MR No. 2014 – 037
4 November 2014
The Financial Markets Authority (FMA) welcomes today’s announcement from Commerce and Consumer Affairs Minister Paul Goldsmith, confirming the approval of the phase two regulations of the Financial Markets Conduct Act.
The regulations come into effect on 1 December 2014. They provide the detail that supports the big-picture principles in the FMC Act.
Many businesses and professionals will rely on the regulations to determine exactly what they have to do to implement the Act.
“The Financial Markets Conduct Act is the largest statutory reform of New Zealand’s financial markets in 30 years. The regulations provide the nuts and bolts that will make the law work,” said Mr Everett, Chief Executive of the FMA.
“A huge amount of effort from the FMA, government and stakeholders has gone into to ensuring that these reforms are well-understood by the industry and can be implemented efficiently from 1 December.”
The phase two regulations cover new disclosure requirements, go-live of the online registers, the governance of financial products and further detail supporting the remainder of the FMC Act. The mandate for the FMA increases substantially with several hundred businesses expected to apply for licenses in the new regime.
Phase one of the FMC Act took effect on 1 April 2014. That included the fair-dealing provisions, and regulations that provided for the licensing of peer-to peer lending and equity crowd funding.
“Easier-to-follow documents from providers are another key benefit investors will experience as the principle of clear, concise and effective disclosure takes effect from 1 December. The regulations approved today will support the FMA in delivering our objective of fair, efficient and transparent markets. They will also help us deliver on the government’s business growth agenda and restore confidence and trust in the markets,” said Mr Everett.
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