2 Comments 2 Commentsby Susan Edmunds
Advisers have to take some action by the end of May.
Applications for a licence for class DIMS must be received by May 31. Those who want to offer personalised DIMS under the FAA must file a new ABS by the same date.
Advisers who have been authorised to offer DIMS previously but no longer want to offer the service need to contact the FMA to cancel their authorisation. The FMA has said those who have DIMS in their authorisation but do not take any action will come in for increased regulatory scrutiny.
The FMA has previously estimated that 1300, or about two-thirds of AFAs, had included DIMS in their registration, although many did not actually offer the service.
Since the end of 2012, 297 AFAs have removed their DIMS authorisation, 212 of them in the year to March 31. That leaves about 1000 AFAs still to update their ABS, or make an application.
An FMA spokeswoman said it was likely a large proportion who had removed their DIMS authorisations had not been providing a DIMS service. It estimated in 2014 that about 44% actually offered a service.
“Over the last 12 months, since the introduction of the FMCA regime, advisers have had the opportunity to reflect on the services they provide and ensure their details are accurate, and, as a result, the number of people removing their DIMS authorisation has increased,” she said.
She said the FMA had been strongly recommending that AFAs update their authorisation. They can do it by contacting the FMA and requesting the DIMS reference is removed.
The FMA has approved two class applications for DIMS licences, to AMP and GMI, and has another five being processed.
It is dealing with one personalised DIMS application.
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