The Financial Markets Conduct Act (FMC Act)
The Financial Markets Conduct Act (FMC Act) aims to promote trust and confidence in the financial services industry. The FMC Act oversees how investment products are offered, promoted, issued and sold.
Summary of key FMC Act regulatory changes
|New Competency Standards||
There is a desire to raise standards of conduct to increase trust and confidence in the sector.
Under the FMC Act, providers must meet a certain set of standards in order to offer products.
|Easily accessible and comparable information||A government online register (Disclose Register) will provide all the material information on every product offered under the FMC Act.|
|More concise and timely financial reporting||An increase in regular information updates to investors about products offered.|
|Product disclosure statements for financial products – including debt and equity||All providers of products are required to provide Product disclosure statements which are in a standardised format.|
What is the FMC Act?
- The purpose of the FMC Act is to promote and facilitate the development of fair, efficient and transparent financial markets, and to promote the confident and informed participation of businesses, investors and consumers.
- The FMC Act works to reform the regulation of financial conduct. It governs the way investment products are offered, promoted, issued and sold. This includes the on-going responsibilities of those who offer, issue, manage, supervise, deal in and trade investment products. The FMC Act also regulates the provision of certain financial services.
- The changes introduced by the new legislation play a key role in building confidence in the financial services sector, by providing better information for investors, as well as setting clearer rules for companies wanting to raise capital.
When do the FMC Act changes become effective?
The FMC Act was introduced in stages, from 1 April 2014. All changes are required to be effective from 1 December 2016.
AMP is committed to being fully compliant with the requirements of the FMC Act regime.
- AMP is licensed as a provider of discretionary investment management services (DIMS).
This allows AMP to provide an enhanced service to customers with investments on the Wealthview platform.
- AMP has been granted a Manager of Managed Investment Schemes licence, which becomes effective on 26 February 2016.
This allows AMP to continue to provide investment products such as the AMP KiwiSaver Scheme and NZ Retirement Trust.
AMP will be making all required changes ahead of 1 December 2016.
If you have an AMP investment product we will be communicating with you about how the changes apply to your investment.
Some information on this web page has been sourced from the Financial Markets Authority website.
For more information on FMC Act, click here.