This note is not part of the regulations, but is intended to indicate their general effect.
These regulations, which come into force on 1 December 2014, are made under the Financial Advisers Act 2008 (the FA Act) and relate to authorised financial advisers (AFAs) who provide a personalised discretionary investment management service (DIMS).
These regulations prescribe—
eligibility criteria for a person to be authorised as an AFA in respect of a personalised DIMS (whether provided to retail clients or wholesale clients):
matters to be contained, or that must be provided for adequately, in a client agreement governing a personalised DIMS provided to a retail client:
further (ongoing or annual reporting) information an AFA is required by section 29A of the FA Act to make available to retail clients provided a personalised DIMS by the AFA.
These regulations do not limit the AFA’s obligations under the Financial Advisers (Disclosure) Regulations 2010.
Transitional arrangements in these regulations, and that apply to specified existing DIMS providers,—
must be read together with the Financial Markets Conduct Regulations 2014, Schedule 1, clause 5, which—
excepts specified existing DIMS providers, until either 31 May 2015 or 1 December 2015, from the requirement to hold a DIMS licence under the FMC Act; and
ensures the FA Act and regulations made under that Act, as in force immediately before 1 December 2014, continue to apply to a DIMS provided by them while they are excepted from that requirement:
enable them to be exempt, on and after 1 June 2015, from the requirement that the client agreement provide adequately for prescribed matters, but ensure that prescribed provisions are implied into the client agreement:
enable them to be exempt, on and after 1 June 2015, from complying with section 43(2) (which imposes investment authority requirements) of the FA Act:
ensure (if, before 1 June 2015, they meet the specified condition) they need not comply before 1 December 2015 with the further information requirements.
Date of notification in Gazette: 4 November 2014.
These regulations are administered by the Ministry of Business, Innovation, and Employment.