Financial Markets Conduct (Craigs Investment Partners Self-Select Schemes) Exemption Notice 2023

The Notice exempts Craigs Investment Partners Superannuation Management Limited (CIPSML) as manager of the Craigs Investment Partners Self-Select Schemes from certain provisions of the Financial Markets Conduct Act 2013 (the FMC Act), the Financial Markets Conduct Regulations 2014 (the FMC Regulations), and the Financial Markets Conduct (Fees) Regulations 2014. These Self-Select Schemes being comprised of the Craigs KiwiSaver Scheme, the Craigs Investment Partners Superannuation Scheme, the Craigs Superannuation Scheme, and any other self-select superannuation scheme established by CIPSM, with CIPSML acting as the manager of that scheme (together the self-select schemes).

The exemptions recognise the difficulties faced by CIPSML as fund manager of certain self-select schemes in complying with the disclosure requirements of the FMC Regulations. The exemptions also recognise the uniquely high fee burden CIPSML would face in relation to its self-select schemes given the requirement for lodgement fees to be paid on a ‘per fund’ basis. In the absence of the exemptions, CIPSML would be required to comply with disclosure requirements that are likely to result in a high compliance burden (and compliance costs) without providing useful information for investors that will help them to make decisions relating to financial products.

The exemptions are subject to conditions that provide for investors in CIPSML’s self-select schemes to have access to more meaningful information relating to the scheme in the PDS and a supplement to the PDS and also for investors to receive quarterly reports containing personalised investor information relating to their own self-selected portfolio.

In these circumstances, the granting of the exemptions is desirable in order to promote the purposes of the FMC Act, specifically by avoiding unnecessary compliance costs and providing for timely, accurate and understandable information to be provided to investors to assist them with making investment decisions. The FMA also considered that the exemption is not broader than is reasonably necessary to address the particular difficulties experienced by CIPSML as manager of the self-select schemes.

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