Most Read Contributor in New Zealand, September 2016
The Ministry for Business, Innovation and Employment has today
progress update on regulations to fully implement the Financial
Markets Conduct Act (FMCA) from 1 December 2014.
We highlight the key milestones to come.
Formal consultation on three earlier exposure drafts is nearing
completion, and MBIE is now working to compile the full set of FMC
Cabinet will make further policy decisions soon, and MBIE will
provide a further update at that point.
MBIE plans to publish a near-final version of the FMC
Regulations before the election, to assist planning by industry,
with the final regulations to be made in October
2014 ahead of the 1 December 2014 commencement.
FMA recently advised it
plans to consult on exemptions and
guidance for offers in August
Summary of timetable for implementation
1 April 2014
Phase 1 of FMCA commenced comprising general fair dealing
obligations and the key growth-focussed initiatives (same class
offers, employee share schemes, crowd-funding)
1 December 2014
FMCA fully commences, comprising the new disclosure
requirements, go-live of the online registers, licensing
obligations and the remainder of the Act
by 1 June 2015
Existing DIMS providers may apply for a licence, and will have
until 1 December 2015 to update their client documentation. New
providers will need to comply from 1 December 2014
Transitional period ends for most equity, debt issuers
Transitional period ends for managed investment products,
non-bank deposit takers, other continuous issuers of securities,
and futures contracts
New KiwiSaver schemes and superannuation schemes must register
under the FCMA and comply with the new regime from 1 December
Appendix: Overview of the key elements of the full FMC
Part 1 – Preliminary provisions
Part 2 –
Fair dealing (part 2 of first exposure draft of
Part 3 – Disclosure of offers of financial products
Part 9 –
Mutual recognition and miscellaneous matters (part 2 of third
exposure draft regulations)
Transitional provisions (part 7 of phase 1 regulations, but
modifications and additions will be required, DIMS supplement to
third exposure draft)
Disclosure schedules for financial products and discretionary
investment management services (Schedules in third exposure draft
of regulations and DIMS supplement)
Limited disclosure schedule and other provisions for Schedule 1
of Act (Schedule 1 of first exposure draft of regulations and phase
1 regulations. Note that some of this schedule was commenced in
phase 1 of the regulations (eg, exemption for small offers), but
other provisions, particularly those requiring disclosure
documents, were held over to commence in phase 2 eg, requirements
for a "Schedule 1 disclosure document" for government
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