Financial Markets Conduct Amendment Regulations 2020

2020/315

Coat of Arms of New Zealand

Financial Markets Conduct Amendment Regulations 2020

Patsy Reddy, Governor-General

Order in Council

At Wellington this 14th day of December 2020

Present:
The Right Hon Jacinda Ardern presiding in Council

These regulations are made under subpart 1 of Part 9, section 576, and clause 90 of Schedule 4 of the Financial Markets Conduct Act 2013—

(a)

on the advice and with the consent of the Executive Council; and

(b)

on the recommendation of the Minister of Commerce and Consumer Affairs made in accordance with sections 545(3), 549, 550, and 576(2) and clause 90(2) of Schedule 4 of that Act.

Contents

1Title
2Commencement
Part 1
Amendments to Financial Markets Conduct Regulations 2014
3Amendments to Financial Markets Conduct Regulations 2014
4Regulation 3 amended (Overview)
5Regulation 5 amended (Interpretation)
6Regulation 17 amended (PDS does not have to be given before application if investment in category 2 products is made urgently and PDS is later provided)
7Regulation 18 amended (PDS does not have to be given for category 2 products issued by NBDT that are debt securities)
8Regulation 19 amended (NBDT must give credit risk statement to investors if it does not have investment-grade credit rating)
9Regulation 20 amended (Information at start of PDS)
10Regulation 22 amended (Content of PDS for offer of debt securities)
11Regulation 26 amended (Key information summary)
12Regulation 34 amended (Additional information)
13Regulation 49E amended (Modification of statement at start of PDS)
14Regulation 87 amended (Custodian must obtain assurance engagement)
15Regulation 107 amended (Circumstances in which duty for issuer to keep register does not apply)
16New regulation 114AA inserted (Criterion for withdrawal of Schedule 3 scheme approval on trustee’s application)
114AACriterion for withdrawal of Schedule 3 scheme approval on trustee’s application
17New regulation 106C and cross-heading inserted
Application of Trusts Act 2019 to PIE fund units
106CApplication of Trusts Act 2019 to PIE fund units
18Regulation 182 amended (Exemptions from DIMS licensing requirement)
19Regulation 183 replaced (Exemption for temporary management of portfolio in situations of absence or incapacity or unexpected contingencies)
183Exemption for temporary management of portfolio in situations of absence or incapacity or unexpected contingencies
20Regulation 188 amended (Eligibility criteria for authorised bodies)
21Regulation 199 amended (General FMA conditions)
22Regulation 200 amended (Other FMA conditions for DIMS)
23Regulation 204 amended (Information at start of SDS for DIMS)
24Cross-heading above regulation 229A replaced
Disclosure for financial advice and financial advice services
25New regulations 229K to 229ZE and cross-headings inserted
Financial advice that is not regulated
229KCircumstances in which financial advice is not regulated financial advice
229LLender’s duty to ensure borrower understands that advice about credit contract or insurance is not regulated financial advice
Record of nominated representatives
229MRecord of nominated representatives
Custodians of financial products
229NApplication of regulations relating to custodians of financial products
229ODefinitions in regulations 229N to 229W
229PRelevant custodial services provided on behalf of business of another person
229QCustodian must provide information to clients
229RAlternative means of providing information required by regulation 229Q(1)
229SClient request for information from custodian
229TProcedures for reconciling custodian’s records
229UCustodian must obtain assurance engagement
229VRequirements of assurance engagement and report
Application of obligations to custodial services provided to wholesale clients
229WApplication of sections 431ZC to 431ZH of Act and regulations to wholesale clients
Holding client money or property together with other money or property
229XApplication of regulations that allow client money or property to be held together with other money or property
229YClient money or property not held separately in order to facilitate settlements
229ZWhen firm money or property not held separately in order to facilitate settlements is treated as client money or property
229ZAClient money not held separately in order to rectify or reduce risk of shortfall
229ZBWhen firm money not held separately in order to rectify or reduce risk of shortfall is treated as client money
229ZCProvider that holds client money or property together with other money or property must comply with duties
Miscellaneous provisions relating to regulation of client money or property services
229ZDCustodianship of property of registered scheme is not regulated client money or property service
229ZEOverseas banks prescribed entities for purposes of section 431ZC of Act
26Regulation 248 amended (Assurance engagement)
27Schedule 1 amended
28Schedule 3 amended
29Schedule 4 amended
30Schedule 5 amended
31Schedule 7 amended
32Schedule 7A amended
33Schedule 8 amended
34Schedule 19 amended
35Schedule 21A amended
36New Schedules 21B and 21C inserted
37Schedule 25 amended
38Schedule 26 amended
Part 2
Amendments to Financial Markets Conduct (Asia Region Funds Passport) Regulations 2019
39Amendments to Financial Markets Conduct (Asia Region Funds Passport) Regulations 2019
40Regulation 10 amended (Effect of recognised offer)
Part 3
Amendments to Financial Markets Conduct (Unlisted Market) Regulations 2015
41Amendments to Financial Markets Conduct (Unlisted Market) Regulations 2015
42Regulation 3 amended (Interpretation)
43Regulation 5 amended (Conditions of exemption)
Schedule 1
New Part 8 inserted into Schedule 1
Schedule 2
New Schedules 21B and 21C inserted
Explanatory note
Administrative Information