Financial Markets Conduct (Climate-related Disclosures – JPMorgan Chase Bank N.A.) Exemption Notice 2024

This Financial Markets Conduct (Climate-related Disclosures - JPMorgan Chase Bank N.A.) Exemption Notice 2024  (Notice) exempts JPMorgan Chase Bank N.A. (JPMorgan)  from the requirement, to keep climate related disclosure records and produce climate statements pursuant to Part 7A of the Financial Markets Conduct Act (Act).

The exemption will cease to apply if any of the following events take place (Termination Events):

• JPMorgan becomes a climate reporting entity for any other reason than being a registered bank under paragraph 461O(1)(b) of the  Act; or
• JPMorgan commences offering investment or deposit products to persons in New Zealand which are materially different to JPMorgan’s current deposit taking business and that new business is likely to accrue New Zealand domiciled primary users; or
• JPMorgan’s New Zealand branch commences a retail business in New Zealand.

The exemption is subject to the following conditions:

• JPM will procure that its parent company will publish annual climate statements in relation to the parent company’s group companies (which includes the Bank’s New Zealand branch)
• JPMorgan must include in its disclosure statement the relevant information (detailed below);
• JPMorgan must lodge with the Registrar a notice containing the relevant information within 4 months after the end of an accounting period in respect of which JPMorgan relies on this exemption,
• The Bank will report to the Financial Markets Authority(FMA):
  • details of when and where the parent company’s group climate statements have been published
  • Any change of the bank’s status that might trigger a Termination Event;
  • Within 10 working days of any Termination Event taking place.

The Relevant information is:

• a statement to the effect that it is relying on the exemption in respect of the accounting period; and
• a brief summary of the effect of relying on this exemption; and
• the address of (or a link to) the website where a copy of the group climate statements can be accessed.

The key reasons for granting the exemption (as set out in full in the Statement of Reason in the Notice) are—

• JPMorgan’s New Zealand business is limited in scope and nature, such that only one business portfolio attracts customers which are primary users as defined in the Standards.
• The number of existing primary users of JPM’s New Zealand branch is small and of those users very few are domiciled in New Zealand.
• JPMorgan’s parent company is voluntarily preparing climate-related disclosure statements (global statements) in respect of its global business (which includes JPMorgan’s New Zealand Branch), demonstrating responsibility and foresight in its consideration of climate issues, which is a key goal of the New Zealand climate-related disclosures regime (CRD Regime).
• The costs of compliance with the CRD Regime in New Zealand are disproportionate when considering the small number of existing New Zealand domiciled primary users and the potential benefit those few users may obtain from any New Zealand only climate statements.
• Although not directly comparable to other climate reporting entities in New Zealand, JPMorgan’s primary users will be able to obtain certain information from JPM’s parent company’s global statements in respect of the management of climate risks and governance at a group level.
• The notice has been granted for a limited term to allow the FMA to monitor developments in mandatory global climate reporting requirements (particularly Australia) and including the development in reporting globally on scope 3 emissions 

Download Financial Markets Conduct (Climate-related Disclosures – JPMorgan Chase Bank N.A.) Exemption Notice 2024 [PDF 289KB]