Financial Markets Conduct Regulations 2014

211 Annual information

(1)

For the purposes of section 426A of the Act, a licensee or an authorised body that provides a DIMS that is a retail service must, in accordance with regulation 212, make available to each retail investor who uses the service the following information in respect of the most recently completed disclosure year:

(a)

a description of—

(i)

the investment strategy to which the information provided under this regulation relates (including the investment objectives and a diagram or other description summarising the target investment mix under the strategy); and

(ii)

the material changes to the investment strategy that have been made during the disclosure year (if any):

(b)

the return on the investor’s portfolio before tax but net of fees—

(i)

over the disclosure year; and

(ii)

over the 5-year period ending on the close of the disclosure year:

(c)

a bar graph showing the return on the investor’s portfolio before tax but net of fees, indicated by a bar on the graph and as a figure near the corresponding bar, that has been generated for the investor for—

(i)

each complete disclosure year since the date on which the investor first started using the service; or

(ii)

each of the last 10 complete disclosure years, if the investor has been using the service for 10 or more complete disclosure years:

(d)

the name of each class of financial products in the investor’s portfolio, the name of the issuer of those products, and the number of those products in the portfolio (as at the end of the disclosure year):

(e)

the current value of each of those financial products (as at the end of the disclosure year) or the most recent valuation of each of those financial products that was available at the end of the disclosure year, and a statement of—

(i)

the basis on which that value is assessed or the valuation is carried out (for example, the value of quoted products is the market price); and

(ii)

the date on which the value is assessed or of the valuation:

(f)

the total value of the investor’s portfolio at the beginning and the end of the disclosure year (based on the values disclosed under paragraph (e) and in the previous annual disclosure made under this regulation):

(g)

the cash held for the investor under the service at the end of the disclosure year:

(h)

the total of all dividends paid, all interest paid, and other distributions or income received, in respect of the investor’s portfolio during the disclosure year:

(i)

the total percentage-based charges paid during the disclosure year in respect of the investor’s portfolio, expressed as a percentage of the investor’s portfolio:

(j)

the total amount of other charges paid during the disclosure year in respect of the investor’s portfolio:

(k)

the individual action fees of each type paid during the disclosure year in respect of the investor’s portfolio:

(l)

a pie graph showing the composition of the financial products in the investor’s portfolio at the end of the disclosure year, according to the asset categories specified in clause 1(2) of Schedule 21:

(m)

a reminder that the investor may request past quarterly reports or obtain further information from the electronic facility referred to in regulation 212, as applicable.

(2)

The following apply in relation to that information:

(a)

the information under subclause (1)(b) or (c) may also include return information for the same periods net of trading expenses but before all other fees and tax:

(b)

subclause (1)(b) and (c) applies only in respect of disclosure years that start on or after 1 December 2014:

(c)

information about a disclosure year under subclause (1)(b) is not required if the investor did not have an investor’s portfolio over the whole of that period:

(d)

the information under subclause (1)(c) may be provided in a table (instead of a bar graph):

(e)

information under subclause (1)(f) about the beginning of a disclosure year is not required if the investor does not have an investor’s portfolio at the beginning of that disclosure year:

(ea)

if the category “other” is used in providing the information specified in subclause (1)(l), the information must include, as a note to the pie graph, an explanation of the nature of each of the financial products included in that category:

(eb)

the information specified in subclause (1)(l) must be based on the information that the provider judges to be the most appropriate to produce an accurate representation of the assets:

(f)

return has the same meaning as in clause 34 of Schedule 21:

(g)

the information may be combined in a document that includes information under regulation 210.

Regulation 211(1): amended, on 7 June 2018, by regulation 10 of the Financial Markets Conduct Amendment Regulations 2018 (LI 2018/66).

Regulation 211(2)(ea): inserted, on 1 April 2017, by regulation 12 of the Financial Markets Conduct Amendment Regulations (No 2) 2016 (LI 2016/249).

Regulation 211(2)(eb): inserted, on 1 April 2017, by regulation 12 of the Financial Markets Conduct Amendment Regulations (No 2) 2016 (LI 2016/249).