1. Compliance
  2. Exemptions
  3. Current exemption notices
  4. Financial Advisers Act exemptions
  5. Financial Advisers (NZX Brokers-Client Money and Client Property) Exemption Notice 2020

Financial Advisers (NZX Brokers-Client Money and Client Property) Exemption Notice 2020

Page last updated: 4 Sep 2020
Name of noticeFinancial Advisers (NZX Brokers-Client Money and Client Property) Exemption Notice 2020
Gazette Notification Date2020-08-31
Date In Force2020-12-01
LI Number2020/233
ActFinancial Advisers Act 2008
TypeClass Exemption Notice
Expiry Date2021-03-15

Financial Advisers (NZX Brokers-Client Money and Client Property) Exemption Notice 2020 continues to exempt NZX brokers, subject to certain conditions from the requirement to hold client money and property separately from firm money. The exemption permits the operation of gateway accounts for transacting with particular settlement systems. It also allows NZX participants to keep a limited buffer of firm money in their client account where it is reasonably necessary to reduce the risk of temporary client money shortfalls or facilitate settlements in a prudent or orderly fashion. Regulations under the new regime are expected to allow brokers to hold firm money or property together with client money or property in certain circumstances. We do not expect continued exemption relief will be required once the new regime commences.  This notice comes into force on 1 December 2020, the day after the current notice expires.