Date posted: 11/10/2021

Submission on financial reporting exemption in external administration

Submission supports the proposed relief from financial reporting by FMC reporting entities during external administration.

We support the Financial Market Authority’s preferred option to provide relief from financial reporting when FMC reporting entities enter external administration.

The proposed relief recognizes recent reforms that require licensed insolvency practitioners (LIPs) to provide greater detail in their reports. The LIP reports provide the necessary detail for investors and creditors to make informed decisions relating to the future of an FMC reporting entity.

We have sought further clarity on some of the conditions proposed which appear to duplicate the existing obligations of LIPs to keep the market informed during external administration. These conditions do not appear to provide any additional benefit to investors or creditors but may increase compliance costs.

We conclude, with a view to promoting an integrated and coordinated approach to financial markets, by encouraging the FMA to work with other government agencies to explore a class exemption to holding annual general meetings.

We thank our members for their contributions to this submission.

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