You are providing Discretionary Investment Management Services (DIMS) when an investor gives you the authority to make decisions about buying and selling financial products on their behalf. To provide DIMS under the FMC Act you must hold a DIMS market services licence issued under the FMA Act.
Please download all forms related to your application below and email to [email protected]
A licensing fee of $2,139 (excl. GST) which includes 15 assessment hours is payable to the FMA.
We may charge an additional fee at the FMA hourly rate where our assessment of an application exceeds the included number of hours stated above. If an additional fee is charged for your application we will let you know in advance and provide you with the reasons for this. We may also invoice you for any costs of external advice or assistance.
The fee payable to the FMA when you apply to vary an existing licence is $115 (incl. GST). This does not apply to adding a new licence type. Additionally, the FMA will invoice you for time spent assessing the variation application based on the FMA hourly rate $230 per hour for an FMA board member and $178.25 per hour for FMA staff.
Note: We will not issue a new or varied licence until the fee is paid in full. Licence fees are not refundable if an application is rejected.
The Financial Markets Authority (Levies) Regulations 2012 (the Regulations), as amended in 2020, set out the levies payable by industry. The levies are set by the Ministry of Business, Innovation, and Employment (MBIE).
The FMA receives funding from the Crown and a proportion of our costs is recouped from industry through levies.
A financial markets participant falls within one or more levy ’class’, depending on what financial services they provide.
The table below (see levy class description) provides a high-level description of each levy class. For the full description of levy classes, see Schedule 2 in the Regulations.
The table below provides a high-level description of each levy class. For the full description of levy classes, see Schedule 2 in the Regulations.
|1||Persons making an application for registration on the Financial Service Providers Register|
|2||Registered banks and licensed non-bank deposit takers|
|4||Licensed supervisors of debt securities and managed investment products in registered schemes|
|5||Managers (of registered schemes)|
|6||Persons who undertook trading activities on licensed markets, contributory mortgage brokers, trading financial products or foreign exchange on behalf of other persons (other than persons included in class 6A, 6B, 6C or 6D, authorised bodies that only provide the service under a market services licence held by a person in class 6A or 6D and DIMS wholesale providers) or licensed derivatives issuers|
|6A||Licensed discretionary investment management service (DIMS) retail providers|
|6B||Providers of a regulated client money or property service (as defined in section 6(1) of the FMC Act) other than persons included in class 6(a) or 6C|
|6C||Custodians and persons providing custodial services|
|6D||Crowdfunding service providers and peer-to-peer lending service providers|
|6E||Licensed financial benchmark administrators|
|6H||Licensed financial advice providers|
|7||All other financial service providers that are not included in any of classes 2 – 6H|
|8||Listed issuers (other than persons included in class 8A)|
|8A||Small listed issuers|
|9||Lodgement of a product disclosure statement (PDS)|
|10||Licensed market operators|
|10A||Licensed market operators that operate growth markets (other than persons included in class 10)|
|11||FMC reporting entities that lodge financial statements (or group financial statements) and auditor’s reports|
|13||Licensed overseas auditors|
|14||Persons that apply for registration or incorporation under the Building Societies Act 1965; the Companies Act 1993; the Friendly Societies and Credit Unions Act 1982; or the Limited Partnerships Act 2008|
|15||Persons that are registered or incorporated and required to make annual returns under the Building Societies Act 1965; the Companies Act 1993; the Friendly Societies and Credit Unions Act 1982; or the Limited Partnerships Act 2008|
It is the responsibility of each financial service provider to ensure they are registered for the service(s) they provide and have paid the appropriate levies. As part of their online annual confirmation to the Registrar, they must select all of the applicable classes to determine the levies payable and confirm the information they have provided is true, correct and complete.
Under the Financial Service Providers (Registration and Dispute Resolution) Act 2008 (the FSP Act) it is an offence to:
These offences could result in a fine of up to $100,000 and/or imprisonment for individuals, and a fine of up to $300,000 for businesses.
It is also an offence under the FSP Act to fail to notify the Registrar if any of the details contained on the FSPR are no longer correct. Failure to notify could result in a fine of up to $10,000.
We have discretionary power to waive a levy (in whole or part).
We will only do so if we are satisfied that the circumstances or characteristics of the financial markets participant are exceptional when compared with the circumstances or characteristics of others in the same class, so that it would make it inequitable for the person to pay the levy. The threshold is deliberately high.
The waiver power is not intended to be used to revisit settled policy positions.
Once we receive a waiver application and the fee, we will assess it. If we decide to grant the waiver, we must notify our decision in the Gazette, and publish the decision and reasons for it on our website.
You will need to email the following information to [email protected] with the subject line ‘Levy waiver application’.
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 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 waivers on behalf of their clients, the parties discuss and agree who will be responsible for paying the FMA’s fees before submitting a waiver 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:
Account name: Financial Markets Authority
Account number: 03-0584-0198005-000
|To ensure we process your payment correctly please provide the following information:
Particulars: Payer’s name*
Reference: Applicant’s name
You do not need to forward a hard copy of your application if paying electronically
* This is the name of the person paying the application fee. This person will be invoiced for any subsequent fees and costs. Payment by credit card is not available for this application process.
DIMS licencees are obliged to act professionally; meet financial and investor reporting requirements; disclose a wholesale service and provide the FMA with reporting required by the Act.
All notifications should be emailed to the FMA at [email protected] noting the relevant obligation in the subject line of your email.
To notify us of a change to your key people and managers as required by the licensing standard conditions, please send an email outlining what the changes are and the qualifications and experience of the new or replacing personnel, e.g. attach their c.v.
This notification form must be completed and emailed to [email protected].
DIMS licensees need to make sure their retail clients have all the information about investment decisions, how the investments have performed, and what the fees are. Refer to reg210 and reg 211 for the full list of the information you need to report to retail investors. Your ongoing reporting requirements are:
|Investor’s portfolio return||
|You need to tell investors if your DIMS is a wholesale service||
The warning must be prominently displayed on a document telling the investor:
|Tell us if you breach a limit break||
|Tell us if you made a related-party transaction
As a DIMS licensee, you have to avoid transactions that lead to related-parties benefit (s440).
There are exceptions if you can certify that:
Under reg236 you must notify us within 10 working days of the end of each quarter, whether any certificates have been given, and if so provide us with copies of those certificates.
|Tell us if you break a service agreement
As a DIMS licensee, you need to make sure you are able to meet the licence obligations (see s412 for details).
|You need to tell us if you:
All DIMS licensees are FMC reporting entities. FMC reporting entities need to prepare financial statements that comply with generally accepted accounting practice (GAAP), have them audited by a licensed auditor, and lodge them with the registrar.
All licensed DIMS providers are required to complete and submit an annual regulatory return. The return is a series of questions about your business and how your licensed service is used.
The initial reportable period will be 1 July 2021 to 30 June 2022. Completed returns will be due by 30 September 2022. We will notify all licensees when it is time to complete and submit the first regulatory return.
In subsequent years, licensees will be required to complete an annual regulatory return for the 12-month period ending 30 June and submit it to the FMA by 30 September of that year.
The information you provide us through the annual return helps us to:
Licensees are now able to submit their regulatory returns online at services.fma.govt.nz. If you wish to familiarise yourself with questions you will be asked, download the DIMS regulatory return data template.
There are exemptions for two DIMS licensee categories from having to prepare financial statements that meet GAAP, have them audited by a licensed auditor, and lodge them with the registrar. The table below lists current DIMS financial reporting exemptions:
|Level 1 DIMS Providers managing < $100m of retail funds||Level 2 DIMS Providers managing $100m to $250m of retail funds|
|May need to:||
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