Financial Markets Conduct (Overseas Registered Banks and Licensed Insurers) Exemption Notice 2020.

Summary: The Financial Markets Conduct (Overseas Registered Banks and Licensed Insurers) Exemption Notice 2020 provides relief to overseas banks and insurers from certain financial reporting and audit obligations.

The principal effects of the notice are as follows:

The notice exempts overseas banks that are registered banks in New Zealand, and overseas insurers that are licensed insurers in New Zealand, from certain financial reporting and audit obligations of the FMC Act.　 The key effects of the exemption are:

• overseas registered banks and licensed insurers are allowed to use overseas GAAP and an overseas qualified auditor to prepare their group or entity financial statements
• the financial statements do not have to be dated and signed by two directors if that is not a requirement in the home jurisdiction of the overseas registered bank or licensed insurer
• the auditor for the New Zealand branch financial statements is permitted to be from New Zealand, Australia or certain overseas jurisdictions.

The term of this exemption will be shorter than normal and will expire on 3 November 2021. This is because we intend to carry out a review of all financial reporting class exemptions in the next year and will be considering these exemptions, and consulting on them with industry, as one package.