05 May 2015

Small DIMS providers benefit from reduced reporting requirements

Media Release
MR No. 2015 – 15
5 May 2015

The Financial Markets Authority (FMA) has provided smaller businesses that offer a Discretionary Investment Management Service (DIMS) relief from some financial reporting requirements.

The FMA has approved two categories of exemptions that will be available to DIMS providers who have up to $250m retail funds under management and who are licensed under Part 6 of the Financial Markets Conduct Act 2013.

The exemptions are a result of industry feedback received through consultation by the FMA. The exemptions and relevant conditions will take immediate effect once granted.

The two exemptions are:

  • Licensed DIMS providers with less than $100m retail funds under management
    This group is exempt from preparing financial statements that comply with generally accepted accounting practice (GAAP) and from audit and lodgement requirements. DIMS providers are still required to keep accounting records and may be required to prepare financial statements to meet their other existing company or tax reporting obligations.
  • Licensed DIMS providers with $100m to $250m retail funds under management
    This group is exempt from having financial statements audited, but is still required to prepare financial statements that comply with GAAP and to lodge them with the Registrar. 

“Through consultation, we carefully weighed up the benefit of having financial information about these DIMS providers available to investors, against the cost to small DIMS providers of providing this information,” said the FMA’s General Counsel, Liam Mason.

“Under DIMS, the main protection for investors is that their assets are held either by themselves or by an independent custodian who is subject to audit requirements,” he said.

In some cases, a DIMS provider may additionally undertake other activities that also make it an FMC reporting entity.  The exemptions will not apply in these cases.

A DIMS is where a client authorises someone else to make buy-sell decisions about their investment portfolio, on their behalf.

Applications for DIMS licenses must be received by 31 May 2015. 

The exemptions will be published on the FMA’s website once granted.


Shae Skellern
09 300 0­465
021 847 192
[email protected]