Govt approves new DIMS rules

Cabinet has approved new rules for the regulation of DIMS which includes, as expected, a decision to push back the start date of the changes.

While decisions have been made at the government level the finer details of how they will operate won’t be known until the Financial Markets Authority releases its guidance note.

Good Returns understands a draft has been circulated amongst the industry. Some who have seen it have been worried about its contents.
AFAs will be able to operate simple DIMS, however it is unclear exactly what a simple DIMS is.

“To qualify as personalised DIMS, the investment strategy for the DIMS must be personalised to the particular client, based on their situation and goals. This definition is relatively narrow, and AFAs will need to be licensed to offer anything other than this,” the cabinet paper says.