New Zealand Slated to Unveil Landmark Financial Reporting Act on April 1st

New Zealand’s Financial Markets Authority (FMA) has announced that the Financial Reporting Act, which will implement market-wide parity for financial reporting obligations in NZ, is poised take effect on April 1, 2014, via an FMA statement.

The Wellington-based FMA is New Zealand’s paramount securities and governmental watchdog organization for financial activity in the country. In recent years, the region has seen an encroachment from a variety of financial firms, notably in the realm of FX, given such lax regulatory measures to operate and report trade figures in the country.

Financial Reporting Act Sets Minimum Requirements, Aims for Compliance Cost Savings

The Financial Reporting Act will stipulate that small and medium-sized companies will be required to prepare simplified statements on their financial activity by April 1. Signed earlier this week by the Order in Council, the act effectively sets minimum requirements for these statements – ultimately it is hoped the fullfillment of this act will yield significant compliance cost savings for many businesses that participate, a point of previous contention among skeptics.

This clearly underscores a need for NZ, and according to Commerce Minister Craig Foss in a recent statement on the Regulation Regulation Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Read this Term, “Now is the time for small and medium-sized companies to make sure they understand how the changes affect their financial reporting obligations. Medium-sized companies will no longer be required to produce complex financial statements under the Financial Reporting Act, which will mean a substantial reduction in compliance costs for most companies with annual revenue between $2 million and $30 million.”

Furthermore, “As the New Zealand economy grows, the government is focused on removing obstacles for companies. Changing the requirements for financial reporting to Inland Revenue will reduce the compliance burden for most companies, freeing them up to concentrate on building their business and creating jobs,” added FMA Revenue Minister Todd McClay.

Regulation Still Has a Way to Go in Terms of Unlicensed FX Providers

Indeed, the country has previously taken measures to foster increased transparency, such as the Financial Markets Conduct Act, which was passed last September in an effort to regulate derivatives and FX markets. According to Chris Smith, Head of CMC Markets in New Zealand in an exclusive interview with Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term Magnates, “The new act will create a level playing field at the end of this year once the law is implemented in full. One of the challenges will be to see how the policing of unlicensed FX providers will be enforced by the FMA, and if new regulations for derivatives providers coming into play can ensure client funds are more secure and providers have strict licensing processes in place. Currently New Zealand is seen as a low-risk environment to enter and unlicensed providers risk damaging the NZ FX industry. The new derivative licensing regime was a long time coming through parliament that should have happened earlier – numerous unlicensed FX providers are presently operating in NZ.”