Most Read Contributor in New Zealand, September 2016
discussion paper outlining the regulations which will underpin
the Financial Markets Conduct Bill is now out for
This is an important step in the process because a lot
of the practical detail which will affect the Bill's
implementation was left to regulation.
Submissions close on 1 March 2013.
Timeline for Bill
The Bill is part way through its second reading and is expected
to be passed by mid-2013.
On current timeframes, the regulations will be made and the
registers (one for offers of financial products, the other for
managed investment schemes) finalised in February 2014 and the new
Act will come into force in April 2014.
But these timelines are recognised as ambitious so there may be
some slippage. Also, there will be a two-year transition period
during which issuers can choose to comply with current securities
Scope of regulations
The primary areas for regulation under the Bill are the content
and presentation of the Product Disclosure Document (PDS) and the
licensing regime. This is reflected in the 243-page discussion
document, well over half of which is dedicated to these two
Other matters covered include the proposed exceptions regime and
additional governance rules for some financial products
procedures for meetings of product holders
lock-in rules for superannuation schemes
implied terms in trust deeds, such as those relating to auditor
requirements to end reports to supervisors and the regulator,
rules for reporting and correcting pricing errors.
The objective is that the PDS will be short (generally in the
range of six to 20 pages), headed by a two-page summary, tailored
for different types of product, and highly prescribed for
mainstream products to assist comparability.
Officials propose setting a minimum font size (probably 8 or 9
point after the Australians). Their current inclination is to allow
some corporate branding, provided it is not distracting and does
not obscure the text, but to restrict the PDS to information
required to meet statutory requirements.
Licensing will cover: funds managers, derivatives dealers,
providers of discretionary investment management services,
independent trustees of restricted schemes and regulated
intermediaries – including person-to-person lending services
and crowd-funding platforms.
The regulations prescribe:
eligibility criteria and conditions
the specific objectives which licensing is expected to achieve,
various record keeping and reporting requirements and (for some
derivatives issuers), capital adequacy and liquidity
Chapman Tripp will be commenting in detail on aspects of the
discussion paper in the New Year. Our commentaries on the Financial
Markets Conduct Bill are available
The information in this article is for informative purposes
only and should not be relied on as legal advice. Please contact
Chapman Tripp for advice tailored to your situation.
To print this article, all you need is to be registered on Mondaq.com.
Click to Login as an existing user or Register so you can print this article.
The committee set up to draft a Code on Resolution of Financial Firms, by the Ministry of Finance, Government of India, on September 28, 2016, released a draft bill – The Financial Resolution and Deposit Insurance Bill, 2016...
In a race to adopt technology innovations, Banks have increased their exposure to cyber incidents/ attacks thereby underlining the urgent need to put in place a robust cyber security and resilience framework.
RG 256 deals primarily with remediation programs conducted by licensees who provide personal advice to retail clients.
Some comments from our readers… “The articles are extremely timely and highly applicable” “I often find critical information not available elsewhere” “As in-house counsel, Mondaq’s service is of great value”
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).