Financial Advisers (Non-NZX Brokers-Client Money) Exemption Amendment Notice 2020

Note: This is an amendment to the Financial Advisers (Non-NZX Brokers--Client Money) Exemption Notice 2017. Read the principal exemption notice here.

Financial Advisers (Non-NZX Brokers-Client Money) Exemption Amendment Notice 2020 extends the 2017 notice that exempts non-NZX brokers, subject to certain conditions, from the requirement to hold client money and property separately from firm money. This allows firms to hold a buffer of firm money in the client money trust account where it is reasonably necessary to reduce the risk of client money shortfalls. Regulations under the new financial advice regime are expected to allow brokers to hold firm money or property together with client money or property in certain circumstances, such as to reduce the risk of the client account being overdrawn due to delays processing payments.  An amendment has also been made to extend the two month COVID-19 time frame extension for compliance with the auditor’s report requirement in the conditions of the notice to cover relevant periods that end on 31 July 2020.  This amendment notice comes into force on 30 September 2020.