1. Compliance
  2. Exemptions
  3. Exemption categories
  4. Financial reporting

Financial reporting


Exemptions policies

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

Our aim is to find a balance between ensuring businesses provide appropriate financial information for those who need it and to minimise undue costs for those providing it.

The FMA grants 2 types of exemptions:

  • individual exemptions for a specific business and related parties
  • class exemptions that cover a broad type of businesses.

Below is an overview of our key policies.

  • the business is required to prepare high quality financial reporting
  • the business is subject to appropriate financial reporting regulation.
Specified GAAP Specified jurisdictions
  • Australian IFRS
  • Canadian IFRS
  • IFRS (unmodified international standards)
  • Singapore Financial Reporting Standards
  • Hong Kong FRS
  • Australia
  • United States of America
  • Ontario, Canada
  • United Kingdom
  • Republic of Ireland
  • France
  • Germany
  • The Netherlands
  • Switzerland
  • Singapore
  • South Africa

Other exemptions for New Zealand and overseas businesses

Recipients of funds from conduit issuers

Sometimes businesses make regulated offers through special purpose vehicles or finance subsidiaries known as ‘conduit issuers.’ These issuers loan most of the funds to relatedparties. In these situations, the related parties are considered ‘recipients of funds from a conduit issuer’ and become FMC reporting entities in their own right. The cost of complying with the FMC reporting requirements for all the related parties can be extensive and unnecessary, when more relevant information for investors can be provided or is already available.

Exemptions to extending lodgement deadlines

We may extend the deadline for lodging financial statements. However thresholds are high and exemptions are rare.

You’ll need to have a compelling reason why you can’t comply with the 4 month period, or specific circumstances that make it inappropriate. Overseas businesses may have longer timeframes to prepare financial statements under overseas law, however, we don’t consider this sufficient on its own to grant exemptions.

Exemptions are not available if you haven’t made arrangements to comply with the timeframes in the FMC Act.

Partial and technical exemptions

  • technical difficulties complying with the requirements
  • difficulties with specific aspects of the requirements.

Class FMC Act exemptions in place

Financial Markets Conduct (Overseas Registered Banks and Licensed Insurers) Exemption Notice 2016

This exemption permits certain overseas banks and insurers that are registered /licensed in NZ to use their overseas financial reporting to comply in NZ. The exemption does not remove any obligation to prepare and have audited separate branch financial statements for their NZ business.  The auditor may be an overseas auditor or a NZ auditor.

Financial Markets Conduct (Financial Reporting: Balance Dates of Managers and Registered Schemes) Exemption Notice 2015

Managers must register scheme financial statements within 4 months of their balance date. Where a manager's balance date is not the same as its various schemes’ balance dates, this makes compliance difficult or impossible. This exemption allows managers to register scheme financial statements within 4 months after the balance date of the scheme.

FMC Act public accountability designations

Public accountability at a glance

Higher public accountability
Based on XRB Accounting Standards Framework full accounting standards will apply

Full NZ IFRS for for-profit entities, or full PBE standards for public benefit entities

  • Equity issuers who make a regulated offer (and have more than 50 shareholders)
  • Debt issuers who make a regulated
  • Licensed derivative issuers*
  • Licensed MIS managers (for the financial statements of the MIS they manage)
  • Listed issuers
  • Recipients of money from a conduit issuer*
  • Registered banks
  • Licensed insurers
  • Credit unions
  • Building societies

Lower public accountability
Based on XRB Accounting Standards Framework reduced accounting standards will apply

NZ IFRS RDR for for-profit entities, or PBE standards RDR for most public benefit entities

  • Licensed MIS managers (for the manager’s own
  • financial statements)
  • Licensed providers of DIMS (under the FMC Act)
  • Licensed peer-to-peer lending service providers
  • Licensed crowd funding service providers
  • Licensed supervisors
  • Licensed market operators (domestic)

 *The FMA has issued a notice to re-designate recipients of funds from conduit issuers and licensed derivative issuers to having higher public accountability. 

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