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


Police Authority: Use Of Taser Was Disproportionate And Unjustified

The Independent Police Conduct Authority has found that an officer’s second use of a Taser on a mentally unwell Hokitika man was disproportionate and unjustified. More>>


Gordon Campbell: On Holidays, Hekia Parata And Badlands

Hekia Parata, adieu. Reportedly, she’s been ‘passionate’ about education. She has “bravely’ led the charge on the government’s education reforms. In the past week , many of the postscripts to Hekia Parata’s career as Education Minister have sounded like a schoolteacher desperately trying to find some reason why a D student can be marked up to C minus. More>>


Minister of Finance: Plan Shows $100 Billion Infrastructure Projects

Finance Minister Bill English has today launched the Government’s Ten Year Capital Intentions Plan (CIP) which shows a pipeline of $100.9 billion worth of infrastructure projects over the next decade. More>>


Werewolf: Safe Landings Gordon Campbell on the safety challenge to the Wellington runway extension.

The safety-related legal challenge revolves around the size of the 90 metre long Runway End Safety Area (RESA) being proposed for the runway extension. More>>


Environment Commissioner: We Need To Work Together On Climate Change And Farming

“The debate around agricultural emissions and the ETS has been polarised for too long,” said the Commissioner. “But the ETS is not the only way forward – there are other things that can be done.” More>>


NZ Super Fund: Seeking To Put A Market Price On Climate Change

Oct. 19 (BusinessDesk) - The New Zealand Superannuation Fund says it will devise a set of rules to assess investment winners and losers under climate change, a strategy that could rule out fossil fuels or producers such as current portfolio member Exxon ... More>>


Rejuvenation: Parata Will Not Contest 2017 Election

Education Minister and National List MP Hekia Parata has today announced that she will not be contesting the next election. She advised the Prime Minister of her decision earlier this year. More>>

Prisons Grow: Government Approves Plans For Increased Prison Capacity

Despite significant progress in reducing crime the number of prisoners has increased faster than projected. This is because the proportion of offenders charged with serious crimes has risen, meaning more people are being remanded in custody and serving more of their sentences in prison. More>>


Get More From Scoop



Search Scoop  
Powered by Vodafone
NZ independent news