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FMA UPDATE

ABOUT US COMPLIANCE INVESTORS NEWS & RESOURCES CONTACT US

KiwiSaver report published

The 2017 KiwiSaver Annual Report outlines the continued growth of KiwiSaver, as well as our push to make sure members have the resources for making the best decisions about their investment.

No rest for the wicked - or the well-behaved

Rob Everett, Chief Executive, FMA

Heading into summer we’re running at high capacity, working on achieving the activities set out in our Annual Corporate Plan 2017/18.

We’re conscious this work has flow-on effects for industry, in terms of a lot of material to absorb, and various consultations to keep track of.

We try to stagger our requests for input or information. We also welcome your feedback on how we can improve the way we structure our communications to market. But we’re also conscious the work we are doing has purpose and effect. A good example of this is what we’re doing under our capital market growth and integrity strategic priority. We want to raise standards of conduct, while also contributing to the development, growth and health of our markets.

Currently in this area our focus is on:

our guidance on conduct for trading the Bank Bill Benchmark Rate
engaging with fund managers and brokers about learnings from our recent court proceedings on market manipulation
finalising our position about online robo-advice
working with the financial advice sector to prepare them for the upcoming legislative changes to the Financial Advisers Act.

While we implement the work signposted in our corporate plan, we also want to keep sight of our longer-term goals. We’re having strategy sessions with our board and executive team about these.

The other thing you tell us is where else you think we should be focusing our efforts. We welcome your comments, and we are currently working on our position in some of these areas. When you have time to lift your heads – watch this space for further updates.

Rob Everett

Chief Executive

Bank Bill Benchmark Rate (BKBM) and closing rates guidance

To raise awareness about how BKBM and closing rates calculations and related controls, we have published a resource sheet for bank staff and finance teams. Alongside this we released industry guidance setting out our expectations around conduct for this type of wholesale trading.


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Greater CERTainty of cyber security

CERT NZ is a government organisation established to improve cyber security in New Zealand. CERT NZ has access to global information about potential threats and real-time cyber-attacks that could help you improve your cyber security and reduce the impact of incidents. Sign up to CERT NZ’s advisories and quarterly updates or follow them on Twitter @CERTNZ

Keep your contact details up to date

If you are licensed by us, you have an obligation to keep your contact details up to date.

If your email address will change because of the Vodafone email shutdown, please contact the Companies Office and update your email address on your Financial Service Providers Register (FSPR) record.

You can also update your FMA newsletter subscription details by clicking the link to the Preference Centre at the top of this email.

Exemption and designation news

Market index exemption

Submissions on this consultation raised a number of questions, so we are currently reviewing our proposals and aim to announce our decision in November.

Exemption extension for AFAs providing DIMS

We are extending the exemption for those offering financial products through AFAs providing DIMS until the new financial services regime is in place.

Financial advisers (non-NZX Brokers Client Money) exemption RIS published

See our regulatory impact statement (RIS) that provides an analysis of the options we considered before granting this exemption.

Proposed exemption extensions

We would like your feedback about the proposals below. Email us your questions or comments to exemptions@fma.govt.nz by Monday 30 October 2017.

Financial Advisers Act 2008

We propose extending the following exemptions until legislative changes in the Financial Services Legislative Amendment Bill (FSLAB) come into effect. As details about the new financial adviser regime develop, we will consider if similar exemptions are necessary and appropriate for the future.

Financial Market Conduct Act 2013

Financial Markets Conduct (Overseas Custodians—Assurance Engagement) Exemption Notice 2017 - This recognises certain overseas auditors for the purposes of overseas custodian assurance engagements for custodians’ relevant periods ending between 24 February 2017 and 24 February 2018. We propose extending recognition of these overseas auditors until September 2022.

Exemption revocations

Legislative notices granted

The following exemption notices will be revoked:

Financial Markets Conduct (Financial Reporting: Balance Dates of Managers and Registered Schemes) Exemption Notice 2015 - The FMC Act addresses this matter for scheme accounting periods ending on or after 9 August 2017 when the FMC Act was changed.
Financial Markets Conduct (Dual-listed FMC Reporting Entities) Exemption Notice 2015 - The broader Financial Markets Conduct (Overseas FMC Reporting Entities) Exemption Notice 2016 now provides relevant and broader relief.

Granted legislative notices:

Forward foreign exchange contracts designation: We issued a designation declaring that short duration forward foreign exchange contracts that are physically settled within three working days are not derivatives under the FMC Act. A copy of the notice and a submissions report are now available on our website.
Multiple-participant scheme exemption: We have published an exemption to make managers of multiple-participant schemes exempt from having to register participation agreements on the Disclose Register.

What’s coming up?

Get a heads up on what we’re releasing soon

Robo-advice exemption decision

We will announce our decision on a proposed exemption to facilitate personalised robo-advice later this month. This will include what we heard from submitters and what will happen next.

Crypto-currencies and Initial Coin Offerings (ICOs) guidance

We will shortly be releasing guidance to help you understand your legal obligations if you’re planning to offer initial coin offerings or other crypto-currency services to New Zealanders. We will also publish information to help consumers understand the risks of investing in crypto-currencies. Given the bespoke nature of crypto-currencies, we welcome industry engagement and are happy to discuss requirements with providers on an individual basis.

Audit Quality Monitoring Report 2017

A summary of our findings from this year’s audit quality reviews will be published in November, along with guidance on how company directors can contribute to high-quality audits.

We’re hiring

Join a vibrant and dynamic team that embraces work-life balance, a commitment to employee well-being, and opportunities for learning and development. Check our website to find out more.