Cabinet has agreed that the following requirements should be introduced for Authorised Financial Advisers (AFAs) providing personalised DIMS from 1 December 2014:

  • additional eligibility criteria requiring the FMA to be satisfied that there is no reason to believe that AFAs who are authorised to provide personalised DIMS will not comply with their obligations under financial markets legislation and that they are capable of effectively providing a DIMS;

  • additional matters be added to the existing disclosure statements of AFAs offering DIMS to align with the disclosure requirements under the FMCA;

  • requirements for client agreements under the FAA to be aligned with the requirements under the FMCA; and

  • a reporting requirement under the FAA mirroring the final form in which the FMCA will require DIMS licensees to give clients a periodic report on their investments.

Measures to make DIMS regime more accessible to small providers

In order to make the new regime more accessible for smaller DIMS providers, Cabinet has agreed:

  • that AFAs providing limited DIMS in contingency situations (for example, where their client is on holiday) as a temporary adjunct to their normal financial adviser services should be exempt from licensing under the FMCA subject to conditions to prevent its exploitation; and

  • the base fee for a DIMS licence will decrease by 40% from $3565 to $2139.

Transitional arrangements for DIMS providers

A transitional regime for existing DIMS providers has now been established as set out in the table below.

Click here to view table.