by Susan Edmunds
As of May 31, all advisers need to have done something to remain on the right side of the new rules.
Those who want to offer class DIMS must have applied for a licence under the Financial Markets Conduct Act. Those offering personalised DIMS need to file an updated ABS, for the FMA to determine whether they are capable of providing personalised DIMS services under the new, more stringent rules.
Despite time running out to take action, very few applications for either class or personalised DIMS have been received.
The FMA said it had approved two class DIMS licences, has another five being processed and is dealing with one application to provide personalised DIMS.
This week it sent a emailed survey to advisers, asking those who are currently authorised to provide DIMS what they intend to do.
The survey is not anonymous.
Advisers are asked to reply by May 1.
FMA spokesman Andrew Park said there were 900 AFAs authorised for DIMS but fewer than 600 had indicated they were providing DIMS in June last year.
Adivser Murray Weatherston said it seemed that no one wanted to be first with their DIMS decision. “They’ll only move when they have to.”
More SiFA members had indicated they were going to apply for a DIMS licence than the handful the FMA had received, he said, so there were likely more applications that were yet to reach the FMA.
He said the process did not seem to be one that could be done quickly. “You wouldn’t want to start on your application process by 3pm if you have to have it filled in by 5pm.”
Park said the FMA would follow up with those who took no action and it was recommending that people who did not intend to offer DIMS after the end of May updated their ABS accordingly.
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