Licensing Solutions for New Zealand DIMS Managers | Pre-licensing Assessment | NZ DIMS Licence Application Support | Post-licensing Risk and Compliance Management

We offer a comprehensive set of solutions to help you obtain and maintain a New Zealand Managed Investment Schemes Managers Licence issued by the New Zealand Financial Markets Authority (FMA DIMS Licence), tailored to:

• Your business goals and objectives
• Your client demographics
• Your countries of operation
• The size of your business
• The available human and technology resources
• Your risk appetite
• Your governance structure
• The products that you offer
• FMA Licensed DIMS Managers’ Obligations: covering risk and compliance management under financial laws and regulations, the applicable financial licensing requirements, AML/CFT laws, privacy laws, consumer protection laws, and more

We have designed our financial licensing solutions to help you navigate the complexities of the FMA DIMS licensing framework in a commercially oriented and goal-focused manner, providing effective support for all stages of the NZ DIMS Licensing process, including but not limited to the following aspects:

• FMA DIMS Licence Guidance: Advising on a wide range of aspects associated with NZ DIMS Licensing as it relates to your specific situation
• Pre-licensing assessment: Covering compliance gap analysis as well as risk and compliance assessment
• Pre-licensing support:
• Drafting the necessary policies and procedures to help you comply with the NZ DIMS Licensing conditions and financial markets' regulations
• Developing internal controls to help you meet your obligations under the FMA DIMS licensing framework
• FMA DIMS Application Support: Covering the entire licensing process
• Post-licensing Support: Covering
• Ongoing compliance advice
• Comprehensive second-line risk and compliance support, including leading the implementation of your risk management framework (RMF), compliance management framework (CMF), compliance monitoring program (CMP), compliance calendar and checklist, ongoing risk assessments, internal and external reporting, outsourced providers' management, and more
• AML/CFT advice
• AML/CFT compliance management
• Compliance assurance solutions, including compliance assurance program (CAP) development, implementation, and internal control testing

 

Service Coverage

This page is about the New Zealand DIMS Licence. According to the FMA: “You are providing DIMS when an investor gives you the authority to make decisions about buying and selling financial products on their behalf”. In addition to New Zealand DIMS licensing solutions, we also provide licensing and compliance solutions to other types of New Zealand fund managers and investment firms.

For more information on the New Zealand Investment Scheme manager (MIS) Licence, please visit our New Zealand MIS Licence page.
For more information on the New Zealand fund managers and investment firms that do not offer their products in the retail market, please visit our FSP page.

 

NZ DIMS Licensing Preparation

Pre-licensing Compliance Assurance

Our NZ DIMS licensing solutions cover the following focus areas:

• Compliance Goals Analysis: We review your business-specific goals and resources against the suitability criteria for the FMA DIMS licensing framework
• Initial Consultation: We provide guidance on potential risk and compliance issues that may arise during the NZ DIMS licensing process
• Choosing the Right Jurisdiction: We assist in evaluating regulatory, risk, and compliance environments to determine the most suitable jurisdictions for your FMA DIMS licence, tailored to suit your:

• business objectives,
• operational capacity,
• client base,
• markets of operations,
• and other relevant factors

• Gap Analysis: We identify gaps between your existing operations and regulatory requirements and help you align them in a commercially oriented manner
• FMA DIMS Licence Application Plan: We help you establish a roadmap to effectively meet the NZ DIMS licensing requirements

 

NZ DIMS Licensing Guidance

Selecting the right compliance model is crucial not only for navigating the licensing process but also for maintaining ongoing compliance and avoiding potential breaches. Our FMA DIMS licence solution covers:

• Compliance Model Selection: To help you best comply with the FMA DIMS licensing framework and related risk and compliance obligations.
• Corporate Governance Model Selection: We offer practical guidance on establishing effective corporate governance practices that support your risk and compliance oversight.
• Operations Model Advisory: We advise you on optimising your operational and governance models to help you efficiently comply with the FMA DIMS licensing framework, keeping in mind your specific circumstances, available resources and business goals.

 

Entering the FMA Regulated Environment

We help businesses transition from an unregulated environment to operating under the FMA DIMS licensing framework, helping them meet their obligations as NZ DIMS licence holders.

We also assist already regulated businesses in aligning their existing risk and compliance management structures with the requirements of the FMA DIMS licensing framework.

Our focus areas for this service include:

• New businesses
• Existing DIMS managers operating in unregulated markets
• Regulated DIMS managers expanding into foreign jurisdictions
• Financial institutions and/or service providers with established risk and compliance frameworks seeking to introduce regulated fund management services as a new product.

 

Multi-Jurisdictional Compliance

With years of experience managing risk and compliance obligations for businesses operating under multiple financial licences across various jurisdictions, we help businesses remain compliant with the fund managers’ obligations globally.

 

FMA DIMS Licence and Wholesale Markets

Getting an FMA DIMS licence may not always be the best fit for all. For example, a retail market expansion may not always align with your goals or the products you offer.

Operating in the wholesale environment can sometimes be a more suitable option. We offer a wider range of risk and compliance management solutions to assist NZ DIMS managers, that:

• Operate in the wholesale markets
• Operate under exemptions from the FMA DIMS licensing framework
• Offer services to sophisticated, eligible, and wholesale investors

 

We help them comply with the regulatory compliance obligations that are not caught by the FMA DIMS licensing framework, but that still have to be addressed and handled, including:

• Advertisement Rules
• Fair Dealing Regulations
• Risk Management
• Outsourced Providers' Oversight
• Restrictions on offering services to retail investors without a licence (an integral part of the FMA DIMS licensing framework)
• Anti-Money Laundering and Counter-Terrorist Financing (AML/CFT) laws and regulations
• Data Management Laws and Regulations

 

NZ DIMS Licence Application

We assist with your licence application through ongoing engagement in the NZ DIMS licensing process:

• Document Compilation and Review: We compile and review all required supporting documents to support your NZ DIMS FMA licence application.
• Application Form Completion: We help you complete the forms so that all material information is accurate and complete.
• Pre-Submission Review: We can arrange a pre-submission review session with key stakeholders to ensure all parts of your application are understood and agreed upon. This session aligns application details with the actual situation, removing ambiguity.
• Regulatory Liaison: We manage the end-to-end submission process, maintaining clear and effective communication channels throughout the FMA licensing process.
• Timeline Management: We closely monitor and adhere to all necessary deadlines, providing timely updates and adjustments to keep the application process on track.

 

Resolving FMA DIMS Manager’s Licensing Issues

Having competent compliance advisors is crucial when licensing issues arise. Therefore, our  NZ DIMS licensing solutions include a range of services to address and resolve these issues effectively:

• Remediation Solutions for FMA DIMS Licence Applicants: We address and remediate risk and compliance issues identified by regulators, helping your operations align with the requirements of the FMA DIMS licensing framework.
• Specific FMA Licence Conditions Compliance: We can help you manage additional conditions imposed on your FMA DIMS licence, developing a tailored action plan to maintain compliance and facilitate the eventual removal of these conditions with minimal disruption to your business operations.
• Licensing Issues Handling: We address common licensing issues encountered during the New Zealand NZ DIMS licensing process, providing you with solutions to navigate and resolve these challenges efficiently.
• Further Information: You can visit our Compliance Remediation Solutions page for more information.

 

Post-Licensing Support

We offer a full range of ongoing risk and compliance solutions for New Zealand-regulated DIMS managers. Our services include but are not limited to:

Ongoing Risk and Regulatory Compliance

• FMA Licensed DIMS Managers’ Obligations Guidance: We can advise your risk, compliance, management and other teams on meeting the requirements of the FMA DIMS licensing framework and other regulatory compliance obligations. You can visit our Compliance Consultancy Service page for more information.
• Regulatory Risk and Compliance Management: We provide dedicated compliance managers to manage your overall compliance. For more information, visit our Specialised Compliance Management Solutions page for Fund Managers.
• Compliance Assurance Solutions: As part of our compliance assurance solutions, we offer:

• Compliance Assurance Program (CAP) development and testing options
• Internal Controls Design option
• Internal Controls Testing option
• Internal AML/CFT Review option
• Statutory AML/CFT Audit option

• Compliance Training Solutions: We offer training programs to different teams on complying with:

• FMA Licensed DIMS Managers’ obligations for risk and regulatory compliance management. You can visit our Compliance Training page for more information.
• New Zealand DIMS Managers’ AML/CFT obligations and operational best practices for fraud prevention. You can visit our AML/CFT Training page for more information.
• Crisis Management Planning: We can develop proactive strategies to manage potential compliance crises effectively.
• Anti-Money Laundering (AML) and Counter Terrorist Financing Solutions: We provide a full range of AML/CFT solutions for DIMS providers. For more information, visit our Specialised AML/CFT Solutions page for Fund Managers.
• Advanced Compliance Technologies: We can assist you with selecting and integrating advanced technology solutions, such as compliance automation tools and regulatory technology (RegTech), to streamline compliance processes without disrupting operations.

• Risk and Compliance Framework Adjustments: Including adjustments to risk management frameworks (RMFs), compliance monitoring programs (CMPs), compliance management frameworks (CMFs), and other core procedures and policies to align them with:
• new business goals
• regulatory changes
• changes in your operations
• evolving market conditions
• changes in stakeholders’ risk appetites (your banking partners, insurance companies, liquidity providers, etc.).

 

 

Risk and Compliance Obligations for FMA Licensed DIMS Managers

FMA licensed DIMS managers are subject to various obligations set out in applicable laws and regulations. They are also expected to uphold standards for their conduct and internal operations, as outlined in regulatory guidance or accepted industry practices.

We can help you address these obligations and expectations through comprehensive support in different areas. The list below is not exhaustive:

FMA DIMS Licence and Regulatory Compliance Obligations

• Compliance Management Systems: We can help you establish effective compliance programs, compliance monitoring plans, controls testing methodologies, compliance calendars and more (as required under condition five of the FMA's Standard Conditions for derivatives issuer licences and the Licensing Application Guide).
• Risk Management Frameworks: We can help you develop comprehensive risk management frameworks to fulfil FMA licensed DIMS managers’ obligations for identifying, assessing, and mitigating operational, regulatory, strategic, financial and other types of risks.
• Policy and Procedure Development: We can help you draft and implement policies and procedures aligned with the NZ DIMS licensing requirements.
• Compliance Monitoring Plans: We can oversee the execution of your CMPs, covering ongoing monitoring of your compliance obligations under the FMA DIMS licensing framework (as required under condition six of the FMA's Standard Conditions for DIMS licences).
• Internal Control Testing and Compliance Assurance: We can conduct internal reviews and audits of your controls to test their effectiveness and compliance with the applicable regulatory standards.
• Capital Adequacy Requirements: We can help you implement controls to comply with capital adequacy requirements, helping your businesses meet FMA licensed DIMS managers’ obligations for maintaining required financial resources.
• Liquidity Management Requirements: We can assist you in developing controls to comply with liquidity management requirements.
• Financial Auditing Standards: We can assist in establishing procedures to help you comply with the audit and assurance requirements under the FMA DIMS licensing framework.
• Digital Payment Token Services: Where applicable, can assist in developing controls to comply with regulations for digital payment tokens, cryptocurrencies, and digital assets, including obligations under the FMA DIMS licensing framework, FMCA regulations and AML/CFT requirements for transaction monitoring and reporting.
• SIPO Monitoring and Investment Controls: We can help you establish procedures to monitor scheme investments and detect limit breaches, supporting compliance with your obligations to adhere to the Statement of Investment Policy and Objectives (SIPO) and to manage any breaches or outsourced investment manager risks. Not every DIMS will have a SIPO, but investment controls and monitoring are required.
• Records Management and Accessibility: We can help you with your record-keeping requirements for management and retention of relevant records.
• Governance Notification Obligations: We can help you develop controls to maintain governance and compliance arrangements at or above the standards advised during licensing (as required under condition seven of the FMA's Standard Conditions for DIMS licences)

 

FMA DIMS Licence and Operational Oversight Obligations

• Oversight of Outsourcing: We can establish a set of effective controls to comply with NZ DIMS licensing requirements for overseeing outsourced services (as required under condition three of the FMA's Standard Conditions for DIMS licences), also covering related obligations under AML/CFT compliance, ISO requirements, and more.
• Structures for Governance: We can help you establish effective governance structures to comply with FMA licensed DIMS managers’ obligations and develop an effective approach to overseeing your risk exposure and compliance status across different functions of your business.
• Senior Management Accountability: We can help you comply with FMA licensed DIMS managers’ obligations for senior management and key staff conduct and competence.
• Maintaining Operational Resilience: We assist in developing continuity plans to meet FMA licensed DIMS managers’ obligations for operational resilience, helping critical business services withstand disruptions.
• Managing Technology Risks: We provide guidance on technology risk management obligations under the FMA DIMS licensing framework.
• Incidental Financial Advice Controls: We can help you develop procedures for managing incidental financial advice provided to retail clients in the course of delivering DIMS, supporting compliance with statutory duties under sections 431J, 431K and 431N of the FMC Act, and aligning with the standard of protection expected under the Code of Professional Conduct for Financial Advice Services.

 

FMA DIMS Licence and Market Integrity/Transparency Requirements

• Standards for Market Conduct: We can help you implement controls for FMA licensed DIMS managers’ obligations to maintain fair and transparent market conduct, including preventing manipulation and insider trading.
• Principles for Fair Treatment: We can help you implement controls to comply with expectations that cover adherence to principles of fair treatment and transparent communications with clients.
• Standards for Conduct and Disclosure: We can help you comply with NZ DIMS licensing standards for conduct and disclosure.
• Product Suitability and Governance: We can establish tailored controls to help FMA licensed DIMS managers’ obligations comply with product suitability and governance obligations, including risk management and governance arrangements across the product life cycle.
• Protection of Client Assets: We can help you comply with NZ DIMS licensing obligations to protect and segregate client assets.
• Resolution of Disputes: We can help you establish effective mechanisms for dispute resolution and complaints management, particularly for retail clients.

 

FMA DIMS Licence and Resource Management Obligations

We can help you comply with the following requirements of the FMA DIMS licensing framework:

• Adequacy of Resources: Covering financial, technological, human and other resources.
• Competence of Professionals: Covering key personnel, their necessary skills, knowledge, and professional competence (as required under condition one of the FMA's Standard Conditions for DIMS licences).
• Our focus areas include:

• Assessment and Gap Analysis: We can help you evaluate the adequacy of your financial, technological, and human resources against the requirements of the licensing regime.
• Resource Allocation Plans: We can help you develop strategies to optimise resource allocation, covering sufficient capacity for compliance, trading, operations, banking, customer support and other functions and departments.
• Technological Solutions: We can recommend and implement RegTech tools to streamline compliance processes, such as transaction monitoring, reporting, and audit trails.
• Key Personnel Assessment: We can help you assess the skills, qualifications, and experience of key personnel to identify areas for improvement.
• Training and Development Programs: We can design and deliver targeted compliance training programs to upskill personnel in compliance, risk management, and compliance regulations.
• Competence and Accreditations of Advisors and Representatives: We can advise you on certifications and continuing professional development (CPD) requirements for compliance professionals and senior management.
• Representative Vetting: We can help establish a framework for assessing the competence and suitability of advisors and representatives before appointment.
• Compliance Monitoring: We can help develop controls to monitor representatives' adherence to conduct and disclosure obligations.

• Ongoing Training: We can help you create a framework to support continuous education for advisors and representatives on licensing obligations, market integrity, and client interaction standards.
• Regulator Liaison: We can act as an intermediary with regulators to address queries and help you demonstrate compliance with resourcing obligations.

 

FMA DIMS Licence and Reporting

• Regulatory Reporting: We can help you prepare and submit periodic and ad-hoc reports covering:
  • NZ DIMS licensing obligations (as required under condition five of the FMA's Standard Conditions for DIMS licences).
  • NZ DIMS Managers’ AML/CFT obligations (PTRs, STRs, SARs, cross-border transaction reports, cash transaction reports, and other reporting obligations)
  • FMA licensed DIMS managers’ obligations under the financial markets' conduct-related regulations 
• Compliance Documentation: We can help you develop and maintain the necessary documentation to meet record-keeping obligations under various laws and regulations.
• Audit Readiness: We can prepare you for audits and reviews to demonstrate compliance with regulatory requirements, provisions of the FMA DIMS licensing framework, applicable operational standards, and more.