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

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