20 June 2023

Consultation: Proposed exemptions for CREs in liquidation, receivership, or voluntary administration

Final date for submission	CLOSED
Consultation paper	Proposed exemptions for CREs in liquidation, receivership, or voluntary administration
Submission form	Submission form - Proposed exemptions for CREs in liquidation, receivership, or voluntary administration
Email for submission	[email protected] - please use the title of the consultation paper in the subject line

UPDATE November 2024

An exemption has now been granted to provide relief for certain climate reporting entities (CREs). The relief comprises a class exemption for five years for each CRE, whether incorporated in New Zealand or overseas, which is in liquidation, receivership or voluntary administration (VA), and for schemes or funds in wind up, from the duties in Part 7A of the Financial Markets Conduct Act (FMC Act), comprising: 

CREs in liquidation – full relief
Registered schemes or funds in wind-up – full relief
CREs in receivership or VA – relief applies for the reporting year in which the receivership or VA appointment is made and for the next 2 reporting periods.

The relief is from the whole of Part 7A of the FMC Act (and any corresponding Regulations) including:

record-keeping obligations
the requirement to prepare and lodge climate statements or group climate statements
the requirement to link to the climate statements in the annual report
the requirement to obtain an assurance engagement in relation to the climate statements.

The notice comes into force on 30 November 2024.

View the Financial Markets Conduct (Climate Reporting Entities in Liquidation, Wind-up, or External Administration) Exemption Notice 2024 

View the Exemption Notice on the Legislation New Zealand website

We have also published a Regulatory Impact Statement that discusses the exemption relief and summarises the problem we are seeking to address, our objectives, the options and their associated impacts, and the consultation process we undertook before deciding to grant the exemption relief.  

Download the Regulatory Impact Statement - Exemptions for Climate Reporting Entities in Liquidation, Wind-up, or External Administration [PDF 595KB]

UPDATE November 2023

After carefully considering submissions, the FMA has agreed in principle to grant a class exemption for five years for each Climate Reporting Entity (CRE) which is in liquidation, receivership or voluntary administration from the duties in Part 7A of the FMC Act, comprising:

full relief for a CRE which is in liquidation (solvent or insolvent) and for managers that are CREs in respect of a registered scheme (or fund within a scheme) that is in wind-up.
deferral relief for up to two years for CREs in receivership or voluntary administration.

The effect of full relief is that the climate reporting duties are cancelled. The effect of deferral relief is that climate reporting duties are deferred but must still be complied with at a later date.

The relief will be from the whole of Part 7A (and any corresponding Regulations) including:

record-keeping obligations
the requirement to prepare and lodge climate statements or group climate statements
the requirement to link to the climate statements in the annual report
the requirement to obtain an assurance engagement in relation to the climate statements.

We may consult with interested stakeholders on the drafting of the exemption notice that will give effect to our decision. If you would like to be added to the list of stakeholders please email your request to us.

We aim to have a notice in place to give effect to this decision before the end of January 2024.