MR No. 2015 – 15
5 May 2015
The Financial Markets Authority (FMA) has provided smaller businesses that offer a Discretionary Investment Management Service (DIMS) relief from some financial reporting requirements.
The FMA has approved two categories of exemptions that will be available to DIMS providers who have up to $250m retail funds under management and who are licensed under Part 6 of the Financial Markets Conduct Act 2013.
The exemptions are a result of industry feedback received through consultation by the FMA. The exemptions and relevant conditions will take immediate effect once granted.
The two exemptions are:
“Through consultation, we carefully weighed up the benefit of having financial information about these DIMS providers available to investors, against the cost to small DIMS providers of providing this information,” said the FMA’s General Counsel, Liam Mason.
“Under DIMS, the main protection for investors is that their assets are held either by themselves or by an independent custodian who is subject to audit requirements,” he said.
In some cases, a DIMS provider may additionally undertake other activities that also make it an FMC reporting entity. The exemptions will not apply in these cases.
A DIMS is where a client authorises someone else to make buy-sell decisions about their investment portfolio, on their behalf.
Applications for DIMS licenses must be received by 31 May 2015. More information on applying for a license can be found here.
The exemptions will be published on the FMA’s website once granted.
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