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

 

Scoop Business: Wheeler Downplays Scope For ‘Large’ Rates Fall

Reserve Bank governor Graeme Wheeler says some market commentators are predicting further declines in interest rates that would only make sense for an economy in recession, although some easing is likely to be needed to maintain New Zealand’s economic growth. More>>

ALSO:

Ruataniwha Dam: Consent Conditions Could Mean Reduced Intensity

Legal advice sought by the Hawke’s Bay Regional Council on the Ruataniwha Dam consent conditions has confirmed that farmers who sign up to take water from the dam could be required to reduce the intensity of their farming operation to meet the catchment’s strict nitrogen limit. More>>

Health And Safety: Bill Now Sees Rules Relaxed For Small Businesses

Health and safety law reform sparked by the Pike River coalmine disaster has been reported back from the industrial relations select committee with weakened requirements on small businesses to appoint health and safety representatives and committees. More>>

ALSO:

Bearing Fruit: Annual Fruit Exports Hit $2 Billion For First Time

The value of fruit exported rose 20 percent (up $330 million) for the June 2015 year when compared with the year ended June 2014. Both higher prices and a greater quantity of exports (up 9.0 percent) contributed to the overall rise. More>>

ALSO:

Interest Rates: NZ Dollar Jumps After RBNZ Trims OCR

The New Zealand dollar jumped more than half a US cent after Reserve Bank governor Graeme Wheeler cut the official cash rate by a quarter-point and said the currency needs to be lower, while dropping a reference to criteria that justified intervention. More>>

ALSO:

Drones: New 'World-Class' Framework For UAVs

The rules, which come into effect on 1 August, recognise the changing environment and create a world-class framework that accommodates ongoing development while still ensuring the safety of the public, property and other airspace users. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news