Exemption categories

 

Specific exemption information relating to particular topics, people or businesses.

AML/CFT

The Anti-Money Laundering and Countering Financing of Terrorism Act provides for two types of exemptions - Regulatory exemptions and Ministerial exemptions.

The Minister of Justice may grant a Ministerial exemption from any or all provisions of the Act. Exemptions may be granted for businesses, transactions, products, services or customers and may be subject to conditions.

The Ministry of Justice is now inviting applications for Ministerial Exemptions under the Act. For further information and a copy of the Ministerial Exemption Policy go to the Ministry of Justice website.

The Anti-Money Laundering and Countering Financing of Terrorism (Ministerial Exemption Form) Regulations 2011 prescribe the form in which the Minister must make Ministerial exemptions.

Brokers and custodians

In certain circumstances you may be able to obtain an exemption from compliance with broker and/or custodian obligations under the Financial Advisers Act 2008. You must meet the prescribed statutory criteria in order for FMA to consider your application for an exemption.

FMA has not granted any exemptions from the broker or custodian obligations. See our guidance note on Financial Adviser Act Exemptions December 2014.

Financial advisers - including overseas advisers

In certain circumstances it may be possible to obtain an exemption from being registered as a financial adviser or from any of the obligations under the Financial Advisers Act 2008, regulations or the Code of Conduct.  This includes overseas advisers.

Financial reporting

We have regulatory powers to grant financial reporting exemptions and vary financial reporting public accountability designations.

Offers under the FMC Act

The Financial Markest Conduct Act (FMC Act) offer regime is simpler and more efficient than the previous Securities Act regime. However in some cases businesses may encounter difficulties offering financial products under the FMC Act regime. In some circumstances exemptive relief from a regulatory or disclosure requirement may be appropriate.

Offers under the Securities Act

For offers made under the Securities Act during the transition from the Securities Act to the Financial Markets Conduct Act 2013 (FMC Act) regime, businesses can continue to rely on Securities Act regime exemptions, to the extent they still apply and have not expired,

All existing Securities Act exemptions become redundant at the end of the relevant transition period, regardless of their expiry date, because you will no longer be able to offer or manage securities under the Securities Act regime.

Many existing exemptions address issues that will no longer be difficulties under the FMC Act offers regime. Our table Issues that no longer arise under the FMC Act regime summarises why the circumstances addressed by a number of current Securities Act class exemptions no longer raise issues.

If you have an existing individual exemption that expires before the end of the transition period, you can apply to have your exemption extended. However we will discuss with you whether you can move more quickly into the FMC regime instead.

Please note, we don’t propose to develop any new class exemptions from the Securities Act regime. Instead you should look to move to the new FMC Act regime as promptly as you are able.

You can continue to apply for new individual exemptions from the Securities Act regime, however, before accepting your application, we will discuss the alternative approach of moving more quickly into the FMC Act regime.

KiwiSaver and superannuation

Key exemptions currently in place relevant to KiwiSaver providers:

Key exemptions currently in place relevant to superannuation providers:

  • Securities Act (Eligible Service Superannuation Schemes) Exemption Notice 2004
  • Securities Act (Employer Superannuation Schemes) Exemption Notice 2004
  • Securities Act (Multiple Participants Superannuation Schemes) Exemption Notice 1998 (SR 1998/423)

You can continue to rely on these exemptions, to the extent they still apply and have not expired.  They will apply whilst offers are able to be made under the Securities Act during the transition from the Securities Act to the FMC Act regime.  All existing Securities Act exemptions become redundant at the end of the relevant transition period, regardless of their expiry date, because you will no longer be able to offer or manage securities under the Securities Act regime.

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