Consultation paper: Proposed financial reporting exemptions for FMC reporting entities in liquidation, receivership or voluntary administration

UPDATED August 2025 

An exemption has now been granted to provide relief for certain FMC reporting entities. The relief comprises a class exemption for five years for each entity incorporated in New Zealand which is in liquidation, receivership or voluntary administration (VA) from certain duties in Part 7 of the Financial Markets Conduct Act (FMC Act), comprising:  

• FMC reporting entities in liquidation – comprehensive relief 
• FMC reporting entities in receivership or voluntary administration – deferral relief applies for the reporting year in which the receivership or VA appointment is made and for the next reporting period. 

The exemption notice does not apply in relation to registered schemes. 

Exemption for FMC reporting entities in liquidation 

The notice provides comprehensive relief for financial reporting duties under the FMC Act if an FMC reporting entity is in liquidation. An exempt entity is not required to prepare financial statements, have those statements audited, or deliver those statements to the Registrar of Companies for lodgement. However, it is still required to correctly record its transactions and maintain a satisfactory system of control of its accounting records. The liquidator is also required to prepare financial information in accordance with New Zealand’s insolvency laws. 

Exemption for FMC reporting entities in external administration 

The notice provides up to 2 years of relief from the obligation to deliver copies of audited financial statements to the Registrar of Companies under the FMC Act if an FMC reporting entity is in receivership, voluntary administration, or interim liquidation, or is subject to a deed of company arrangement. An exempt entity is still required to prepare financial statements during the period of the exemption and have them audited. This exemption does not apply to registered banks, licensed insurers, or non-bank deposit takers. 

The notice comes into force on 31 August 2025. 

We will consider requests for individual relief for situations not covered by the class exemption notice on a case-by-case basis. Please contact [email protected]

View the Financial Markets Conduct (FMC Reporting Entities in Liquidation, or External Administration) Exemption Notice 2025

View the Exemption Notice on the Legislation New Zealand website 

We have also published a Regulatory Impact Statement that discusses the exemption relief and summarises the problem we are seeking to address, our objectives, the options and their associated impacts, and the consultation process we undertook before deciding to grant the exemption relief.   

Download the Regulatory Impact Statement - Exemptions for FMC Reporting Entities in Liquidation or External Administration [PDF 703KB]

UPDATE November 2022

After carefully considering submissions, the FMA has agreed in principle to grant an exemption for FMC Act reporting entities* in liquidation, receivership or voluntary administration from the financial reporting and audit duties in the FMC Act, comprising: 

• full relief for insolvent entities in liquidation via the class exemption  
• deferral relief for up to two years for entities in receivership or voluntary administration via the class exemption, except licensed insurers, registered banks and non-bank deposit takers. 

The effect of full relief is that the financial reporting duties are cancelled. The effect of deferral relief is that financial reporting duties are deferred but must still be complied with at a later date. Relief will not be given to directors for any financial statements which are overdue for filing as at the date of the appointment of an insolvency administrator. 

The FMA may grant individual relief for an insolvent FMC Act reporting entity on a case-by-case basis for situations not covered by the proposed class exemption. 

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

We aim to have a notice in place to give effect to this decision before the end of 2023. 

*other than managed investment schemes, which were out of scope for the consultation