by Susan Edmunds
The first financial product disclosure statements issued under Financial Markets Conduct Act requirements have started to appear on the Government’s Disclose website this month.
Under the Act, product providers must issue a standardised PDS that uses clear language to explain the product. It replaces older forms of disclosure such as investment statements and prospectuses.
An entry is also created on the register of financial products, which provides all material information not contained in the PDS.
The FMA’s director for primary markets and investor resources, Simone Robbers, says the new PDS and online register mark the latest steps in the improvement of offer information for investors in New Zealand.
“It’s now easier for investors to access and read the information they need before investing. We expect to see many more product offers appearing on Disclose and using the benefits of the new regulations,” she said.
Offers can still be made under the Securities Act until December next year, but the FMA is encouraging issuers to use the PDS format.
Nikko AM NZ managing director Peter Lynn said asset managers’ work was becoming more and more dominated by compliance with regulation, which was tough on smaller operators. But he said it was positive for advisers and their clients.
“Fund managers have been hiding things in funds. I’m talking globally… there’s an opportunity there to be less transparent than they should be.”
The new disclosure requirements would make things more apparent and transparent, he said, which would give advisers more information to make a decision.
“A lack of disclosure tends to obfuscate information so it is vitally important as much is made transparent as possible.”
There were 14 offers listed on the Disclose site yesterday.
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