Health and safety: We discuss the forthcoming changes to the Health and Safety in Employment Act in a separate section of the website, here. Check back regularly to note any updates as they are published.
Audit Reporting : Recent changes to the nature of Audit Reporting are covered in the “audit” section, here
Residency requirements for directors:
As of May 1 2015, all newly registered companies must have at least one registered director who lives in New Zealand, or is a resident and a director of a company registered in Australia (a designated enforcement country). The same will apply to existing New Zealand Companies from 29 October 2015. For more information, members can access this directorsbrief
The Companies Amendment Act (No 4) 2014 introduced new criminal offences for directors who knowingly cause their companies serious loss by acting in bad faith towards it or who dishonestly allow an insolvent company to incur debts.
IoD members also have access to the “Companies Act: New offences and requirements for directors” directorsbrief.
The Financial Reporting Act 2013 replaces the Financial Reporting Act 1993 and:
- defines key concepts, for example, Generally Accepted Accounting Practice (GAAP), financial statements and group financial statements
- provides the XRB with powers to issue financial reporting standards (XRB Standards).
Members also have access to the “Changes to Financial Reporting Requirements” directorsbrief.
The Financial Markets Conduct Act 2013 (FMC Act) came into force in a two stage process, on 1 April 2014 and 1 December 2014.
Impacts vary: for some, there are new licence and governance requirements for particular financial products. However, there are changes that impact every participant, such as new disclosure requirements for offers of financial products.
The key parts of the Act which came into effect on 1 April 2014 include:
- being able to apply for licenses under the new licensing regime, and
- The FMA becoming the primary regulator of conduct in relation to financial products and financial services in place of the Commerce Commission.
In December 2014:
- New disclosure requirements and licensing obligations will begin to take effect, and
- The new online registers system will be up and running, ensuring information on financial products and managed investment schemes are easily accessible and comparable.
For coverage of the changes see the Chapman Tripp guidance here or visit the Financial Markets Authority website.
Additionally, Chapman Tripp have published a paper arguing that the change to the FMCA creates a fundamental shift in capital raising and in the role of facilitators and gatekeepers, which is available for download here. Alongside this is a chart setting out the basic parameters around director and wider participant liability which is available for download here.