Consultation paper: Draft guidance on risk indicators and descriptions of managed funds

 

First published 6 July 2015

 

Final date for submissions

 

Saturday 15 August 2015 

(this consultation has concluded)

Consultation paper

Consultation paper: Draft guidance on risk indicators and descriptions of managed funds

Submission form Feedback form
E-mail for submission consultation@fma.govt.nz (please use the title of the consultation paper for the subject line)
Resulting document

Guidance note on risk indicators and description of managed funds

Risk indicators are an important part of the disclosure information about managed funds. The indicators measure the volatility of past returns, which gives investors a simple tool for assessing and comparing the volatility of funds.  It is intended to help investors make investment decisions.

This consultation paper proposes guidance on how managed funds should describe a fund’s risk category, the methodology for calculating risk indicators, what to look out for when naming the funds to reflect their risk profile, and when to update investors when a fund’s risk category changes.

We are also seeking feedback from businesses on how to describe a fund’s volatility, how to name funds to reflect their risk profile, and the cost-benefit analysis of updating Product Disclosure Statements when a fund’s risk category changes.

Read the full consultation paper here.