nz/disclose">online Disclose register</a>.</p> <p>Together, this information must include all material information about the offer of a financial product and be up-to-date, accurate and understandable. The purpose of the information is to assist investors with their decisions on financial products.</p> <h3><strong>Product disclosure statement (PDS)</strong></h3> <p>The PDS provides key information about the offer focused on the prudent but non-expert investor.</p> <p>It must be worded and presented in a clear, concise and effective manner and has a prescribed content and format to make offer information accessible to retail investors.</p> <p>A compulsory Key Information Summary at the front of the PDS gives investors an overview of key characteristics and the specific risks of the financial product.</p> <p>A PDS must comply with prescribed length limits. These limits are the maximum allowed – issuers are encouraged to use less where possible. The maximum limits are:</p> <table> <tbody> <tr> <td><b>Product type</b></td> <td><b>Page limit<br>(printed A4 pages)</b></td> <td><b>Or, word limit</b></td> </tr> <tr> <td>Debt security</td> <td>30</td> <td>15,000</td> </tr> <tr> <td>Equity security</td> <td>60</td> <td>30,000</td> </tr> <tr> <td>Managed investment scheme:<br>• managed fund<br>• other MIS</td> <td> <p><br>12 <br>60</p> </td> <td> <p><br>6,000<br>30,000</p> </td> </tr> <tr> <td>Derivative</td> <td>30</td> <td>15,000</td> </tr> </tbody> </table> <h3>Disclose register</h3> <p>Material information about a regulated offer that is not included in a PDS needs to be uploaded to an <a href="http://www.business.govt.nz/disclose">online register called ‘Disclose’</a>. Disclose holds information about financial products (split into <a href="http://www.fma.govt.nz/help-me-comply/new-offers-under-fmc-act/who-needs-to-comply/">debt, equity, managed investment products and derivatives</a>).  Disclose also has online registers for managed investment schemes (split into managed funds and other managed investments schemes).</p> <p><a href="http://www.business.govt.nz/disclose">Disclose</a> provides a rich source of supporting information for investors, and enables advisers and analysts to carry out more in-depth research and analysis.  We have published a <a href="http://www.fma.govt.nz/laws-we-enforce/policy/current-consultations/consultation-paper-content-and-form-of-disclose-register-information">consultation paper </a>on the content and form of Disclose register information. Disclose will continue to be developed during the two year transitional period to add in search and compare functions. All regulated financial products must be registered on Disclose by midnight 30 November 2016.</p> http://www.fma.govt.nz/help-me-comply/new-offers-under-fmc-act/ New Offers under FMC Act 2014-12-01 14:16:53 Financial Markets Authority <p>The Financial Markets Conduct Act 2013 (FMC Act) introduces new requirements for financial product offer information. These pages outline the new requirements, and provide information about when they don’t apply.</p> http://www.fma.govt.nz/laws-we-enforce/legislation/notices/ Notices 2014-12-01 11:40:25 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> <li> <p><a href="http://www.fma.govt.nz/laws-we-enforce/legislation/notices/financial-markets-conduct-fmc-reporting-entities-with-higher-level-of-public-accountability-notice-2014/">Financial Markets Conduct (FMC Reporting Entities with Higher Level of Public Accountability) Notice 2014</a></p> </li> <li> <p><a href="http://www.fma.govt.nz/laws-we-enforce/legislation/notices/main-board-debt-market-listing-rules/">Securities Markets Act (Main Board Debt Market Listing Rules) Approval of Market Rules Notice 2014</a></p> </li> </ul> http://www.fma.govt.nz/laws-we-enforce/legislation/notices/main-board-debt-market-listing-rules/ Main Board Debt Market Listing Rules 2014-12-01 11:34:52 Financial Markets Authority <h2>Related Files</h2> <ul> <li><a href="http://www.fma.govt.nz/assets/Notices/Securities-Markets-Act-Main-Board-Debt-Market-Listing-Rules-Approval-of-Market-Rules-Notice-2014.pdf" target="_blank">Securities Markets Act (Main Board Debt Market Listing Rules) Approval of Market Rules Notice 2014</a></li> </ul> http://www.fma.govt.nz/help-me-comply/futures-dealers/ Futures Dealers 2014-11-28 17:09:35 Financial Markets Authority <p>The Financial Markets Conduct Act 2013 (FMC Act) introduces derivatives as a regulated financial product category. Derivatives include futures contracts which were previously regulated under the Securities Markets Act 1988, The Securities Markets Act required futures dealers to be authorised by the FMA. Existing authorisations for futures dealers ceased on 1 December 2014 when the Securities Markets Act was repealed. Transitional provisions in the FMC Act however provide for transitional derivatives issuer licences for those entities that were authorised futures dealers immediately prior to 1 December 2014 and who need to be licensed under the FMC Act. </p> <p> </p> http://www.fma.govt.nz/help-me-comply/futures-dealers/client-funds-regulations-and-exemptions/ Client Funds Regulations and Exemptions 2014-11-28 16:52:06 Financial Markets Authority <h3><b>What are the client fund transitional arrangements?</b></h3> <p>The Financial Markets Conduct Regulations 2014 (‘FMC Regulations’) allow those entities that hold a transitional derivatives issuer licence to either:</p> <p>(a)     continue to rely on the Futures Industry (Client Funds) Regulations 1990 (‘Client Funds Regulations’) and associated exemptions until 1 December 2015; or</p> <p>(b)     elect to comply with the new derivatives investor money and derivatives investor property handling requirements (see regulations 238-250 of the FMC Regulations) earlier than 1 December 2015, by written notice to the FMA.</p> <h3><b>What are the client funds obligations?</b></h3> <p>The Client Funds Regulations prescribe rules regarding the operation of client funds accounts and require funds to be kept separate from the dealer's operating accounts. These rules seek to protect client money and property in cases where the dealer becomes insolvent. For example:</p> <ul> <li>the dealer must establish at least one client bank account with a registered bank in New Zealand, and may establish client bank accounts with overseas banks</li> <li>the dealer must obtain a prescribed written statement from each relevant bank, which includes acknowledgement that all money in the account is held on behalf of clients</li> <li>all client money received by the dealer must be deposited into a client bank account and may only be withdrawn for purposes specified by the Client Funds Regulations</li> <li>dealers must ensure that the aggregate amount of money and property held in its segregated accounts is sufficient to cover the amounts of client money and client property it holds for clients</li> <li>dealers must keep proper records of all dealings with client money and client property</li> <li>compliance with the Client Funds Regulations must be reviewed by an auditor.</li> </ul> <h3><b>List of existing exemptions</b></h3> <p>Notices for client funds exemptions granted under section 48(1)(d) of the Securities Markets Act since 2009 can be accessed <a href="http://www.fma.govt.nz/laws-we-enforce/legislation/exemption-notices/current-exemption-notices/securities-markets-act-exemptions/">here</a>.</p> http://www.fma.govt.nz/laws-we-enforce/legislation/exemption-notices/current-exemption-notices/financial-reporting-act-1993-exemptions/ Financial Reporting Act 1993 Exemptions 2014-11-28 16:29:52 Financial Markets Authority <p>The Financial Reporting Act 1993 has been repealed however transitional provisions provide for issuers to remain subject to obligations under the 1993 Act until they become FMC Reporting Entities under the FMC Act.  While an issuer remains subject to the obligations of the 1993 Act it may continue to rely on any relevant exemption from the 1993 Act, to the extent the exemption still applies and has not expired.</p> <p>Notices currently in force are listed below. Follow the links to see more information about each notice, including the type of notice and revocation date. To read class exemption notices you will be directed to the <a href="http://www.legislation.govt.nz">New Zealand Legislation</a> website. All other notices are available on this website with the notice details. Copies are also available for purchase from FMA on request. See <a href="http://www.fma.govt.nz/about-us/contact-us/office-contact-details/">office contact details.</a> Also see our information on <a href="http://www.fma.govt.nz/help-me-comply/new-offers-under-fmc-act/exemptions/">exemptions under consideration</a>.</p> http://www.fma.govt.nz/laws-we-enforce/legislation/exemption-notices/current-exemption-notices/securities-act-exemptions/ Securities Act Exemptions 2014-11-28 16:29:19 Financial Markets Authority <p>Notices currently in force are listed below. Follow the links to see more information about each notice, including the type of notice and expiry date. To read notices which are statutory regulations, as indicated by an SR number, go to the <a href="http://www.legislation.govt.nz">New Zealand Legislation</a> website. All other notices are available on this website with the notice details. Copies are also available for purchase from us on request. See <a href="http://www.fma.govt.nz/about-us/contact-us/office-contact-details/">office contact details.</a></p> <p>You can continue to rely on Securities Act regime exemptions, to the extent they still apply and have not expired, for offers able to be made under the Securities Act during the transition from the Securities Act to the Financial Markets Conduct Act 2013 (FMC Act) regime.</p> <p>All existing Securities Act exemptions become redundant at the end of the relevant transition period, regardless of their expiry date, because you will no longer be able to offer or manage securities under the Securities Act regime.</p> <p>Also see our information on <a href="http://www.fma.govt.nz/[sitetree_link,id=]">exemptions under consideration</a>.</p> http://www.fma.govt.nz/laws-we-enforce/legislation/exemption-notices/current-exemption-notices/ Current Exemption Notices 2014-11-28 16:28:49 Financial Markets Authority <p>Notices currently in force are listed below. Follow the links to see more information about each notice, including the type of notice and expiry date. To read notices which are statutory regulations, as indicated by an SR number, go to the <a href="http://www.legislation.govt.nz">New Zealand Legislation</a> website. All other notices are available on this website with the notice details. Copies are also available for purchase from FMA on request. See <a href="http://www.fma.govt.nz/about-us/contact-us/office-contact-details/">office contact details.</a></p> <p>You can continue to rely on Securities Act regime exemptions, to the extent they still apply and have not expired, for offers able to be made under the Securities Act during the transition from the Securities Act to the Financial Markets Conduct Act 2013 (FMC Act) regime.</p> <p>All existing Securities Act exemptions become redundant at the end of the relevant transition period, regardless of their expiry date, because you will no longer be able to offer or manage securities under the Securities Act regime.</p> <p>Also see our information on <a href="http://www.fma.govt.nz/help-me-comply/new-offers-under-fmc-act/exemptions/">exemptions under consideration</a>.</p> http://www.fma.govt.nz/help-me-comply/new-offers-under-fmc-act/schedule-1-offers/ Schedule 1 offers 2014-11-28 16:13:12 Financial Markets Authority <p>Schedule 1 of the Financial Markets Conduct Act 2013 (<strong>FMC Act</strong>) sets out a series of statutory exclusions where lighter compliance paths are appropriate. These include exclusions are due to: </p> <ul> <li>The circumstances of the offer (e.g, an offer through a licensed crowd funding platform)</li> <li>The circumstances of the investor (e.g, an offer to a wholesale investor)</li> <li>The circumstances of the issuer (e.g, an offer by a registered bank)</li> </ul> <p>Depending on the exclusion, limited or no disclosure may be required and other requirements such as the following may be required:</p> <ul> <li>A prominent warning statement. You can make minor changes to the prescribed wording of the warning statement if it contains particular information that does not apply or otherwise needs to be added to or modified to ensure it’s not false, misleading or confusing (see Regulation 9).</li> <li>A document containing key information and terms of  the offer</li> <li>Access to annual reports and financial statements</li> <li>A limited disclosure document  lodged with the Registrar that complies with specific requirements as if the offer was a regulated offer</li> <li>Ongoing disclosure duties</li> </ul> <p>There is also a requirement to notify the FMA if you are using the small offers exclusion. Notifications must be made within one month of the end of the accounting period in which the offer is made. There is no need to notify us if you intend to raise capital using any of the other exclusions.</p> <ul> <li>Notify the FMA that you are relying on the small offers exclusion by <a href="mailto:compliance@fma.govt.nz">emailing us</a>. </li> </ul> <p>Our <a href="http://www.fma.govt.nz/assets/Report-and-Papers/Information-Sheets/Summary-of-Schedule-1-exclusions-under-the-Financial-Markets-Conduct-Act-2013-FMC-Act.pdf" target="_blank">Schedule 1 offers table</a>, summarises the circumstances where the disclosure exclusions in Part 1 of Schedule 1 are available and what the associated limited disclosure and other requirements (if any) are for each exclusion. </p> <p>Offers under Schedule 1 also do not trigger the ongoing financial reporting obligations in Part 7 of the FMC Act.</p> <p>Failure to comply with the Schedule 1 exclusion limited disclosure and other requirements in the FMC Regulations may incur civil liability consequences. However, your offer won't be invalidated, and the financial products offered won't be invalid, void or voidable.</p> http://www.fma.govt.nz/laws-we-enforce/legislation/exemption-notices/current-exemption-notices/securities-markets-act-exemptions/ Securities Markets Act Exemptions 2014-11-28 15:09:42 Financial Markets Authority <p>The Securities Markets Act 1988 is repealed from 1 December 2014.  Transitional provisions have however preserved the Futures Industry (Clients Funds) Regulations 1990, and exemptions granted from those regulations, until 30 November 2015.  Follow the links to see more information about each notice, including the type of notice and revocation date. To read class exemption notices you will be directed to the <a href="http://www.legislation.govt.nz">New Zealand Legislation</a> website. All other notices are available on this website with the notice details. Copies are also available for purchase from FMA on request. See <a href="http://www.fma.govt.nz/about-us/contact-us/office-contact-details/">office contact details.</a> Also see our information on <a href="http://www.fma.govt.nz/help-me-comply/issuers/exemptions/">exemptions under consideration</a>.</p> http://www.fma.govt.nz/laws-we-enforce/legislation/exemption-notices/applying-for-an-exemption/applications-to-exclude-commercially-sensitive-information-from-material-contracts/ Applications to Exclude Commercially Sensitive Information from Material Contracts 2014-11-28 15:06:29 Financial Markets Authority <p>The Securities Regulations 2009 require issuers to make copies of certain material contracts available for public inspection as part of the requirements for an offer of securities to the public under the Securities Act regime.</p> <p>From time to time we receive an exemption application from an issuer who seeks to exclude from its material contracts information that it considers to be commercially sensitive.</p> <p>In considering such applications, we need to determine the appropriate balance between the investors' need to know the sensitive information and the potential competitive harm to the issuer in disclosing that information.</p> <p>This note sets out current FMA policy in this area.</p> <h2>Requirement to Disclose Material Contracts</h2> <p>The Securities Regulations 2009 require disclosure of material contracts as follows:</p> <ol> <li>Clause 17 of the First Schedule to the Regulations (and equivalent provisions in other Schedules) requires disclosure in the prospectus of certain prescribed information about the issuing group's material contracts;</li> <li>Regulation 18(1)(a) requires a registered prospectus to have attached to it, or be accompanied by, copies of the material contracts (which will then be available for public inspection at the Companies Office); and</li> <li>Clause 25(c) of the First Schedule (and equivalent provisions in other Schedules) requires that the prospectus state the times and places where copies of the material contracts may be inspected by any person on payment of any fee.</li> </ol> <h2>Policy</h2> <p>The starting point for consideration of exemption applications of this nature is that we aim for full disclosure, and we will only permit deletion of commercially sensitive information from material contracts in exceptional circumstances. Such exceptional circumstances must be clearly identified in any application for exemption.</p> <p>No exemption will be granted where exclusion of the information in question means the prospectus will be likely to deceive, mislead or confuse with regard to any particular that is material to the offer, including by failing to refer, or give proper emphasis, to adverse circumstances.</p> <p>We may be willing to grant an exemption that will permit an issuer to exclude commercially sensitive information from the disclosure copies of material contracts, if it is satisfied that disclosure of the information will be seriously detrimental to the issuer, and that detriment outweighs the benefit arising from publication. Each application will be considered on a case by case basis.</p> <p><strong>We are unlikely to grant such an exemption where:</strong></p> <ol> <li>disclosure of the information is required by any other law or the listing requirements of New Zealand or any other jurisdiction to which the issuer is subject; or</li> <li>disclosure of the information would be detrimental to the issuer solely because of a duty of confidence owed to a third party.</li> </ol> <p>Any exemption granted will be in respect of the particular information determined to be sensitive, and to meet the above criteria, rather than being an exemption applying to the whole contract.</p> <p>Any exemption granted can be expected to be conditional upon the prospectus stating, at the appropriate point in the statutory information section:</p> <ol> <li>that information has been deleted from the particular contract; and</li> <li>the reasons why the information has been deleted; and</li> <li>the general nature of the material information that has been deleted.</li> </ol> <h3> </h3> <h3>Offers of financial products under the FMC Act</h3> <p>The FMC Regulations 2014 require that, if the existence, or any of the terms, of a contract entered into by any member of the issuing group is material information, the register entry contain a copy of the contract, or a summary of its key terms (including the material information).  An exception is that this is not necessary if all of the key terms and material information are summarised or disclosed in the Product Disclosure Statement (PDS).</p> <p>If the existence, or key terms, of a contract required to be summarised on the register contained commercially sensitive information we will consider this policy in determining any exemption application.</p> http://www.fma.govt.nz/laws-we-enforce/legislation/exemption-notices/applying-for-an-exemption/information-to-include-with-your-exemption-application/ Information to include with your exemption application 2014-11-28 15:05:35 Financial Markets Authority <p>Please ensure the following information is covered in your application:</p> <h4><strong>Who is applying?</strong></h4> <p>Give the full name, address and corporate status of the person(s) seeking the exemption.</p> <p>State the jurisdiction in which the applicant is incorporated or constituted, and any securities exchanges upon which its financial products are listed.</p> <h4><strong>What do you want an exemption from?</strong></h4> <p>Give the provisions of the Acts and/or Regulations from which the exemption is sought and any conditions of exemption you consider appropriate.</p> <h4>Why are you seeking this exemption?</h4> <p>Explain, for each provision of the Acts or Regulations from which the exemption is sought, why the exemption is wanted and give full reasons which may justify an exemption. Your reasons should include an explanation of how the exemption sought is consistent with the policy of the relevant legislation, and how it meets the statutory tests shown below.</p> <table> <tbody> <tr> <td><strong>Act</strong></td> <td><strong>Provisions containing statutory tests to be met before exemption granted</strong></td> </tr> <tr> <td>Securities Act 1978</td> <td>Sections 70B and 70D (preserved for transitional period by clause 11 of Schedule 4 of the Financial Markets Conduct Act 2013)</td> </tr> <tr> <td>Financial Reporting Act 1993</td> <td>Sections 4B and 35A (preserved for transitional period by section 55(4) of the Financial Reporting Act 2013)</td> </tr> <tr> <td>Financial Advisers Act 2008</td> <td>Sections 148 and 148A</td> </tr> <tr> <td>Financial Markets Conduct Act 2013</td> <td>Sections 556, 557 and 572</td> </tr> </tbody> </table> <h4>Are there any precedents?</h4> <p>Identify any existing exemption notices which are similar to the exemption sought and which may provide a precedent for your application. Explain how the notices are similar to and different from the exemption you are seeking.</p> <p>In the case of applications for exemptions under the disclosure requirements of the Securities Act regime, please also include an explanation of why you cannot offer under the FMC Act regime instead.</p> <h4>Timeframe</h4> <p>If your application is urgent tell us the dates when a decision is needed and when any exemption granted needs to be gazetted. Give reasons for seeking urgent consideration. Our ability to accommodate urgent requests will depend on our workload.</p> <h4>Draft notice</h4> <p>You must include a draft exemption notice which would give effect to the exemptions you seek.  When drafting this notice please consider particularly:</p> <ul> <li>the company, or other entity, proper legal names</li> <li>any terms that need to be defined</li> <li>the particular provisions of the relevant legislation from which exemptions are sought</li> <li>the terms and conditions appropriate to each exemption sought</li> <li>a summary of the key reasons for the exemption (consistent with the policy of the relevant legislation, and addressing the statutory tests that must be met for the FMA to grant the exemption)</li> </ul> <h4> </h4> <h3>Specific exemption application requirements</h3> <p>In addition to the general information above, specific exemption applications require additional information.</p> <p><strong>For exemptions from offer information requirements</strong></p> <ul> <li>Describe the offer. It would be helpful to give some background to the offer and then specific details e.g. the type of financial products, details of the offer, parties to the offer, details of target subscribers, etc.</li> <li>Describe how your proposed exemption may affect prospective investors and any costs and benefits to them.</li> <li>Describe the effects on the issuer of the financial product(s), and the relative costs and benefits, of (a) having and (b) not having the exemption.</li> <li>Describe any proposed conditions that require disclosure of alternative information helpful for the investor to make an investment decision.</li> </ul> <p> </p> <p><strong>For applications to exclude commercially sensitive information from material contracts required to be provided in offer information please see <a href="http://www.fma.govt.nz/laws-we-enforce/legislation/exemption-notices/applying-for-an-exemption/applications-to-exclude-commercially-sensitive-information-from-material-contracts/">here</a>.</strong></p> <h4>For exemptions for relief from financial reporting obligations for overseas issuers</h4> <p>Please include detailed information on the following:</p> <ul> <li>The financial reporting, including audit requirements, in force in the country where the issuer is incorporated or is otherwise subject to e.g. listing rules or prudential regulation.</li> <li>The legal standing of the financial reporting requirements.</li> <li>The enforceability of the financial reporting requirements.</li> <li>The ease with which New Zealand authorities could, if necessary, obtain cooperation from home jurisdiction in any investigation – for example, the Securities Regulator and any independent Auditor oversight bodies.</li> </ul> <p>Please include copies of applicable financial reporting laws and standards, or references to where these can be obtained electronically.</p> <h4><strong>For exemptions for relief from financial reporting obligations for entities in  receipt of funds from a conduit issuer</strong></h4> <ul> <li>Describe how the applicant is a ‘recipient of funds from a conduit issuer’.</li> <li>Include specific details, e.g. the type of financial products, parties to the offer, parties who are ‘recipients of funds from a conduit issuer’ and the ‘conduit issuer’, details of target subscribers etc.</li> <li>Address how the circumstances of the issuer or the conditions suggested will ensure that investors still receive adequate information about their investment and the entity or entities for whose use the money has been raised.</li> </ul> <h4>For exemptions from financial adviser requirements</h4> <ul> <li>Name or description of person, service, transaction, document, information, or product in respect of which exemption is sought.</li> <li>Provide details of any consumers, markets or third parties (including competitors) that would be affected by the exemption.  Explain how their interests that will be affected by your proposed exemption.</li> <li>In relation to exemptions from the Code competence requirements, please see section 148(3) of the FAA, and provide details of alternative qualifications you hold. Then:</li> <ul> <ul> <li>explain why qualifications that differ to those accepted as alternatives in the Code would not undermine consumer protection, and</li> <li>state why these are comparable to standards required by the Code, or</li> <li>provide information about the costs of compliance and how they would be unreasonable or not justified by the benefit of compliance, and</li> <li>provide any supporting evidence in relation to your qualification.</li> </ul> </ul> <li>Describe impediments to your activities created by the law, and explain your commercial position.</li> <li>State why the exemption should be granted and how the proposed exemption would operate to assist your operations.</li> <li>Outline appropriate limitations on the proposed exemption addressing any regulatory detriment to consumers or investors if the exemption is granted.</li> <li>Explain any net regulatory benefit, i.e. where any regulatory detriment caused by granting the exemption is outweighed by the commercial or other benefit.</li> <li>State whether you have any objections to, or requests concerning, publication of details of your exemption (see sections 148B and 149 of FAA), and give reasons.</li> </ul> <p> </p> <p> </p> http://www.fma.govt.nz/laws-we-enforce/legislation/exemption-notices/ Exemptions 2014-11-28 14:58:45 Financial Markets Authority <p>We have wide powers to exempt persons (or types of persons) or transactions (or types of transactions) from some financial markets law requirements. These exemption powers enable us to remove rigidities in the law and ensure requirements for businesses are reasonable and cost-effective.</p> <p>In all cases we tailor the requirements for the circumstances of the offer or transaction taking into account both the cost of compliance and the outcomes for investors and the market more generally.</p> <p>Exemptions grant relief from specified provisions of the relevant legislation. They can only be relied on if the terms and conditions of the exemption are complied with. Failing to comply with the terms and conditions of an exemption amounts to a breach of the provision to which the exemption relates (unless the terms of the exemption otherwise provide).</p> <p><strong><a href="http://www.fma.govt.nz/laws-we-enforce/legislation/exemption-notices/current-exemption-notices/">Current Exemption Notices</a></strong><br>A list of notices currently in force with links to see the notices.</p> <p><strong><a href="http://www.fma.govt.nz/assets/Exemptions/Issues-that-no-longer-arise-under-the-FMC-Act-.pdf" target="_blank">Class exemptions no longer required</a><br></strong>This summary table outlines issues addressed by Securities Act class notices that we do not consider remain difficulties under the FMC Act regime. We do not envisage similar new class exemptions from the requirements of the FMC Act regime will be necessary.</p> <p><strong><a href="http://www.fma.govt.nz/laws-we-enforce/legislation/exemption-notices/applying-for-an-exemption/">Applying for an exemption</a><br></strong>Find out how to apply for an exemption and what you need to provide.</p> <p>The FMA is aware there are a number of issues that may arise for market participants operating under the FMC Act regime. Exemptions may be required in some cases. We propose to publish an outline of these issues early in 2015 and consult on them in the first quarter of 2015.</p> <p>Specific information about exemptions relating to the following topics is available below:</p> <ul> <li><a href="http://www.fma.govt.nz/help-me-comply/new-offers-under-fmc-act/exemptions/">Financial Market Conduct Act offer exemptions</a></li> <li><a href="http://www.fma.govt.nz/help-me-comply/new-financial-reporting-requirements/exemptions/">Financial Market Conduct Act financial reporting exemptions</a></li> <li><a href="http://www.fma.govt.nz/help-me-comply/issuers/exemptions/">Securities Act exemptions (and relying on these during the transition period)</a></li> <li><a href="http://www.fma.govt.nz/help-me-comply/financial-advisers/exemptions/">Financial advisers</a></li> <li><a href="http://www.fma.govt.nz/[sitetree_link,id=]">Brokers and custodians</a></li> <li>Derivatives issuers</li> <li><a href="http://www.fma.govt.nz/help-me-comply/kiwisaver/exemptions/">KiwiSaver</a></li> <li><a href="http://www.fma.govt.nz/help-me-comply/superannuation/exemptions/">Superannuation</a></li> </ul> http://www.fma.govt.nz/keep-updated/newsroom/media-releases/2014/phase-two-of-financial-markets-law-completes-long-term-overhaul Phase two of financial markets law completes long-term overhaul 2014-11-28 14:34:20 Financial Markets Authority <p><b>Media release<br>MR no. 2014 - 042<br></b><b>28 November 2014</b></p> <p>The second phase of New Zealand’s new capital markets and financial services law takes effect from Monday (1 December). Phase two includes licensing provisions that extend to several hundred further businesses, and a major shift in the quality of investor disclosure for financial products.</p> <p>The chief executive of the Financial Markets Authority (FMA), Rob Everett, said phase two of the Financial Markets Conduct Act 2013 (FMC Act) largely completes the regulatory overhaul that began with the Capital Market Development Taskforce’s final report in 2009.</p> <p>“New Zealand now has some of the most modern markets regulation in the world,” Mr Everett said.</p> <p>“The law that takes effect on Monday was the subject of wide consultation. It has broad support among finance professionals, businesses, legal advisers and auditors. </p> <p>“Firms are adjusting steadily to the new regulation. Indeed, investors and consumers are seeing results already.</p> <p>“For example, in debt and equity offers, we’ve already seen significant improvements this year in offer documents.</p> <p>“Boards of issuers have recognised the objectives of the FMC Act and applied the clear, concise and effective principle to their offer documents, even though the new disclosure standards only take effect from 1 December.”</p> <p>Mr Everett said the FMC Act was part of a comprehensive overhaul of regulation. In addition to the FMC Act’s focus on licensing and conduct, the overhaul also included an expanded prudential role, for the Reserve Bank, covering banks, insurers, and non-bank deposit-takers.</p> <p>“New Zealand has taken a coherent approach, recognising that regulation works when it’s implemented as a whole. It’s also a coordinated approach that’s designed to provide results without imposing substantial, unnecessary costs.”</p> <p>Features of phase two of the FMC Act include:</p> <p>-          Product disclosure statements for financial products – including debt and equity – made concise, and subject to page limits. An online register will include all the material information on offers under the FMC Act.  Offers can be made under the Securities Act 1978 during a transition period, but the FMA encourages issuers to shift to the new arrangements at the earliest opportunity.</p> <p>-          Further professionals come under FMA licensing, including managers of registered schemes (managed investment schemes), derivatives issuers, and independent trustees of restricted schemes. Providers of discretionary investment managements services (DIMS) will also be licensed.</p> <p>Several hundred organisations and individuals are expected to apply for licences over the next two years, bringing more than 11,000 firms, professionals, registered schemes, and funds under the FMA’s mandate.</p> <p>Phase one of the FMC Act took effect from 1 April 2014.  Phase one included:</p> <p>-          A fair dealing requirement covering all firms or professionals that are dealing in or supplying financial products or financial services </p> <p>-          A more proportionate liability regime - relative to that under existing securities laws - applying to directors of firms making offers or providing financial products under the FMC Act</p> <p>-          More concise and timely financial reporting. About 2,300 firms and schemes are reporting financial information under the FMC Act, and are subject to regulatory oversight by the FMA.</p> <p>Other initiatives under the FMC Act, or as a result of the FMC Act, this year are:</p> <p>-          Providers in two new categories - peer-to-peer lending and equity crowd funding - licensed by the FMA. Providers are now offering both services</p> <p>-          The NZX’s proposed stepping-stone market for emerging firms (‘NXT’), registered as a market</p> <p>-          Issuers using the exemptions providing streamlined processes for ‘same class’ offers,   making it easier to raise further capital. </p> <p><br>ENDS</p> <p><b>Contact:<br></b>Shae Skellern<br>09 300 0465<br>021 847 192<br><a href="mailto:shae.skellern@fma.govt.nz">shae.skellern@fma.govt.nz</a></p> http://www.fma.govt.nz/keep-updated/newsroom/releases-from-the-minister-of-commerce/2014/new-chair-of-financial-markets-authority New Chair of Financial Markets Authority 2014-11-28 08:55:30 Financial Markets Authority <p><strong>Paul Goldsmith</strong><br><strong>26 November, 2014</strong></p> <p>Commerce and Consumer Affairs Minister Paul Goldsmith today announced the appointment of Murray Jack as the new chair of the Financial Markets Authority (FMA).</p> <p>“I am very pleased that Mr Jack has agreed to take on this crucial role,” Mr Goldsmith says.</p> <p>“With extensive experience in both senior management and governance roles in the financial sector, Mr Jack has good credentials to chair the FMA.</p> <p>Mr Jack is former chair of the board of Deloitte New Zealand and previously held the role of chief executive there. He has also been a FMA board member since its establishment in 2011 and has chaired the FMA’s Audit and Risk Committee. </p> <p>“As chair of the FMA board, Mr Jack assumes a significant strategic role in ensuring that the FMA delivers on its objective to promote fair, efficient and transparent financial markets.</p> <p>“He will guide the FMA in the implementation of the second phase of the Financial Markets Conduct Act regulations and other recent financial market law reforms and in its development as an effective markets regulator,” says Mr Goldsmith.</p> <p>The FMA was established by the government in 2011 to grow public confidence in New Zealand’s financial markets and to support the growth of New Zealand’s capital markets.</p> <p>“I would also like to take this opportunity to acknowledge and thank out-going chair Simon Allen for his contribution and commitment over the past three years and his willingness to extend his role beyond the initial term. Simon has led the FMA very well, and has been instrumental in shaping the vision for the FMA since its inception, and helped build it into a strong, credible regulator,” says Mr Goldsmith.</p> <p>The Governor General appointed Murray Jack to chair the FMA board from 1 December 2014 until 30 April 2019.</p> <p>For more information about the FMA visit <a href="http://www.fma.govt.nz">www.fma.govt.nz</a></p> <p><b>Media contact: <br></b>Cameron Gray <br>04 817 8392<br>021 763 970</p> <p><b>Background</b></p> <p><b>Murray Jack</b> was most recently board chairman of Deloitte New Zealand (from 2011- November 2014) and previously its chief executive (2005-2011). He is a board member of the New Zealand Institute of Chartered Accountants (since 2009) and Chairman-designate of Chartered Accountants Australia and New Zealand, the proposed new trans-Tasman entity merging NZICA with its Australian counterpart, the Institute of Chartered Accountants Australia. He co-led the Ministerial inquiry into the Novopay project, and chaired the Taskforce on Regulations Affecting School Performance.</p> <p>The <b>Financial Markets Authority</b> is New Zealand’s financial markets regulator.  It is an independent Crown Entity whose main objective is to promote and facilitate the development of fair, efficient, and transparent financial markets.</p> http://www.fma.govt.nz/help-me-comply/issuers/your-obligations/ Your Obligations 2014-11-27 14:17:35 Financial Markets Authority <table> <tbody> <tr> <td> <p>The requirements explained below relate to transitional offers being made under the former Securities Act regime. For information on issuing or offering products under the Financial Markets Conduct Act 2013 (FMC Act) <a href="http://www.fma.govt.nz/keep-updated/the-future-of-financial-markets/new-offers-under-fmc-act/">see here</a>.</p> </td> </tr> </tbody> </table> <p>Issuers offering under the Securities Act regime have a number of other obligations, depending on what kind of business they are (e.g. a trust or a company), and whether their securities are listed on a registered exchange.</p> <h3>Obligations under the Securities Act 1978 and Securities Regulations 2009</h3> <p>Issuers and promoters (including their directors) have initial and ongoing obligations under the Securities Act and the Securities Regulations. Primarily, these obligations relate to the nature and content of the offering documents required when securities are offered to the public.</p> <p>Issuers also have specific obligations where they intend to offer debt or participatory securities to the public. Prior to offering those securities, the Financial Markets Supervisors Act 2011 requires issuers to appoint a supervisor (for debt securities or participatory securities).  Issuers are also required to enter into and register a trust deed or participation deed for those securities.</p> <p>Even though issuers and promoters may be offering securities under the Securities Act regime rather than the FMC Act, the <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 provisions </a>under Part 2 (sections 19-23) of the FMC Act 2013 will still apply to these issuers and promoters.</p> <p> </p> <h3>Obligation to prepare offering documents</h3> <p>Generally, issuers may not allot (or sell) securities to the public unless: </p> <ul> <li>at the time of subscription or payment there was a registered prospectus for those securities</li> <li>the subscriber received an investment statement for those securities before subscribing.</li> </ul> <h4> </h4> <h4>Prospectus</h4> <p>A prospectus contains information about the securities being offered, the terms of the offer, and information about the issuer and any promoters. Prospectuses must be signed by the issuer's directors, and each promoter (including the directors of a promoter, if it is a company). By doing so, the directors and promoters take responsibility for the information in the prospectus.</p> <p>Information required to be included in a prospectus is mostly set out in the Securities Regulations 2009. The information required will depend on the type of securities being offered, and whether there are any exemptions granted under the Securities Act 1978 which may exempt an issuer, or certain types of issuers, from specific provisions of the Securities Act or regulations, or modify their application.</p> <h4>Investment statement</h4> <p>The investment statement is the primary disclosure document. The purpose of the investment statement is to provide key information to prudent but non-expert investors, and it must contain the answers to certain questions specified by the regulations. We have granted a <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">class exemption relating to the form of an investment statement for initial public offers of equity on the NZX Main Board </a>which will continue to be available during the transition period. </p> <p>The investment statement is an 'advertisement' for the purposes of the Securities Act and is subject to requirements in the Securities Act and the regulations relating to advertisements for securities.</p> <h4>Other advertisements</h4> <p>The Securities Act contains relatively prescriptive requirements relating to advertisements.  In general, an issuer is free to advertise its offer as it pleases provided the advertisement does not contain any untrue statement or any information likely to deceive, mislead or confuse about anything material to the offer. However, the Securities Act does not permit pre-prospectus advertising unless the advertisement contains certain information and nothing else - see our <a href="http://www.fma.govt.nz/help-me-comply/issuers/financial-reporting-updates-and-guidance-notes/guidance-note-pre-prospectus-publicity-some-practical-guidance-for-issuers-and-their-advisers/">Guidance note: Pre-prospectus publicity – some practical guidance for issuers and their advisers</a>. The Securities Act and the regulations regulate the content of advertisements, with the aim of ensuring that information is presented fairly and is truthful.</p> <p>A certificate must generally be completed by the directors of the issuer for each advertisement when it is distributed. This certificate must state that the directors of the issuer have read, seen or listened to the advertisement, that the advertisement complies with the Securities Act and the regulations, is not likely to deceive, mislead or confuse about anything material to the offer, and is not inconsistent with the investment statement or registered prospectus. See our <a href="http://www.fma.govt.nz/help-me-comply/issuers/financial-reporting-updates-and-guidance-notes/guidance-note-pre-prospectus-publicity-some-practical-guidance-for-issuers-and-their-advisers/">information sheet: Fair dealing provisions - transitional arrangements for advertising. </a></p> <h4>Standard of disclosure in offering documents</h4> <p>Issuers and their directors, and promoters are primarily responsible for ensuring offer documents do not contain untrue statements. A statement will be untrue if:</p> <ul> <li>it is misleading in the form and context in which it is included in the offer document.</li> <li>it is misleading because it omits further information material to that statement.</li> </ul> <p>If a prospectus or advertisement contains an untrue statement, issuers and their directors, and promoters can have civil and criminal liability.</p> <p>The Act prohibits allotment of securities if, at the time of allotment the investment statement or registered prospectus, contains a false or misleading material statement by failing to refer, or give proper emphasis to, adverse circumstances. This applies whether or not those circumstances arose after the date of the prospectus or investment statement.</p> <h3> </h3> <h3>Ongoing issuer obligations</h3> <p>Once a prospectus (or amendment to a prospectus) is registered issuers must:</p> <ul> <li>update their website to let the public know the prospectus (or an amendment) has been registered</li> <li>provide the Registrar of Financial Service Providers (via the <a href="http://www.business.govt.nz/companies">Companies Office</a>) with certain information for the register of securities offers, and notify the Registrar when there is any change to that information.</li> </ul> <p><a href="http://www.fma.govt.nz/help-me-comply/issuers/prospectus-registration/"> Find out more about registering prospectuses</a>.</p> <p>Issuers also have ongoing procedural obligations. These include:</p> <ul> <li>maintaining a register of all securities they have issued</li> <li>ensuring the register is audited at least once a year by a qualified auditor</li> <li>keeping accounting records that explain the transactions of the issuer</li> <li>ensuring their financial statements are audited at least once a year by a qualified auditor</li> <li>providing certain information (such as annual reports or financial statements) to investors on request.</li> </ul> <h3> </h3> <h3>Additional obligations of listed issuers</h3> <p>Listed issuers (issuers who are party to a listing agreement with a licensed market operator in relation to a licensed market), and certain persons related to those issuers, also have <a href="http://www.fma.govt.nz/keep-updated/the-future-of-financial-markets/new-offers-under-fmc-act/your-obligations/">disclosure obligations under the FMC Act</a>. These obligations apply irrespective of whether the original offer has been made under the Securities Act regime or the FMC Act regime. </p> <p> </p> <h3>Corporate governance</h3> <p>Issuers have obligations to maintain high standards of corporate governance and board behaviour. Information about our expectations for good corporate governance can be found in these publications:</p> <ul> <li><a href="http://www.fma.govt.nz/laws-we-enforce/policy/current-consultations/consultation-corporate-governance-in-new-zealand-principles-and-guidelines">Consultation: Corporate Governance in New Zealand – Principles and Guidelines - closes 1 December 2014</a>.</li> <li><a href="http://www.fma.govt.nz/assets/media/1029837/a-director-s-guide.pdf" target="_blank">A Director's Guide</a></li> </ul> http://www.fma.govt.nz/help-me-comply/issuers/breaches-and-offences/ Breaches and Offences 2014-11-27 12:07:54 Financial Markets Authority <table> <tbody> <tr> <td> <p>The Securities Act, regime contains offence and breach provisions relevant to issuers.  <a href="http://www.fma.govt.nz/keep-updated/the-future-of-financial-markets/new-offers-under-fmc-act/">Different provisions apply to issuers offering under the Financial Markets Conduct (FMC) Act</a>.</p> </td> </tr> </tbody> </table> <h3>Securities Act 1978</h3> <p>Generally, any allotment of securities to the public made without a registered prospectus (or an exemption) is invalid and of no effect. There are other requirements in the Securities Act which if not complied with will make an allotment void. These include allotments made under an investment statement or prospectus when the Financial Markets Authority has prohibited or suspended allotment due to a defect in those documents. These are known as 'void irregular allotments'.</p> <p>Generally, an allotment of securities to the public can also, on written request of a subscriber, be made invalid if among other things:</p> <ul> <li>the subscriber did not receive an investment statement before subscribing</li> <li>at the time of allotment, the investment statement or registered prospectus is known by the issuer (or a director of the issuer) to be false or misleading by failing to properly emphasise adverse circumstances, such as such as risks.</li> </ul> <p>These are known as 'voidable irregular allotments'.</p> <p>Following void and voidable irregular allotments, the issuer is required to repay investors' money. In some circumstances, directors of issuers can also be liable for repaying subscriptions and interest.</p> <p>Issuers, directors of issuers, and promoters, can also have civil and criminal liability where prospectuses or advertisements contain untrue statements, or where securities are offered or allotted in breach of the Act. This can result in a fine or imprisonment.</p> <p>Persons can also be fined for more minor offences under the Act, such as failures to comply with record keeping obligations.</p> <p>FMA has broad powers under the Act to prohibit distribution of advertisements (including investment statements), and to suspend or cancel the registration of prospectuses, where those offering documents are likely to confuse or mislead, or where certain procedural requirements have not been met.</p> <p><a title="Investigations" href="http://www.fma.govt.nz/about-us/what-we-do/investigations-and-enforcement/">Find out more about FMA's enforcement powers</a>.</p> <h3>Financial Reporting Act 1993</h3> <p>Directors of issuers can also be liable for breaches of their financial reporting obligations under the Financial Reporting Act.</p> <p>Every director of an issuer is liable for a fine of up to $100,000 if the financial statements or group financial statements:</p> <ul> <li>are not completed and signed within the timeframes in the Act</li> <li>fail to comply with financial reporting standards</li> <li>contain financial information that does not comply with financial reporting standards</li> <li>are not audited, or are not delivered to the Registrar of Companies as required by the Act.</li> </ul> <p>In 2014 the FMA has successfully <a href="http://www.fma.govt.nz/keep-updated/reports-and-papers/review-of-non-filing-of-financial-statements">taken enforcement action against a number of directors and issuers </a>for failing to file financial statements by the statutory deadline.</p> http://www.fma.govt.nz/help-me-comply/financial-service-providers/levies/waivers/ Waivers 2014-11-27 12:07:31 Financial Markets Authority <p>FMA has a discretionary power to waive a levy (in whole or part) but only where the circumstances or characteristics of the financial markets participant are exceptional when compared with others in the same class. The threshold has been set deliberately high. The waiver power is not intended to be used for the purposes of revisiting settled policy positions.</p> <p>On receipt of a waiver application and the appropriate fee, we will assess the application and make a decision whether to grant the waiver. If FMA waives a levy, we must notify our decision in the Gazette and publish the decision and the reasons for it on our website.</p> <h3>How to apply for a levy to be waived</h3> <p>Write to us and provide us with the following information:</p> <ol> <li>Name of person or entity applying for the waiver.</li> <li>Contact person for correspondence concerning the application including contact address, phone number, and email.</li> <li>Please indicate the persons/entity who will receive the benefit of any waiver granted.</li> <li>Please specify which class(es) you seek a waiver from and whether a waiver is sought from the full levy or part and the amount thereof.</li> <li>Please let us know your preferred date for any waiver if granted to take effect.</li> <li>Explain why the waiver should be granted and why your circumstances are exceptional when compared with others in the same class.</li> <li>Provide all relevant facts in support of your application.</li> <li>Explain any regulatory benefit of FMA granting the waiver.</li> <li>Give details of any previous contact with officials (including their names) at FMA or MBIE (including the Companies Office and the Ministry of Consumer Affairs) in the matter.</li> </ol> <p>Email your application to: <a href="mailto:compliance@fma.govt.nz">compliance@fma.govt.nz</a> cheque will also need to be made payable to the Financial Markets Authority for the appropriate amount and sent to one of our offices.</p> <h3>What are the charges?</h3> <p>A cheque for $1,265.00 should accompany each application. This covers the application fee of $115 set out in the Financial Markets Authority (Fees) Regulations 2011 and an advance of $1,000 plus GST for fees and costs to be incurred.</p> <p>The regulations set out charging rates of $200 plus GST per hour, for time spent by FMA Board members and $155 plus GST per hour, for time spent by FMA staff.All of the above fees are set by the Ministry of Business, Innovation and Employment.</p> <h3>How long does it take?</h3> <p>Once we have been provided with all relevant information, it generally takes around six weeks to process applications. This may be longer, though, if questions of policy arise.</p> <p>If your application is urgent, you must provide the timeframes within which the decision is needed. You must also provide reasons for requesting urgent consideration.</p> <h3>Granted waivers</h3> <p>To date, no waivers have been granted by FMA.</p> http://www.fma.govt.nz/help-me-comply/issuers/prospectus-registration/ Prospectus Registration 2014-11-26 16:52:29 Financial Markets Authority <table> <tbody> <tr> <td>These requirements relate to the Securities Act regime. From 1 December 2014, offers of financial products can also be made under the new <a href="http://www.fma.govt.nz/keep-updated/the-future-of-financial-markets/new-offers-under-fmc-act/">Financial Markets Conduct Act (FMC Act) regime</a>.</td> </tr> </tbody> </table> <h3><strong>Pre-registration review of offer documents (Prospectuses and Investment Statements)</strong></h3> <p>Clear, concise and effective offer information helps retail investors make more informed investment decisions. We offer a pre-registration review service to help issuers, and their directors, feel more confident their offer documents are likely to satisfy FMA expectations.</p> <p>Our focus during the transition to the FMC Act regime is on helping issuers who are making offers under that regime. However we may still provide feedback for offers being made under the Securities Act regime where the offers are novel or complex. Information on our <a href="http://www.fma.govt.nz/keep-updated/the-future-of-financial-markets/new-offers-under-fmc-act/pre-registration-reviews/">review service for FMC Act offers </a>also applies to novel or complex Securities Act regime offers.</p> <p>Please note, you do not need to talk to us before registering your documents, particularly where there are similar types of offers already in the market that have good ‘precedents’. <a href="http://www.fma.govt.nz/help-me-comply/issuers/financial-reporting-updates-and-guidance-notes/guidance-note-effective-disclosure/">Our Guidance note: Effective Disclosure</a>, clearly sets out our expectations for offer disclosure.</p> <h3> </h3> <h3>Registering offer documents under the Securities Act 1978 during the transitional period</h3> <p>For issuers using the Securities Act regime during the relevant transitional period, prospectuses must be registered with the Registrar of Financial Service Providers, through the <a href="http://www.business.govt.nz/companies/">Companies Office website</a>.</p> <p>Once a prospectus is registered, it may be reviewed by us, to confirm it complies with the Securities Act 1978 and the Securities Regulations.</p> <p>Except where the registered prospectus is a continuous issue prospectus, issuers may not allot (or accept subscriptions) for a period of 5 working days after registration.</p> <p>The purpose of this period (called the consideration period) is to provide the FMA with the opportunity if it so chooses to review the prospectus. We can extend this period for a further 5 working days. It can also waive some or all of the consideration period, allowing securities to be allotted earlier.</p> <p> </p> <h3>What do issuers have to do once a Securities Act prospectus is registered during the transitional period?</h3> <p>Within 5 working days of registration, issuers need to update their websites to let the public know that the prospectus has been registered. Your website needs to contain a reasonably prominent statement, or reasonably prominent link to a statement, that the prospectus has been registered, and describe where a copy of that prospectus can be found.</p> <h3> </h3> <h3>Post-registration review by the FMA</h3> <p>Once a prospectus is registered, we may review the document to determine whether it:</p> <ul> <li>complies with the Securities Act and the Securities Regulations</li> <li>contains any material incorrect descriptions or errors, or any material matter that is not clearly legible</li> <li>is false or misleading, or omits any material particular.</li> </ul> <p>We are not obliged to review every registered prospectus, and may choose not to review in some circumstances. We take a risk-based approach to selecting prospectuses for review.</p> <p>During the review of a prospectus, we may contact the issuer to ask questions about its disclosure and may ask the issuer to correct or improve its prospectus.</p> <p>Following a review, or at any time later, if we think a registered prospectus does not comply with the Securities Act and the Securities Regulations or does not contain satisfactory disclosures, we can prohibit allotment and/or cancel the registered prospectus.</p> <p>If we consider whether to cancel a prospectus we can make an interim order which can be in force for 15 to 30 working days. Securities cannot be allotted while an interim order is in force. We can make an interim order without giving notice to the issuer, though if we do this we will allow the issuer to make submissions after we have made the order.</p> <p>Under the Financial Markets Authority Act 2011, nothing we do can be taken as a guarantee or representation that a prospectus complies with the law, or that we have reviewed a prospectus. We can exercise our powers to cancel a prospectus at any time, even if it has undergone pre-registration vetting or post-registration review.</p> <h3> </h3> <h3>When can you allot?</h3> <p>Unless your registered prospectus is a continuous issue prospectus, you cannot allot (or accept subscriptions) until the end of the consideration period. Usually this is 5 working days after the prospectus is registered, although we can extend this to 10 working days. We may also notify you that the period has been shortened, and securities can be allotted.</p> <p>If your registered prospectus is a continuous issue prospectus you may allot from the date of registration. We may determine (by advance notice) that certain classes of continuous issue prospectuses are still subject to the post-registration stand down period for allotment.</p> <p>If your registered prospectus relates to securities for which there is already a registered prospectus, securities may be allotted and subscribed for under that original prospectus, (provided that it is still current) despite the replacement registered prospectus still being subject to review.</p> <h3> </h3> <h3>How do you register an amendment to a registered prospectus?</h3> <p>If your offer is still subject to the Securities Act regime, you register an amendment to a registered prospectus in the same way you would register a prospectus. See the<a href="http://www.business.govt.nz/companies/"> Companies Office website</a>.</p> <p>There is no stand down period for allotment in these circumstances.</p> <p>Issuers will also be required to update their websites within 5 working days of registration, to notify the details of the amendment.</p> <h3> </h3> <h3>How do you register trust deeds and deeds of participation?</h3> <p>See the <a href="http://www.business.govt.nz/companies/">Companies Office website</a> for information on registering trust deeds and deeds of participation, and any amendments to those deeds.</p> <p>We are notified when a trust deed or deed of participation is registered. We may, at any time, prohibit allotment or cancel a prospectus where we determine that a trust deed or deed of participation:</p> <ul> <li>does not comply with the Securities Act or the Securities Regulations</li> <li>contains any material incorrect descriptions or errors, or any material matter that is not clearly legible.</li> </ul> http://www.fma.govt.nz/help-me-comply/issuers/ Issuers 2014-11-26 16:36:50 Financial Markets Authority <table> <tbody> <tr> <td> <p><strong>IMPORTANT INFORMATION</strong></p> <p>For businesses intending to make offers under the FMC Act please refer to our <a href="http://www.fma.govt.nz/keep-updated/the-future-of-financial-markets/new-offers-under-fmc-act/">new offers under FMC Act section</a>. </p> <p>For businesses intending to continue to make offers under the transitional provisions of the Securities Act regime, please see below.</p> </td> </tr> </tbody> </table> http://www.fma.govt.nz/help-me-comply/issuers/who-needs-to-comply/ Who Needs to Comply 2014-11-26 16:33:04 Financial Markets Authority <table> <tbody> <tr> <td> <p>The requirements explained below relate to transitional offers being made under the former Securities Act regime. For information on issuing or offering products under the Financial Markets Conduct Act 2013 (FMC Act) <a href="http://www.fma.govt.nz/keep-updated/the-future-of-financial-markets/new-offers-under-fmc-act/">see here</a>. </p> </td> </tr> </tbody> </table> <h3>Transitional offers under the Securities Act 1978</h3> <p>The transitional provisions in the Financial Markets Conduct Act 2013 (FMC Act) allow some offers of financial products to continue to be made under the former Securities Act regime.  In general:</p> <ul> <li>Continuous issuers can continue to make offers under the Securities Act regime up until 30 November 2016. </li> <li>Other issuers can continue to make one-off offers under the Securities Act regime up until 30 November 2015.</li> <li>Derivatives issuers cannot rely on the Securities Act (Authorised Futures Contracts) Exemption Notice 2002 to offer under the Securities Act regime without a prospectus and investment statement.</li> </ul> <p>Anyone offering securities to the public under the former Securities Act regime needs to comply with:</p> <ul> <li>the Securities Act 1978</li> <li>the Securities Regulations 2009</li> <li>and any exemptions granted under the Securities Act 1978 (to the extent applicable and still in force).</li> </ul> <p>Who needs to comply, and the extent of that person's legal obligations, depends on the nature of the offer.</p> <h3>Issuers and promoters under the Securities Act 1978 and the Securities Regulations 2009</h3> <p>The persons with obligations under the Securities Act and Regulations are, primarily, issuers and promoters.</p> <h4>Who is an issuer?</h4> <ul> <li><strong>Equity or debt securities - </strong> the issuer is the person on whose behalf money paid for the securities is received.</li> <li><strong>Participatory securities</strong> or <strong>units in a unit trust - </strong> the issuer is the manager of the scheme or trust.</li> <li>For an <strong>interest in a contributory mortgage - </strong> the issuer is the contributory mortgage broker.</li> <li>For a <strong>life insurance policy - </strong> the issuer is the life insurance company liable under the policy.</li> <li><strong>Superannuation scheme - </strong>the issuer is the superannuation trustee of the scheme.</li> </ul> <h4>Who is a promoter?</h4> <p>A promoter is a person who is instrumental in forming a plan under which securities are offered to the public. Where a promoter is a company, the directors of that company will also be promoters.</p> <p>Directors of issuers are not promoters, and nor are persons who are acting solely in their professional capacity, such as legal or financial advisers.</p> http://www.fma.govt.nz/help-me-comply/new-offers-under-fmc-act/your-obligations/ Your Obligations 2014-11-26 16:25:49 Financial Markets Authority <p>In addition to the obligations relating to offer information, an issuer will also have ongoing obligations under the FMC Act.  These vary depending upon the type of issuer or offer, but generally include obligations to: </p> <ul> <li>maintain a register of regulated financial products they have issued</li> <li>ensure the register is audited or reviewed by a qualified auditor</li> <li>keep accounting records to support the preparation of compliant financial statements</li> <li>ensure their financial statements are audited at least once a year by a licensed auditor or registered audit firm</li> <li>provide certain information (such as annual reports or financial statements) to investors on request</li> </ul> <h4>Additional obligations of listed issuers</h4> <h4> </h4> <p>A listed issuer is one who is party to a listing agreement with a licensed market operator in relation to a licensed market.  Listed issuers must comply with the listing rules of the relevant licensed market, as set by the licensed market operator.  These issuers, and certain persons related to them, also have ongoing disclosure obligations under the Financial Markets Conduct Act.</p> <p>Listed issuers are required to disclose information to the market in accordance with any continuous disclosure provisions of the listing rules of the relevant licensed market.  The continuous disclosure provisions may vary between different licensed markets.</p> <p>The FMC Act also requires directors and senior managers of listed issuers, and persons holding specified amounts of quoted voting products of a listed issuer, to disclose certain information to the issuer and to the market. Listed issuers are required to keep registers of that disclosed information.</p> <h4><strong>Corporate governance</strong></h4> <h4> </h4> <p>Good corporate governance and board behaviour supports the principles underpinning the Financial Markets Conduct Act.</p> <p>Information about our expectations for good corporate governance can be found in these publications:</p> <ul> <li><a href="http://www.fma.govt.nz/laws-we-enforce/policy/current-consultations/consultation-corporate-governance-in-new-zealand-principles-and-guidelines">Corporate Governance - Principles and Guidelines : consultation version </a></li> <li><a href="http://www.fma.govt.nz/assets/media/1029837/a-director-s-guide.pdf">A Director's Guide</a></li> </ul> http://www.fma.govt.nz/help-me-comply/new-offers-under-fmc-act/pre-registration-reviews/ Pre-registration reviews 2014-11-26 16:24:42 Financial Markets Authority <p>Clear, concise and effective offer information helps retail investors make more informed investment decisions.</p> <p>We offer a pre-registration review service to help issuers, and their directors, feel more confident their offer documents are likely to satisfy FMA expectations.</p> <h4>We focus on reviewing new, novel and complex offers</h4> <h4> </h4> <p>You do not need to talk to us before registering your documents, particularly where there are similar types of offers already in the market that have good ‘precedents’. Our <a href="http://www.fma.govt.nz/help-me-comply/issuers/financial-reporting-updates-and-guidance-notes/guidance-note-effective-disclosure/">Guidance note: Effective Disclosure</a>, clearly sets out our expectations for offer disclosure under the Securities Act 1978 during the transitional period. We have highlighted where parts of the guidance note are also relevant to offers under the FMC Act regime.</p> <p>However if you are:</p> <ul> <li>an ‘early adopter’ of a new type of product disclosure statement (PDS), or</li> <li>offering a novel or complex offer</li> </ul> <p>we are happy to talk with you to clarify whether you would benefit from the additional guidance that a pre-registration review provides.</p> <h4>What you can do to help</h4> <p>To speed up our review, any drafts of the offer documents should be in as complete a state as possible, but you should share the draft with us sufficiently early in the process so that you are still open to making substantive changes to the content or structure where necessary. Any proposed financial information should also be included e.g., pro forma, prospective or statutory.</p> <p>In most cases, we will only provide feedback on one draft Word version of an offer document, and, should you request it, a design version when close to registration. This is to get a sense of how the information in the Word version will be presented.</p> <p>We may agree to review a further draft of an offer document on a case-by-case basis. We are happy to discuss our feedback in person with you and your advisers. We encourage you to include representatives of the issuer in these discussions (not just the issuer’s professional advisers).</p> <p>We also encourage you to indicate any exemptions that may be sought early on so we can start our internal review of these exemption applications.</p> <h4>How we provide guidance</h4> <h4> </h4> <p>Depending on the circumstances and the timetable, we can provide guidance either in writing or verbally (either by phone or in person) or both.</p> <p>We expect you and your advisers to take our feedback on board and make changes that reflect this feedback, unless you disagree and say why. At this point, we are happy to have a further discussion.</p> <p><br><strong>Review time-frames</strong></p> <p>We aim to review an offer document within 10 working days. However, if you let us know what your timetable is from the outset we may be able to accommodate this. We can review a design version of the document more quickly if required (but this may be close to print deadlines and launch dates).</p> <p>We will let you know the person who is leading your review from the start. We will also let you know about the timing and the extent of our review. It is also helpful for us to know who is involved from your end – issuer’s representative, legal advisers, auditor, bankers/lead managers and any other key stakeholders.</p> <p><br><strong>Getting a pre-registration review underway</strong></p> <p>Contact us <br>• By email  <a href="mailto:compliance@fma.govt.nz">compliance@fma.govt.nz</a> (ensure you insert "PDS HELP" in your subject line)<br>• By phone - 0800 434 567 (+64 3 962 2698 for overseas callers)</p> http://www.fma.govt.nz/help-me-comply/financial-advisers/how-to-get-licensed/afa-application-resources-and-templates/afa-competence-and-assessment/ AFA Competence and Assessment 2014-11-26 12:28:02 Financial Markets Authority <h2>Minimum standards of competence</h2> <p>All Authorised Financial Advisers (AFAs) must abide by the <a href="http://www.fma.govt.nz/laws-we-enforce/legislation/acts-and-regulations/code-of-professional-conduct-for-afas/">Code of Professional Conduct</a>. The Code says that before providing a financial adviser service an AFA must have the competence, knowledge and skills to provide that service. AFA applicants must also show that they meet the required levels of competence when they apply.</p> <p>The National Certificate in Financial Services (Financial Advice) (Level 5) is prescribed in the Code as the minimum standard of competence for AFAs. This qualification is made up of unit standards grouped together into Standard Sets A, B, C, D and E:</p> <ul> <li>Standard Set A - core knowledge including knowledge of the industry, financial markets, the advice process and products</li> <li>Standard Set B (Compulsory) - knowledge of the Code of Professional Conduct and the legislative framework for financial advisers including consumer protection laws</li> <li>Standard Set C - professional practice including applying the six step advice process and complying with legislation</li> <li>Standard Set D - investment specialist standards</li> <li>Standard Set E - insurance specialist standards or residential property lending specialist standards.</li> </ul> <p>These Unit Standard Sets are registered with NZQA on the National Qualifications Framework, providing a nationally recognised, measurable standard across the financial adviser sector.</p> <p>See <a href="http://skills.org.nz/">The Skills Organisation</a> website.</p> <h2>Proof of competence</h2> <p>The Financial Market Authority will check that advisers applying for authorisation meet the required competence standards.</p> <p>To become an AFA a person must provide evidence that they have:</p> <ul> <li>attained the Unit Standard Sets contained in the National Certificate in Financial Services (Financial Advice) (Level 5) that are relevant to the financial adviser services they provide, or</li> <li>where relevant, hold an alternative qualification or industry designation listed in the Code as being an acceptable alternative to a particular Unit Standard Set. These are listed in the <a title="Code of Professional Conduct for AFAs" href="http://www.fma.govt.nz/help-me-comply/financial-advisers/your-obligations/authorised-financial-advisers-obligations/code-of-professional-conduct-for-afas/">Competence Alternatives Schedule in the Code</a>.</li> </ul> <p>All advisers seeking authorisation must complete Standard Set B which demonstrates knowledge of the Code and other relevant law including the Financial Advisers Act 2008 and consumer protection law.</p> <p>Advisers need to upload copies of qualification documents when they apply for authorisation online at <a href="http://www.business.govt.nz/fsp/">Financial Service Providers Register</a>.</p> <p>For more information see the <a title="Code of Professional Conduct for AFAs" href="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</a> and the <a title="AFA Authorisation Guide" href="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</a>.</p> <h2>Training and competence assessment</h2> <p><span>The Skills Organisation</span>, the national standards setting body for the financial services industry, makes sure there is sufficient, appropriate training available and manages the competence assessment process for the authorisation of financial advisers. See the The Skills Organisation <a href="http://skills.org.nz/industries/financial-services/authorised-financial-advisers">website</a> for information about training and assessment.</p> <p>For other information about alternative qualifications, designations and lapsed designations and application requirements read the <a title="AFA Authorisation Guide" href="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</a>.</p> <h2>What do I do if my qualifications were attained overseas?</h2> <p>The Code does not include any foreign qualifications in the list of alternative qualifications or designations. If your qualification or designation is not currently recognised in New Zealand then you should apply to <span>The Skills Organisation</span> to be assessed and examined against individual unit standards (within the National Certificate in Financial Services (Financial Advice) (Level 5). You can do this without undertaking any additional training; however, it would be wise to first check with <span>The Skills Organisation</span> whether assessment only options are appropriate for you.</p> <h2>Are there any exemptions?</h2> <p>FMA has limited powers to <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/">exempt</a> any person, class of person or activities from complying with any section of the Financial Advisers Act, associated regulations or the Code. FMA will limit the use of its powers to cases that meet prescribed statutory criteria, and all exemptions will be based soundly on the policy of the law.</p> <h2>Who is the Code Committee?</h2> <p>The <a href="http://financialadvisercode.govt.nz/">Code Committee </a>was appointed in July 2009 and developed the <a href="http://www.fma.govt.nz/laws-we-enforce/legislation/acts-and-regulations/code-of-professional-conduct-for-afas/">Code of Professional Conduct for Authorised Financial Advisers</a>.</p> <h2> </h2> http://www.fma.govt.nz/laws-we-enforce/legislation/exemption-notices/current-exemption-notices/financial-markets-conduct/ Financial Markets Conduct Act 2013 Exemptions 2014-11-25 14:39:27 Financial Markets Authority <p>Notices currently in force are listed below.  You can browse the list, or search using the adjacent search filter, to find a notice of interest to you.</p> <p>Follow the links to see more information about a particular notice, including the commencement and revocation dates.</p> <p>To read notices in full click on the attached link.</p> <ul> <li>If the notice is a class notice (one that applies to a class of persons or transactions) the link will take you to the New Zealand legislation website where the notice can be accessed.</li> <li>If the notice is an individual notice (one that applies to a particular person or transaction, or to persons associated with or transactions involving a particular person) the link will take you to a copy of the notice on our website.</li> </ul> <p>Each notice contains a summary of its effect, and the reasons justifying the exemption.</p> http://www.fma.govt.nz/keep-updated/the-future-of-financial-markets/the-history-of-changes/ The History of Changes 2014-11-25 10:46:50 Financial Markets Authority <p>In 2010 the Government introduced the first in a series of discussion documents to comprehensively review and reform New Zealand's securities law.</p> <p>The Financial Markets Conduct Act 2013 (FMC Act) is the last major step of this reform and builds on <a href="http://www.med.govt.nz/business/economic-development/pdf-docs-library/cmd-capital-markets-matter-full-report.pdf">recommendations from the Capital Markets Taskforce</a>, the effects of the global financial crisis, and the failure of finance companies.</p> <h2> </h2> <h2>The Financial Markets Conduct Act 2013</h2> <p>The main purpose of the FMC Act is to promote and facilitate the development of fair, efficient and transparent financial markets, and to promote the confident and informed participation of business, investors and consumers in the financial markets.</p> <p>The FMC Act will achieve this by reforming the regulation of financial conduct. It governs the way financial products are offered, promoted, issued and sold, and the ongoing responsibilities of those who offer, issue, manage, supervise, deal in and trade them. It also regulates the provision of certain financial services.</p> <p>The changes introduced by the new legislation will play a key role in building investor confidence by providing better information for investors, as well as setting clearer rules for companies wanting to raise capital.</p> <h2> </h2> <h2>Find out more</h2> <p>You can find more details on the Government's review of securities law and consultation to date on our '<a href="http://www.fma.govt.nz/keep-updated/the-future-of-financial-markets/useful-links/">Useful links</a>' page.</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/keep-updated/the-future-of-financial-markets/frequently-asked-questions/ Frequently Asked Questions 2014-11-25 10:46:04 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 25 November 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><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/help-me-comply/new-licences-for-financial-market-services/managed-investment-scheme-manager/who-needs-to-comply/ Who needs to comply? 2014-11-25 09:51:07 Financial Markets Authority <p>Under the Financial Markets Conduct Act, a non-restricted and registered managed investment scheme (<strong>MIS</strong>) must have a licensed manager.</p> <h3><b>When you need to comply</b></h3> <p>See our transition information sheets for MIS managers. These provide an outline of the transition timeline and examples of the key activities and indicative timings for each step of the transition.</p> <ul> <li><a href="http://www.fma.govt.nz/assets/Report-and-Papers/Information-Sheets/Information-Sheet-Other-types-MIS.pdf" target="_blank">Other types - Managed investment schemes</a></li> <li><a href="http://www.fma.govt.nz/assets/Report-and-Papers/Information-Sheets/Information-Sheet-Superannuation-MIS.pdf" target="_blank">Superannuation - Managed investment schemes</a></li> <li><a href="http://www.fma.govt.nz/assets/Report-and-Papers/Information-Sheets/Information-Sheet-Unit-Trusts-MIS.pdf" target="_blank">Unit Trusts - Managed investment schemes</a></li> <li><a href="http://www.fma.govt.nz/assets/Report-and-Papers/Information-Sheets/Information-Sheet-KiwiSaver-MIS.pdf" target="_blank">KiwiSaver - Managed investment schemes</a></li> </ul> <h3>What is a MIS?</h3> <p>In general terms, a MIS pools money from a number of investors, who rely on the investment expertise of the scheme manager.</p> <p>The definition in the Act (<a href="http://www.legislation.govt.nz/act/public/2013/0069/latest/whole.html#DLM4090921">section 9</a>) is broad and includes collective investment schemes, and most schemes involving participatory securities under the Securities Act 1978.</p> <p>These schemes can be structured in different ways, and may invest in a wide range of investments. They can be open-ended (offered continuously) or close-ended (more equity-like). Examples include:</p> <ul> <li><strong>Open-ended</strong> - KiwiSaver, superannuation, workplace savings schemes, open-ended unit trusts, and other schemes that invest in relatively liquid assets</li> <li><strong>Closed-ended</strong> - forestry partnerships, and property syndicates that invest in a single asset class.</li> </ul> <h3>What is not a MIS?</h3> <p>A discretionary investment management service (DIMS), insurance contract, or a scheme that only involves managing separate and direct interests in underlying property are not considered to be a MIS. </p> <h3>Will you need a licence?</h3> <p>You'll need a licence if you are the appointed or designated manager of a non-restricted and registered MIS.</p> <p>Specifically, you'll need a licence if you intend to:</p> <ol> <li>Make a regulated offer of managed investment products to retail investors</li> <li>Register a non-restricted MIS you have been appointed the manager of.</li> </ol> http://www.fma.govt.nz/help-me-comply/new-licences-for-financial-market-services/discretionary-investment-management-service-dims/ Discretionary Investment Management Service (DIMS) 2014-11-25 09:33:34 Financial Markets Authority <p>Under the Financial Markets Conduct Act you may need a licence to provide a discretionary investment management service (DIMS) to retail clients. </p> <p>Here you can find out how to apply for a licence, what your obligations are and details about fees and levies.</p> <table> <tbody> <tr> <td> <p><b>Important note regarding when you need to comply <br></b>New DIMS providers must be licensed from 1 December 2014. Those already authorised for DIMS as at 1 December 2014 and who wish to continue to do DIMS must apply for a licence by 31 May 2015.</p> </td> </tr> </tbody> </table> <p> </p> http://www.fma.govt.nz/help-me-comply/new-licences-for-financial-market-services/quick-links/ Quick Links 2014-11-25 09:29:18 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 November 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/laws-we-enforce/policy/closed-consultations/consultation-paper-on-issuers-registers-and-fma-discretion-under-s-224 Consultation Paper: Issuers’ Registers of Regulated Products and FMA’s Discretion under Section 224 2014-11-25 08:54:52 Financial Markets Authority <p>The FMA is now consulting on<a title="Consultation paper on issuers registers and FMA discretion under s 224" href="http://www.fma.govt.nz/assets/Report-and-Papers/Consultation-paper-on-issuers-registers-and-FMA-discretion-under-s-224.pdf" target="_blank"> Issuers’ Registers of Regulated Products and FMA’s Discretion under Section 224</a></p> <p><b>What is this consultation paper about?</b></p> <p>This paper gives an overview of the requirements relating to issuers’ registers of regulated products under Subpart 4 of Part 4 of the Financial Markets Conduct Act 2013 (FMC Act).</p> <p>It also sets out our thinking on how we will exercise our discretion to authorise an issuer to decline a request for a copy of a register under section 224 of the FMC Act.</p> <p>We invite you to review our proposals and share your feedback on them with us. </p> <p>We welcome general comments and have also included a number of questions seeking specific feedback.  Responses to these specific questions will help shape an information sheet we intend to issue.</p> <p><b>Submissions close on Friday, 21 November 2014</b>. </p> <p><b>How do I make a submission?</b></p> <p>Please use this <a title="224 consultation feedback form" href="http://www.fma.govt.nz/assets/Report-and-Papers/224-consultation-feedback-form.docx" target="_blank">feedback form</a> . This is also on the final page of the consultation paper and gives you details of what you need to do.</p> <div><hr> <div> <div> <p> </p> </div> </div> </div> http://www.fma.govt.nz/keep-updated/newsroom/afa-updates/financial-markets-authority-afa-update-issue-33 Financial Markets Authority AFA Update: Issue # 33 2014-11-25 08:51:30 Financial Markets Authority <h2><b>DIMS Workshop for AFAs</b></h2> <p>Are you thinking about DIMS and what steps to take?  To help navigate your way to understanding what’s involved, the FMA will be hosting a DIMS workshop in Auckland next month.  The workshop will cover the following topics:<br> <br> <strong>Part 1  - Understanding DIMS</strong></p> <ul> <li>What is DIMS.</li> <li>Different types of DIMS / contingency DIMS.</li> <li>How it is regulated.</li> </ul> <p><strong>Part 2 –Becoming Licensed or Authorised</strong></p> <ul> <li>Minimum standards.</li> <li>How to apply for a DIMS licence under Financial Markets Conduct Act (FMC Act) or how to become authorised under Financial Advisers Act (FA Act).</li> </ul> <p><strong>Part 3 – Putting it all together</strong></p> <ul> <li>The DIMS pathways / decision points.</li> <li>Transition steps and timeline.</li> </ul> <p><strong>Workshop details are:</strong><br> <br> <strong>Date:</strong> Wednesday 3 December 2014<br> <strong>Time:</strong> 2 - 4pm<br> <strong>Location:</strong> FMA Board Room, Level 5, Ernst &amp; Young Building, 2 Takutai Square, Britomart, Auckland<br> <br> Numbers are limited so if you are interested attending, please email <a href="mailto:derek.grantham@fma.govt.nz">derek.grantham@fma.govt.nz</a> by the end of this week.</p> <h2><b>Consultation on Personalised DIMS under the Financial Advisers Act 2008</b></h2> <p>We are now consulting on the <a href="http://financialmarketsauthority.cmail1.com/t/r-l-ctjjjdt-ijljtijtid-t/">draft eligibility criteria and new standard conditions for AFAs authorised to provide a Personalised Discretionary Investment Management Service (Personalised DIMS)</a>.<br> <br> The <a href="http://financialmarketsauthority.cmail1.com/t/r-l-ctjjjdt-ijljtijtid-k/">Financial Markets (Repeals and Amendments) Act 2013 </a>introduces amendments to the <a href="http://financialmarketsauthority.cmail1.com/t/r-l-ctjjjdt-ijljtijtid-u/">Financial Advisers Act 2008</a> (<strong>the FA Act</strong>). This means for a person to be authorised under the FA Act to provide a Personalised DIMS they must meet the prescribed eligibility criteria.<br> <br> These criteria are set out in the <a href="http://financialmarketsauthority.cmail1.com/t/r-l-ctjjjdt-ijljtijtid-o/">Financial Advisers (Personalised DIMS) Regulations 2014</a>. To be eligible you must be capable of effectively performing the Personalised DIMS. The FMA will assess capability against minimum standards.<br> <br> Advisers who provide Personalised DIMS will also be expected to ensure ongoing compliance with additional Standard Conditions which reflect the minimum standards.<br> <br> This paper outlines the proposed minimum standards the FMA will use to assess eligibility to provide Personalised DIMS. The paper also outlines the proposed additional standard conditions. We invite you to review these and share your feedback with us.<br> <br> <strong>Submissions close on Tuesday 9 December at 5pm</strong>. See our website for <a href="http://financialmarketsauthority.cmail1.com/t/r-l-ctjjjdt-ijljtijtid-b/">more details</a>.</p> <h2><b>The FMA releases 2014 Annual Report</b></h2> <p>Today we have published our <a href="http://financialmarketsauthority.cmail1.com/t/r-l-ctjjjdt-ijljtijtid-n/">2014 annual report</a> for the year ended 30 June 2014. Rob Everett, Chief Executive, said in today’s media release that in completing its third year of operations the FMA was now established as a respected regulator. “This reporting period has seen the FMA become a fully-fledged financial markets conduct regulator. Our focus remains on building confidence in the robust framework that supports the financial markets. We’ve built our capability, processes and expertise so we can administer the FMC Act over the long term.” To read the media release in full please <a href="http://financialmarketsauthority.cmail1.com/t/r-l-ctjjjdt-ijljtijtid-p/">click here</a>.</p> <h2><b>AML and CFT Monitoring Report</b></h2> <p>Earlier this month we released our <a href="http://financialmarketsauthority.cmail1.com/t/r-l-ctjjjdt-ijljtijtid-x/">Anti-Money Laundering and Countering Financing of Terrorism Monitoring Report</a>. The Anti-Money Laundering and Countering Financing of Terrorism Act 2009 (AML/CFT Act) and associated Regulations, came into full effect on 30 June 2013. In this report we summarise our monitoring results to help reporting entities gain a better understanding of our expectations.</p> <h2><b>KiwiSaver data at your fingertips</b></h2> <p>Have you ever wondered how KiwiSaver funds are performing? What the fees are? What assets they hold? Did you know that you can get all that data from our website?<br> <br> By law, there is a requirement for managers of all (non-restricted) KiwiSaver schemes to produce quarterly and annual disclosure statements. This is to ensure consistent and comparable information about KiwiSaver funds is publicly available on a regular basis and to enable investors to make more informed investment decisions. Using that information, FMA consolidates all this data into one handy Excel spreadsheet per reporting period every quarter. Find them on our website under <a href="http://financialmarketsauthority.cmail1.com/t/r-l-ctjjjdt-ijljtijtid-m/">Help Me Invest -&gt; KiwiSaver -&gt; Compare KiwiSaver Information</a><br> <br> Use <a href="http://financialmarketsauthority.cmail1.com/t/r-l-ctjjjdt-ijljtijtid-c/">this file</a> to understand how the data is structured.<br> <br> If you are looking to compare KiwiSaver funds' performance, fees and service, we also recommend you visit <a href="http://financialmarketsauthority.cmail1.com/t/r-l-ctjjjdt-ijljtijtid-q/">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.<br> <br> (Sorted mixes single sector funds with diversified funds in their risk categories.)<br> <br> Please note, we do not make any representation or give any assurance of the accuracy, quality or completeness of the consolidated data, as FMA consolidates the data files submitted by KiwiSaver managers. <strong>KiwiSaver managers are each responsible for the accuracy, quality or completeness of their individual data.</strong><br> <br> For enquiries about any of these topics please email us at <a href="mailto:questions@fma.govt.nz">questions@fma.govt.nz</a></p> http://www.fma.govt.nz/keep-updated/newsroom/speeches/presentation-by-rob-everett-to-the-grosvenor-annual-conference Presentation by Rob Everett to the Grosvenor Annual Conference 2014-11-24 17:23:37 Financial Markets Authority <p>Thank you for the invitation to speak today.</p> <p>It’s great to speak to at a conference hosted by a fund provider and advisory firm that is fully New Zealand-run and that has been providing investment solutions for New Zealanders for almost two decades.</p> <p>Most of the funds or big providers I speak to are at least partly run from offshore.</p> <p>Indeed, many of them have Sydney or Melbourne on speed-dial.</p> <p>There’s only a few of the medium-size or bigger firms - like you - that have their feet firmly planted in New Zealand.</p> <p>It’s an opportune moment to speak to you today.</p> <p>We are in the midst of a transformational period in financial services in New Zealand, with the Financial Markets Conduct Act about to take full effect, and the regulation of financial advice under the Financial Advisers Act about to be reviewed.   </p> <p>Today I want to cover four topics which I hope will resonate with you all:</p> <ul> <li>Attention to standards.</li> <li>The costs and benefits of regulation.</li> <li>Our areas of focus for the immediate future and how they relate to you.</li> <li>And, lastly, some big questions that I think the adviser sector faces in the immediate future</li> </ul> <p>I am very happy to take questions at the end.</p> <p>Firstly, raising standards.</p> <p>How far have we come and what’s left to do?</p> <p>It’s great to see so many advisers - including those of you in the room today - who have gotten on board with the spirit of the Financial Advisers Act reforms.</p> <p>I recognise you – and your peers - are making a considerable effort to raise the standards of professionalism in the advice sector, and to improve consumer and investor outcomes.</p> <p>It’s an ‘all passengers aboard’ drive to do this. Everyone – firms, boards, advisers – is participating.</p> <p>I acknowledge that parts of this journey have been testing.</p> <p>The reforms and compliance requirements may not have always struck the right balance, and even for those parts which are within the FMA’s discretion, it will take us a while yet to fine-tune the regulation.</p> <p>Some of the more painful issues may require legislation in order to get significant adjustment.</p> <p>I hear the criticisms – from within the sector - of the Financial Advisers Act, including the suggestions that it raises costs  - particularly for smaller firms or individual AFAs.</p> <p>And - potentially – that it’s forcing some people out of the market - thus making advice less accessible for New Zealanders.</p> <p>Rest assured that - at the FMA - our objective is a strong and confident adviser community – of all shapes and sizes.</p> <p>I know those concerns are deeper, in a firm like Grosvenor, which doesn’t have the scale of the High St majors, who can offset their adviser costs on a big product range.</p> <p>I know that leads to considerable frustration for a firm like Grosvenor and many of you … particularly when you see the majors picking-up your fund and KiwiSaver customers.</p> <p>Notwithstanding the criticisms of the Act, in the last four years the sector has come a long way.</p> <p>We’ve implemented licensing and registration, so we now have about eighteen hundred (1,800) AFAs, and about six and a half thousand (6,500) RFAs.</p> <p>We have mandatory NZQA-endorsed qualifications for AFAs.</p> <p>And CPD requirements.</p> <p>We’ve implemented the Code of Professional Conduct for AFAs, which is now in its second, updated edition.</p> <p>The Code means we’re all working - or at least AFAs are - off the same minimum standards of ethical behaviour, client care, and competence.</p> <p>Despite wrangling over the precise meaning in any given set of circumstances, personally I believe - very strongly - that starting the Code with a statement that requires AFAs to put the clients’ interest first, and to act with integrity, was absolutely the right thing to do.</p> <p>I believe just as strongly that those within the big banks and fund managers that deal with retail money - and those that sell financial products to retail consumers - should have the same obligation.</p> <p>This is not to treat FAs differently, but to ensure that all of those who provide financial products or services to individual consumers do so with that standard flying proudly above their door.</p> <p>And that it is enforced – self-enforced by the industry, and enforced by the regulator - wherever and whenever necessary.</p> <p>..........</p> <p>The sector has also accepted the need to enforce the Code where necessary, because without enforcement we become the proverbial hunting dog that dislikes loud noises.</p> <p>So, we’ve had the Disciplinary Committee, making decisions on instances where advisers fall below the standards.</p> <p>Overall, some great achievements in a short time.</p> <p>..........</p> <p>But – taking David Lange’s famous advice – it’s time to stop for tea and consider how we can improve.</p> <p>Hence, the review of the Advisers Act next year.</p> <p>No doubt, you will all understand that whilst the FMA should and will have plenty to say during that review, the decision on what that review covers does not sit with us</p> <p>We have already spoken to our new Minister, and to MBIE, on the topic.</p> <p>And it is clear to me that the review will be taken very seriously and major efforts will be made to ensure it considers the full range of issues raised by the FAA as it stands today.</p> <p>Including how that legislation interacts with other rule-making and the Code of Conduct.</p> <p>One question that I think everyone accepts we will have to consider in the review is the three-way divide between AFA, RFAs and QFE advisers.</p> <p>We have to ask: does the three-way divide produce unnecessary complexity, both for the sector and for consumers?</p> <p>Indeed, I wonder if those who use – or might use – financial advice are sometimes forgotten in looking at the detailed set-up of the sector.</p> <p>I anticipate the review will hear a lot – from professionals like you, who do the job every day – on effectiveness and efficiency, and whether regulation is enhancing access to advice for New Zealanders.</p> <p>Indeed, I think that’s the big question we have to keep in mind, during the review:</p> <p>Are we fulfilling the objective of the Advisers Act, which is to promote the effective and efficient delivery of adviser services, and grow confidence in the professionalism and integrity of the sector?</p> <p>..........</p> <p>More immediately, we’re thirty (30) days away from the Financial Markets Conduct Act taking full effect.</p> <p>Phase one took effect on the first of April.</p> <p>Phase two – which is the remainder of the Act and the bigger part – takes effect from the first of December.</p> <p>It’s the biggest reform in financial services and capital markets in New Zealand in at least thirty (30) years.</p> <p>The scope of the Conduct Act is much bigger than that of the Advisers Act.</p> <p>The Conduct Act will have an impact on just about everyone who works in financial services or capital markets in New Zealand.</p> <p>Nonetheless, the two statutes are aligned in their overall objective.</p> <p>Namely, higher standards so that professionals, firms, and investors enjoy better outcomes.</p> <p>You are probably familiar with some of the new opportunities that the Conduct Act brings.</p> <p>Peer-to-peer lending.</p> <p>Crowd-sourced equity.</p> <p>The new stepping-stone market planned by the NZX to make capital-raising easier for smaller firms.</p> <p>And – importantly for financial advisers and their clients - improved product disclosure which will make offers of equity, debt, and other products, easier to follow.</p> <p>Indeed, you can be reassured that the days of the three or four hundred page offer document – which didn’t make it any easier to figure out what the offer was really about - are gone.</p> <p>We can all breathe a sigh of relief about that.</p> <p>The prior situation - both here and pretty much everywhere else I have worked - was unacceptable.</p> <p>Offer documents designed in anticipation of litigation, rather than for people trying to make, or trying to advise on, investment decisions cannot be right.</p> <p><b><span style="text-decoration: underline;">Cost of regulation</span></b></p> <p>I wanted to come back to the subject of the costs of regulation, because professionals raise it with me as I get around the country.</p> <p>I know it’s a concern for you.</p> <p>And we completely recognise that burden.</p> <p>Indeed, more broadly, across financial services, that subject was raised with me when I met the new Minister of Commerce, Mr Goldsmith – he’s focused on this topic.</p> <p>Nonetheless, I’d suggest taking a different point of view about cost, and asking: what’s the cost of <span style="text-decoration: underline;">not</span> being regulated, under a quality regulatory regime?</p> <p>I argue that the cost of <span style="text-decoration: underline;">not</span> being regulated - or being too loosely regulated - is twofold.</p> <p>Let’s take a hypothetical case where advisers aren’t regulated.</p> <p>Firstly, those of you who deal directly with consumers and investors would face questions about whether consumers should continue to be confident in your profession.</p> <p>Indeed, that was one of the reasons for the original decision to regulate when the Advisers Act was passed in 2008. To raise consumer confidence in the professionalism and integrity of financial advisers.</p> <p>Without comprehensive regulation, consumers would be entitled to say: most other professions, where we expect people to exercise highly-developed skills, are regulated and they must meet comprehensive standards of conduct.</p> <p>Say, for example, lawyers, architects, medical professionals.</p> <p>So why isn’t your one?</p> <p>Some of you may have noticed – following the Christchurch earthquake – the pressure on the engineering profession, as a result of the shortcomings that are apparent in the regulation of engineers.</p> <p>That’s led to the Government legislating to improve regulation of engineers.</p> <p>That’s the type of pressure that is exerted when a profession lacks carefully-considered regulation, or where regulation fails to keep pace with the dynamics of business.</p> <p>Secondly, without regulation it would become harder and harder for New Zealand to remain a part of the global economy.</p> <p>Indeed, without a credible regulatory regime, we’d struggle to continue to be recognised as an economy where you can do business confidently.</p> <p>I say that quality regulation <span style="text-decoration: underline;">raises</span> the value of the profession – including as it is perceived by the people who are its clients – rather than imposing cost.</p> <p>That’s not to dismiss the extra load that regulation imposes on you.</p> <p>Absolutely not. As I said before, the FMA recognises that load.</p> <p>You can be reassured that we constantly try to assess whether we -and the legislation we operate - over-burden you with demands.</p> <p>But confidence and quality regulation go hand in hand.</p> <p>Generally, good regulation – provided it is carefully applied by the regulator - is good for business.</p> <p>Notwithstanding what I have said, I want to come back to the subject of ‘good for business’ shortly, specifically three big questions that I think the adviser sector faces.</p> <p><b><span style="text-decoration: underline;">Our strategic focus </span></b></p> <p>Yesterday, in Auckland, I outlined at the INFINZ AGM some of our priorities, as the regulator, over the medium-term.</p> <p>We’ll be publishing the full set of priorities – and the reasons we have identified them - in the next few weeks. Indeed, we’re still fine-tuning them.</p> <p>But I can outline <span style="text-decoration: underline;">some</span> of them now.</p> <p>These are the areas where we’ll be putting the majority of our effort, the places you can expect to see us being most active.</p> <p>It’s the areas where we will be focussing on ensuring compliance.</p> <p>Where we will put the greatest weight of our supervision and attention to conduct.</p> <p>And – if things go wrong – where we will take enforcement action.</p> <p>Our aim in identifying these priorities is to improve outcomes – for professionals like you, for investors, for firms - and for the economy generally.</p> <p>Two of the priorities are immediately relevant to you. Those are:</p> <ul> <li>Improving sales and advice</li> <li>And addressing conflicted conduct</li> </ul> <p>We got to these priorities by running a risk analysis across the sectors we regulate.</p> <p>In the case of sales advice and conflicted conduct, the dynamics we identified – factors that we see in our regulatory work - include:</p> <ul> <li>variable quality of advice to consumers and investors. That includes in the QFEs, as well as in the AFA and RFA sectors</li> <li>constraints on access to advice for consumers and investors, including in KiwiSaver decisions</li> <li>the absence of scalable advice that reflects the sophistication of the investor and their investment objectives</li> <li>conflicted remuneration arrangements</li> <li>incentives to mis-sell or churn products</li> <li>poor quality disclosure</li> </ul> <p>and distribution models that exacerbate conflicts</p> <p>Back in September, when we published our report on QFE monitoring, we named some of the results – effectively below-standard conduct – and which are results of the forces I’ve just named. <a title="" href="http://www.fma.govt.nz/#_ftn1">[1]</a></p> <p>You might have seen the media coverage of the QFE report at the time.</p> <p>I recommend reading the report, because we set out some examples of good practices … the things we expect to see.</p> <p>Notably, we challenged the KiwiSaver providers to think very carefully about their processes for winning new KiwiSaver clients.</p> <p>We’ve seen considerable evidence of KiwiSaver providers switching clients, for no real benefit to the clients.</p> <p>I know this issue came up here, at Grosvenor’s conference last year as a question to the FMA.  </p> <p>Some of the practices which we’re seeing - and which we reported on in the QFE report - include asking clients if they want to access their KiwiSaver online, alongside their transactional banking, without explaining that they would have to switch KiwiSaver provider to do so.</p> <p>Another practice we identified is offering a better deal on a credit card, for clients who switch their KiwiSaver to the firm providing the card.</p> <p>Another one is providing clients with documents to sign - for loans and other products - and including a KiwiSaver transfer authorisation without explaining it.</p> <p>These practices led to unnecessary churning of KiwiSaver clients. Shifting them between providers without good reason and sometimes to their disadvantage.</p> <p>Many of you will have recognised that several of the practices I have described are more likely in the QFE and RFA sector, where advisers are often tied to providers that offer daily banking services, alongside KiwiSaver and funds management.</p> <p>And we anticipate we will be focusing on QFE and RFA adviser conduct over the near future, although not to the exclusion of AFAs.</p> <p>We’ll be looking for systems and controls that reassure us that the providers are addressing the conduct we’ve identified, and that management can be reassured that that’s happening.</p> <p>..........</p> <p>I should note that we’re not trying to portray a bleak picture of financial services with the priorities that we will publish shortly.</p> <p>The majority of our supervision and compliance work is showing us good results. No significant issues to follow-up.</p> <p>But – in other places - we do see shortcomings. And we do see the results of those, for consumers and investors.</p> <p>Which leads us to identify publicly some of the shortcomings.</p> <p>It’s our version of holding up a yellow card on the field of play.</p> <p><b><span style="text-decoration: underline;">Big questions ahead for the adviser sector</span></b></p> <p>As I noted earlier, there’s some big questions ahead for the adviser sector.</p> <p>I anticipate that some of those questions will be addressed in the review of the FinancialAdvisers Act.</p> <p>But, notwithstanding the review, I think the sector will have to face up to some critical questions over the next three to five years.</p> <p>Regulation is solving some problems. But it has highlighted some others.</p> <p>Let me start by repeating what I have said ever since I got into - and indeed was being interviewed for - this job.</p> <p>I believe that the existence of a strong and respected advisory sector is critical for New Zealand’s financial markets, and I believe the FMA has an important role in encouraging the use of financial advisers.</p> <p>We want - very much - to feel confident in making that recommendation for consumers and investors – as I have been doing since my first speech in New Zealand, back in April.</p> <p>I think there are a number of questions for the sector in the medium-term.</p> <p style="padding-left: 30px;">1. First is a big question. Which is the sector deciding what it offers New Zealand investors and consumers, and how you sell that.</p> <p style="padding-left: 30px;">In marketing-speak, financial advice in New Zealand needs to firmly define a widely-recognised, long-term value proposition.</p> <p style="padding-left: 30px;">And one that accommodates the regulatory framework.</p> <p style="padding-left: 30px;">I know that there are firms and individuals that have a great reputation.</p> <p style="padding-left: 30px;">I meet many AFAs who are committed and passionate about what they offer their clients and who have clearly earned the trust their clients put in them.</p> <p style="padding-left: 30px;">But – generally – across the piece, the sector might be said to be lacking  a good ‘reason why’.</p> <p style="padding-left: 30px;">What’s the reason New Zealand investors and consumers would come to your door.</p> <p style="padding-left: 30px;">Is it better returns?</p> <p style="padding-left: 30px;">Is it quality advice?</p> <p style="padding-left: 30px;">Is it access to products they can’t access otherwise?</p> <p style="padding-left: 30px;">Is it a combination of these things?</p> <p style="padding-left: 30px;">Or is it something else completely?</p> <p style="padding-left: 30px;">Whatever the answers to these questions - and there won’t be just one - I don’t think New Zealanders understand the sector sufficiently to confidently draw on the value of advice that professionals like you offer.</p> <p style="padding-left: 30px;">I anticipate that some of you will argue that the existing regulatory arrangements don’t assist investors or the sector.</p> <p style="padding-left: 30px;">That includes the three-way divide across AFAs, RFAs, and QFE advisers.</p> <p style="padding-left: 30px;">Reducing complexity like this might help.</p> <p style="padding-left: 30px;">I have said repeatedly that the current structure is too complicated for users, too complicated for you all, and - frankly - too complicated for regulators as well.</p> <p style="padding-left: 30px;">But whilst that issue needs to be addressed before we can confidently direct investors to the sector, reducing complexity is not the solution in itself.</p> <p style="padding-left: 30px;">The solution to this question – what do advisers offer New Zealanders and what are we doing to encourage New Zealand investors to seek advice? - is largely down to the sector.</p> <p style="padding-left: 30px;">There’s an advocacy role for the sector professional bodies here, in assisting the sector to resolve its value proposition and ensuring that proposition is understood.</p> <p style="padding-left: 30px;">By the Government.</p> <p style="padding-left: 30px;">By the regulators.</p> <p style="padding-left: 30px;">And by consumers.</p> <p style="padding-left: 30px;">2. Second is keeping the pressure on to raise standards – such as the minimum qualifications set by the Code.</p> <p style="padding-left: 30px;">Some people are calling for mandatory, relevant tertiary or degree-level qualifications for advisers.</p> <p style="padding-left: 30px;">The mood in Australia is shifting to raising the formal qualifications of advisers there, and imposing further professional development.</p> <p style="padding-left: 30px;">Indeed, the Financial Services Council, which is Australia’s largest representative body in financial services, is calling for a new sector-wide regulator and new professional standards. <a title="" href="http://www.fma.govt.nz/#_ftn2">[2]</a></p> <p style="padding-left: 30px;">On this side of the Tasman, the competence standards in the Code were always intended to be a starting point. Not a destination.</p> <p style="padding-left: 30px;">I’d argue the sector has to ask itself – in the near-future - whether it’s ready to raise the bar, and advocate for higher qualifications and CPD requirements.</p> <p style="padding-left: 30px;">Is it a profession – with professional standards – or a sector with a low bar to entry and a reliance on good old-fashioned integrity and some part-defined notion of competence?</p> <p style="padding-left: 30px;">3. Third is the question of ensuring independence - or at the very least transparency - in advice, particularly for that group of advisers who both sell or recommend products, and who also provide advice.</p> <p style="padding-left: 30px;">From the perspective of consumers, it’s hard to find the separation between the two roles – of selling and advising.  That means it’s always a perceived conflict, even in instances where it’s not an actual one.</p> <p style="padding-left: 30px;">From our point of view – as the regulator – the absence of separation has the potential to cause what we call ‘conflicted conduct’. Where there are incentives for advisers to do one thing when, in the interests of the client, they should do something else.</p> <p>This is an especially tough question, but one that the sector has to confront, and work with us to find solutions that are acceptable.</p> <p>I believe that we all over-estimate people’s capacity to understand what they are being offered in terms of a service.</p> <p>Those using a financial adviser need to be clear on what they are paying for and what incentives an “adviser” has to recommend a particular provider or product. </p> <p>This is critical. And a number of jurisdictions have struggled with this area.</p> <p>I think the sector has under-estimated the issue … and been slow to react.</p> <p>This reluctance to confront this question - consistently across financial services - and I think of the insurance industry here too – does the sector no credit.</p> <p>It just encourages overly-prescriptive and counter-productive regulation.</p> <p><b><span style="text-decoration: underline;">KiwiSaver over the medium-term</span></b></p> <p>As a default KiwiSaver provider, you will know that KiwiSaver is emerging as one of the biggest savings vehicles for New Zealanders.</p> <p>Right now - at 21 billion dollars in assets - it’s a fraction of the other main investment classes in New Zealand. </p> <p>The NZX Top 50 is worth about three times KiwiSaver, at 61 billion dollars in free float capital.</p> <p>The total value of bank deposits – held by Kiwi households – is 131 billion dollars.<a title="" href="http://www.fma.govt.nz/#_ftn3">[3]</a></p> <p>The total value of housing – some of which we have to count as an ‘investment’, because many New Zealanders buy it as accommodation and as accumulation - is about 690 billion dollars.</p> <p>But it’s the speed of growth in KiwiSaver that is important.</p> <p>Up 27 per cent in total assets in the year to the 31<sup>st</sup> of March. That’s contributions, plus returns on investments. <a title="" href="http://www.fma.govt.nz/#_ftn4">[4]</a></p> <p>You won’t find many other investment assets in New Zealand that are growing at that rate.</p> <p>Five years on, and KiwiSaver total funds under management will add up to a big national investment.</p> <p>I think it’s fair to say, the adviser sector is still working out its role relative to KiwiSaver.</p> <p>There’s a good case for some KiwiSaver clients requiring advice.</p> <p>Indeed, there’s a good argument that KiwiSaver clients need advice through the investment lifecycle, to ensure their investment choice keeps up with the sum of funds they have in KiwiSaver.</p> <p>Plus, their age, their earnings, and their other financial commitments.</p> <p>As the funds under management grow – and as younger members start to accumulate bigger funds – we’ll have to discourage the ‘set and forget’ approach to KiwiSaver.</p> <p>Some well-considered decisions – backed by good professional advice - will make a big difference to the long-term investment result, especially for younger clients.</p> <p>The need for access to quality advice “on the way out” is obvious, and will generate significantly higher need for investment advice in the next decade.</p> <p>Let me make some observations which underline the need for deepening advice for KiwiSaver clients:</p> <ul> <li>The low take-up of the eight per cent contribution option, which is the highest contribution step. Only five per cent of contributors were on the eight per cent step, according to the IRD data for 2013. Nearly 60 per cent were on the three per cent step, the lowest one. Many KiwiSaver clients, especially younger ones, would be well-advised to maximise their contributions, which requires a big leap in the number of people contributing at eight per cent <a title="" href="http://www.fma.govt.nz/#_ftn5">[5]</a></li> <li>The modest understanding of how much difference fund-choice makes, especially the difference between aggressive funds and conservative ones. That choice is critical for people who are investing over 20 years, or more. So, if you are under 40, you should be paying attention to the type of fund you are in and the performance you can anticipate</li> <li>Low levels of understanding of decumulation, and the need to maximise value for people who are drawing down their fund. That partly reflects the youthfulness of the scheme in New Zealand – it’s only just over two years since the first people over 65, with five years membership, became eligible to start drawing down. Interestingly, the IRD reports that of the 74 thousand people eligible to draw down in 2013, nearly 40 per cent of them withdrew all their funds, indicating they either spent them or immediately invested in something else <a title="" href="http://www.fma.govt.nz/#_ftn6">[6]</a></li> </ul> <p>These are all areas where good-quality advice would help clients.</p> <p>I also recognise that KiwiSaver is probably channelling funds away from direct equity investment on the NZX.</p> <p>There will be many who see KiwiSaver as a replacement – or a better choice – than buying listed equities or listed debt products.</p> <p>Again, that’s a subject for quality advice, given that we want to deepen the public equity market.</p> <p>The key – for the adviser sector – is making KiwiSaver advice accessible and affordable from the perspective of consumers.</p> <p>And also – from your point of view – making it a viable service, that advisers want to take on, recognising that the majority of KiwiSaver clients still have relatively low balances. Just under 9,500 dollars on average, according to the latest FMA report on Kiwisaver. <a title="" href="http://www.fma.govt.nz/#_ftn7">[7]</a></p> <p>And where the commissions on KiwiSaver are modest.</p> <p>That’s a tough combination to make into a solid business proposition.</p> <p>Relatively low balances, limited understanding of the product among many clients, a widespread ‘set and forget’ approach, and modest commissions.</p> <p>But I am confident we can find a solution.</p> <p>Indeed, the scale of KiwiSaver over the long-run – and the questions it raises about savings and investment in New Zealand - means we have to find a solution.</p> <p><b><span style="text-decoration: underline;">Close</span></b></p> <p>I wanted to close by reassuring you that there’s a place for quality advisers in the New Zealand investment landscape.</p> <p>That’s advisers who are fully-trained professionals.</p> <p>Advisers who work to externally-regulated standards.</p> <p>Advisers who reassure investors that there’s value in drawing on their expertise</p> <p>Advisers who can demonstrate that value.</p> <p>As the regulator, our job is to back advisers in ensuring that you are becoming all of those things, and ensuring that the regulation you are working under provides reassurance as to quality.</p> <p>That’s reassurance for you and for investors.</p> <p>We’re fully committed to that role, and working with you constructively as we carry out our responsibilities.</p> <p>In the next few years the advice sector faces a big test, as it becomes a fully-fledged profession that’s recognised by its clients for providing value.</p> <p>It’s critical that the sector emerges from that test in a stronger state, in order to meet its mandate in the New Zealand economy. </p> <p>A mandate that the FMA strongly believes in.</p> <p>Thank you.</p> <hr> <p><a title="" href="http://www.fma.govt.nz/#_ftnref1">[1]</a> QFEs Monitoring Report: 1 January – 30 June 2014, FMA, Auckland, New Zealand</p> <div> <div> <p><a title="" href="http://www.fma.govt.nz/#_ftnref2">[2]</a> ‘FSC Admits Self-Regulation Not Enough’, Australian Financial Review, Sydney, 23 September 2014</p> </div> <div> <p><a title="" href="http://www.fma.govt.nz/#_ftnref3">[3]</a> Reserve Bank of New Zealand data, August 2014. Includes offshore deposits.</p> </div> <div> <p><a title="" href="http://www.fma.govt.nz/#_ftnref4">[4]</a> Annual Report on KiwiSaver to 30 June 2014, FMA, Auckland, New Zealand</p> </div> <div> <p><a title="" href="http://www.fma.govt.nz/#_ftnref5">[5]</a> KiwiSaver Evaluation for the year to June 2013, IRD, Wellington, New Zealand</p> </div> <div> <p><a title="" href="http://www.fma.govt.nz/#_ftnref6">[6]</a> KiwiSaver Evaluation</p> </div> <div> <p><a title="" href="http://www.fma.govt.nz/#_ftnref7">[7]</a> FMA KiwiSaver report 2014</p> </div> </div> http://www.fma.govt.nz/help-me-comply/financial-advisers/your-obligations/ Your Obligations 2014-11-24 14:58:58 Financial Markets Authority <p><a href="http://www.fma.govt.nz/assets/Code-of-Professional-Conduct-for-AFAs/Code-of-Professional-Conduct-for-AFAs-May-2014.pdf" target="_blank">View the Code of Professional Conduct</a> (May 2014).<br> <a href="http://www.fma.govt.nz/assets/Report-and-Papers/Corporate-Publications/afa-code-of-conduct-December-2010.pdf" target="_blank">View the Code of Professional Conduct</a> (December 2010). </p> <table> <tbody> <tr> <td> <h3>New broker and custodian obligations</h3> <p>Changes to broker obligations under Financial Advisers Act 2008, and new obligations for custodians under regulations, came into force on 1 April 2014.  If you are an adviser who receives or holds client money or property, or if you outsource receipt or holding of client money or property to another person, you should read about your new obligations <a href="http://www.fma.govt.nz/help-me-comply/brokers-custodians/">here</a>.</p> </td> </tr> </tbody> </table> <h2>Care, diligence and skill</h2> <p>All financial advisers must exercise the care, diligence and skill that a reasonable financial adviser would exercise in the same circumstances. In determining what a reasonable financial adviser would do, the following matters must be taken into account:</p> <ul> <li>the nature and requirements of the financial adviser's client or clients</li> </ul> <ul> <li>the nature of the service and the circumstances in which it is provided</li> </ul> <ul> <li>the type of financial adviser</li> </ul> <p>See more in section 33 of the <a href="http://www.fma.govt.nz/laws-we-enforce/legislation/acts-and-regulations/financial-advisers-act-2008/">Financial Advisers Act 2008</a>. See <a href="http://www.fma.govt.nz/help-me-comply/financial-advisers/your-obligations/care-diligence-and-skill-examples/">examples</a> of how these obligations apply to advice on insurance and credit products.</p> <h2>Not engage in misleading or deceptive conduct or advertising</h2> <p>Financial advisers must not engage in misleading or deceptive conduct when providing a financial adviser service. They must also not advertise their services in a way that is misleading, deceptive or confusing. Find out more about <a href="http://www.fma.govt.nz/help-me-comply/financial-advisers/your-obligations/advertising/">advertising obligations</a>.</p> <h2>Disclosure</h2> <p>Advisers who provide a personalised service to a retail client, must disclose certain information. Find out more about <a href="http://www.fma.govt.nz/help-me-comply/financial-advisers/your-obligations/disclosure-obligations/">disclosure obligations</a><a href="http://help-me-comply/financial-advisers/your-obligations/registered-financial-advisers/">.</a></p> <h2>Other obligations</h2> <p>There are other obligations, depending on the sort of adviser someone is.</p> <p><a href="http://www.fma.govt.nz/help-me-comply/financial-advisers/your-obligations/registered-financial-advisers/">Registered Financial Advisers</a><a href="http://www.fma.govt.nz/help-me-comply/financial-advisers/your-obligations/authorised-financial-advisers-obligations/"> </a></p> <p><a href="http://www.fma.govt.nz/help-me-comply/financial-advisers/your-obligations/authorised-financial-advisers-obligations/">Authorised Financial Advisers</a><a href="http://www.fma.govt.nz/help-me-comply/financial-advisers/your-obligations/qualifying-financial-entities-and-qfe-advisers/"> </a></p> <p><a href="http://www.fma.govt.nz/help-me-comply/financial-advisers/your-obligations/qualifying-financial-entities-and-qfe-advisers/">Qualifying Financial Entities and QFE Advisers</a><a href="http://www.fma.govt.nz/help-me-comply/financial-advisers/your-obligations/registered-financial-adviser-entities-%28non-qfe%29/"> </a></p> <p><a href="http://www.fma.govt.nz/help-me-comply/financial-advisers/your-obligations/registered-financial-adviser-entities-non-qfe/">Registered Financial Adviser Entities (non-QFE)</a></p> http://www.fma.govt.nz/laws-we-enforce/legislation/notices/financial-markets-conduct-fmc-reporting-entities-with-higher-level-of-public-accountability-notice-2014/ Financial Markets Conduct (FMC Reporting Entities with Higher Level of Public Accountability) Notice 2014 2014-11-20 12:21:32 Financial Markets Authority <p><b>Heading:  </b>Financial Markets Conduct (FMC Reporting Entities with Higher Level of Public Accountability) Notice 2014</p> <p><b>Gazette notification date:</b> 13 November 2014</p> <p><b>Date in force:</b> 1 December 2014</p> <p><b>SR number:</b> 2014/343</p> <p><b>Act:</b> Financial Markets Conduct Act 2013</p> <p><b>Type:</b> Notice</p> <p><b>Expires</b>: N/A</p> <p><a href="http://www.legislation.govt.nz/regulation/public/2014/0343/latest/DLM6306716.html?src=qs">Financial Markets Conduct (FMC Reporting Entities with Higher Level of Public Accountability) Notice 2014</a></p> http://www.fma.govt.nz/keep-updated/newsroom/media-releases/2014/the-fma-reports-on-its-12-month-performance The FMA reports on its 12 month performance 2014-11-20 10:55:34 Financial Markets Authority <p><b>Media Release<br></b><b>MR No. 2014 - 041<br></b><b>20 November 2014</b></p> <p><em><b>Delivering implementation of largest change in financial services in 30 years</b></em></p> <p>The Financial Markets Authority (FMA) has published its 2014 annual report for the year ended 30 June 2014. During this period the FMA began implementing the largest statutory change in financial services in 30 years. Engaging with the industry to implement the Financial Markets Conduct Act 2013(FMC Act) was one of six major achievements outlined in the report, as the FMA continued to deliver its ongoing regulatory responsibilities.</p> <p>Rob Everett, Chief Executive of the FMA, said that in completing its third year of operations the FMA was now established as a respected regulator. “This reporting period has seen the FMA become a fully-fledged financial markets conduct regulator. Our focus remains on building confidence in the robust framework that supports the financial markets. We’ve built our capability, processes and expertise so we can administer the FMC Act over the long term.”</p> <p>Further significant results highlighted in the report included achievements in enforcement, investigations, supervision, compliance and constructive engagement with the industry. Some of these were:</p> <ul> <li>Enforcement activity including reaching final settlements in the civil cases over Strategic Finance Limited, Bridgecorp Limited, and Lombard Finance and Investments Limited.  All settlements led to payments to investors, which is a priority for the FMA. Successful investigations leading to criminal convictions in the cases of David Ross and Hugh Hamilton.</li> <li>Regulating and monitoring the activity of the NZX and publically listed firms; launching New Zealand’s first market manipulation case.</li> <li>Undertaking extensive monitoring and supervision of authorised financial advisers, Qualifying Financial Entities, brokers, financial services firms, auditors, and accredited bodies, to ensure compliance with regulations.  In many instances, the issues and themes emerging from this compliance work have been publicly reported to assist all regulated firms and professionals to improve standards of conduct and performance.</li> <li>Establishing the requirements, processing applications and approving licenses for the first wave of equity crowd funding and peer-to-peer lending service providers.</li> </ul> <p><br>Mr Everett said, “I want to acknowledge the contribution of the people working for the FMA as we delivered on our core responsibilities throughout the year, alongside the implementation of the new FMC Act. The FMA has taken on staff to work directly on implementing the FMC Act, including an extensive engagement programme with businesses and professionals within the sector. The FMA has delivered a huge programme of work and managed to do this within our budget.”</p> <p>The FMA is steadily building its capability, in terms of its people, its core systems and processes. A major focus is on using market intelligence and insights to help set a risk-based strategy for delivering FMA’s regulatory role.</p> <p>“We’ll be regulating more than 11,000 businesses, professionals, or savings and investment schemes – to varying degrees - from 1 December this year. We need to have systems that enable us to do our job, so that we can give those firms, professionals, and investors the support they anticipate.”</p> <p>Mr Everett said, “We’re heading into a further two to three years of evolution within the financial services sector, as the demands of the new regulations bed-in.  I’m confident the FMA is in a good position to lead that change and that the sector understands what we want to achieve.”</p> <p>Read FMA's Annual report <a href="http://www.fma.govt.nz/assets/Report-and-Papers/Corporate-Publications/FMA-Annual-Report-2014.pdf" target="_blank">here</a>.</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> <p>BACKGROUND:</p> <p><em>The FMA is an independent Crown entity, established in 2011 as the main conduct regulator for New Zealand’s financial markets.  The FMA is responsible for licensing and supervision of financial market participants and for enforcement of the FMC Act and other financial markets legislation.</em></p> <p><em>This regulatory oversight includes:</em></p> <p><em>Fund managers, KiwiSaver providers, superannuation schemes, the NZX, publicly listed firms and issuers, Qualifying Financial Entities, financial advisers, futures dealers, Discretionary Investment Managements Service providers, derivatives issuers, equity crowd funding platforms, peer-to-peer lending platforms, securities trustees and statutory supervisors, auditors of issuers and independent trustees.</em></p> <p><em>The FMA implemented Phase 1 of the FMC on 1 April 2014 with Phase 2 due to be implemented from 1 December 2014.</em></p> http://www.fma.govt.nz/keep-updated/warnings-alerts-and-scams/being-alert-to-scams/ Being Alert to Scams 2014-11-20 08:58:40 Financial Markets Authority <p> </p> <p><a href="http://www.fma.govt.nz/help-me-invest/risks-involved-in-investing/being-alert-to-scams/common-frauds/"> Common Frauds</a></p> <p><a href="http://www.fma.govt.nz/help-me-invest/risks-involved-in-investing/being-alert-to-scams/telephone-share-scams/"> Telephone Share Scams</a></p> <p>Contact FMA to <a href="http://www.fma.govt.nz/about-us/contact-us/make-a-complaint/make-a-report-or-complaint/">report a scam</a></p> <p>You can also report consumer scams to the <a href="http://www.consumeraffairs.govt.nz/scams">Ministry of Consumer Affairs Scam watch website</a>.</p> http://www.fma.govt.nz/help-me-invest/getting-the-right-information/brochures/ Brochures 2014-11-20 08:25:18 Financial Markets Authority <p> </p> <p><a href="http://www.fma.govt.nz/assets/media/1989102/peer-to-peer-lending-brochure.pdf" target="_blank"><img title="" src="http://www.fma.govt.nz/assets/Uploads/peer-to-peer-lending-brochure-2014-142x289.jpg" alt="Peer to Peer Lending" width="142" height="289"></a> <a href="http://www.fma.govt.nz/assets/media/1989099/crowd-funding-brochure.pdf" target="_blank"><img title="Crowd Funding - Investing with the crowd" src="http://www.fma.govt.nz/assets/media/1989089/crowd-funding-brochure-2014-136x291.jpg" alt="Crowd Funding - Investing with the crowd"></a> <a href="http://www.fma.govt.nz/assets/media/1850909/become-a-smart-investor-the-do-s-and-don-ts.pdf" target="_blank"><img title="Become a smart investor - The Do&#039;s &amp; Don&#039;ts" src="http://www.fma.govt.nz/assets/media/1850851/become-a-smart-investor-the-do-s-and-don-ts-135x290.jpg" alt="Become a smart investor - The Do&#039;s &amp; Don&#039;ts"></a> <a href="http://www.fma.govt.nz/assets/media/1520025/kiwisaver-are-you-getting-the-right-advice.pdf" target="_blank"><img title="" src="http://www.fma.govt.nz/assets/media/1624782/kiwisaver-are-you-getting-the-right-advice-136x289.jpg" alt="KiwiSaver Are You Getting The Right Advice"></a> <a href="http://www.fma.govt.nz/assets/media/1520016/be-wary-of-low-ball-offers.pdf" target="_blank"><img title="" src="http://www.fma.govt.nz/assets/media/1624767/be-wary-of-low-ball-offers-136x289.jpg" alt="Be Wary Of Low Ball Offers"></a> <a href="http://www.fma.govt.nz/assets/media/1520013/5-questions-to-ask-your-financial-adviser.pdf" target="_blank"><img title="" src="http://www.fma.govt.nz/assets/media/1624762/5-questions-to-ask-your-financial-adviser-136x290.jpg" alt="5 Questions To Ask Your Financial Adviser"></a> <a href="http://www.fma.govt.nz/assets/confidence-comes-from-sound-advice.pdf" target="_blank"><img title="" src="http://www.fma.govt.nz/assets/media/1624772/confidence-comes-from-sound-advice-136x290.jpg" alt="Confidence Comes From Sound Advice"></a> <a href="http://www.fma.govt.nz/assets/media/1520022/how-to-spot-an-investment-scam.pdf" target="_blank"><img title="" src="http://www.fma.govt.nz/assets/media/1624777/how-to-spot-an-investment-scam-136x290.jpg" alt="How To Spot An Investment Scam"></a> <a href="http://www.fma.govt.nz/media/1850909/become-a-smart-investor-the-do-s-and-don-ts.pdf"></a><a href="http://www.fma.govt.nz/media/1625831/a-director-s-guide.pdf"> </a><a href="http://www.fma.govt.nz/assets/media/1029837/a-director-s-guide.pdf" target="_blank"><img title="" src="http://www.fma.govt.nz/assets/media/1625834/a-director-s-guide-136x290.jpg" alt="A Director&#039;s Guide"></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 2014-11-19 17:03:46 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><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/laws-we-enforce/policy/closed-consultations/consultation-paper-sipos-and-limit-breaks Consultation Paper: SIPOs and Limit Breaks 2014-11-19 15:22:40 Financial Markets Authority <p><b>19 November 2014</b></p> <p>In August/September 2014, the FMA consulted on <a href="http://www.fma.govt.nz/assets/consultation-paper-sipos-and-limit-breaks.pdf">SIPOs and Limit Breaks</a>.</p> <p>21 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/Guidance-Note-Statements-of-Investment-Policy-and-Objectives-under-the-FMC-Act.pdf" target="_blank">guidance note</a>, outlining our expectations for SIPOs. Other comments will be considered as part of the development of specific guidance on Limit Breaks.</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/Report-and-Papers/Guidance/Response-to-Submissions-Consultation-paper-SIPOs-and-Limit-Breaks.pdf" target="_blank">Response to submissions - Consultation paper: SIPOs and Limit Breaks</a></li> </ul> http://www.fma.govt.nz/keep-updated/the-future-of-financial-markets/when-will-you-need-to-comply/ When Will You Need to Comply? 2014-11-18 13:56:27 Financial Markets Authority <p>The Financial Markets Conduct Act 2013 (FMC Act)is being implemented in <a href="http://www.fma.govt.nz/keep-updated/the-future-of-financial-markets/timeline-for-change/">two phases</a>. Phase 1 of the FMC Act and the <a href="http://www.legislation.govt.nz/act/public/2013/0070/latest/DLM5561104.html">Financial Markets (Repeals and Amendments) Act 2013</a> (FM (RA) Act) comes into effect on 1 April 2014. The remaining provisions come into effect on 1 December 2014. </p> <p>You will have up to 24 months from 1 December 2014 to comply with the new disclosure and governance/accountability requirements.</p> <p>See the links below for more information on when specific parts of the new FMC Act regime will apply to you.</p> <ul> <li><a href="http://www.fma.govt.nz/about-us/contact-us/make-a-complaint/the-range-of-complaints-we-deal-with/fair-dealing/">New fair dealing requirements (Part 2)</a></li> <li><a href="http://www.fma.govt.nz/help-me-comply/new-licences-for-financial-market-services/">New licences for financial services (Part 4)</a></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 (Part 4)</a></li> <li><a href="http://www.fma.govt.nz/help-me-comply/new-financial-reporting-requirements/">New financial reporting requirements (Part 7)</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>New disclosure requirements for offers of financial products (1 December 2014) – keep an eye out for updates.</li> </ul> <p>We've also created information sheets to explain specific transitional issues:</p> <ul> <li><a href="http://www.fma.govt.nz/assets/Report-and-Papers/Information-Sheets/Financial-regulation-and-registration-requirements-for-marinas.pdf" target="_blank">Financial regulation and registration requirements for marinas</a></li> <li><a href="http://www.fma.govt.nz/assets/creation-of-new-unit-trusts-during-transition-period.pdf" target="_blank">Creation of new units trusts during transition period</a></li> <li><a href="http://www.fma.govt.nz/assets/media/2009596/fair-dealing-provisions-transitional-arrangements-for-advertising.pdf" target="_blank">Fair dealing provisions - transitional arrangements for advertising</a></li> </ul> <h2> </h2> <h2>Other key market participants</h2> <h3>Issuers</h3> <p>Issuers will be able to take advantage of certain disclosure exemptions between 1 April 2014 and 1 December 2014 (for example, employee share schemes, prescribed intermediaries such as crowd funding, peer-to-peer lending, small offers and quoted securities of the same class) as if those exemptions were part of the Securities Act 1978.</p> <p>For products that have been issued in the past, the issuer has up to two years to move to the new regime. This will require most debt issuers and managed investment schemes to change their governing documents, and all managed investment schemes to register on the new managed investment scheme register.</p> <p><strong>For example:</strong></p> <ul> <li>Continuous issuers – such as managed funds issuers or non-bank deposit takers  have a two year transition period in which they can continue to offer and allot securities under the Securities Act 1978.</li> <li>New one-off issues  such as initial public offerings or corporate debt offers – can still be made under the Securities Act 1978 if the prospectus is registered before December 2015 and the allotment completed within the two year transition period.</li> <li>But new KiwiSaver and superannuation schemes must register under the FMC Act and immediately comply with the new regime.</li> </ul> <h3>Registered exchanges</h3> <p>Existing registered exchanges and authorised futures exchanges will be treated as holding a financial product market licence in respect of each of their current markets, and a process is set out to enable currently unlicensed markets to seek a licence under the transitional provisions.</p> <h3>Custodians</h3> <p>New custodian obligations are in place under the <a href="http://www.legislation.govt.nz/regulation/public/2014/0048/latest/DLM5946801.html?search=y_regulation_2014__rc%40rinf%40rnif%40raif_an%40bn%40rc_200_a&amp;p=1">Financial Advisers (Custodians of FMCA Financial Products) Regulations 2014.</a> However, transitional provisions give custodians until at least 1 December 2014 to comply with most requirements.</p> <h2> </h2> <h2>Find out more</h2> <p>Find out more in our '<a href="http://www.fma.govt.nz/keep-updated/the-future-of-financial-markets/timeline-for-change/">Timeline for Change</a>' and '<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>' sections.</p> http://www.fma.govt.nz/help-me-comply/financial-service-providers/who-needs-to-comply/ Who Needs to Comply? 2014-11-18 13:54:51 Financial Markets Authority <p>Individuals and companies who provide financial services must comply.</p> <h2>Registration of financial service providers</h2> <p>Financial service providers must be registered on the Government Financial Service Providers Register in order to legally conduct a financial services business. This is in addition to any other licences or authorisations they may be required to hold under other laws.</p> <p>Financial service providers include financial advisers, brokers, building societies, credit providers, credit unions, money changers, finance companies, foreign currency exchange dealers, fund managers, insurers, investment portfolio managers, issuers and registered banks.</p> <p>The Financial Service Providers Register website has additional information about <a href="http://www.business.govt.nz/fsp/about-the-fspr/frequently-asked-questions-faqs/registration-what/what-is-a-financial-service"> 'what is a financial service'</a>. For a full description see section 5 of the Financial Service Providers (Registration and Dispute Resolution) Act 2008.</p> <p>Some exemptions apply. For example, lawyers, chartered accountants, tax agents and real estate agents who only provide financial services in the ordinary course of their business do not need to register. For a full list of exemptions see section 7 of the Act.</p> <p>The requirement to register is generally directed at entities and individuals who have a place of business in New Zealand or who live in New Zealand. However other legislation may require <a href="http://www.fma.govt.nz/help-me-comply/financial-advisers/who-needs-to-comply/overseas-advisers-and-overseas-clients/">overseas people</a> to be registered on the Financial Service Providers Register (see for example the Financial Advisers Act).</p> <h2>Do I need to register as an individual if my employer is registered?</h2> <p>The Act requires the person or entity that carries on the business to be registered.  Therefore if you are an employee of a financial services provider company you don't have to be registered unless you are offering certain financial adviser services as explained below.</p> <p>If you provide financial adviser services the requirement to register will depend on the types of financial adviser services you provide. If it's only class services or services to wholesale clients and your employer is a registered financial service provider, then you do not have to register individually. If you are not a QFE adviser but are providing personalised financial adviser services  to retail clients then you will need to be registered. You may also need to be authorised. See <a href="http://www.fma.govt.nz/help-me-comply/financial-advisers/guidance-notes/q-a/">guidance question and answers</a><a href="http://www.fma.govt.nz/help-me-comply/financial-advisers/guidance-notes/q-a/"></a>.</p> <h2>Does my entity need to register if it is only servicing its outstanding loans?</h2> <p>The Act requires credit providers to be registered. Providing credit generally means providing a loan or having a debt due to you.  The requirement covers credit provided under a credit contract, as set out in the Credit Contracts and Consumer Finance Act 2003 (with some additional exclusions set out in the Financial Service Providers Act). This covers lending to businesses as well as to retail customers. </p> <p>Your entity provides credit (and needs to be registered) until the credit is completely repaid (or forgiven). Providing credit includes having a loan due to you that was originally made by another provider.  For example, you will usually need to register if you have bought or been assigned a loan.</p> <p>Credit providers providing credit to retail customers will also need to belong to a dispute resolution scheme (see below).</p> <h2>Who must be a member of a dispute resolution scheme?</h2> <p>Financial service providers who have retail clients must belong to either an approved dispute resolution scheme or the reserve scheme established by the government. If you are a financial adviser employee or agent (including a QFE adviser) and your employer or principal is a member of a scheme you will be covered by their membership for the services you provide on their behalf. The Ministry of Consumer Affairs administers the government's reserve scheme and has information on approved schemes.</p> <h2>Do I need to register if I am a one-off or occasional issuer?</h2> <p>Generally not. One-off or occasional instances of issuing by a business that otherwise is not a financial service provider would not normally be sufficient to constitute being in the business of providing a financial service. There are some exceptions to the general rule where the issuing of securities is closely tied to the core business of the issuer. See our <a href="http://www.fma.govt.nz/assets/media/1054639/when-one-off-or-occasional-issuers-are-required-to-register-on-the-financial-service-providers-register.pdf" target="_blank">information sheet</a> for more details.</p> <h2>What are the regulation and registration requirements for marinas?</h2> <p>The Financial Markets Conduct Act 2013 (FMC Act) changes the way interests in marinas are regulated. Marinas will generally not be regulated under the FMC Act and will no longer need to register on the Financial Service Providers Register. See our <a href="http://www.fma.govt.nz/assets/Report-and-Papers/Information-Sheets/Financial-regulation-and-registration-requirements-for-marinas.pdf" target="_blank">information sheet</a> for more details.</p> http://www.fma.govt.nz/help-me-comply/superannuation/monitoring-and-surveillance/superannuation-schemes-reports/ Superannuation Schemes reports 2014-11-17 16:59:11 Financial Markets Authority <p>See below for our Superannuation Schemes reports:</p> <ul> <li><a href="http://www.fma.govt.nz/keep-updated/reports-and-papers/superannuation-schemes-report-2014">Superannuation Schemes Report for the year ended 30 June 2014</a></li> <li><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 for the year ended 30 June 2013</a></li> <li><a href="http://www.fma.govt.nz/keep-updated/reports-and-papers/superannuation-schemes-report-for-the-year-ended-30-june-2012">Superannuation Schemes Report for the year ended 30 June 2012</a></li> <li><a href="http://www.fma.govt.nz/keep-updated/reports-and-papers/superannuation-schemes-report-for-the-year-ended-30-june-2011">Superannuation Schemes Report for the Year Ended 30 June 2011</a></li> </ul> <p> </p> http://www.fma.govt.nz/keep-updated/reports-and-papers/handbook-corporate-governance-in-new-zealand-principles-and-guidelines Handbook - Corporate Governance in New Zealand - Principles and Guidelines 2014-11-17 16:52:20 Financial Markets Authority <p><strong>17 November 2014</strong></p> <p><strong>The FMA is now consulting on a short <a href="http://www.fma.govt.nz/assets/Report-and-Papers/Consultation/Consultation-Paper-Going-public-a-directors-guide.pdf">guide to assist directors in the process of becoming a public company</a>.</strong></p> <p><strong>You can view the director’s guide for consultation <a href="http://www.fma.govt.nz/laws-we-enforce/policy/current-consultations/consultation-paper-going-public-a-directors-guide">here</a>.</strong></p> <p><strong>Submissions close at 5pm, Monday 8 December. All feedback should be submitted to <a href="mailto:consultation@fma.govt.nz">consultation@fma.govt.nz</a> with the subject line: Going Public – A Director’s Guide.</strong></p> <p><br>16 March 2004</p> <p>The Securities Commission published a report <em>Corporate Governance in</em><br><em>New Zealand Principles and Guidelines</em> in February 2004.  The report sets out nine Principles of corporate governance for application within a broad range of entities.</p> <h2>About This Handbook</h2> <p>This Handbook is a shortened version of the report <em>Corporate Governance in New Zealand Principles and Guidelines</em>. It is intended as a reference for directors, executives and advisers, as they decide how best to apply the Principles to their particular entity. The nine Principles and their accompanying guidelines are included together with the Commission's view on the particular area of corporate governance.</p> <div id="file-attachments"> <h2>File Attachments</h2> <ul> <li><a href="http://www.fma.govt.nz/assets/Uploads/corporate-governance-handbook.pdf" target="_blank">Handbook - Corporate Governance in New Zealand - Principles and Guidelines (203 kB pdf)</a></li> </ul> </div> <hr> http://www.fma.govt.nz/keep-updated/newsroom/media-releases/2014/three-new-members-for-financial-advisers-code-committee Three new members for Financial Advisers Code Committee 2014-11-17 15:52:02 Financial Markets Authority <p><b>Media Release<br></b><b>MR No. 2014 – 040<br></b><b>14 November 2014</b></p> <p>The Financial Markets Authority (FMA) today confirmed the appointment of three new members to the Code Committee for Authorised Financial Advisers (AFAs).</p> <p>Professional financial advisers Martin Hawes and Stephen O’Connor join legal and financial services governance expert, Melanie Biss, as new members of the Code Committee. The existing members are Ross Butler, Shane Edmond, Professor Dimity Kingsford-Smith, David Russell and Gary Young, led by chair David Ireland.</p> <p>Mr Butler, Mr Edmond and Professor Dimity Kingsford-Smith agreed to extend the duration of their terms.</p> <p>Rob Everett, Chief Executive of the FMA, welcomed the new appointments, recognising the deep industry knowledge and individual skills they will bring to the Committee, further adding to the existing expertise and diversity of the members.</p> <p>“Martin, Melanie and Stephen will be great assets to the team and ensure the Committee reflects the make-up of the sector as a whole, while bringing fresh ideas and experiences to the table.  I’m confident the committee is now well-equipped to continue its work in building the capability and standards of the advisory profession.</p> <p>“In particular, the new Committee will contribute in a meaningful way to the review of the Financial Advisers Act over the next 18 months,” said Mr Everett.</p> <p>Both Martin Hawes and Stephen O’Connor are professional AFAs working within non-aligned practices in the South Island and have significant experience and profile within the advisory community.  Melanie Biss is General Manager, Governance, Assurance and Business Support at ANZ Wealth with significant experience in governance and regulatory matters at one of New Zealand’s largest financial institutions.</p> <p>With three new appointments and the extension of terms for three other members, the Committee increases to nine members. Each member has a varied length of term to ensure the future continuity and succession of the Committee.</p> <p>Committee member Michael Staal stood down from the Code Committee at the end of his term.</p> <p>David Ireland, chair of the Committee said, “I’d like to thank Mike Staal for his service to the Code Committee since 2009 and his commitment to raising standards in the financial advisers’ profession. I’m also delighted to have the new perspectives and depth of expertise that these new appointments bring to the Code Committee.”</p> <p>A short biography for each member of the committee is available <a href="http://www.financialadvisercode.govt.nz/about-us/">here.</a></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> <p><b>About the Committee<br></b>The Code Committee for Financial Advisers maintains a Code of Professional Conduct for Authorised Financial Advisers (AFAs). The Code establishes minimum standards of competence, knowledge and skills, ethical behaviour and client care, along with minimum requirements for continuing education, and training, for AFAs. More information about the Committee and its members can be found <a href="http://www.financialadvisercode.govt.nz/">here.</a><b></b></p> http://www.fma.govt.nz/help-me-comply/kiwisaver/monitoring-and-surveillance/kiwisaver-reports/ KiwiSaver reports 2014-11-17 13:47:26 Financial Markets Authority <p>Each year FMA prepares a KiwiSaver Report in accordance with section 194 of the KiwiSaver Act 2006 (the Act). It details the principal matters transacted under the Act for the year ended 30 June.</p> <ul> <li><a href="http://www.fma.govt.nz/keep-updated/reports-and-papers/kiwisaver-report-2014">KiwiSaver report for the year ended 30 June 2014</a></li> <li><a href="http://www.fma.govt.nz/keep-updated/reports-and-papers/kiwisaver-report-for-the-year-ended-30-june-2013">KiwiSaver report for the year ended 30 June 2013</a></li> <li><a href="http://www.fma.govt.nz/keep-updated/reports-and-papers/kiwisaver-report-for-the-year-ended-30-june-2012">KiwiSaver report for the year ended 30 June 2012</a></li> <li><a href="http://www.fma.govt.nz/keep-updated/reports-and-papers/kiwisaver-report-for-the-year-ended-30-june-2011">KiwiSaver report for the year ended 30 June 2011</a></li> <li><a href="http://www.fma.govt.nz/keep-updated/reports-and-papers/kiwisaver-report-of-the-government-actuary-for-the-year-ended-30-june-2010">KiwiSaver report for the year ended 30 June 2010</a></li> </ul> <p>For copies of reports before 2010, <a href="http://www.fma.govt.nz/about-us/contact-us/">contact us</a>.</p> http://www.fma.govt.nz/keep-updated/the-future-of-financial-markets/whats-changing/new-public-registers/ New Public Registers 2014-11-14 16:55:25 Financial Markets Authority <h2>New register for financial products and managed investment schemes, ‘Disclose’</h2> <p><em>Updated 14 November 2014</em></p> <p>The Ministry of Business, Innovation and Employment has launched a <a href="http://www.business.govt.nz/disclose">website</a> with information on the Financial Markets Conduct Act 2013 (FMC Act) register, Disclose.  The website explains how to set up for the register and includes relevant forms that will be required.  It also explains how to search for information on offers and schemes.</p> <p>Disclose is the register for offers of financial products (split into debt securities, equity securities and derivative products) and managed investment schemes (split into managed funds and other managed investment schemes).  Between 1 December 2014 and 30 November 2016 issuers can transition an existing offer or scheme to the Disclose register.  Issuers must advise the effective date that the Financial Markets Conduct Act 2013 regime will apply to their offer or scheme by giving at least 20 working days’ notice to the Financial Markets Authority and the Registrar of Financial Service Providers.  This notice of effective date can be given by completing the electronic form <a href="https://www.business.govt.nz/disclose/about-the-register/forms/notice-of-effective-date/fg_base_view_p3">here</a>.</p> http://www.fma.govt.nz/help-me-comply/financial-advisers/monitoring-and-surveillance/qualifying-financial-entities/ Qualifying Financial Entities 2014-11-14 14:13:35 Financial Markets Authority <p>See FMA's <a href="http://www.fma.govt.nz/assets/media/1054639/fma-s-compliance-focus-for-2013.pdf" target="_blank">Compliance Focus for 2013</a>. FMA monitoring and surveillance work with QFEs is:</p> <ul> <li>risk-based - taking into account information on the nature, scale and extent of the business and the compliance controls; QFEs that only comply with the letter rather than the spirit of the law may be assessed as higher risk</li> </ul> <ul> <li>targeted - based on information received</li> </ul> <ul> <li>theme-based - eg. researching a particular service, or exploration of a potential industry approach or problem</li> <li>aligned to FMA's strategic priorities.</li> </ul> <p>FMA's monitoring of a QFE will typically start with discussions with senior management and the QFE's own compliance monitoring team. We will start with the question, 'How do you know your compliance arrangements work?'  The robustness of a QFE's compliance monitoring will be a key factor in the amount of surveillance undertaken by FMA. We may also conduct on-site visits and interview other management and staff. </p> <p>Work focuses on the QFE's capacity to ensure compliance by its advisers. The current focus for QFE monitoring will be on four key areas:</p> <ul> <li>sales and advice</li> <li>conflicted conduct</li> <li>the effectiveness of the QFE as a frontline regulator</li> <li>governance and tone at the top.</li> </ul> <p>In addition, FMA will continue to explore entity-level conflicts and disclosure.</p> <p>Our expectations in these areas are covered in the QFE ABS Guide and in a <a href="http://www.fma.govt.nz/help-me-comply/financial-advisers/monitoring-and-surveillance/qualifying-financial-entities/qfe-feedback-summary/">summary of feedback</a> from the application process (which can also be downloaded in PDF format below). </p> <p>FMA's current monitoring and surveillance activities for QFEs include:</p> <ul> <li>discussions on issues identified</li> </ul> <ul> <li>reviewing arrangements when notifications are received; we expect QFEs to be able to describe how capacity will be maintained when a business or processes change</li> </ul> <ul> <li>review of QFE Annual Reports, including revised Adviser Business Statements</li> </ul> <ul> <li>following up complaints or queries received about QFEs.</li> </ul> <p>We have already engaged with a number of QFEs about:</p> <ul> <li>suitability of advice</li> <li>supervision</li> <li>management reporting</li> <li>the impact of acquisitions</li> <li>training for category 1 QFE advisers</li> <li>compliance assurance plans.</li> </ul> http://www.fma.govt.nz/help-me-comply/financial-advisers/how-to-get-licensed/afa-application-resources-and-templates/useful-contacts-and-links/ Useful Contacts and Links 2014-11-13 13:43:49 Financial Markets Authority <p>The Financial Markets Authority's information helpline is open Monday to Friday 8.30am to 5.00pm, phone <strong>0800 434 567</strong> (+64 <span>3 943 4222</span> for overseas callers). Other helpful information includes:</p> <ul> <li><a title="Code of Professional Conduct for AFAs" href="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 AFAs</a></li> <li><a href="http://skills.org.nz/industries/financial-services"><span>The Skills Organisation</span> </a>information on competence standards and assessment</li> <li>The <a href="http://www.fspr.govt.nz">Financial Service Providers Register</a> and <a href="http://www.business.govt.nz/fsp/about-the-fspr/how-do-i-register-an-fsp"> information on registration</a> on the Companies Office website</li> <li>Ministry of Consumer Affairs information on <a href="http://www.consumeraffairs.govt.nz/for-business/compliance/financial-dispute-resolution/guidelines-resolution-schemes"> dispute resolution schemes</a>.</li> </ul> http://www.fma.govt.nz/keep-updated/newsroom/fma-updates/fma-update-11-november-2014 FMA Update - 11 November 2014 2014-11-12 10:24:42 Financial Markets Authority <h2><b>FMC Act transition workshop for fund managers</b></h2> <p>This month the Financial Markets Authority (FMA) is hosting two sessions to discuss the steps and activities managed investment scheme (MIS) managers need to take to transition to the Financial Markets Conduct Act (FMC Act). The sessions will appeal to managers of KiwiSaver, superannuation, unit trusts and other MIS.<br> <br> <strong>Auckland</strong><br> Date: Wednesday 19 November<br> Time: 9:30 am – 11:30 am<br> Venue: The Maritime Room, 149 Quay Street, Viaduct Harbour<br> <br> <strong>Wellington</strong><br> Date: Wednesday 26 November<br> Time: 9:30 am – 11:30 am<br> Venue: Chapman Tripp, 17/10 Customhouse Quay<br> <br> <strong>Registration</strong><br> Numbers are limited so to ensure you don’t miss out please RSVP to <a href="mailto:events@fma.govt.nz">events@fma.govt.nz</a> by <strong>5pm on Friday, 14 November 2014</strong>. See our website for <a href="http://financialmarketsauthority.cmail1.com/t/r-l-cjjsjl-wbtdddg-i/">full details</a>.</p> <h2><b>AML and CFT Monitoring Report released</b></h2> <p>At the start of November we released our <a href="http://financialmarketsauthority.cmail1.com/t/r-l-cjjsjl-wbtdddg-d/">Anti-Money Laundering and Countering Financing of Terrorism Monitoring Report</a>. The Anti-Money Laundering and Countering Financing of Terrorism Act 2009 (AML/CFT Act) and associated Regulations, came into full effect on 30 June 2013. In this report we summarise our monitoring results to help Registered Entities gain a better understanding of our expectations.</p> <h2><b>Update on derivatives issuer licensing deadlines</b></h2> <p>Under the FMC Act, those offering regulated derivatives products need a licence from the FMA.<br> <br> The recently released FMC Regulations extend the licensing deadline for market participants who have applied for a derivatives issuer licence.<br> <br> If you have applied for a derivatives issuer licence, the FMC Act licensing requirement will now not apply to you until the FMA makes a decision on your application. Previously you had to be licensed by 1 December. This concession only applies until 28 February 2015.<br> <br> To date, we have received applications or notifications of intent to apply from around 30 potential licensees. This is in addition to current futures dealers who become derivatives issuers under the FMC Act.<br> <br> We will publish licensee names on the registers section of our website as licences are issued.</p> <h2><b>Information sheet: Amendments to governing documents to comply with the FMC Act</b></h2> <p>We’ve released an <a href="http://financialmarketsauthority.cmail1.com/t/r-l-cjjsjl-wbtdddg-h/">information sheet</a> about seeking FMA consent to governing document amendments. In many cases, issuers/managers will be able to make changes without seeking FMA consent. But where this is needed, a formal application will need to be made. The information sheet details how to make these applications.</p> <h2><b>KiwiSaver data at your fingertips</b></h2> <p>Have you ever wondered how KiwiSaver funds are performing? What the fees are? What assets they hold? Did you know that you can get all that data from our website?<br> <br> By law, there is a requirement for managers of all (non-restricted) KiwiSaver schemes to produce quarterly and annual disclosure statements.  This is to ensure consistent and comparable information about KiwiSaver funds is publicly available on a regular basis and to enable investors to make more informed investment decisions. Using that information, FMA consolidates all this data into one handy Excel spreadsheet per reporting period every quarter. Find them on our website under <a href="http://financialmarketsauthority.cmail1.com/t/r-l-cjjsjl-wbtdddg-k/"><strong>Help Me Invest -&gt; KiwiSaver -&gt; Compare KiwiSaver Information</strong></a><br> <br> Use <a href="http://financialmarketsauthority.cmail1.com/t/r-l-cjjsjl-wbtdddg-u/">this file</a> to understand how the data is structured.<br> <br> If you are looking to compare KiwiSaver funds' performance, fees and service, we also recommend you visit <a href="http://financialmarketsauthority.cmail1.com/t/r-l-cjjsjl-wbtdddg-o/">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.<br> <br> (Sorted mixes single sector funds with diversified funds in their risk categories.)<br> <br> <strong>Please note</strong>, we do not make any representation or give any assurance of the accuracy, quality or completeness of the consolidated data, as FMA consolidates the data files submitted by KiwiSaver managers. <strong>KiwiSaver managers are each responsible for the accuracy, quality or completeness of their individual data.</strong></p> <h2><b>Current consultations</b></h2> <ul> <li><a href="http://financialmarketsauthority.cmail1.com/t/r-l-cjjsjl-wbtdddg-b/">Consultation Paper: Update of Guidance Note: Effective Disclosure</a> closes Friday 14 November.</li> <li><a href="http://financialmarketsauthority.cmail1.com/t/r-l-cjjsjl-wbtdddg-n/">Consultation Paper: Issuers’ Registers of Regulated Products and FMA’s Discretion under Section 224 </a>closes Friday 21 November.</li> <li><a href="http://financialmarketsauthority.cmail1.com/t/r-l-cjjsjl-wbtdddg-p/">Consultation: Corporate Governance in New Zealand – Principles and Guidelines</a> closes Monday 1 December.</li> </ul> <h2><b>FMA media releases issued in the last month</b></h2> <ul> <li><a href="http://financialmarketsauthority.cmail1.com/t/r-l-cjjsjl-wbtdddg-x/">Directors of SPI companies agree to enforceable undertakings</a></li> <li><a href="http://financialmarketsauthority.cmail1.com/t/r-l-cjjsjl-wbtdddg-m/">FMA releases updated corporate governance handbook for feedback</a></li> <li><a href="http://financialmarketsauthority.cmail1.com/t/r-l-cjjsjl-wbtdddg-c/">New regulations approved to deliver a new era in financial markets</a></li> <li><a href="http://financialmarketsauthority.cmail1.com/t/r-l-cjjsjl-wbtdddg-q/">FMA focus on improving conduct and increasing trust in financial markets</a></li> <li><a href="http://financialmarketsauthority.cmail1.com/t/r-l-cjjsjl-wbtdddg-a/">FMA warns consumers about cold-calling investment offers and ‘big win’ scams</a></li> <li><a href="http://financialmarketsauthority.cmail1.com/t/r-l-cjjsjl-wbtdddg-f/">New Zealanders underestimate investment risk and prefer lower risk investment options</a></li> </ul> <p><strong>Questions?</strong><br> For enquiries about any of these topics please email us at <a href="mailto:questions@fma.govt.nz">questions@fma.govt.nz</a></p> <h2><b>Previous FMA news updates</b></h2> <ul> <li><a href="http://financialmarketsauthority.cmail1.com/t/r-l-cjjsjl-wbtdddg-z/">Financial Markets Authority FMA Update - 13 October 2014</a></li> </ul> http://www.fma.govt.nz/help-me-comply/financial-advisers/your-obligations/regulatory-reporting-guide/ Regulatory Reporting Guide 2014-11-12 09:41:14 Financial Markets Authority <h3 class="withlink">Download or print a copy of the <a href="http://www.fma.govt.nz/assets/regulatory-reporting-guide.pdf" target="_blank">Regulatory Reporting Guide</a> or you can read it in full below.</h3> <p> 1. This guide is the Regulatory Reporting Guide for Authorised Financial Advisers (<strong>Regulatory Reporting Guide</strong>) referred to in Standard Condition 2 of the Standard Conditions for Authorised Financial Advisers (<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/"><strong>Standard Conditions</strong></a>):</p> <table> <tbody> <tr> <td> <div> <p><strong>Standard Condition 2 - Reporting</strong></p> <p><strong>The AFA must report in accordance with the periodic and other reporting, accounting and notification requirements contained in the Regulatory Reporting Guide for AFAs.</strong></p> </div> </td> </tr> </tbody> </table> <p>2. Regulatory reporting provides information which helps the Financial Markets Authority (<strong>FMA</strong>) to understand the profile, businesses and characteristics of AFAs in the profession and will enable FMA to focus its resources appropriately when monitoring AFAs.</p> <p>3. This Regulatory Reporting Guide includes:</p> <ul> <li>Reporting requirements that an Authorised Financial Adviser (<strong>AFA</strong>) must comply with to fulfil Standard Condition 2 of the Standard Conditions. These requirements are shown in the shaded boxes in <strong>bold type</strong>.</li> <li>Guidance and explanatory material to assist AFAs in understanding the reporting requirements.</li> </ul> <p>4. This Regulatory Reporting Guide contains the reporting requirement for an AFA to complete and submit an annual AFA Information Return (<strong>Information Return</strong>) to FMA.  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><a href="http://www.fma.govt.nz/media/1993803/afa-information-return-questions-final.pdf"></a> about AFAs, their business, their compliance approach and their approach to continuing professional development.</p> <h2>Importance of regulatory reporting</h2> <table> <tbody> <tr> <td><strong>In the Information Return, the AFA must provide information that is complete and accurate and the answer to each question should be true and correct.</strong></td> </tr> </tbody> </table> <p>5. FMA will use information collected through regulatory reporting to inform its risk-based approach to monitoring AFAs.  The information will help to prioritise our work and focus our thematic reviews.  We will compare the information collected from AFAs.  We may aggregate information about the AFA profession and may use this to inform our policy work.</p> <p>6. FMA respects the privacy rights of individuals whose personal information is held by FMA. Any personal information that is supplied to FMA in the Information Return will be held and used in accordance with the Privacy Act 1993. FMA is required to hold personal information in a secure manner and in doing so, ensure that there are reasonable safeguards against loss, misuse or disclosure.</p> <p>7. It is important that the information provided in the Information Return is complete and accurate (within the parameters provided by any available answers specified), and that the answers to the questions are true and correct.  The Information Return asks you to confirm that this is the case before you submit it to FMA.</p> <p>8. FMA understands that you may need to give your best estimate where a question has not been asked before and you were not aware that you would need to collect data during the period to answer the question.  In subsequent reporting periods, it is expected that you will implement systems to collect the data required by the Information Return.</p> <p>9. In some cases, FMA may contact you to ask you to explain the information you have provided, or to support your answers (for example, by providing evidence or your working papers).</p> <p>10. It is a breach of a condition of your authorisation if you do not report in accordance with the requirements contained in this Regulatory Reporting Guide.  Under the Financial Advisers Act 2008 (the <strong>Act</strong>), FMA can take action against you for a breach of a term or condition of your authorisation, which could include suspending or cancelling your authorisation.  Failure to comply with the terms and conditions of your authorisation is also an offence under the Act and carries a maximum penalty of $5,000.</p> <h2>AFA Information Return</h2> <table> <tbody> <tr> <td><strong>The AFA must answer the questions in the Information Return and make the confirmation required when the Information Return is submitted.</strong></td> </tr> </tbody> </table> <p>11. The Information Return gathers factual information about you and your business, and information about your compliance approach and competence.</p> <p>12. The <a href="http://www.fma.govt.nz/assets/media/1993803/afa-information-return-questions-final.pdf" target="_blank">questions</a><a href="http://www.fma.govt.nz/media/1993803/afa-information-return-questions-final.pdf"></a> in the Information Return will remain largely the same each year. However, we may need to update or add some questions in the Information Return as a result of new or significant changes to financial markets legislation.  We may also from time to time add or remove questions to focus on areas of particular interest and may also move the answer ranges as we learn more about the profession. We may also change the reporting period of the Information Return and the date when the Information Return must be submitted by.</p> <p>13. You are responsible for the information provided in your Information Return. This does not preclude you receiving assistance with collating and inputting the information, but you must ensure that you personally read and check the information before you submit the Information Return.</p> <h2>When to complete the Information Return</h2> <table> <tbody> <tr> <td> <p><strong>The AFA must complete the first Information Return relating to their business as at 30 June 2014 and have submitted it to FMA by 30 September 2014.</strong></p> <p><strong>Thereafter, AFAs must complete an Information Return relating to their business as at 30 June annually and submit it to FMA by 30 September.</strong></p> </td> </tr> </tbody> </table> <p>14. The Information Return asks you to confirm that you have a current Adviser Business Statement (<strong>ABS</strong>).  Answering this question fulfils your obligation under Standard Condition 1 of 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> to provide annual confirmation to FMA that your ABS is current.</p> <h2>How to complete the Information Return</h2> <table> <tbody> <tr> <td><strong>The AFA must complete and submit the Information Return online. </strong></td> </tr> </tbody> </table> <p>15. The Information Return can be accessed via our website. You will need to use your RealMe login to access the Information Return.</p> <p>16. You can save incomplete versions of the Information Return on the website, to complete at a later time.</p> <p>17. For many questions, you must select an answer from those provided.  The Information Return includes guidance on how to complete many questions and references to material in the <a href="http://www.legislation.govt.nz/act/public/2011/0005/latest/DLM3231023.html?src=qs">Act</a> and the <a href="http://www.fma.govt.nz/assets/media/1946311/code-of-professional-conduct-for-afas.pdf" target="_blank">Code of Professional Conduct</a> for Authorised Financial Advisers to assist you.</p> <p>18. If you need further help, you can contact the Financial Markets Authority Helpline on 0800 434 567 or contact us via our <a href="http://www.fma.govt.nz/about-us/contact-us/ask-a-question/ask-a-question/">online contact form</a>.</p> <p>19. We will use queries received to improve the guidance in the Information Return on an on-going basis, to help to clarify the questions and to assist AFAs in answering the questions.</p> <p>20. FMA recommends you print a copy of your completed Information Return and keep it with your ABS for your records.</p> http://www.fma.govt.nz/keep-updated/newsroom/media-releases/2014/directors-of-spi-companies-agree-to-enforceable-undertakings Directors of SPI companies agree to enforceable undertakings 2014-11-11 14:17:01 Financial Markets Authority <p><b>Media release<br></b><b>MR No. 2014 – 039<br></b><b>11 November 2014</b></p> <p>The Financial Markets Authority (FMA) today confirmed that Murray Rex Alcock and Allister Ronald Knight (the Directors), of the various entities comprising the SPI group of companies (including SPI Property Fund Limited), have provided enforceable undertakings to the FMA. The Directors have undertaken not to participate in seeking or holding investment funds from the public for five years and to repay SPI Property Fund Limited investors.</p> <p>The undertakings were agreed between the FMA and the Directors after the FMA completed its investigation into the conduct of the Directors, and reached the view that it was likely that the Directors had breached financial markets legislation.</p> <p>The Directors were involved in managing property investment entities in New Zealand. In particular, the FMA had concerns regarding the Directors' management of investor funds associated with the SPI entities. The FMA also had concerns about the compliance standards of the SPI entities including apparent failures to:</p> <ul> <li>comply with financial reporting requirements</li> <li>hold investors subscriptions on trust</li> <li>repay subscriptions owed to investors in relation to SPI Property Fund Limited</li> <li>keep investors adequately informed about the performance of their investments.</li> </ul> <p>In response to these concerns, the Directors have undertaken:</p> <ul> <li>not to act as a director, promoter or CEO or CFO (or equivalent position) of any companies that seek or hold investment funds from the public for five years</li> <li>to repay outstanding subscriptions owed to investors in SPI Property Fund Limited</li> <li>to ensure the filing of audited financial statements for SPI Capital Limited for the years ending 31 March 2011, 2012 and 2013</li> <li>not to participate in the business, including management, of the SPI entities.</li> </ul> <p>Belinda Moffat, Director of Enforcement, said “The enforceable undertakings agreed in this case are a pragmatic and effective way to address the FMA’s concerns about the conduct and poor compliance by the Directors. This outcome provides a process to repay investors, responds to past misconduct and also provides protection to the market and investors.  Keeping investors updated by providing financial statements is a key part of putting customers’ interests first, maintaining their trust and enabling investors to make informed financial decisions.”</p> <p>The full undertakings are available <a href="http://www.fma.govt.nz/laws-we-enforce/enforcement/enforceable-undertakings/enforceable-undertakings-from-spi-directors">here</a>.</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> <p><b>Background</b></p> <p>As a separate matter, FMA has also brought proceedings alleging that Murray Alcock and Allister Knight, as Directors of SPI Property Limited, failed to deliver financial statements to the Registrar of Companies under ss 18(1) &amp; 38(b) Financial Reporting Act 1993 (FRA).</p> <p>Guilty pleas were entered by Messrs Alcock and Knight to three charges for breaches of ss 18(1) &amp; 38(b) on 31 October 2014 and sentencing will take place in the Auckland District Court on 29 January 2015.<b></b></p> http://www.fma.govt.nz/laws-we-enforce/enforcement/enforceable-undertakings/enforceable-undertakings-from-spi-directors Enforceable Undertakings from SPI Directors 2014-11-11 11:14:18 Financial Markets Authority http://www.fma.govt.nz/keep-updated/newsroom/media-releases/2014/fma-releases-updated-corporate-governance-handbook-for-feedback FMA releases updated corporate governance handbook for feedback 2014-11-11 10:41:38 Financial Markets Authority <p><b>Media Release<br></b><b>MR No. 2014 – 038<br></b><b>10 November 2014</b></p> <p>The Financial Markets Authority (FMA) today published a revised version of its handbook on corporate governance for consultation.</p> <p>The newly revised <a href="http://www.fma.govt.nz/laws-we-enforce/policy/current-consultations/consultation-corporate-governance-in-new-zealand-principles-and-guidelines">Draft Principles and Guidelines Corporate Governance in New Zealand</a>, is now available for feedback until 5pm Monday 1 December 2014.</p> <p>First produced in 2004, the updated handbook is intended as a reference guide for directors, executives and advisers, to help them decide how best to apply key corporate governance principles, as set out by the FMA.</p> <p>“In recent years, there has been an increasing focus on corporate governance, particularly in light of the contribution of governance failings to the impact of the Global Financial Crisis,” said Simone Robbers, FMA Director of Primary Markets and Investor Resources.</p> <p>The updated handbook also helps to bring more focus on how good corporate governance and board behaviour supports the principles underpinning the Financial Markets Conduct Act, which takes full effect from 1 December.</p> <p>“While the nine core principles for running a good board remain fundamentally unchanged, we have refreshed the guidance and commentary so they remain useful in the current business environment. We’ve taken into account the issues directors and professionals face in their governance roles, and relevant developments in international best practice,” she says.</p> <p>The nine principles are:</p> <ul> <li>Ethical standards</li> <li>Board composition and performance</li> <li>Board committees</li> <li>Reporting and disclosure</li> <li>Remuneration</li> <li>Risk management</li> <li>Auditors</li> <li>Shareholder relations</li> <li>Stakeholder interests.</li> </ul> <p>Ms Robbers said the FMA had refreshed the guidelines in key areas such as board composition, diversity, the use of board committees, the relationship of boards with their auditors and risk management.  </p> <p>“When executed with the appropriate processes and systems in place, effective corporate governance minimises risks and allows those in governance roles to perform their duties with confidence. Good corporate governance also plays a vital role in contributing to better outcomes for investors, businesses, shareholders and the economy as a whole,” said Ms Robbers.</p> <p>To provide feedback, please click <a href="http://www.fma.govt.nz/laws-we-enforce/policy/current-consultations/consultation-corporate-governance-in-new-zealand-principles-and-guidelines">here.</a></p> <p><b>Alongside these core principles,</b> <b>the FMA will soon release a short guide for directors of companies considering a public listing on the NZX. </b></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> http://www.fma.govt.nz/help-me-comply/financial-advisers/how-to-get-licensed/becoming-a-qfe/qfe-application-resources/qfe-adviser-business-statement/ QFE Adviser Business Statement 2014-11-11 09:59:49 Financial Markets Authority <p>An entity applying for QFE status must prepare an Adviser Business Statement (ABS). The ABS consists of two parts:</p> <ul> <li>Part 1 describes its financial adviser services business</li> <li>Part 2 explains the governance and compliance arrangements that have been put in place to ensure that the entity can take responsibility for the professional conduct and competence of all of its advisers in all of their adviser services. It must explain how consumer protection is addressed.</li> </ul> <p>The ABS needs be approved by the relevant governing body - usually the board of directors. Maintaining an up to date ABS will be part of the terms and conditions of QFE status, if granted.</p> <p>Entities that wish to be partner <a title="Qualifying Financial Entities" href="http://www.fma.govt.nz/help-me-comply/financial-advisers/who-needs-to-comply/financial-advisers/qualifying-financial-entities#types-of-qfes"> entities</a> in a QFE should prepare one joint ABS document to demonstrate that they jointly have capacity.</p> <p>See the <a title="QFE Adviser Business Statement Guide" href="http://www.fma.govt.nz/help-me-comply/financial-advisers/who-needs-to-comply/qualifying-financial-entities/qfe-adviser-business-statement-guide/">QFE Adviser Business Statement Guide</a> for more information on how to write an ABS.</p> <h2>How should QFEs submit their Adviser Business Statement?</h2> <p>Email your ABS to <a href="mailto:qfemonitoring@fma.govt.nz">qfemonitoring@fma.govt.nz</a> and send a hard copy to our <a href="http://www.fma.govt.nz/about-us/contact-us/office-details/">address</a>.</p> <h2>Is my QFE Adviser Business Statement confidential?</h2> <p>Your statement is for your internal use and for the Financial Markets Authority. You do not need to make it public unless you choose to. FMA will respect the confidential nature of information in an ABS or any other reports submitted to us.</p> <p>Information held by FMA is subject to the Official Information Act 1982 and the Privacy Act 1993. These Acts provide for proper access to information held by public organisations and also protect information to the extent consistent with the public interest and preservation of personal privacy. Any request for information held by FMA would be considered in accordance with the requirements of these Acts.</p> <p>There are grounds likely to provide good reason to withhold sensitive information submitted in an ABS, such as where its release would disclose a trade secret, prejudice the commercial position of the financial adviser business, or breach an obligation of confidence where release of the information would be likely to prejudice future supply of similar information, or information from the same source.</p> <p>Applicants should tell us if they consider the information provided in an ABS is confidential.</p> http://www.fma.govt.nz/help-me-comply/anti-money-laundering-and-countering-financing-of-terrorism-reporting-entities/your-obligations/ Your Obligations 2014-11-11 09:57:56 Financial Markets Authority <p>In order to comply with 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 Comply</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/anti-money-laundering-and-countering-financing-of-terrorism-reporting-entities/ Anti-Money Laundering and Countering Financing of Terrorism Reporting Entities 2014-11-11 09:37:31 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>AML/CFT Monitoring Report 2014</strong></p> <p><strong><strong><a href="http://www.fma.govt.nz/keep-updated/reports-and-papers/anti-money-laundering-and-countering-financing-of-terrorism-monitoring-report">Read FMA's Anti-Money Laundering and Countering Financing of Terrorism Monitoring Report</a></strong>.</strong></p> <p><strong>Annual AML/CFT Reports</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><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/help-me-comply/auditors/your-obligations/ Your obligations 2014-11-11 09:32:30 Financial Markets Authority <h2>Auditing and assurance standards</h2> <p>Under the <a href="http://www.legislation.govt.nz/act/public/2011/0021/latest/DLM3230571.html?src=qs">Auditor Regulation Act 2011</a>, the <a href="http://www.legislation.govt.nz/act/public/1993/0106/latest/DLM323598.html">Financial Reporting Act 1993</a>, the <a href="http://www.legislation.govt.nz/act/public/2013/0101/latest/DLM4632829.html?src=qs">Financial Reporting Act 2013</a> and the <a href="http://www.legislation.govt.nz/act/public/2013/0069/latest/DLM4090578.html?src=qs">Financial Markets Conduct Act 2013</a>, licensed auditors will be required to carry out audits in accordance applicable auditing and assurance standards. </p> <h2>Continued compliance with prescribed standards</h2> <p>Licensed auditors and registered audit firms will be required to continue to meet the <a href="http://www.fma.govt.nz/assets/the-auditor-regulation-act-prescribed-minimum-standards-and-conditions-for-licensed-auditors-and-registered-audit-firms-notice-2012.pdf">minimum standards</a> prescribed by FMA for licensing auditors and registering audit firms. </p> <h2>Conditions</h2> <p>Both licensed auditors and registered audit firms will be subject to <a href="http://www.fma.govt.nz/assets/the-auditor-regulation-act-prescribed-minimum-standards-and-conditions-for-licensed-auditors-and-registered-audit-firms-notice-2012.pdf">conditions</a>. For auditors, the kinds of conditions that licences may be subject to are prescribed by FMA.</p> <p>The exact conditions which an auditor or audit firm is subject to will be set by the accredited body that issues the licence for New Zealand based auditors and audit firms, or by FMA for overseas auditors and audit firms.  Conditions will be published on the register of auditors and audit firms, and notified to the auditor or audit firm at the time of being set.For overseas auditors, FMA will generally apply its <a href="http://www.fma.govt.nz/assets/media/1027578/standard-conditions-attaching-to-licences-for-overseas-auditors.pdf" target="_blank">standard licence conditions</a> and for overseas audit firms and its <a href="http://www.fma.govt.nz/assets/media/1027578/standard-conditions-attaching-to-registration-of-overseas-audit-firms.pdf" target="_blank">standard conditions of registration</a>. However, in some circumstances, FMA may vary these conditions or attach additional conditions.</p> <p>Transitional licences are not initially subject to conditions except a condition that the auditor is licensed for all kinds of issuer or FMC reporting entity audits. Conditions can be varied or added by the accredited body for New Zealand auditors or FMA for overseas auditors.</p> <h2>Ongoing competence requirements</h2> <p>FMA has <a href="http://www.fma.govt.nz/assets/the-auditor-regulation-act-prescribed-minimum-standards-and-conditions-for-licensed-auditors-and-registered-audit-firms-notice-2012.pdf">prescribed ongoing competence requirements</a>.  These require auditors to complete 120 hours of relevant training or education in every three year period.</p> http://www.fma.govt.nz/help-me-comply/auditors/who-needs-to-comply/ Who needs to comply? 2014-11-11 09:26:13 Financial Markets Authority <p>All auditors and audit firms who perform issuer audits will need to comply with the <a href="http://www.legislation.govt.nz/act/public/2011/0021/latest/DLM3230571.html?src=qs">Auditor Regulation Act 2011</a>.</p> <p>Individuals who perform issuer audits will need to hold a licence.</p> <p>Audit firms who perform issuer audits must be registered, and must ensure that for each issuer audit:</p> <ul> <li>the engagement partner holds a licence</li> <li>an individual who carries out the quality control review of key decisions and judgements (before the report is issued) also holds a licence. This person might be known as the concurring partner, or quality review partner.</li> </ul> <p>Issuer audits is defined in the Auditor Regulation Act 2011 and includes audits of the financial statements of issuers as defined in the <a href="http://www.legislation.govt.nz/act/public/1993/0106/latest/DLM323598.html">Financial Reporting Act 1993</a>. FMC reporting entity audits are defined in the <a href="http://www.legislation.govt.nz/act/public/2013/0069/latest/DLM4090578.html?src=qs">Financial Markets Conduct Act 2013 and are required to comply with the Financial Reporting Act 2013</a>.</p> <p>The purpose of the auditor regulation regime is to promote the quality, expertise and integrity in the profession of auditors. The regime will also promote recognition of the professional status of New Zealand auditors in overseas jurisdictions.</p> <h2>New Zealand auditors and audit firms</h2> <p><a href="http://www.fma.govt.nz/help-me-comply/auditors/who-needs-to-comply/accredited-bodies/">Accredited bodies</a> have primary responsibility for regulating affected New Zealand based auditors and audit firms.</p> <p>FMA has the role of granting accreditation to accredited bodies and supervising them on an ongoing basis.</p> <h2>Overseas auditors and audit firms</h2> <p>FMA has the primary responsibility of regulating affected overseas auditors and audit firms.</p> <p>An 'overseas auditor' is an individual who is entitled to act as an auditor in a jurisdiction outside New Zealand that is included in a prescribed list. Regulations have prescribed:</p> <ul> <li>Australia</li> <li>Any country, state or territory in the European Union</li> <li>Hong Kong</li> <li>Singapore</li> <li>The United States of America.</li> </ul> <p>Auditors not based in New Zealand or licensed or authorised to act as an auditor in a prescribed jurisdiction may contact FMA to discuss how they will comply with the law.</p> <p>An 'overseas audit firm' is a partnership, where the majority of its partners are ordinarily resident outside New Zealand. Entities other than partnerships are not permitted to carry out audits of New Zealand issuers. A limited partnership cannot become a registered firm.</p> <p><a href="http://legislation.govt.nz/act/public/2011/0021/latest/DLM3230571.html?search=ts_act_auditor+regulation+act_resel&amp;p=1&amp;sr=1">Auditor Regulation Act 2011.</a></p> <p><a href="http://www.legislation.co.nz/regulation/public/2012/0075/latest/DLM4413401.html">Auditor Regulations 2012.</a></p> <p><a href="http://legislation.govt.nz/act/public/1993/0106/latest/DLM323598.html?search=ts_act_Financial+reporting+act_resel&amp;p=1&amp;sr=1">Financial Reporting Act 1993.</a></p> <p><a href="http://www.legislation.govt.nz/act/public/2013/0069/latest/DLM4090578.html?src=qs">Financial Markets Conduct Act 2013.</a></p> <p><a href="http://www.fma.govt.nz/assets/the-auditor-regulation-act-prescribed-minimum-standards-and-conditions-for-licensed-auditors-and-registered-audit-firms-notice-2012.pdf" target="_blank"> Prescribed minimum standards and conditions for licensed auditors and registered audit firms</a>.</p> http://www.fma.govt.nz/help-me-comply/auditors/how-to-get-licensed/how-to-apply-for-a-licence-overseas-auditors/ How to apply for a licence – overseas auditors 2014-11-11 09:20:28 Financial Markets Authority <p>FMA may issue an overseas auditor an auditor licence if you meet certain requirements. We will also consider whether you are able to meet your licence conditions.<br> <br> Please complete the following steps:</p> <h3>1. Download the application guide and relevant forms</h3> <ul> <li><a href="http://www.fma.govt.nz/assets/media/1027578/application-guide-overseas-auditor-licences-and-overseas-audit-firm-registrations.pdf" target="_blank"> Application Guide: Licensing and registration of overseas auditors and audit firms</a></li> <li><a href="http://www.fma.govt.nz/assets/media/1027578/aud1.1-overseas-auditor-application-form.pdf" target="_blank"> Overseas Auditor Application Form (AUD1.1)</a></li> <li><a href="http://www.fma.govt.nz/assets/media/1027578/overseas-audit-firm-coversheet-pack.pdf" target="_blank">Overseas Auditor Cover Sheet Pack</a></li> <li><a href="http://www.fma.govt.nz/assets/media/1027578/amt1.1-adverse-impact-template.pdf" target="_blank">Adverse Matter Template (AMT1.1)</a></li> <li><a href="http://www.fma.govt.nz/assets/media/1027578/supplementary-question-sheets-uk.pdf" target="_blank">UK Auditor supplementary question pack</a></li> <li><a href="http://www.fma.govt.nz/assets/media/1027578/supplementary-question-sheets-usa.pdf" target="_blank">USA Auditor supplementary question pack</a></li> <li><a href="http://www.fma.govt.nz/assets/media/1027578/supplementary-question-sheets-australia.pdf" target="_blank">Australian auditor supplementary question pack</a></li> <li><a href="http://www.fma.govt.nz/assets/media/1027578/overseas-auditor-cover-sheet-pack-for-applications-under-the-trans-tasman-mutual-recognition-act-1997.pdf" target="_blank"> Overseas Auditor Cover Sheet Pack for applications under the Trans-Tasman Mutual Recognition Act 1997</a></li> <li><a href="http://www.fma.govt.nz/assets/media/1027578/application-for-an-overseas-auditor-licence-under-the-trans-tasman-mutual-recognition-act-1997.pdf" target="_blank"> Application for an Overseas Auditor Licence under the Trans-Tasman Mutual Recognition Act 1997</a></li> </ul> <h3><strong>2. Gather the evidence of meeting requirements</strong></h3> <p>The evidence you need to gather is summarised in the application guide. The application guide also has full details of the requirements as well as information about how FMA assesses the evidence provided.</p> <p>Please check that you have provided the expected evidence from both the 'all countries' section of the guide and the section relevant to your home jurisdiction.</p> <p>Please also carefully check you provide the evidence in accordance with the requirements in the application guide. Incomplete forms or answers which do not take account of the guidance are likely to result in queries and delays in processing your application and additional costs.</p> <p><strong>New Zealand Orientation Topics for Overseas Licensed Auditors</strong><br> <br> Overseas auditors wishing to be licensed in New Zealand are required to complete an approved course in New Zealand commercial law and taxation. This is to ensure that all licensed auditors have knowledge of the New Zealand commercial environment. FMA has approved for the purposes of this requirement successful completion of degree level papers in both commercial law and taxation at an approved tertiary institution.<br> <br> The following table sets out the papers which would currently meet this requirement at 14 tertiary institutions:</p> <table> <tbody> <tr> <td><strong>Tertiary Institutions</strong></td> <td><strong>Commercial Law</strong></td> <td><strong>Taxation</strong></td> </tr> <tr> <td><strong>University of Auckland</strong></td> <td>COMLAW 203 Company Law</td> <td>COMLAW 301 Taxation</td> </tr> <tr> <td><strong>Auckland University of Technology</strong></td> <td> <p>416614 - Law for New Zealand Business</p> </td> <td> <p>367905 Advanced Taxation<br> or<br> 367907 Taxation: Principles, Policies and Processes</p> </td> </tr> <tr> <td><strong>UNITEC New Zealand</strong></td> <td>ACTY 6320 Law of Business Entities</td> <td>ACTY 6210 Taxation</td> </tr> <tr> <td><strong>Manukau Institute of Technology</strong></td> <td>323.606 Commercial Law 2</td> <td>311.642 Taxation</td> </tr> <tr> <td><strong>University of Waikato</strong></td> <td>ACCT322 - Law of Business Enterprises</td> <td>ACCT 351 Taxation</td> </tr> <tr> <td><strong>Waikato Institute of Technology</strong></td> <td>BBSD622 Corporate Law</td> <td>BBSD603 Taxation</td> </tr> <tr> <td><strong>Eastern Institute of Technology</strong></td> <td>LAWS 6.01 Corporate Law</td> <td>ACCY7.08 Advanced Taxation</td> </tr> <tr> <td><strong>Massey University *</strong></td> <td> <p>155.203 - Law of Business Organisations</p> </td> <td> <p>110.289 Taxation<br> or<br> 110.389 Advanced Taxation</p> </td> </tr> <tr> <td><strong>Victoria University of Wellington</strong></td> <td>COML 303 - Law of Organisations</td> <td> <p>ACCY 305 Advanced Domestic Taxation<br> or<br> TAXN 301 Advanced Domestic Taxation </p> </td> </tr> <tr> <td><strong>The Open Polytechnic of New Zealand *</strong></td> <td>71 214 - Law of Business Organisations</td> <td>71 306 Taxation</td> </tr> <tr> <td><strong>Nelson Marlborough Institute of Technology</strong></td> <td>LAW610 - Company Law</td> <td>ACC 706 Advanced Taxation</td> </tr> <tr> <td><strong>University of Canterbury</strong></td> <td> <p>ACCT 256 Law of Business Organisations</p> </td> <td>ACCT 358 Advanced Issues in Taxation</td> </tr> <tr> <td><strong><strong>Lincoln University</strong></strong></td> <td>LWST 201 - Commercial Law I</td> <td>ACCT306 Taxation</td> </tr> <tr> <td><strong><strong><strong>University of Otago</strong></strong></strong></td> <td>BLAW211 Business Law Relating to Entities</td> <td>ACTP 312 Taxation Practice</td> </tr> </tbody> </table> <p>* indicates institutions that offer courses by correspondence or distance learning.</p> <p><strong><a href="http://www.fma.govt.nz/assets/media/1027578/contact-information-for-each-tertiary-institution.pdf" target="_blank">Contact information for each tertiary institution is available here</a>.</strong><br> <br> If you have completed another course in New Zealand commercial law and taxation which you believe meets the requirements for auditor licensing, we are happy to consider whether that course is equivalent to the approved courses. In order to do this, we will need you to provide a detailed description of the topics covered and the learning outcomes for the course you have completed.</p> <h3>3. Send your application by post or courier</h3> <p>Physical copies of all your application material should be addressed to:</p> <p>Licensing Team<br>Financial Markets Authority<br>Level 2, 1 Grey Street<br>Wellington 6140<br>New Zealand</p> <p>Each application will need to be accompanied by the appropriate fee.</p> http://www.fma.govt.nz/help-me-comply/anti-money-laundering-and-countering-financing-of-terrorism-reporting-entities/how-to-get-ready/ How to Comply 2014-11-10 17:08:04 Financial Markets Authority <p><strong>The AML/CFT regime came into full effect on 30 June 2013.</strong> If you are a reporting entity under the Anti-Money Laundering and Countering Financing of Terrorism Act, you must comply with the Act.</p> <h2><strong>Read about the risks</strong></h2> <p>The Sector Risk Assessment (SRA) is a review of the characteristics of certain sectors of the financial system. It assesses the level of risk of money laundering occurring in that sector and outlines any particular risks in that area.</p> <p>FMA's SRA is a preliminary assessment looking at the risks of money laundering amongst issuers of securities, brokers, financial advisers, trustee companies, collective investment schemes, and futures dealers.</p> <p><a href="http://www.fma.govt.nz/keep-updated/reports-and-papers/anti-money-laundering-and-countering-the-financing-of-terrorism-sector-risk-assessment">Read the assessment</a></p> <p>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 national risk assessment ( <a href="http://www.justice.govt.nz/policy/criminal-justice/aml-cft/publications-and-consultation/20110308-NRA-2010-Primary-Document-FINAL.pdf"> Police [468 kB pdf]</a>).</p> <h2>Understand the regime and your obligations</h2> <p>To help reporting entities get ready, the three supervisors have run roadshows, issued <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/"> guidelines and codes of practice</a> and fact sheets and are providing regular <a href="http://www.fma.govt.nz/about-us/what-we-do/anti-money-laundering-and-countering-financing-of-terrorism/">updates</a>.</p> <p>You can download a copy of the presentations from the <a href="http://www.fma.govt.nz/help-me-comply/anti-money-laundering-and-countering-financing-of-terrorism-reporting-entities/how-to-get-ready/anti-money-laundering-and-countering-financing-of-terrorism-roadshow-2012/"> 2012</a> and <a href="http://www.fma.govt.nz/help-me-comply/anti-money-laundering-and-countering-financing-of-terrorism-reporting-entities/how-to-get-ready/anti-money-laundering-and-countering-financing-of-terrorism-roadshow-2011/"> 2011</a> Anti-Money Laundering and Countering Financing of Terrorism Roadshows.</p> <h2><strong>Complete a risk assessment</strong></h2> <p><a href="http://www.legislation.govt.nz/act/public/2009/0035/latest/DLM2140915.html?search=ts_act_Anti+Money+Laundering_resel&amp;p=1"> Section 58</a> of the Anti-Money Laundering and Countering Financing of Terrorism Act requires each reporting entity to assess the risk of money laundering and financing of terrorism it may reasonably expect to face in the course of its business. The Act calls this a risk assessment.</p> <p>A risk assessment is the first step a business must take before developing an anti-money laundering and countering the financing of terrorism programme.  The supervisors have issued <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/"> guidelines</a> on how to complete a risk assessment, and one for <a href="http://www.fma.govt.nz/keep-updated/reports-and-papers/guide-for-small-financial-adviser-businesses">small financial adviser businesses</a>.</p> <h2>Put in place a compliance programme</h2> <p>Once a risk assessment is completed, a business can then put in place a programme that minimises or mitigates these risks. See the AML/CFT programme <a href="http://www.fma.govt.nz/keep-updated/reports-and-papers/amlcft-programme-guideline">guideline</a>.</p> http://www.fma.govt.nz/help-me-comply/financial-advisers/guidance-notes/q-a/ Questions and Answers 2014-11-10 16:35:43 Financial Markets Authority <p>February 2011</p> <p>This document contains guidance on specific questions that signals the approach taken in interpreting the law.</p> <ul> <li>Do I need to register as an individual if my employer is registered?</li> <li>Who must make disclosure under the regulations when an adviser acts on behalf of someone else?</li> <li>What responsibility does a QFE take for its nominated representatives?</li> <li>How will the period of QFE status be determined?</li> </ul> <h2> </h2> http://www.fma.govt.nz/help-me-comply/financial-advisers/your-obligations/advertising/ Advertising 2014-11-10 16:30:29 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> <h4> </h4> <h4>Can mortgage advisers refer to KiwiSaver in their advertising?</h4> <p>A mortgage advice advertisement that refers to KiwiSaver in such a way that it implies an adviser is authorised to provide personalised financial advice on KiwiSaver could be misleading for consumers.</p> <p>In some circumstances mortgage advisers may need to draw a client's attention to the first home deposit facility within KiwiSaver and provide practical information about accessing the facility. However, advisers should take care in the use of statements and advertisements such as 'come and talk to us about KiwiSaver' or 'use your KiwiSaver to buy your first home'.</p> <p>A client might think that the mortgage adviser could provide them with personalised advice about the merits of using KiwiSaver funds to buy a house. Under the Act, as a general rule, only an AFA (or QFE adviser) should provide this kind of personalised advice.</p> <p>In an advertisement for mortgage advice services, FMA would not expect KiwiSaver to be the prominent focus or a key feature of the advertised service. If an adviser is only providing a limited service rather than personalised advice on KiwiSaver we would expect this to be clear.</p> <p>A mortgage adviser should also be careful when drawing their client's attention to the first home deposit facility other than in advertising.  A recommendation to an individual to make use of the facility to buy a first home could amount to personalised advice on a Category 1 product.</p> <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/how-to-get-licensed/afa-application-resources-and-templates/afa-adviser-business-statement-guide/annual-confirmation-your-adviser-business-statement-is-current/ Annual confirmation your Adviser Business Statement is current 2014-11-10 14:46:02 Financial Markets Authority <p>Under the Standard Conditions 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 through the <a href="http://www.fma.govt.nz/help-me-comply/financial-advisers/your-obligations/regulatory-reporting-guide/afa-information-return/">annual AFA Information Return</a>.</p> <p>You do not need to supply us with a copy of your ABS or specify any changes you have made to update your ABS.  However FMA may ask for a copy of an ABS at any time to assist in monitoring.</p> <h2> </h2> http://www.fma.govt.nz/help-me-comply/financial-advisers/your-obligations/qualifying-financial-entities-and-qfe-advisers/ Qualifying Financial Entities and QFE Advisers 2014-11-10 14:33:41 Financial Markets Authority <p><strong>Read FMA's <a href="http://www.fma.govt.nz/keep-updated/reports-and-papers/qualifying-financial-entities-monitoring-report-2014">2014 Qualifying Financial Entities Monitoring Report </a></strong><strong><br>Read FMA's <a href="http://www.fma.govt.nz/keep-updated/reports-and-papers/qfe-annual-report-feedback-2013">QFE Annual Report Feedback 2013</a></strong></p> <p>Qualifying Financial Entities (QFEs) must, during the period of their QFE status:</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> and <a href="http://www.fma.govt.nz/assets/guidance-note-sale-and-distribution-of-kiwisaver.pdf" target="_blank">guidance note on sale and distribution of KiwiSaver</a>) when providing financial adviser services (section 33 of the <a href="http://www.fma.govt.nz/laws-we-enforce/legislation/acts-and-regulations/financial-advisers-act-2008/">Financial Advisers Act 2008</a>)</li> <li>not engage in misleading or deceptive conduct. Similarly advertising must not be misleading, deceptive or confusing (section 47 and 48)</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> <li>comply with the terms and conditions set out in the QFE's grant of status. The <a title="Terms and Conditions for QFEs" href="http://www.fma.govt.nz/help-me-comply/financial-advisers/your-obligations/qualifying-financial-entities-and-qfe-advisers/terms-and-conditions-for-qfes/">terms and conditions for QFEs</a> include the Standard Conditions for QFEs, subject to any modifications made as part of the grant of QFE status, and the specific terms and conditions for the QFE</li> <li>have and maintain an <a href="http://www.fma.govt.nz/help-me-comply/financial-advisers/who-needs-to-comply/qualifying-financial-entities/qfe-adviser-business-statement-guide/">Adviser Business Statement</a></li> <li>submit an Annual Report to the Financial Markets Authority. For more information see section 77 of the Act and <a href="http://www.fma.govt.nz/help-me-comply/financial-advisers/your-obligations/qualifying-financial-entities-and-qfe-advisers/terms-and-conditions-for-qfes/">terms and conditions for QFEs</a>, particularly the Reporting and Notification Standard Conditions for Qualifying Financial Entities.</li> </ul> <p>A QFE also has <a href="http://www.fma.govt.nz/help-me-comply/financial-advisers/your-obligations/qualifying-financial-entities-and-qfe-advisers/who-is-a-qfe-responsible-for/">responsibility</a> to ensure that members of its QFE group and employees and nominated representatives of the QFE Group comply with the terms and conditions of grant of QFE status and that employees and nominated representatives comply with their financial adviser obligations.</p> <h2>QFE advisers</h2> <p>An adviser who provides personalised adviser services to retail clients on <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 products</a> not issued or promoted by the QFE or a member of the QFE group must be an Authorised Financial Adviser (AFA). They will be subject to the obligations that apply to AFAs.</p> <p>QFE advisers are not subject to the <a title="Code of Professional Conduct for AFAs" href="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</a>. However, their QFE must demonstrate that it maintains procedures to ensure that retail clients receive adequate protection. For services for category 1 products, FMA must consider whether the QFE's clients receive protection of a similar standard to that provided by advisers who are subject to the Code, taking into account their scope of products. See section 66 of the Act.</p> <p>The standard of professionalism expected from QFE and non-QFE advisers doing similar work is the same.</p> 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 2014-11-10 14:31:47 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" alt="Code of Conduct 2014" src="http://www.fma.govt.nz/assets/media/1978670/code-of-conduct-image-159x226.jpg"></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" alt="Code of Conduct flyer" src="http://www.fma.govt.nz/assets/media/1982487/code-of-conduct-flyer-159x225.jpg"></a> <strong>May 2014</strong></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> <p>Read the <a href="http://www.fma.govt.nz/assets/Report-and-Papers/Corporate-Publications/afa-code-of-conduct-December-2010.pdf" target="_blank">Code of Professional Conduct for AFAs December 2010</a>.</p> http://www.fma.govt.nz/keep-updated/reports-and-papers/gentrack-ipo-report Gentrack IPO Report 2014-11-10 08:28:53 Financial Markets Authority http://www.fma.govt.nz/keep-updated/reports-and-papers/anti-money-laundering-and-countering-financing-of-terrorism-monitoring-report Anti-Money Laundering and Countering Financing of Terrorism Monitoring Report 2014-11-07 11:27:13 Financial Markets Authority http://www.fma.govt.nz/help-me-comply/new-accountability-framework-for-financial-products/ New Accountability Framework for Financial Products 2014-11-06 16:51:09 Financial Markets Authority <p>Ensuring financial product managers and supervisors have a clear understanding of their respective roles, and holding them to account, is central to building investor trust.</p> <p>Part 4 of the FMC Act 2013 introduces a new governance and accountability framework to achieve this goal.</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/help-me-comply/new-accountability-framework-for-financial-products/governing-document-amendments/ Governing document amendments 2014-11-06 16:48:41 Financial Markets Authority <p>Our <a href="http://fma.govt.nz/assets/Report-and-Papers/Guidance-Note-Governance-under-Part-4-of-the-FMC-Act.pdf">guidance note, Governance under Part 4 of the FMC Act</a>, addresses the need for governing documents to be effective and fit for purpose.</p> <p>Existing governing documents will need to be reviewed and, as necessary or desirable, amended to ensure they meet the new requirements of the FMC Act.</p> <p>We expect issuers/managers to use the most efficient means for effecting changes to governing documents.  If changes can be made with the consent of the supervisor then they should be made that way rather than seeking FMA consent.</p> <p>However Clause 26 of Schedule 4 of the FMC Act enables debt issuers and MIS managers to amend a governing document with the FMA’s consent where those changes are necessary or desirable for ensuring compliance with the FMC Act.</p> <p>Our <a href="http://www.fma.govt.nz/assets/Report-and-Papers/Information-Sheets/FMA-consent-to-governing-document-amendments-under-clause-26-Schedule-4-of-the-FMC-Act-Information-sheet.pdf" target="_blank">information sheet</a> on FMA consent to governing document amendments under clause 26, Schedule 4 sets out when this consent can be sought, and details the application process for requesting such consent.</p> http://www.fma.govt.nz/keep-updated/newsroom/media-releases/2014/new-regulations-approved-to-deliver-a-new-era-in-financial-markets New regulations approved to deliver a new era in financial markets 2014-11-05 17:03:05 Financial Markets Authority <p><b>Media release<br></b><b>MR No. 2014 – 037<br></b><b>4 November 2014<br><br></b>The Financial Markets Authority (FMA) welcomes today’s announcement from Commerce and Consumer Affairs Minister Paul Goldsmith, confirming the approval of the phase two regulations of the Financial Markets Conduct Act.</p> <p><a href="http://www.legislation.govt.nz/regulation/public/2014/0326/latest/whole.html?search=qs_act%40bill%40regulation%40deemedreg_financial+markets+conduct_resel_25_h&amp;p=1#DLM6293111" target="_blank">The regulations come into effect on 1 December 2014</a>. They provide the detail that supports the big-picture principles in the FMC Act.</p> <p>Many businesses and professionals will rely on the regulations to determine exactly what they have to do to implement the Act.</p> <p>“The Financial Markets Conduct Act is the largest statutory reform of New Zealand’s financial markets in 30 years.  The regulations provide the nuts and bolts that will make the law work,” said Mr Everett, Chief Executive of the FMA.</p> <p>“A huge amount of effort from the FMA, government and stakeholders has gone into to ensuring that these reforms are well-understood by the industry and can be implemented efficiently from 1 December.”</p> <p>The phase two regulations cover new disclosure requirements, go-live of the online registers, the governance of financial products and further detail supporting the remainder of the FMC Act. The mandate for the FMA increases substantially with several hundred businesses expected to apply for licenses in the new regime.</p> <p>Phase one of the FMC Act took effect on 1 April 2014. That included the fair-dealing provisions, and regulations that provided for the licensing of peer-to peer lending and equity crowd funding.</p> <p>“Easier-to-follow documents from providers are another key benefit investors will experience as the principle of clear, concise and effective disclosure takes effect from 1 December. The regulations approved today will support the FMA in delivering our objective of fair, efficient and transparent markets. They will also help us deliver on the government’s business growth agenda and restore confidence and trust in the markets,” said Mr Everett.</p> <p>ENDS<br><br>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/new-licences-for-financial-market-services/derivatives-issuer/who-needs-to-comply/ Who needs to comply? 2014-11-05 15:26:27 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.</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/help-me-comply/financial-advisers/who-needs-to-comply/what-type-of-financial-adviser-am-i/eligible-persons-and-eligible-investors/ Eligible persons and eligible investors 2014-11-03 14:58:14 Financial Markets Authority <p>The terms 'eligible persons' and 'eligible investors' are similar so it is important that financial market participants  understand these terms come from different legislation and different tests, processes and consequences apply.</p> <p>There are significant consequences of getting things wrong in both cases.</p> <h3><strong><a id="Eligible persons" name="Eligible%20persons"></a>Eligible persons</strong></h3> <p>Most Securities Act requirements that apply when securities are offered to the public will not apply if the only persons who are eligible to invest, and do invest, under an offer are 'eligible persons'. No prospectus or investment statement is required for such an offer.</p> <p>'Eligible persons' are investors who are wealthy, experienced in investing and/or experienced in the business or industry to which the offered securities relate. The table below summarises the process for verifying the wealth or experience of an investor.</p> <p><strong>Who is an eligible person?</strong></p> <table> <tbody> <tr> <td><strong>An individual or entity who meets one or more of the following:</strong></td> <td><strong>Requirements to be met before an investor will be an 'eligible person'</strong></td> </tr> <tr> <td> <p><strong>Wealthy<br></strong>Net assets of $2million or more or annual gross income of $200k or more for each of last two financial years</p> </td> <td>An independent chartered accountant certifies (within 12 months before the offer) that he or she is satisfied on reasonable grounds that the investor is wealthy under the test on the left.</td> </tr> <tr> <td> <p>Experienced in investing money</p> <p> </p> <p>Experienced in the industry or business the security relates to</p> </td> <td> <p>An independent financial service provider is satisfied on reasonable grounds that the investor's experience in investing money or in the industry or business the security relates to means the investor is able to assess:</p> <ul> <li> <p>the offer's merits;</p> </li> <li> <p>the value of the security; </p> </li> <li> <p>the risks if the offer is accepted;</p> </li> <li> <p>their own information needs; and</p> </li> <li> <p>the adequacy of information provided about the offer.</p> </li> </ul> <p>Independent financial service provider gives the investor a written statement of his or her reasons for being satisfied about those matters before the security is allotted.</p> <p>Investor signs written acknowledgement (before allotment) that they have not been given a registered prospectus or investment statement and they understand that they will not receive these documents or any other information usually provided in a public securities offer.</p> </td> </tr> </tbody> </table> <p><a href="http://www.legislation.govt.nz/act/public/1978/0103/latest/DLM26800.html?search=ts_act_Securities+Act+1978_resel_25_h&amp;p=1"> Sections 5(2CB) to 5(2CF) of the Securities Act 1978</a> provide detailed information on the eligible person exemption and on who is an 'eligible person'.  Note that the term 'financial service provider' in the table above means a person whose principal business is giving investment advice or receiving investment money or property.</p> <h3><a id="Eligible investors" name="Eligible%20investors"></a>Eligible investors</h3> <p>Eligible investors are one type of 'wholesale client' under the Financial Advisers Act and Financial Service Providers (Registration and Dispute Resolution) Act 2008.  Greater protections apply for retail clients than for wholesale clients.  For instance, personalised advice on more complex financial products and investment planning services can generally only be provided to a retail client by an Authorised Financial Adviser.  A financial service provider who provides services to retail clients is required to be a member of a dispute resolution scheme.</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/retail-or-wholesale-clients/">See more on wholesale vs retail clients</a>.</p> <p><strong>Who is an eligible investor?</strong></p> <p>Under the Financial Advisers Act, an 'eligible investor' is a client for adviser services who has sufficient knowledge, skills or experience in financial matters to assess the value and risks of financial products and the merits of the service(s) to be provided (including assessing its value and the risks involved).  The table below summarises the certification process for verifying whether a client is an eligible investor under that Act.</p> <table> <tbody> <tr> <td><strong>An individual or entity who meets the following criteria:</strong></td> <td><strong><span>Requirements to be met before a client will be an 'eligible investor'</span></strong></td> </tr> <tr> <td><strong>A client (individual or entity) who has sufficient financial knowledge, skills and experience to enable them to assess both the value and risks of the financial products and the merits of the service(s) to be provided.</strong></td> <td>Client certifies in writing (stating reasons) that they: <ul> <li> <p>meet the knowledge, skills and experience requirement on the left; and</p> </li> <li> <p>understand the consequences of giving the certificate (including that competency standards and the Code will not apply and a dispute resolution scheme may not be available).</p> </li> </ul> <p>A certificate can refer to a specific service or class of services or be general.</p> <p>A financial adviser, QFE or broker  is satisfied after considering the client's reasons for giving the certificate that:</p> <ul> <li> <p>the client has received sufficient advice about the consequences of giving the certificate;</p> </li> <li> <p>and there is no reason to believe the certificate is incorrect (or that further information or investigation is needed to determine this).</p> </li> </ul> <p>The financial adviser, QFE or broker has signed a written acceptance of the client's certificate.</p> </td> </tr> </tbody> </table> <p><a href="http://www.legislation.govt.nz/act/public/2008/0091/latest/DLM1584202.html"> Section 5D</a> of the Financial Advisers Act provides detailed information on who are 'eligible investors' under that Act.</p> <p><strong>Who are eligible investors under the Financial Service Providers (Registration and Dispute Resolution) Act?</strong></p> <p>A slightly different definition and verification process applies under the Financial Service Providers (Registration and Dispute Resolution) Act.</p> <p>Key differences include:</p> <ul> <li>A client completing an eligible investor certificate under the Financial Service Providers (Registration and Dispute Resolution) Act must certify they understand that, as a consequence of certifying that they are an eligible investor, the financial service provider may not be a member of an approved dispute resolution scheme.</li> <li>The client's knowledge, skills or experience in financial matters is not relevant to whether a person is an eligible investor.  </li> <li>A financial service provider must consider the certificate and sign a written acceptance rather than a financial adviser, QFE or broker. </li> </ul> <p><a href="http://www.legislation.govt.nz/act/public/2008/0097/latest/DLM1109427.html"> Section 49A</a> of the Financial Service Providers (Registration and Dispute Resolution) Act provides detailed information on who are 'eligible investors' under that Act.</p> <p>Where a financial adviser service is being provided financial advisers should ensure their eligible investor certificates comply with the Financial Advisers Act requirements so that these clients are wholesale clients under both Acts.</p> http://www.fma.govt.nz/help-me-comply/financial-advisers/monitoring-and-surveillance/financial-adviser-businesses-non-qfes/ Financial adviser businesses (non-QFEs) 2014-11-03 14:51:01 Financial Markets Authority <p>FMA's monitoring and surveillance activities of non QFE organisations who employ financial advisers includes: </p> <ul> <li>encouraging the public and other advisers to let us know about any providers who may be providing personalised advice services through unregistered or unauthorised employees</li> </ul> <ul> <li>undertaking enquiries with product providers to understand their approach to ensuring they are not dealing with unregistered or unauthorised advisers.</li> </ul> <p>Accordingly, we expect all product providers to have in place systems to ensure they are distributing their products only through registered and/or authorised advisers.</p> http://www.fma.govt.nz/help-me-comply/new-financial-reporting-requirements/who-needs-to-comply/ Who Needs to Comply? 2014-11-03 13:47:21 Financial Markets Authority <p>The concept of a 'FMC reporting entity' is broader than the definition of an 'issuer' under the Financial Reporting (FRA) Act 1993, although it doesn't cover all financial market participants.</p> <ul> <li>The <strong>definition includes</strong> most entities who were 'issuers' previously, as well as most licensees under the Financial Markets Supervisors Act and FMC Act (the FMC Act).</li> <li>The <strong>definition does not include</strong> - brokers, QFEs, financial adviser businesses, licensed auditors and audit firms, licensed independent trustees, or retirement village operators.</li> </ul> <table> <tbody> <tr> <td colspan="2"> <h3>At a glance: FMC entities</h3> </td> </tr> <tr> <td>Issuers of financial products under regulated offers</td> <td>- those who make regulated offers under the FMC Act and, subject to a transitional period, those who made public offers under the Securities Act</td> </tr> <tr> <td> <p>Market services licensees (except independent trustees)</p> </td> <td>- MIS managers, DIMS providers, derivatives issuers, providers of peer to peer lending services and crowd funding services</td> </tr> <tr> <td>Licensed supervisors</td> <td>- under the Financial Markets Supervisors Act 2011</td> </tr> <tr> <td>Listed issuers</td> <td>- those listed on a market licensed under the FMC Act</td> </tr> <tr> <td>Operators of licensed markets</td> <td>- except overseas-regulated markets</td> </tr> <tr> <td>Recipients of money from conduit issuers</td> <td>- recipients of funds from regulated offers under the FMC Act and, subject to a transitional period, recipients of money from public offers under the Securities Act</td> </tr> <tr> <td>Registered banks</td> <td>- under the Reserve Bank of New Zealand Act 1989</td> </tr> <tr> <td>Licensed insurers</td> <td>- under the Insurance (Prudential Supervision) Act 2010</td> </tr> <tr> <td>Credit unions</td> <td>- under the Friendly Societies and Credit Unions Act 1982</td> </tr> <tr> <td>Building societies</td> <td>- under the Building Societies Act 1965</td> </tr> <tr> <td>People specified in regulations under clause 27A of Schedule 1 of the Act</td> <td>- People that have gained more than 50 shareholders through small offers under  Schedule 1 of the FMC Act</td> </tr> </tbody> </table> <p>We cannot exempt entities from being a FMC reporting entity, but we can vary their reporting obligations using our exemption and public accountability designation power. See our <a href="http://www.fma.govt.nz/help-me-comply/new-financial-reporting-requirements/exemptions/">exemptions page</a> for more details.</p> http://www.fma.govt.nz/help-me-invest/getting-financial-advice/find-an-adviser/ Find an Adviser 2014-10-30 15:56:24 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://www.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/your-obligations/authorised-financial-advisers-obligations/ Authorised Financial Advisers obligations 2014-10-30 11:53:10 Financial Markets Authority <p>If you are an Authorised Financial Adviser (AFA) you must comply with a number of obligations when providing financial adviser services.</p> <h4><strong><a href="http://www.fma.govt.nz/help-me-comply/financial-advisers/your-obligations/"> General obligations</a></strong></h4> <p>Read about the requirements to act with care, diligence and skill and not engage in misleading, deceptive or confusing conduct that apply to all financial advisers.</p> <ul> <li><a href="http://www.fma.govt.nz/help-me-comply/financial-advisers/your-obligations/care-diligence-and-skill-examples/"> See insurance and credit examples</a>.</li> </ul> <h4><strong><a href="http://www.fma.govt.nz/help-me-comply/financial-advisers/your-obligations/advertising/"> Advertisements not misleading, deceptive or confusing</a></strong></h4> <p>Find out about what is classified as an advertisement and the additional advertising obligations that apply to AFAs.</p> <h4><strong><a href="http://www.fma.govt.nz/help-me-comply/financial-advisers/your-obligations/disclosure-obligations/"> Disclosure obligations</a></strong></h4> <p>You must make both a primary and secondary disclosure when providing personalised services to retail clients. This section has information on these and other disclosure requirements.</p> <h4><strong><a href="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 AFAs</a></strong></h4> <p>The Code sets out minimum standards of professional conduct. You can download or order a copy of the Code.</p> <h4><a href="http://www.fma.govt.nz/help-me-comply/financial-advisers/your-obligations/authorised-financial-advisers-obligations/continuing-professional-development-cpd/"> Continuing Professional Development</a></h4> <p>AFAs must meet certain minimum standards for continuing professional training. Find out about structured professional development and other question and answers about CPD.</p> <h4><a href="http://www.fma.govt.nz/help-me-comply/financial-advisers/your-obligations/authorised-financial-advisers-obligations/terms-and-conditions-for-afas/"> Terms and conditions of authorisation</a></h4> <p>The terms and conditions include Standard Conditions for AFAs subject to any modifications that the Financial Markets Authority considers appropriate, and any terms and conditions specific to the AFA.</p> <h4><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/"> Have and maintain an Adviser Business Statement</a></h4> <p>Read the guide on developing an Adviser Business Statement (ABS).</p> <ul> <li><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/"> See annual confirmation of ABS</a>.</li> </ul> <h4><a href="http://www.business.govt.nz/fsp/">Registration obligations</a></h4> <p>You must annually renew your registration on the Financial Service Providers Register and notify the Registrar of changes. You must be a member of a dispute resolution scheme, if providing services to retail clients.</p> <p><strong><a href="http://www.fma.govt.nz/help-me-comply/financial-advisers/your-obligations/regulatory-reporting-guide/">Regulatory Reporting</a><br></strong>Read about the <a href="http://www.fma.govt.nz/help-me-comply/financial-advisers/your-obligations/regulatory-reporting-guide/">Regulatory Reporting Guide </a>and <a href="http://www.fma.govt.nz/assets/media/1105037/regulatory-impact-statement-regulatory-reporting-requirements-for-afas.pdf">Regulatory Impact Statement </a>to find out more about AFAs' regulatory reporting obligation.</p> <h4><a href="http://www.fma.govt.nz/help-me-comply/financial-advisers/monitoring-and-surveillance/authorised-financial-advisers/"> Other information about AFA obligations</a></h4> <p>Our AFA monitoring and surveillance webpages explain the approach we take to ensuring AFAs meet their obligations. We also provide monitoring feedback, with specific tips and hints on the behaviours we expect AFAs to demonstrate.</p> http://www.fma.govt.nz/keep-updated/newsroom/media-releases/2014/fma-focus-on-improving-conduct-and-increasing-trust-in-financial-markets FMA focus on improving conduct and increasing trust in financial markets 2014-10-30 11:39:12 Financial Markets Authority <p><b>Media release<br></b><b>MR No. 2014 – 036<br></b><b>30 October 2014</b></p> <p>The Financial Markets Authority (FMA) Chief Executive Rob Everett has set out the evolving approach for the FMA as the regulator’s mandate expands under the Financial Markets Conduct Act, taking effect from 1 December.</p> <p>Mr Everett told the Institute of Financial Professionals (INFINZ) AGM, in Auckland today, that the FMA would be setting high expectations of conduct, how firms and professionals behaved, both between themselves and between firms and consumers and investors.</p> <p>The FMA would continue to intervene to prevent poor quality outcomes for consumers and investors.</p> <p>Mr Everett said, “The FMA’s mandate is expanding, from 1 December, with several hundred businesses and professionals expected to apply for new licences. Licensing allows us to establish minimum standards for firms and professionals who want to deliver financial services. But this is only part of the increased powers granted to the FMA under the Financial Markets Conduct Act (The Act).</p> <p>“The Act also places the good conduct of professionals and firms at the heart of the FMA’s remit. Conduct regulation is new to New Zealand and will deliver a step change in the way financial services are provided in the years ahead.”</p> <p>Mr Everett said that one of the FMA’s biggest roles is to ensure businesses are on-course and improving their performance and conduct under the regulations and that the interests and needs of consumers needs to be their top priority.</p> <p>The FMA will be using all of its new powers – including licensing, supervision, compliance, and enforcement – to react to potential harms that may arise in the markets.</p> <p>In 2009 the Capital Market Development Taskforce pointed to the need for a modern and effective financial regulator to have a full range of regulatory tools and powers at its disposal.  Mr Everett said “the lack of those - for predecessor agencies - is substantially corrected in the new Act. Some of the new powers we have been given allow us to anticipate problems, and act before they cause direct harm.”</p> <p>The speech also provided some insights into the work the FMA has been doing to identify its strategic priorities for the medium term.  The FMA is completing a wide-ranging analysis of the sectors it regulates, identifying the areas of greatest potential concern. The complete results of that analysis – identifying directly the priority areas where the FMA would focus its attention most – will be published later this year.</p> <p>“We are a risk-based regulator and that means focusing our resources where they are most needed. While we will be acting to minimise harms where we find them, the greater benefit we are working to deliver is increasing trust and confidence in financial markets and the firms and professionals working in the markets. This in turn can help deliver better outcomes for businesses, consumers, investors and the economy as a whole,” said Mr Everett.</p> <p>ENDS</p> <p>Read full speech <a href="http://www.fma.govt.nz/keep-updated/newsroom/speeches/presentation-by-rob-everett-to-the-institute-of-finance-professionals-new-zealand-inc">here</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/keep-updated/newsroom/speeches/presentation-by-rob-everett-to-the-institute-of-finance-professionals-new-zealand-inc Presentation by Rob Everett to the Institute of Finance Professionals New Zealand Inc 2014-10-30 11:29:40 Financial Markets Authority <p><b>2014: A turning point in New Zealand financial services</b></p> <p>Thank you for that introduction.</p> <p>I recognise INFINZ as one of the most influential organisations for professionals working in financial services in New Zealand.</p> <p>It’s a pleasure to address your conference – here in Auckland.</p> <p>Many of you will recognise 2014 is a turning point in financial services in New Zealand.</p> <p>And certainly that’s how it feels to us at the Financial Markets Authority (FMA).</p> <p>By the end of the year, the Financial Markets Conduct Act(The Act) will be fully in effect.</p> <p>The Act brings new standards and new regulatory obligations for many of you in this room – and imposes significantly enhanced responsibilities on us as the regulator.</p> <p>And it brings new arrangements – such as clear, concise and effective disclosure in offer documents – that will benefit investors immediately. And we have had some notable early adopters.</p> <p>It also brings new business opportunities.</p> <p>They include easier capital-raising under certain circumstances.</p> <p>Provision for new stepping stone markets, like the one NZX is establishing, for emerging firms.</p> <p>And two entirely new categories of services, in peer-to-peer lending, and in crowd-funded equity.</p> <p>……….</p> <p>The Act is one thing.</p> <p>On its own, it’s not much more than a very large book.</p> <p>And when you add it to the regulations currently being issued as well, it’s a whole library of large books.</p> <p>The more important aspect is the change that will come from it over the next four to five years.</p> <p>One of the driving ideas behind the new legislation was to put in one place – or as few places as possible anyway – a lot of existing regulation belonging to a number of different agencies.</p> <p>And also to take a different – and more engaged and proactive approach – to the regulation of financial services.</p> <p>I am no better at seeing into the future than any of you.</p> <p>But there is one change I can identify – with reasonable certainty – that we will see as a result of the Act.</p> <p>That is the steadily increasing focus on quality conduct – among firms and professionals in the finance sector and in capital markets.</p> <p>Conduct regulation is largely new to New Zealand, at least in financial services.  </p> <p>It is notable that when the FMA was named, established and given its mandate, the word ‘Conduct’ did not expressly feature anywhere much. </p> <p>Indeed, when I was contemplating the CE role at the FMA, this jumped out at me.</p> <p>But I was pleased to see that it’s not only in the title of the Act, but it’s a central feature of the Act.</p> <p>So I’ll explain – briefly – why the rewrite of New Zealand financial services law, over the last six years, has switched the regulatory focus to conduct.</p> <p>……….</p> <p>Conduct matters for two reasons.</p> <p>Firstly, financial services and capital markets are different to most other markets.</p> <p>The products and services that many of you here sell are – effectively – risk-sharing arrangements.</p> <p>The risk ranges from – say – a fixed interest retail product with a capital protected return, where the risk to the consumer is relatively low.</p> <p>Through to high-risk offers. For example, an equity offer in a newly listed firm that’s breaking into new markets.</p> <p>In-between, there are a range of degrees of risk, and a range of sharing arrangements, under which the provider and the investor carry different proportions of the risk.</p> <p>In some products – say hybrids v the risk might vary considerably over the life of the product. And it may be very difficult to price.</p> <p>Given you are in the risk-sharing business, how you conduct yourselves – for example, in providing advice, and in disclosing the nature and scale of risks – makes a big difference to outcomes.  </p> <p>Outcomes which generally do not become apparent for several – and indeed often – for many years.</p> <p>That’s the outcomes for you.</p> <p>The outcomes for the other professionals you deal with.</p> <p>The outcomes for your clients.</p> <p>And outcomes for the economy.</p> <p>Conduct matters for a second reason.</p> <p>Yes, you are all in the risk-sharing business.</p> <p>And you are all also in the ‘trust’ business. </p> <p>In the types of businesses you work in, trust boils down to this:</p> <p>I can be sure you will do what you and I agreed we would do. Even though you might have incentives to do otherwise, to your advantage and to my cost. Given we can’t watch-over each other every day, to ensure we are both meeting the agreement, we have to