Parliament

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:

http://www.med.govt.nz/business/business-law/current-business-law-work/dims-and-custody

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell: On The Fallout From The Barclay Tape

This is hardly a case of cleaning out your desk and being turfed out onto the pavement.

As others have pointed out, the disgraced Clutha-Southland MP will remain on the public payroll for three months until the election, and for three months afterwards. More>>

 

Ombudsman: Canterbury Schools Reorganisation Mishandled

An investigation into the Canterbury schools reorganisation after the February 2011 earthquakes has found significant gaps and flaws in the Ministry’s engagement and communications with schools and communities. More>>

ALSO:

Law Commission: Contempt Report "Protects Right To Fair Trial"

The proposed Act limits what news media representatives and bloggers can report on court proceedings, but it also makes clearer than the current law where the line is between contempt and freedom of expression. More>>

ALSO:

Gordon Campbell: On Our Refugee Intake (And Uber’s Woes)

On figures released this week, there are currently 65.6 million people worldwide who have been displaced from their homes by war, famine or other external causes… More>>

ALSO:

IGIS Report: GCSB Support For Groser WTO Bid Not Illegal

“The inquiry has found that the GCSB did not act unlawfully or improperly in providing assistance to the New Zealand government campaign”, Ms Gwyn said. More>>

ALSO:

PM's Press Conference: Pike And Houses

There were questions on Pike River mine re-entry after new video from inside the drift was released over the weekend. English maintained a human effort would not be feasible irrespective of any future coalition demands from NZ First. He said the government would continue to work with families on non-manned re-entry. More>>

ALSO:

Flogging A Dead Horse: NZ First Seeks New s59 Referendum

10 years on from the so called “anti-smacking” law - NZ First calls for a binding referendum. NZ First MP Tracey Martin told TVNZ’s Q+A programme that the law change has had a “chilling effect” on NZ parents including herself. More>>

ALSO:

Always Interesting: Internet Party Has New Leader

The Internet Party has a new leader: Suzie Dawson... She currently resides in Moscow, Russia, where she has applied for temporary asylum due to severe persecution she reports being subjected to by those whose corruption she worked to expose.More>>

 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

Featured InfoPages

Opening the Election
 
 
 
  • PublicAddress
  • Pundit
  • Kiwiblog