The Financial Markets Authority (FMA) has begun consulting on the proposed minimum standards for licenses that service providers are required to obtain in order to offer certain types of financial services under the Financial Markets Conduct Act 2013. The Act was passed into law in September this year, and its provisions will be introduced in phases, the last phase being December 2014, when the entire Act will be in force.
Consultation on the proposed minimum standards for licenses is the next stage in the development of a licensing regime for the offering of certain financial services, which will culminate in 1 December 2014 when all service providers offering these financial services will be required to be licensed.
The license types on which the FMA are currently consulting on minimum standards for are:
- Discretionary Investment Management Service (DIMS) providers;
- peer-to-peer lending services;
- crowd funding;
- independent trustees;
- derivatives issuers;
- Managed Investment Schemes (MIS) managers.
The FMA has released separate consultation papers for each license type, and has invited submissions to be made in standardised form.
The consultation papers are all structured in a similar fashion, each summarising the type of service offering that the licence relates to, the minimum standards required of providers broken down into five key areas (fit and proper persons; capability; operational infrastructure; financial resources; and governance), and the standard conditions proposed to be attached to all licenses granted in the future.
Copies of the six consultation papers can be found here, and the feedback form to be used for submissions can be found here. Alternatively, submitters can provide feedback online, and can do so by registering here. Submissions close on 12 December 2013.