Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search


New regulations to help DIMS industry

Hon Craig Foss

Minister of Commerce
16 June 2014 Media Statement

New regulations to help DIMS industry

Commerce Minister Craig Foss today announced changes to the regulation of discretionary investment management services (DIMS) to ensure investors are well protected and the regulatory regime works for smaller players.

DIMS include any service where the provider decides which financial products to buy or sell on behalf of their client, without having to get their client’s agreement to the transaction.

“The introduction of a strong regulatory regime is part of the Government’s Business Growth Agenda and aims to promote confident and informed participation in New Zealand’s financial markets,” Mr Foss says.

“These changes will reduce the risks to investors by ensuring they are able to make decisions based on sound information.

“They will also make DIMS licensing more accessible for smaller providers, such as many financial adviser businesses. The base fee for a DIMS licence will decrease by 40 per cent from $3565 to $2139.

“It’s very important that all participants in this sector are able to realise the opportunities provided by the passing of the Financial Markets Conduct Act,” Mr Foss says.

The Financial Markets Authority is releasing a guide on the application process to help smaller financial adviser businesses with the licensing process.

Other key regulatory changes include:

• Alignment of the requirements for DIMS under the Financial Advisers Act 2008 with those that will apply to other DIMS providers under the Financial Markets Conduct Act 2013.

• An exemption for financial advisers who only manage their clients’ investments in limited situations, such as when they are on holiday.

• A transition period for existing DIMS providers, allowing them until 1 June 2015 to apply for a licence and until 1 December 2015 to update their client documentation. New providers will need to comply from 1 December 2014.

The Cabinet paper and regulatory impact statement can be found at:


© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines



Relevant Consents Gained: Government Unveils RMA Reform Package

The government has formally hauled down the flag on its attempts to alter the balance of environmental and economic priorities in the Resource Management Act, unveiling a 180-page Resource Legislation Amendment Bill containing reforms that have been largely endorsed by most political parties. More>>


Closing Schools And Such: Interim Redcliffs Decision Announced

“While the school’s board has argued that circumstances that could give rise to potential disruption are extremely unlikely, advice from technical experts has shown these concerns cannot be ruled out." More>>


Jane Kelsey: High Court Can’t Make Groser Provide TPPA Information Faster

‘This week we went back to court to challenge Trade Minister Groser’s stalling tactics over the release of information on the Trans-Pacific Partnership Agreement negotiations, following a High Court order that he reconsider the Official Information Act request I made last January’, said University of Auckland law professor Jane Kelsey, first applicant in the case. More>>

Werewolf 58: No Climate For Change

The last time the global community tried to take collective action on climate change the world’s leaders finally came to agree that every not-too-onerous effort should be made to hold global warming to 2°C above the pre-industrial average. At Paris, all 150 participant countries nations will have put forward their pledges... On the information available, New Zealand's is the second weakest contribution of any nation in the developed world. More>>


Lambton Quay Shutdown: Object Was Made To Look Like Bomb

Police cordoned off part of Lambton Quay Wednesday afternoon, saying that a suspicious package had been found. Buildings were evacuated and buses were detoured. The army’s explosive ordnance disposal unit was brought to the Quay. More>>


Public Sector Still Shrinking: Record Low Number Of 'Backroom Bureaucrats'

Ongoing restraint in the public sector and a focus on better frontline services has seen a further reduction in the number of core Government employees, State Services Minister Paula Bennett says. More>>


Disobeying The Law: Police Censorship Of Crime Research “An Outrage”

The Green Party is calling on Police Minister Michael Woodhouse to ensure Police scrap controversial contracts that place onerous restrictions on academic researchers’ access to Police data, the Green Party says. More>>


Get More From Scoop



Search Scoop  
Powered by Vodafone
NZ independent news