The Financial Markets Authority (FMA) is to remove the expiry dates for all licences issued under the Financial Markets Conduct Act 2013 in a process expected to be complete by the middle of 2019.
Open-ended terms will apply to all new and existing licences, unless an expiry date is specified on a case by case basis. Current licence holders will not have to apply to be relicensed before the expiry date of their licence.
A notice of variation has today been sent to all holders of existing licences.
The FMA initially imposed on a 5-year term on all licences as part of a conservative approach to ensure it had the opportunity to reassess licence holders. The FMA has revisited this approach following the development of our risk monitoring framework.
A targeted consultation on the proposal took place at the end of last year.
The FMA does not believe that the costs associated with re-licensing would be matched by the benefits gained.
Relicensing imposes significant direct and indirect costs on all market participants, regardless of the risk they pose to fair, efficient and transparent markets.
The FMA will continue to prioritise its monitoring, intelligence gathering and supervision activities to those areas it considers to pose the most significant risk and harm. The change does not remove any of the regulatory tools at the FMA’s disposal and the FMA will take appropriate action if a licensee fails to meet their licence conditions or legal obligations.”
Any licence holders with questions should contact Compliance@fma.govt.nz
The media contact is Edwin Mitson who can be contacted at Edwin.email@example.com
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