Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


FMCA DIMS transition and further changes announced


FINANCIAL SERVICES REGULATION| 17 JUNE 2014

FMCA DIMS transition and further changes announced

Transitional provisions for the new requirements governing discretionary investment management services (DIMS) in the Financial Markets Conduct Act 2013 (FMCA) and the Financial Advisers Act 2008 (FAA) were announced, together with other changes, by the Commerce Minister yesterday.

Key changes

• An extended transition period for existing DIMS providers to 1 June 2015 to apply for a licence and to 1 December 2015 to update their client documentation. New providers will need to comply from 1 December 2014.

• Alignment of the requirements for DIMS under the FAA with those applying to other DIMS providers under the FMCA. An additional eligibility requirement will be introduced for AFAs who provide personalised DIMS under the FAA, to enable the FMA to assess their capability. Additional matters will be added to the existing disclosure statements of AFAs offering DIMS, and requirements for client agreements and reporting will be introduced under the FAA.

• Regulatory flexibility to ensure additional costs are not imposed on those offering limited services. For example, an exemption is to be introduced for AFAs who manage their clients' investments only for limited periods or under limited circumstances (e.g. when the client is on holiday).

• A 40% drop in the base fee for a DIMS licence - from $3,565 to $2,139. This is based on the average application taking 12 hours, recognising that many smaller DIMS providers may have more straightforward offerings. A further $178.25 per hour still applies after 15 hours of FMA time.

The Minister's statement is available here.


© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Statistics: Dairy And Travel Still Our Largest Export Earners

New Zealand earned $2.3 billion more from exports than we spent on imports during the year ended June 2015... total exports of goods and services were $67.5 billion, while total imports were $65.1 billion. More>>

ALSO:

Approval: Air New Zealand And Air China Launch New Alliance Route

Air New Zealand and Air China have today launched joint sales for a new daily direct service between Auckland and Beijing after receiving approval from New Zealand Minister of Transport Hon Simon Bridges to form a strategic alliance. More>>

ALSO:

Money Trading: FX Trader Jin Yuan Finance Warned Over Lack Of Monitoring

Jin Yuan Finance, an Auckland-based foreign exchange trader, has been warned over its lack of anti-money laundering processes in place in the first public notification by the Department of Internal Affairs. More>>

ALSO:

Auckland Surge, Possible Peak: House Values Accelerate At Fastest Annual Pace In 8 Years

New Zealand residential property values rose at their fastest annual pace in eight years in August, pushed higher by overflowing demand in Auckland, which is showing signs speculators think it has reached its peak, according to Quotable Value. More>>

ALSO:

Cash Money: Reserve Bank Launches New $5 And $10 Banknotes

The $5 and $10 final banknotes were revealed at an event at the Bank in Wellington, and will start to be released from mid-October 2015. More>>

ALSO:

Truck Sales Booted: Commerce Commission Files Charges Against Mobile Trader

The Commerce Commission has filed charges against a mobile trader, or truck shop operator, claiming he obtained money from customers by deception and never intended to supply them with the goods they paid for. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news