07/24/2024 | Press release | Distributed by Public on 07/23/2024 18:05
Media Release
MR No. 2024 - 30
The Financial Markets Authority - Te Mana Tātai Hokohoko - has published guidance on how providers of client money or property services, and custodians, can meet their obligations under the Financial Markets Conduct Act 2013 (FMC Act).
It replaces the FMA's 2014 guidance note for brokers and information sheet on custodians' obligations to align with the new regulatory regime. It also provides additional guidance for custodians who have specific obligations in addition to those that apply to all client money and property service providers.
The guidance addresses previous issues the FMA observed through monitoring visits and misconduct cases and was finalised following consultation with providers and custodians in 2022. The FMA thanks the eight submitters who provided their observations and insights.
A 'provider' under the FMC Act is a financial service provider who holds, transfers, or deals with client money or property on behalf of clients. It replaces the 'broker' role under the old Financial Advisers Act 2008.
A 'custodian' is a provider who holds money or property for clients, rather than someone who just executes orders to pay or transfer money or property to another person. Custodians have additional obligations related to audit and assurance engagements, reporting to clients, and reconciliations.
Download the Guide for providers of client money or property services
ENDS
Media contacts
Andrew Park
FMA Media Relations Manager
[email protected]
021 220 6770
Matt Chatterton
FMA Senior Adviser, Media Relations
[email protected]
021 241 7868