FMA calls for feedback on new climate reporting rules
FMA calls for feedback on new climate reporting rules | Insurance Business New Zealand
Environmental
FMA calls for feedback on new climate reporting rules
Proposal aims to foster clear understanding of disclosure requirements
Environmental
By
Roxanne Libatique
The Financial Markets Authority (FMA) – Te Mana Tātai Hokohoko – is inviting feedback on a draft information sheet intended to guide climate reporting entities (CREs).
The draft outlines recommended practices for preparing several key disclosure documents in alignment with the new climate-related disclosures (CRD) regime.
product disclosure statements, both existing and new, for financial products
other material information to be listed on the disclose offer register for financial products
statements of investment policies and objectives on the disclose offer register
annual reports
See LinkedIn post here.
This initiative aims to foster a clear understanding of the disclosure requirements, encouraging confident and well-informed participation among businesses, investors, and consumers in New Zealand’s financial markets.
Under the Financial Markets (Conduct of Institutions) Amendment Act 2022, financial institutions in New Zealand should have an FCP designed to ensure they adhere to the fair conduct principle.
The FMA’s information sheet comprises guidance and examples aimed at helping small firms develop, implement, and sustain smaller FCPs.
Clare Bolingford, executive director of regulatory delivery at FMA, said that the financial market regulator expects smaller firms to need less complex FCP compared to bigger firms.
“We have some great examples of working with a diverse range and size of businesses from the financial advice sector while we implemented the new advice regime. CoFI is also principles-based and therefore, we won’t be taking a ‘one size fits all’ approach to the way that firms meet the minimum requirements. Each firm’s Fair Conduct Programme needs to be proportionate to the nature, size, and complexity of its business,” she said. “We expect smaller firms will need a less complex FCP compared to bigger financial institutions. We also expect firms to review and evolve their FCPs over time. FCPs do not need to be fully implemented until the regime comes into force.”
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