|Name of notice||Financial Markets Conduct (KiwiWRAP KiwiSaver Scheme) Exemption Notice 2020|
|Gazette Notification Date||2020-09-15|
|Date In Force||2020-09-14|
|Act||Financial Markets Conduct Act 2013|
|Type||Individual Exemption Notice|
Summary: The Notice exempts Consilium NZ Limited (Consilium) as manager of the KiwiWRAP KiwiSaver Scheme (the self-select scheme) from certain provisions of the Financial Markets Conduct Act 2013 (the FMC Act) and the Financial Markets Conduct Regulations 2014 (the FMC Regulations), and the Financial Markets Conduct (Fees) Regulations 2014. Download the notice PDF.
The exemptions recognise the difficulties faced by Consilium as fund manager of the self-select scheme in complying with the disclosure requirements of the FMC Act and the FMC Regulations. The exemptions also recognise the uniquely high fee burden Consilium would face in relation to the self-select scheme given the requirement for lodgement fees to be paid on a 'per fund' basis, which would result in an unintended and disproportionate compliance cost. In the absence of the exemptions, Consilium 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 require retail investors in Consilium’s self-select scheme to be advised by an appropriately qualified and registered adviser, and that provide for investors 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 considers that the exemption is not broader than is reasonably necessary to address the particular difficulties experienced by Consilium as manager of the self-select scheme.