Financial Sector (Climate-related Disclosures and Other Matters) Amendment Act 2021

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Coat of Arms of New Zealand

Financial Sector (Climate-related Disclosures and Other Matters) Amendment Act 2021

Public Act
 
2021 No 39
Date of assent
 
27 October 2021
Commencement
 
see section 2

Contents

1Title
2Commencement
Part 1
Amendments to Financial Markets Conduct Act 2013 to come into force by first anniversary of Royal assent
3Principal Act
4Section 5 amended (Overview)
5Section 6 amended (Interpretation)
6Section 351 amended (Regulations modifying this Part or Part 7 for licensed markets)
7Section 461C amended (Failure to comply with authoritative notice does not give rise to pecuniary penalty)
8New Part 7A inserted
Part 7A
Climate-related disclosures for certain FMC reporting entities with higher level of public accountability
Subpart 1—Overview, application, and interpretation
461NOverview
461OMeaning of climate reporting entity
461PDefinitions relating to listed issuers
461QMeaning of large (in relation to registered banks, licensed insurers, credit unions, and building societies)
461RMeaning of large after amalgamation
461SMeaning of large manager
461TApplication if person’s status changes during accounting period
461UMiscellaneous provision relating to application
Subpart 2—CRD records
461VClimate reporting entities must keep proper CRD records
461WManner in which CRD records to be kept
461XPeriod for which CRD records to be kept
461YInspection of CRD records
Subpart 3—Preparation of climate statements
Climate statements of climate reporting entities
461ZClimate statements must be prepared
461ZAGroup climate statements must be prepared
461ZBClimate statements for overseas climate reporting entities
Climate statements relating to registered schemes
461ZCClimate statements for separate funds of registered schemes, etc
461ZDApplication if manager of registered scheme changes and new manager is not large manager
Miscellaneous
461ZEClimate statements may be combined in single document
461ZFFailure to comply with authoritative notice does not give rise to pecuniary penalty
Offences
461ZGOffence to knowingly fail to comply with climate standards
Subpart 4—Assurance engagements
461ZHNo requirement for assurance of climate statements on commencement of Part
Subpart 5—Lodgement of climate statements
461ZILodgement of climate statements
461ZJInformation about climate statements of climate reporting entities to be made available in annual report
Subpart 6—Civil liability for certain contraventions of this Part
461ZKPart 7A climate-related disclosure provisions
9Section 462 amended (When FMA may make stop orders)
10Section 468 amended (When FMA may make direction orders)
11Section 470 amended (FMA may order that simplified disclosure PDS may not be used)
12Section 474 amended (FMA may order that exclusion for offers of products of same class as quoted products does not apply)
13Section 485 amended (What are civil liability provisions)
14Section 489 amended (When court may make pecuniary penalty orders)
15Section 490 amended (Maximum amount of pecuniary penalty)
16Section 501 amended (Additional disclosure or financial reporting defence for directors who are treated as contravening)
17Section 534 amended (Directors treated as having contravened in case of defective disclosure or financial reporting contravention)
18Section 554 amended (Regulations or exemptions may require compliance with generally accepted accounting practice, standards, or FMA frameworks or methodologies)
19Section 556 amended (FMA may grant exemptions)
20Section 561A amended (Financial reporting exemptions)
21Schedule 4 amended
Part 2
Amendments to Financial Markets Conduct Act 2013 to come into force by third anniversary of Royal assent
22Section 6 amended (Interpretation)
23Section 461N amended (Overview)
24Section 461V amended (Climate reporting entities must keep proper CRD records)
25Section 461ZH replaced (No requirement for assurance of climate statements on commencement of Part)
461ZHAssurance engagement required for parts of climate statements relating to greenhouse gas emissions
461ZHAAssurance engagement must be carried out in accordance with auditing and assurance standards
461ZHBAssurance practitioner’s report
461ZHCAssurance engagement may cover other parts of climate statements
Assurance practitioner access to information
461ZHDClimate reporting entity must give assurance practitioner access to information
461ZHEAssurance practitioner may require information and explanations from director or employee
26Section 461ZI amended (Lodgement of climate statements)
27Section 461ZJ amended (Information about climate statements of climate reporting entities to be made available in annual report)
28Section 461ZK amended (Part 7A climate-related disclosure provisions)
29Section 501 amended (Additional disclosure or financial reporting defence for directors who are treated as contravening)
30Section 534 amended (Directors treated as having contravened in case of defective disclosure, financial reporting contravention, or climate-related disclosure contravention)
31Schedule 4 amended
Part 3
Amendments to Financial Reporting Act 2013
32Principal Act
33Section 3 amended (Purpose)
34Section 4 amended (Overview of financial reporting duties)
35Section 5 amended (Interpretation)
36New section 9AA inserted (Meaning of climate-related disclosure framework)
9AAMeaning of climate-related disclosure framework
37Section 12 amended (Functions of Board)
38Section 14 amended (Membership of Board)
39Subpart 2 heading in Part 2 replaced
Subpart 2—Standards
40New sections 19A to 19C and cross-heading inserted
19AGuidance for purposes of non-financial reporting
Climate standards
19BPurpose of climate standards and climate-related disclosures
19CClimate standards
41Section 27 amended (When standards and authoritative notices take effect)
42Section 44 amended (Purpose)
43New subpart 6 heading in Part 2 inserted
Subpart 6—Monetary amounts adjusted for inflation
44Section 48 amended (Minister must regularly review amounts to take into account inflation)
45Section 49 amended (Order may amend amounts)
46Section 51 amended (Levies)
47Schedule amended
Part 4
Amendments to other Acts
Subpart 1—Public Audit Act 2001
48Principal Act
49Section 4 amended (Interpretation)
50New section 15B inserted (CRD assurance practitioner for public entities)
15BCRD assurance practitioner for public entities
51New section 34A inserted (Appointment of CRD assurance practitioners)
34AAppointment of CRD assurance practitioners
52Section 35 amended (Delegation of powers)
53Section 41 amended (Protection from liability)
54Section 42 amended (Audit fees)
Subpart 2—Related and consequential amendments
55Related and consequential amendments
Schedule 1
New Part 7 inserted into Schedule 4 of Financial Markets Conduct Act 2013
Schedule 2
New Part 8 inserted into Schedule 4 of Financial Markets Conduct Act 2013
Schedule 3
New Part 2 inserted into Schedule of Financial Reporting Act 2013
Schedule 4
Related and consequential amendments
Legislative history
Administrative information

The Parliament of New Zealand enacts as follows: