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Later this year the government is moving ahead with changes to the law that will make it mandatory for true beneficial owners or controllers of companies, limited partnerships and trusts to be disclosed as it moves to tighten up on money laundering, tax evasion and terrorism financing.

The Financial Markets Authority (FMA) has completed its pilot programme relating to ‘Managed fund fees and value for money ’ and they may look to tighten rules around embedded trail commission fees on investment products.

As you are no doubt aware the supervisors announced early July 2021 that the requirement to have an audit of your risk assessment and AML/CFT programme (conducted by an appropriately qualified and independent individual) was extended from two to three years. Now that we are well into 2022 that three year period is already creeping up for many businesses.

Since the beginning of 2021 and more recently post Covid lockdowns, the supervisors have not been shy in saying enough time has gone by for reporting entities to have gained sufficient knowledge to understand what is required to comply with the AML/CFT Act and its accompanying regulations. This includes a recent reminder around what penalties they can impose in cases of non-compliance!

There is a reoccurring theme in this newsletter and it boils down to the fact that the supervisors are getting serious – they want to see that your business understands its AML/CFT requirements.

The Financial Markets Authority (FMA) information sheet outlining record keeping expectations is proving a challenge for those FAPs who never really thought in depth about what Standard Condition 1 for Financial Advice Providers (FAPs) was all about.

The Code updates the wording of the Principles of Financial Advertising – the standards expected by the Advertising Standards Authority (ASA) in Financial Advertising – (Principles), which are now framed as:

15 March 2023 is the end of the two-year transition period and by that date all those providing financial advice:

This Guidance Note from Strategi aims to help financial advice providers understand the importance of surveys to their business and provide practical advice to assist with the implementation of a survey programme.

The supervisors use the information contained in your annual report to help them understand how your business meets its AML/CFT obligations and completing it should now be a regular entry on your annual AML/CFT calendar.