Hon Paul Goldsmith

Minister of Commerce and Consumer Affairs
1 November 2016 Media Statement

Changes to Financial Markets Conduct Act

Commerce and Consumer Affairs Minister Paul Goldsmith has today announced the approval of a number of changes to the financial markets conduct regime.

“The Financial Markets Conduct Act 2013 and associated regulations came into effect on 1 December 2014 and industry participants were given a two year transition period to become fully compliant and licensed,” says Mr Goldsmith.

“As we move towards the 1 December 2016 deadline, adjustments have been made to regulation to fix small technical issues that have arisen.

“By actively responding to stakeholder feedback we have been able to make technical amendments to improve the law.”

The key changes are:

• Allowing superannuation scheme providers to offer schemes that can receive UK pension transfers and treat the transfer funds in accordance with UK rules;

• Clarifying what can be categorised as “New Zealand fixed interest” for the purpose of disclosing the assets of managed investments;

• Removing the requirement for superannuation master trust providers to publicly disclose employer-specific information (but still requiring them to be provided to employee investors).

The Act aims to improve the quality of disclosure to investors, strengthen the governance of financial products and enable more innovative and flexible methods of raising capital.

“Businesses have made a considerable contribution to help us get this right and should be commended for their input,” says Mr Goldsmith.

The transition period for the Act ends on 30 November. Further detail about the changes can be found at: www.mbie.govt.nz/info-services/business/business-law/financial-markets-conduct-act/regulations.

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