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Susan Edmunds
Susan Edmunds
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How small is a small DIMS business?

Wednesday 18th of March 2015

DIMS providers who have a class licence under the Financial Markets Conduct Act must prepare financial statements that comply with generally accepted accounting practice (GAAP), have them auited by a licensed auditor and lodge them with the Registrar.

This will not be a problem for large-scale providers, such as banks, who already follow these systems. But it will be a big imposition for small adviser businesses.

The FMA said it was aware the cost of requiring small and medium-sized licensed DIMS providers to produce audited financial statements might outweigh the limited benefit to clients.

It is considering a class exemption for small and medium-sized DIMS licensees. “Our proposal is to put in place an exemption that will gradually introduce reporting and auditing requirements based on the size of the DIMS provider.”

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FMA outlines its latest expectations for advisers
Paul Flood: The danger is that the 'goalposts' (regarding what is acceptable or unacceptable adviser conduct) may be susceptible to change. Our 'Principles based' legal/regulatory environment lends itself to “prevalence-induced concept change” over time, perhaps not so much in the written laws and Code, as in the interpretation of the prescribed principles.
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FMA outlines its latest expectations for advisers
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