FMA Update

Monday 1 December

Welcome to a new era in New Zealand’s financial markets

Today marks an important milestone for New Zealand’s financial markets now that phase two of the Financial Markets Conduct Act 2013 (FMC Act) has come into effect.

The new regulations are designed to build confidence in our financial markets and allow firms to raise capital efficiently so they can grow their business and the economy.

The phase two regulations cover:

• new disclosure requirements
• go-live of the online registers
• the governance of financial products and
• additional detail supporting the remainder of the FMC Act.

Improving our communication

To help you move quickly and efficiently into the new FMC Act environment, we have been progressively publishing new information and guides on our website, and running workshops on a range of topics.

We are also publishing information for market participants, such as marinas, who can now choose to be unregulated. Information for marinas is now available on our website.

Over the coming months we’ll be finalising more written guidance, as we take into account the feedback we receive via the consultation process.

We’re also working to improve our key communication channels – in the first quarter of 2015 we will be launching a new website, making improvements to the FMA Update and publishing a consultation calendar.

Here are some useful links to information and guides:

• Offering under the FMC Act - for businesses making new offers.
• Application guides for the new FMC Act licences (recently updated).
• Guidance on the new accountability framework for financial products.
• Information on new financial reporting requirements under the FMC Act.

How to improve financial statements

Earlier today we released a report that addresses disclosure challenges within the New Zealand environment. The report identifies ways to improve financial statements so they are a clear and effective reporting and communications tool.

We encourage entities to be bold and reduce the clutter by removing standardised and immaterial disclosures, and focus on the areas covered in this report.

This work follows a half-day discussion forum we hosted in Auckland during September – ‘Beyond International Financial Reporting Standards (IFRS): Quality Financial Reporting’.

Changes for Futures Dealers

Existing authorisations for futures dealers cease today (1 December 2014). Transitional provisions in the FMC Act however provide for transitional derivatives issuer licences for those entities that were authorised futures dealers immediately prior to 1 December 2014 and who need to be licensed under the FMC Act. See our derivatives issuer licence list.

Disclose register

The new register for products and schemes, Disclose, is now available. Information about using the register is available on the disclose website. Our consultation on the content and form of register entries closes on Friday 12 December.

Seminars and workshops

Our upcoming seminars focus on AFAs and personalised DIMS. Our ‘How can I get involved’ web page details the seminars currently available.

Current Consultations

• Consultation paper: Fund Updates and Guidance on Risk Indicators – closes 16 January 2015
  Released today, this paper seeks your feedback on a proposed ‘frameworks or methodologies’ (FM) template for fund updates and new guidance for calculating risk indicators.
• Consultation paper: Corporate Governance in New Zealand – Principles and Guidelines - closes Monday 1 December.
• Consultation paper: Going Public – A Director’s Guide – closes Monday 8 December.
• Consultation paper: Personalised DIMS under the Financial Advisers Act 2008 – closes Tuesday 9 December.
• Consultation paper: Content and form of Disclose register information – closes Friday 12 December.

FMA in the media - over the last month

• Phase two of financial markets law completes long-term overhaul - 28 Nov 2014
• New Chair of Financial Markets Authority - 26 Nov 2014
• TVNZ Q&A Programme – CEO Rob Everett on what’s changed for Kiwi Investors - 23 Nov 2014
• The FMA reports on its 12 month performance - 20 Nov 2014
• Financial Markets Authority AFA Update: Issue # 33 - 20 Nov 2014
• Three new members for Financial Advisers Code Committee - 14 Nov 2014

Previous FMA Update - 11 November 2014

Questions?

For enquiries about any of these topics please email us at questions@fma.govt.nz