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Financial Markets Conduct Act 2013

Financial reporting - Preparation, audit, and lodgement of financial statements - FMC reporting entities with higher level of public accountability

461K: FMC reporting entities considered to have higher level of public accountability

You could also call this:

"Some organisations must be more open with the public because they handle lots of money or investments."

Illustration for Financial Markets Conduct Act 2013

You are an FMC reporting entity with a higher level of public accountability if you are certain types of organisations. These include issuers of equity securities or debt securities under a regulated offer. You are also considered to have a higher level of public accountability if you are managers of registered schemes, but only for certain financial statements prepared under section 461A.

You can also be considered to have a higher level of public accountability if you are listed issuers, registered banks, licensed insurers, credit unions, or building societies. Additionally, you may be specified as having a higher level of public accountability by a notice issued under section 461L(1)(a).

However, if you are specified by a notice issued under section 461L(1)(b), you are not considered to have a higher level of public accountability. One rule does not limit another rule that says certain entities can be specified as having a higher level of public accountability.

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This page was last updated on

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM6027086.

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461J: External Reporting Board must have regard to indication of level of public accountability, or

"The External Reporting Board considers how important a company is to the public when deciding financial reporting rules."

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461L: FMA may issue notice relating to level of public accountability, or

"The FMA can send a notice to companies to help keep them accountable to the public."

Part 7Financial reporting
Preparation, audit, and lodgement of financial statements: FMC reporting entities with higher level of public accountability

461KFMC reporting entities considered to have higher level of public accountability

  1. The following FMC reporting entities are considered to have a higher level of public accountability than other FMC reporting entities:

  2. issuers of equity securities or debt securities under a regulated offer:
    1. managers of registered schemes, but only in respect of financial statements of a scheme or fund prepared under section 461A:
      1. listed issuers:
        1. registered banks:
          1. licensed insurers:
            1. credit unions:
              1. building societies:
                1. an FMC reporting entity, or a class of FMC reporting entities, specified for the purposes of this paragraph by a notice issued under section 461L(1)(a).

                  1. However, an FMC reporting entity, or a class of FMC reporting entities, is not considered to have a higher level of public accountability than other FMC reporting entities if the entity or class is specified for the purposes of this subsection by a notice issued under section 461L(1)(b).

                  2. Subsection (1)(b) does not limit subsection (1)(h).

                  Notes
                  • Section 461K: inserted, on , by section 48 of the Financial Reporting (Amendments to Other Enactments) Act 2013 (2013 No 102).
                  • Section 461K heading: amended, on , by section 82 of the Regulatory Systems (Commercial Matters) Amendment Act 2017 (2017 No 12).