1. Compliance
  2. Exemptions
  3. Current exemption notices
  4. Financial Markets Conduct Act exemptions
  5. Financial Markets Conduct (Financial Reporting – DIMS Licensees) Exemption Notice 2020

Financial Markets Conduct (Financial Reporting – DIMS Licensees) Exemption Notice 2020

Page last updated: 12 May 2020
Name of noticeFinancial Markets Conduct (Financial Reporting – DIMS Licensees) Exemption Notice 2020
Gazette Notification Date2020-05-12
Date In Force2020-06-05
LI Number2020/81
ActFinancial Markets Conduct Act 2013
TypeClass Exemption Notice
Expiry Date2025-06-04

Summary: The Financial Markets Conduct (Financial Reporting – DIMS Licensees) Exemption Notice 2020 grants an exemption in favour of small to medium-sized licensed providers of DIMS. It provides relief from certain financial reporting and audit obligations under the FMC Act.

The principal effects of the notice are as follows:

  • Small DIMS licensees (licensees with less than $100m retail funds under management (FUM)) are exempt from almost all the financial reporting requirements in Part 7 of the FMC Act. They are not required to prepare financial statements that comply with GAAP, have them audited by a licensed auditor or lodge them with the Registrar. They are still required to keep accounting records and comply with any financial reporting and audit obligations under other legislation (eg, the Companies Act 1993 or the Tax Administration Act 1994).
  • Medium-sized DIMS licensees (licensees with between $100m and $250m retail FUM) are exempt from the requirement to have their financial statements audited by a licensed auditor but must prepare financial statements that comply with GAAP and lodge them with the Registrar. They are still required to comply with any audit requirements under other laws (such as the Companies Act 1993).

The exemptions do not apply if a DIMS licensee is an FMC reporting entity for any other reason, doesn’t have an independent custodian, or the licensee has more than $250 million in retail funds under management.