Page last updated: 27 April 2021

Exemptions

The FMA has wide powers under the FMC Act to provide exemptions (secondary legislation) to persons or transactions from compliance obligations under financial markets law. This allows us to provide a tailored approach and ensure requirements for businesses are reaso

The FMA has wide powers under the FMC Act to provide exemptions (secondary legislation) to persons or transactions from compliance obligations under financial markets law. This allows us to provide a tailored approach and ensure requirements for businesses are reasonable and cost-effective. 

We are aware that issues may arise for market participants operating under the FMC Act regime, and exemptions may be required in some cases. 

FMA

How to apply for an exemption

Below you will find information relating to applying for an exemption as well as fees, how to submit the application and how long the process takes.

  • any compliance obligation in Parts 2 to 7, subpart 8 of Part 8 and any of the schedules of the FMC Act and any regulations made under that Act
  • Trusts Act 2019 provisions that apply to certain FMC Act trusts relating to debt securities or managed investment schemes.

While the law gives us broad powers to grant exemptions from compliance with specific provisions in the FMC Act, we consider that our exemption power only extends to compliance provisions, not to liability provisions. We are also unlikely to exempt issuers from the general prohibition in the FMC Act against the distribution of deceptive, misleading or confusing advertisements.

  • Notices currently in force are listed from the links on this page.
  • 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 New Zealand Legislation website.
  • All other notices are available on this website with the notice details. Copies are also available for purchase from the FMA on request.
  • All exemptions granted under the Securities Act 1978, Securities Markets Act 1988, the Financial Reporting Act 1993 and the Financial Advisers Act 2008 are now redundant as these Acts are repealed. 
  • To find out more information on the class exemptions and other notices we have granted, see the Class legislative notices summary on the Regulation Updates page.
  1. Provide the full name, address and corporate status of the person(s) seeking the exemption.
  2. State the jurisdiction in which the applicant is incorporated or constituted, and any securities exchanges upon which its financial products are listed
  3. Provide the Acts and/or Regulations from which the exemption is sought and any conditions of exemption you consider appropriate.
  4. 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 test (see sections 556, 557 and 572 of the FMC Act).
  5. Identify any existing exemption notices which are like the exemption sought and which may provide a precedent for your application. Explain how the notices are similar to or different from the exemption you are seeking.
  6. Provide a draft exemption notice which would give effect to the exemption you seek. When drafting this notice please include the company, or other entity and proper legal names; appropriate definitions where needed, the particular provisions of the relevant legislation from which exemptions are sought, the terms or conditions proposed for each exemption sought and a summary of the key reasons for the exemption ( these should be consistent with the policy of the relevant legislation, and address the statutory tests that must be met for the FMA to grant the exemption).

 

Additional information required for specific exemption applications

Exemptions from requirements for disclosure of offers of financial products or governance of financial products

Describe the financial products and 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, proposed governance arrangements.

Describe how your proposed exemption may affect investors and any costs and benefits to them.

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.

Describe any proposed conditions that require disclosure of alternative information helpful for the investor to make an investment decision and any alternative governance arrangements to allow for effective monitoring and reduce risks.

 

Exemptions for relief from financial reporting obligations for overseas issuers

Provide detailed information on 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.

Provide the legal standing of the financial reporting requirements.

Provide the enforceability of the financial reporting requirements.

Detail 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.

Include copies of applicable financial reporting laws and standards, or references to where these can be obtained electronically.

 

Exemptions for relief from financial reporting obligations for entities in receipt of funds from a conduit issuer

Describe how the applicant is a ‘recipient of funds from a conduit issuer’.

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.

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.

Exemption fees are set by regulations. You need to pay 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.

Exemption application type

Application and advance fee

Hourly rate – FMA Board members

Hourly rate – FMA staff

Financial Markets Conduct Act 2013

$1,265 (incl. $115 application fee)

$230

$178.25

Please note: all fees are inclusive of GST.

We can also recover the cost of obtaining expert assistance in relation to particular applications. Applicants must also reimburse us for the costs of notifying the exemption notice in the Gazette, where applicable.

Submit your completed application by email to [email protected]. Your application fee must be paid at the time your application is made. 

You can pay by electronic deposit or internet banking. Payment can be made by applicants or law firms making applications on behalf of their clients. The person paying the application fee must also be the person who pays the subsequent fees and costs. For example, if a law firm pays the application fee, that law firm must also pay any additional fees and costs. We recommend if law firms apply for exemptions on behalf of their clients, the parties discuss and agree who will be responsible for paying the FMA’s fees before submitting an exemption application.

Payment option

How to pay

Additional information

Electronic deposit or internet banking

Where bill pay is available please select ‘Financial Markets Authority - Other’

Otherwise, our bank details are:

Bank: Westpac

Account name: Financial Markets Authority

Account number: 03-0584-0198005-000

To ensure we process your payment correctly please provide the following information:


Particulars: Payor’s name*

Code: Exemptions

Reference: Applicant’s name

* This is the name of the person paying the application fee. This person will be invoiced for any subsequent fees and costs.

Please note payment by credit card is not available for exemption applications.

Individual exemption applications (relating to a particular person or transaction) generally take 30 working days from the time we receive all the information we need. This may take longer, for example, if significant questions of policy arise.  If this is the case, we will tell you and explain why. 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.

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.

Our exemption notices have a term of no more than five years.  If you need an exemption to apply after the expiry date noted in the notice, you will need to apply for a new exemption.  The same process and timeframes apply as for a new exemption – an application should be submitted with the relevant information and fee as set out above.  We would also ask that any such applications are submitted as early as possible so they can be properly considered prior to the revocation of the existing notice (if necessary). 

Current FMC Act exemption notices

Financial Markets Conduct (Financial Statements for Schemes Consisting Only of Separate Funds) Exemption Notice 2022
This exemption relieves managers of “notional” managed investment schemes from completing scheme financial statements.
Financial Markets Conduct (Disclosure Using Overseas GAAP) Exemption Notice 2022
This exemption provides relief for overseas issuers that have a primary listing on a market in a high quality jurisdiction from certain disclosure req ...
Financial Markets Conduct (The City of London Investment Trust plc) Exemption Notice 2022
The Financial Markets Conduct (The City of London Investment Trust plc) Exemption Notice 2022, exempts The City of London Investment Trust plc from c ...
Financial Markets Conduct (Goodman Group) Exemption Notice 2022
The Financial Markets Conduct (Goodman Group) Exemption Notice 2022 (Exemption) provides relief for a five year period in relation to the offer of sta ...