FMCA and FMC regulations implementation update

brief
FINANCIAL SERVICES REGULATION
24 JULY 2014
FMCA and FMC regulations
implementation update
The Ministry for Business, Innovation and Employment has today published
a progress update1 on regulations to fully implement the Financial Markets
Conduct Act (FMCA2) from 1 December 2014.
We highlight the key milestones to come.
Key developments
• Formal consultation on three earlier exposure drafts is nearing completion, and MBIE is now working to compile
the full set of FMC regulations.
• 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 advised3 it plans to consult on exemptions and
guidance for offers in August
2014.
Summary of timetable for implementation
1 April 2014
Phase 14 of FMCA commenced comprising general fair
dealing obligations and the key growth-focussed initiatives
(same class offers, employee share schemes, crowdfunding)
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
December 2015
Transitional period ends for most equity, debt issuers
December 2016
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 2014.
| BRIEF COUNSEL
PAGE 1
Appendix: Overview of the key elements
of the full FMC Regulations
Part 1 – Preliminary provisions
Part 2 – Fair dealing5 (part 2 of first exposure draft of
regulations)
Part 3 – Disclosure of offers of financial products
-- Disclosure process6 (part 3 of first exposure draft of
regulations)
-- Disclosure content7 (part 1 of third exposure draft of
regulations)
Part 4 – Governance of financial products8 (part 4 of second
exposure draft of regulations)
Part 5 – Dealing in financial products of markets9 (part 5 of
second exposure draft of regulations)
Part 6 – Licensing and other regulation of market services
Licensing (part 4 of phase 1 regulations)10
-- Disclosure obligations for discretionary investment
management services11 (DIMS supplement to third
exposure draft of regulations)
Disclosure obligations for peer-to-peer and crowd funding
services12 (part 4 of phase 1 regulations)
-- Conduct obligations for discretionary investment
management services13 (part 6 of second exposure
draft of regulations)
Part 7 – Financial Reporting14 (part 5 of phase 1 regulations)
Part 8 – Enforcement, liability, and appeals15 (part 6 of phase 1 regulations)
Part 9 – Mutual recognition and miscellaneous matters16
(part 2 of third exposure draft regulations)
PAGE 2
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Schedules
Transitional provisions17 (part 7 of phase 1 regulations,
but modifications and additions will be required, DIMS
supplement to third exposure draft)
• Disclosure schedules18 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 119 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 bonds.)
• Other schedules for governance20 (Schedules in second exposure draft of regulations)
• Other schedules for financial product markets21
(Schedules in second exposure draft of regulations)
Other schedules for enforcement22 (Schedules in phase 1 regulations)
Footnotes
1.
http://www.med.govt.nz/business/business-law/current-businesslaw-work/financial-markets-conduct-act/regulations-progress-update
12.
http://www.legislation.govt.nz/regulation/public/2014/0050/latest/
DLM5956701.html?src=qs
2.
http://www.legislation.govt.nz/act/public/2013/0069/latest/
DLM4090578.html?search=ts_act%40bill%40regulation%40deemedr
eg_phase+1_resel_25_a&p=1
13.
3.
http://www.talktous.fma.govt.nz/talk-to-us
http://www.med.govt.nz/business/business-law/current-businesslaw-work/financial-markets-conduct-act/financial-markets-conductregulations-2013-draft-regulations-stage-2/fmc-second-exposuredraft-regulations-2014.pdf
4.
http://www.chapmantripp.com/publications/Pages/FMCA-and-FMCregulations-implementation-update.aspx?utm_source=SM%20
FMCA%20and%20FMC%20regulations%20implementation%20
update&utm_medium=email&utm_campaign=FMCA%20and%20
FMC%20regulations%20implementation%20update
14.
http://www.legislation.govt.nz/regulation/public/2014/0050/latest/
DLM5956701.html?src=qs
15.
http://www.legislation.govt.nz/regulation/public/2014/0050/latest/
DLM5956701.html?src=qs
16.
http://www.med.govt.nz/business/business-law/current-businesslaw-work/financial-markets-conduct-act/financial-markets-conductregulations-2013-draft-regulations-stage-3/fmc-third-exposure-draftregulations-2014.pdf
17.
http://www.legislation.govt.nz/regulation/public/2014/0050/latest/
DLM5956701.html?src=qs
5.
http://www.legislation.govt.nz/regulation/public/2014/0050/latest/
DLM5956701.html?src=qs
6.
http://www.med.govt.nz/business/business-law/current-businesslaw-work/financial-markets-conduct-act/draft-regulations/fmc-firstexposure-draft-regulations-2014.pdf
7.
http://www.med.govt.nz/business/business-law/current-businesslaw-work/financial-markets-conduct-act/financial-markets-conductregulations-2013-draft-regulations-stage-3/fmc-third-exposure-draftregulations-2014.pdf
18.
http://www.med.govt.nz/business/business-law/current-businesslaw-work/financial-markets-conduct-act/financial-markets-conductregulations-2013-draft-regulations-stage-3/fmc-third-exposure-draftregulations-2014.pdf
8.
http://www.med.govt.nz/business/business-law/current-businesslaw-work/financial-markets-conduct-act/financial-markets-conductregulations-2013-draft-regulations-stage-2/fmc-second-exposuredraft-regulations-2014.pdf
19.
http://www.med.govt.nz/business/business-law/current-businesslaw-work/financial-markets-conduct-act/draft-regulations/fmc-firstexposure-draft-regulations-2014.pdf
20.
9.
http://www.med.govt.nz/business/business-law/current-businesslaw-work/financial-markets-conduct-act/financial-markets-conductregulations-2013-draft-regulations-stage-2/fmc-second-exposuredraft-regulations-2014.pdf
http://www.med.govt.nz/business/business-law/current-businesslaw-work/financial-markets-conduct-act/financial-markets-conductregulations-2013-draft-regulations-stage-2/fmc-second-exposuredraft-regulations-2014.pdf
21.
10.
http://www.legislation.govt.nz/regulation/public/2014/0050/latest/
DLM5956701.html?src=qs
11.
http://www.med.govt.nz/business/business-law/current-businesslaw-work/financial-markets-conduct-act/financial-markets-conductregulations-dims-supplement-third-exposure-draft/extract-fromdraft-fmc-regulations-for-dims.pdf-1
http://www.med.govt.nz/business/business-law/current-businesslaw-work/financial-markets-conduct-act/financial-markets-conductregulations-2013-draft-regulations-stage-2/fmc-second-exposuredraft-regulations-2014.pdf
22.
http://www.legislation.govt.nz/regulation/public/2014/0050/latest/
DLM5956701.html?src=qs
BRIEF COUNSEL |
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