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Consultation paper: Draft guidance on risk indicators and descriptions of managed funds |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