“The FMC Act is a key component of the Government’s Business Growth Agenda and will govern how financial products are promoted and sold,” says Mr Foss.
Feedback is also being sought on an increased rate for some of the existing Financial Markets Authority (FMA) fees that fund certain services such as authorising market participants, applications, exemptions and the registration of some documents or schemes.
“Well-functioning financial markets give New Zealanders an opportunity to save and invest with confidence, opening up opportunities to create diversified portfolios to achieve their personal financial goals.
“Robust financial markets also give companies access to a greater pool of productive capital to grow their businesses,” says Mr Foss.
The following providers will need to be licensed under the new system:
- Fund managers
- Discretionary investment management service (DIMS) providers
- Independent trustees of restricted schemes
- Derivatives issuers
- Licensed intermediaries (such as person-to-person lending services and crowd-funding platforms).
Submissions on the proposals close on 21 January 2014. To view the discussion documents, visit http://www.med.govt.nz/business/business-law/current-business-law-work/financial-markets-conduct-act/consultation-fees
For more information on the timeline for the two phases for the Financial Markets Conduct Act implementation, visit www.fma.govt.nz/keep-updated/the-future-of-financial-markets
The Act introduces a licensing regime, which will be administered by the Financial Markets Authority and will start to come into effect on 1 April 2014.