On Feb. 15, NZFiMA guided on completing annual regulatory returns.
NZFiMA confirmed information financial advice providers (FAPs) must provide in their regulatory returns; this will set NZFiMA’s focus for its risk-based monitoring approach.
Also, said this information is necessary to effectively supervise full FAP license holders.
Provided links to further information re the questions for the FAP regulatory returns.
Specifically, links to FAP class 1 regulatory return questions, along with FAP class 2 regulatory returns questions, as well as FAP class 3 regulatory returns questions.
Also published Regulatory impact statement: regulatory reporting requirements for licensed financial advice providers regarding the regulatory reporting requirements.
FAP Regulatory Returns
The published reporting requirements are tailored to the three different classes of licenses, reflecting the different business models within the financial advice sector.
All licensed FAPs are required to complete and submit an annual regulatory return.
The regulatory return is a series of questions to obtain an up-to-date understanding.
Namely, of the nature, size and complexity of the financial advice provider's service.
NZFiMA stated that licensees will be required to complete an annual regulatory return for the 12-month period ending Jun. 30 and submit it to the NZFiMA by Sep. 30.
It will notify all licensees when it is time to complete and submit the regulatory return.
The actual regulatory returns data must be submitted through NZFiMA's online portal.
NZFiMA's Comments
NZFiMA will take a reasonable approach while the market implements information-gathering processes and systems; it will engage with the sector to provide guidance.
As well as expectations for completing the first regulatory returns leading up to the reporting commencement date; in addition, NZFiMA expects that in subsequent years, FAPs will provide increasingly more accurate answers as their processes mature.
Effectiveness
The first regulatory returns will be due by Sep. 30, 2024, for the reporting period starting from Jul. 1, 2023 to Jun. 30, 2024.
