October 27, 2022

FMA Update

Wholesale investing - report and warnings 

We have found a number of undesirable practices in the market for wholesale property investment offers, including promotions through a broad range of advertising channels, rather than focusing directly on suitable investors.

Seven warnings have been issued to entities for non-compliant eligible investor certificates, including:

- Black Robin Equity and Westwood Terraces BRE
- Du Val Capital Partners and Du Val BTR GP
- E+O Property Syndication
- Jasper NZ Investments
- Provincia Property Fund
- Williams Corporation Capital Partnership GP
- Wolfbrook Capital

Read our full report here
More from our latest '5 Mins with the FMA' Podcast here

Climate risk and financial statements

What impact should climate change have on the preparation and audit of financial statements?

We've published a new information sheet to provide clarity for auditors about our expectations on what climate risk information should be in audit files.

InvestNow - AML/CFT warning 

A formal warning has been issued to InvestNow Saving and Investment Service for failing to comply with anti-money laundering requirements, including conducting customer due diligence, and having adequate and effective processes.

These issues were identified through routine monitoring for compliance with the Anti-Money Laundering and Countering Financing of Terrorism (AML/CFT) Act in November 2021 and June 2022.

James Greig, FMA Director of Supervision said: “DIY investing platforms are at a higher risk of being targeted for money laundering or terrorist funding due to the highly liquid and digital nature of their businesses." 

Getting financial advice when living overseas

If you receive financial advice from a New Zealand financial adviser while overseas there is limited protection under the Financial Market Conduct Act 2013.

Read more about getting financial advice, including while overseas, here

Consultations update 

• Financial Advice Provider (FAP) proposed regulatory returns Class 3 – closes 28 October
• Proposed guidance and expectations for keeping proper accounting records – closes 31 October
• Proposed guidance for client money or property service providers – closes 1 November
• FAP proposed regulatory returns Class 1 and Class 2 – close 18 November
• Proposed standards for Financial Market Infrastructure Act (in conjunction with RBNZ) – closes 18 November

Class exemptions granted 

The following class exemptions have been granted by the FMA, replacing existing class exemptions that are soon to expire:

• For managers of multiple-participant schemes, relating to the requirement to register participation agreements on the Disclose register: the Financial Markets Conduct (Multiple-participant Schemes—Participation Agreements) Exemption Notice 2022.
• For overseas issuers that have a primary listing on a market in a high quality jurisdiction, relating to certain disclosure requirements in the FMC Act: the Financial Markets Conduct (Disclosure Using Overseas GAAP) Exemption Notice 2022.
• For managers of “notional” managed investment schemes, relating to scheme financial statements: the Financial Markets Conduct (Financial Statements for Schemes Consisting Only of Separate Funds) Exemption Notice 2022.
   

Investor warnings 

- Easy Trade Investment
- Goldenchaseltd.com
- Cedar Financial
- Imposter website: nzglobaltrading.com and nzglobaltrading.com/home
- Horizon Capital 
- deficat.info
- Kemik
- GemsAssociate
- Imposter website: campartnersinvestment and cambridgeinvestmentsltd
- Imposter website: api-insurance-ltd.co

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