MR No. 2014 – 020
18 June 2014
Following changes to the regulation of Discretionary Investment Management Services (DIMS) announced Monday 16 June, by Commerce Minister, Craig Foss, the Financial Markets Authority (FMA) has released a guide to help advisers and small businesses who want to apply for a licence to provide DIMS under the Financial Markets Conduct Act. The changes announced are designed to ensure that investors are well-protected and the regulatory regime works for smaller players in the industry.
The minister’s announcement outlines transitional arrangements for DIMS licence applications and clarifies points that were raised during consultation with the industry, including:
The base licence fee for those operating a DIMS business will decrease by 40 per cent from $3,565 to $2,139.
Elaine Campbell, Director of Compliance, FMA welcomed the announcement, “these changes confirm the flexibility in the licensing arrangements for DIMS. In particular, single adviser or smaller AFA-led businesses that offer relatively straightforward services for their clients will benefit from the changes. If they need to apply for a DIMS licence they will now have more time to complete their application. Our guide helps advisers understand how small and lower-risk DIMS businesses can demonstrate to FMA that they meet the standards required for licensing.”
FMA’s 'Quick guide to licence applications for small businesses providing DIMS' is intended to be used with the licensing application guide.
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