Financial Markets Conduct (Restricted Schemes-Disclosure and Reporting) Exemption Notice 2022

Summary: The Financial Markets Conduct (Restricted Schemes - Disclosure and Reporting) Exemption Notice 2022 (Notice) exempts certain defined benefit restricted schemes in respect of annual fund updates and confirmation information, and  all restricted schemes in respect of certain quarterly reporting requirements in the Financial Markets Conduct Regulations 2014 (the Regulations). The reasons for the exemptions are set out in the Notice. 

The main effects of the Notice are to grant five-year exemptions for:

1. managers of defined benefit restricted schemes that have members entitled to receive an interest-based withdrawal benefit or payments from a voluntary contribution account, from annual fund update requirements under regulation 56(2) of the Regulations
2. managers of restricted schemes:
   • a. from quarterly reporting requirements in regulations 95 and 100 of the Regulations when there have been no relevant limit breaks or related party transaction certificates given (‘nil’ reports); and
   • b. by extending the period for quarterly reports to be provided from 10 working days to 15 working days; and
3. managers of defined benefit restricted schemes from annual confirmation information requirements under regulation 70B of the Regulations.

The first and third exemptions are subject to conditions that set out alternative requirements to ensure more appropriate and meaningful information is provided to defined benefit restricted scheme members.