Commerce Minister Craig Foss today released for consultation the first set of draft regulations to bring the Financial Markets Conduct (FMC) Act 2013 into effect.
The new regulations will govern how financial products are promoted and sold to support confident and informed market participation.
“This is an exciting opportunity to shape the future of New Zealand’s financial regulatory framework. It is a vital element of the Government’s Business Growth Agenda and is central to building vibrant financial markets that work for all market participants,” says Mr Foss.
The FMC Act will be implemented in two phases with the first phase coming into effect on 1 April 2014 and the second phase on 1 December 2014.
Released today for consultation are:
- Draft regulations needed to implement phase 1 covering general fair dealing obligations and key growth-focussed initiatives such as employee share schemes and licensing of financial market participants including crowd-funding
- Draft requirements for disclosure documents that will be required to be given to investors before they invest. The feedback on these draft requirements will be used to assist the drafting of the actual regulations that will cover the disclosure documents.
Submissions on the consultation documents are due by 5 December 2013.
To view the documents and commentary visit www.med.govt.nz/business/business-law/current-business-law-work/financial-markets-conduct-act/consultation-regulations
For more information on the timeline for the two phases for the Act’s implementation, visit www.fma.govt.nz/keep-updated/the-future-of-financial-markets
The Government has also this month made decisions on custody regulations under the Financial Advisers Act 2008. These regulations will provide investors with improved information and make sure custodians have the appropriate systems and processes to protect investor assets. Further information on these decisions can be found here: