The Financial Markets Conduct (Berkshire Hathaway Specialty Insurance Company) Exemption Notice 2022 (Notice) exempts Berkshire Hathaway Specialty Insurance Company (BHSI), a US insurer licensed by the Reserve Bank, from certain financial reporting requirements in Part 7 of the Financial Markets Conduct Act, subject to conditions. The reasons for the exemptions are set out in the Notice.
The main effects of the Notice are as follows:
- The effect of the Notice is to allow BHSI to prepare group financial statements in accordance with the requirements of BHSI’s home jurisdiction of the US State of Nebraska, and to lodge those group financial statements and the auditor’s report with the Registrar within 6 months and 14 days after BHSI’s balance date (i.e. in line with the US timing requirements, rather than in line with the NZ timing requirement of 4 months after BHSI’s balance date).
- The exemptions are subject to conditions that require BHSI to prepare unaudited group financial statements in accordance with US GAAP, and to lodge those unaudited statements with the Registrar within 4 months after BHSI’s balance date. Those unaudited statements must include a prominent statement on the cover page to the effect that the group financial statements are unaudited and that the audited group financial statements are to follow.
- BHSI is also required to prepare and lodge financial statements for its New Zealand business that comply with New Zealand generally accepted accounting practice and that are audited by a New Zealand qualified auditor – these statements for the New Zealand business must be lodged with the Registrar within 4 months after BHSI’s balance date.