Financial Sector (Climate-related Disclosures and Other Matters) Amendment Bill

  • enacted

Hon Dr David Clark

Financial Sector (Climate-related Disclosures and Other Matters) Amendment Bill

Government Bill

30—3

Contents

Key
1Title
2Commencement
Part 1
Amendments to Financial Markets Conduct Act 2013 to come into force by first anniversary of Royal assent
3Principal Act
4Section 5 amended (Overview)
5Section 6 amended (Interpretation)
6Section 351 amended (Regulations modifying this Part or Part 7 for licensed markets)
6ASection 461C amended (Failure to comply with authoritative notice does not give rise to pecuniary penalty)
7New Part 7A inserted
Part 7A
Climate-related disclosures for certain FMC reporting entities with higher level of public accountability
Subpart 1—Overview, application, and interpretation
461NOverview
461OMeaning of climate reporting entity
461OADefinitions relating to listed issuers
461PMeaning of large (in relation to registered banks, licensed insurers, credit unions, and building societies)
461PAMeaning of large after amalgamation
461QMeaning of large manager
461QAApplication if person’s status changes during accounting period
461RMiscellaneous provision relating to application
Subpart 2—CRD records
461SClimate reporting entities must keep proper CRD records
461TManner in which CRD records to be kept
461UPeriod for which CRD records to be kept
461VInspection of CRD records
Subpart 3—Preparation of climate statements
Climate statements of climate reporting entities
461WClimate statements must be prepared
461XGroup climate statements must be prepared
461YClimate statements for overseas climate reporting entities
Climate statements relating to registered schemes
461ZClimate statements for separate funds of registered schemes, etc
461ZAApplication if manager of registered scheme changes and new manager is not large manager
Miscellaneous
461ZBClimate statements may be combined in single document
461ZBAFailure to comply with authoritative notice does not give rise to pecuniary penalty
Offences
461ZCOffence to knowingly fail to comply with climate standards
Subpart 4—Assurance engagements
461ZDNo requirement for assurance of climate statements on commencement of Part
Subpart 5—Lodgement of climate statements
461ZNLodgement of climate statements
461ZOInformation about climate statements of climate reporting entities to be made available in annual report
Subpart 7—Civil liability for certain contraventions of this Part
461ZSPart 7A climate-related disclosure provisions
8Section 462 amended (When FMA may make stop orders)
9Section 468 amended (When FMA may make direction orders)
10Section 470 amended (FMA may order that simplified disclosure PDS may not be used)
11Section 474 amended (FMA may order that exclusion for offers of products of same class as quoted products does not apply)
12Section 485 amended (What are civil liability provisions)
12ASection 489 amended (When court may make pecuniary penalty orders)
13Section 490 amended (Maximum amount of pecuniary penalty)
14Section 501 amended (Additional disclosure or financial reporting defence for directors who are treated as contravening)
15Section 534 amended (Directors treated as having contravened in case of defective disclosure or financial reporting contravention)
17Section 554 amended (Regulations or exemptions may require compliance with generally accepted accounting practice, standards, or FMA frameworks or methodologies)
18Section 556 amended (FMA may grant exemptions)
19Section 561A amended (Financial reporting exemptions)
20Schedule 4 amended
Part 1A
Amendments to Financial Markets Conduct Act 2013 to come into force by third anniversary of Royal assent
20ASection 6 amended (Interpretation)
20BSection 461N amended (Overview)
20CSection 461S amended (Climate reporting entities must keep proper CRD records)
20DSection 461ZD replaced (No requirement for assurance of climate statements on commencement of Part)
461ZDAssurance engagement required for parts of climate statements relating to greenhouse gas emissions
461ZDAAssurance engagement must be carried out in accordance with auditing and assurance standards
461ZDBAssurance practitioner’s report
461ZDCAssurance engagement may cover other parts of climate statements
Assurance practitioner access to information
461ZDDClimate reporting entity must give assurance practitioner access to information
461ZDEAssurance practitioner may require information and explanations from director or employee
20ESection 461ZN amended (Lodgement of climate statements)
20FSection 461ZO amended (Information about climate statements of climate reporting entities to be made available in annual report)
20GSection 461ZS amended (Part 7A climate-related disclosure provisions)
20HSection 501 amended (Additional disclosure or financial reporting defence for directors who are treated as contravening)
20ISection 534 amended (Directors treated as having contravened in case of defective disclosure or financial reporting contravention, financial reporting contravention, or climate-related disclosure contravention)
20JSchedule 4 amended
Part 2
Amendments to Financial Reporting Act 2013
21Principal Act
22Section 3 amended (Purpose)
23Section 4 amended (Overview of financial reporting duties)
24Section 5 amended (Interpretation)
24ANew section 9AA inserted (Meaning of climate-related disclosure framework)
9AAMeaning of climate-related disclosure framework
25Section 12 amended (Functions of Board)
26Section 14 amended (Membership of Board)
27Subpart 2 heading in Part 2 replaced
Subpart 2—Standards
28New sections 19A to 19C and cross-heading inserted
19AGuidance for purposes of non-financial reporting
Climate standards
19BPurpose of climate standards and climate-related disclosures
19CClimate standards
29Section 27 amended (When standards and authoritative notices take effect)
30Section 44 amended (Purpose)
31New subpart 6 heading in Part 2 inserted
Subpart 6—Monetary amounts adjusted for inflation
32Section 48 amended (Minister must regularly review amounts to take into account inflation)
33Section 49 amended (Order may amend amounts)
34Section 51 amended (Levies)
35Schedule amended
Part 1
Provisions relating to Financial Reporting Amendment Act 2014
Part 3
Amendments to other Acts
Subpart 1—Public Audit Act 2001
36Principal Act
37Section 4 amended (Interpretation)
38New section 15B inserted (CRD assurance practitioner for public entities)
15BCRD assurance practitioner for public entities
39New section 34A inserted (Appointment of CRD assurance practitioners)
34AAppointment of CRD assurance practitioners
40Section 35 amended (Delegation of powers)
41Section 41 amended (Protection from liability)
42Section 42 amended (Audit fees)
Subpart 2—Related and consequential amendments
43Related and consequential amendments
Schedule 1
New Part 7 inserted into Schedule 4 of Financial Markets Conduct Act 2013
Schedule 1A
New Part 8 inserted into Schedule 4 of Financial Markets Conduct Act 2013
Schedule 2
New Part 2 inserted into Schedule of Financial Reporting Act 2013
Schedule 3
Related and consequential amendments
Legislative history

The Parliament of New Zealand enacts as follows: