Discretionary Investment Management Service (DIMS)

Before you apply for a licence

There are some things you can do to ensure your application runs as smoothly as possible:

• review the licensing guides and documents below as they contain all the information you need to know so you can complete and submit your application
• set up your RealMe®login details early
• focus on the minimum standards – we will assess your business against them when processing your application
• Contact the FMA if you have any questions

Licensing guides

Licensing guide PART A

This guide contains information about the licensing process and includes many FAQs you might have; create a RealMe^® identity, if you don't already have one and pay your licensing fee.

Download the licensing guide Part A: How do I apply for a licence? PDF

Licensing guide PART B

This guide contains all the specific questions you’ll be asked and the minimum standards you’ll need to show you meet. It also details the information and supporting documents you’ll need to provide when you submit your application.

Download the licensing guide Part B: Discretionary Investment Management Service (DIMS)

Standard Conditions

In your application, you'll need to demonstrate how you can meet the minimum standards and conditions for your licence - or ask us for a limit or variation using the forms below. This is very important because when a licence is granted, they contain conditions that support your licensee obligations. They include conditions imposed by the FMC Act, the regulations, and any conditions imposed by the FMA.

Download Standard Conditions for DIMS licences PDF, 600KB

Licensing overview report 2017: what you need to know to meet your licence obligations.

It is helpful to read the Licensing overview report alongside the guide to the FMA’s view of conduct. Together, these documents give a good indication of our areas of future focus, our overall approach to monitoring; and what we expect of licensed providers of financial products and services.

Download the Licensing overview report (2017) PDF

Download the guide to the FMA's view of conduct PDF

How to apply

Please contact us to get a copy of a licence application by emailing [email protected].

Licence application forms

Please download all forms related to your application below and email to [email protected]

Forms to be completed by applicants

SD1.0 Certificate of compliance and authority to apply (applicant or their authorised person)

SD1.1 Declaration by current/proposed director of licence applicant

SD1.2 Declaration by current/proposed senior manager of licence applicant

SD1.3 Curriculum vitae of management team member of licence applicant

Forms to be completed by related parties of the applicant

SD2.1 Declaration by executive director of related body to licence applicant

SD2.2 Declaration by senior manager of related body to licence applicant

Forms to be completed by relevant parties to the applicant

SD3.1 Declaration by director of relevant party to licence applicant

SD3.2 Declaration by senior manager of relevant party to licence applicant

SD3.3 Declaration by individual relevant party to licence applicant (such as owner)

How to cancel an FMCA Licence

Guidance on how to cancel an FMCA licence

The basic licensing fee payable to apply for discretionary investment management service licence is $2,139 (incl. GST).

We may charge an additional fee where the time to assess a licence application exceeds 15 hours, as set by the Financial Markets Conduct (Fees) Regulations 2014. For an FMA staff member this is set at $178.25 per hour, or part-hour pro rata, of work carried out. Please refer to the regulations for further information.

If an additional fee will be incurred for your application, we will notify you in advance, including the reason why.

Applications to vary conditions on an existing licence will incur an application fee of $115 plus $178.25 per hour, or part-hour pro rata, of work carried out.

Please refer to the Financial Markets Conduct (Fees) Regulations 2014 for more information. 

All amounts are GST inclusive.

This payment is to apply for a discretionary investment management service licence; it does not include any annual levies, or fees to register on the Financial Service Providers Register.

Levies

The Financial Markets Authority (Levies) Regulations 2012 (the Regulations), as amended in 2020 and 2022, set out the levies payable by industry. The levies are set by the Ministry of Business, Innovation, and Employment (MBIE).

The FMA receives funding from the Crown and a proportion of our costs is recouped from industry through levies.

Levy Classes

A financial markets participant falls within one or more levy ’class’, depending on what financial services they provide.

• A levy must be paid for every levy class the financial markets participant falls within. Levies are payable on the relevant leviable event as described in column 3 of Schedule 2 in the Regulations.
• Some levy classes have been split in order to recognise the variations in size and nature of different financial market participants.
• Most levies are paid when making an annual confirmation to the Registrar of Financial Service Providers (the Registrar).
• Most levies are payable to the Registrar, via the (FSPR). However, some levies are payable directly to the FMA. This is set out in column 4 of Schedule 2 in the Regulations.
• The following levy classes are invoiced directly by the FMA:
• Levy Class 8, Levy Class 8A, Levy Class 10, Levy Class 10A, Levy Class 13 and Levy Class 16.

Levy Class description

The table below provides a high-level description of each levy class. For the full description of levy classes, see Schedule 2 in the Regulations.

Offences

It is the responsibility of each financial service provider to ensure they are registered for the service(s) they provide and have paid the appropriate levies. As part of their online annual confirmation to the Registrar, they must select all of the applicable classes to determine the levies payable and confirm the information they have provided is true, correct and complete.

Under the Financial Service Providers (Registration and Dispute Resolution) Act 2008 (the FSP Act) it is an offence to:

• provide services you are not registered for or state you are registered for a particular financial service when you are not
• make a representation relating to any document or information required by the FSP Act or its regulations knowing that it is false or misleading, or omit any matter knowing such omission is false or misleading.

These offences could result in a fine of up to $100,000 and/or imprisonment for individuals, and a fine of up to $300,000 for businesses.

It is also an offence under the FSP Act to fail to notify the Registrar if any of the details contained on the FSPR are no longer correct. Failure to notify could result in a fine of up to $10,000.

Levy waivers

We have discretionary power to waive a levy (in whole or part).

We will only do so if we are satisfied that the circumstances or characteristics of the financial markets participant are exceptional when compared with the circumstances or characteristics of others in the same class, so that it would make it inequitable for the person to pay the levy. The threshold is deliberately high.

The waiver power is not intended to be used to revisit settled policy positions.

Once we receive a waiver application and the fee, we will assess it. If we decide to grant the waiver, we must notify our decision in the Gazette and publish the decision and reasons for it on our website.

How to apply for a levy to be waived

You will need to email the following information to [email protected] with the subject line ‘Levy waiver application’.

• Name of person or entity applying for the waiver.
• Contact person for correspondence concerning the application including address, phone number and email.
• Indicate the persons/entity who will receive the benefit of any waiver granted.
• Specify which class(es) you seek a waiver from and whether a waiver is sought from the full levy or part and the amount thereof.
• Let us know your preferred date for any waiver to take effect.
• Explain why the waiver should be granted and why your circumstances are exceptional when compared with others in the same class.
• Provide all relevant facts in support of your application.
• Explain any regulatory benefit of FMA granting the waiver.
• Give details of any previous contact with officials (including their names) at FMA or MBIE (including the Companies Office) on the matter.

How to pay your waiver application fee

You can pay by electronic deposit or internet banking. Payment can be made by applicants or law firms making applications on behalf of their clients.

The person paying the application fee must be the person who pays the subsequent fees and costs. For example, if a law firm pays the application fee, that law firm must also pay any additional fees and costs.

We recommend if law firms apply for waivers on behalf of their clients, the parties discuss and agree who will be responsible for paying the FMA’s fees before submitting a waiver application.

*This is the name of the person paying the application fee. This person will be invoiced for any subsequent fees and costs. Payment by credit card is not available for this application process.

What are the fees

• A payment of $1,265 should accompany each application.
• This covers the application fee of $115 set out in the Financial Markets Authority (Fees) Regulations 2011 and an advance of $1,150 (including GST) for fees and costs to be incurred.
• These regulations set out charging rates of $230 (including GST) per hour for time spent by FMA Board members and $178.25 (including GST) per hour for time spent by FMA staff.
• These regulations are set by MBIE.

How long does it take

• Once we have been provided with all relevant information, it generally takes around six weeks to process an application.
• This may be longer if any policy questions arise.
• If your application is urgent, please provide the date you need the decision by.
• You must also provide reasons for requesting urgent consideration.

Granted waivers

• Southern Cross Benefits Limited – partial waiver – May 2015
• Craigs Investment Partners Self-Select Schemes - waiver of part of the FMA levy – Oct 2016 Expired
• i-Select Superannuation Scheme - waiver of part of the FMA levy – Nov 2016 Expired
• Portfolio Superannuation Fund - waiver of part of the FMA levy – Nov 2016 Expired
• Craigs Investment Partners Self-Select Schemes - FMA levy waiver - Oct 2018
• i-Select Superannuation Scheme - levy waiver notification – Nov 2018
• Portfolio Superannuation Fund - levy waiver notification – Nov 2018
• KiwiWRAP KiwiSaver Scheme - Sept 2020

DIMS licencees are obliged to act professionally; meet financial and investor reporting requirements; disclose a wholesale service and provide the FMA with reporting required by the Act.

Professional conduct

• As a DIMS licensee, you must be honest in how you conduct and provide your service, always acting in your client’s best interest.
• You must not use information gained as a DIMS licensee to benefit yourself or any other person or cause harm to your client.
• You must also exercise care, diligence and the skill of a professional in carrying out your duties.
• Check s433 and s435 of the Act for details of the conduct expected.

Investor reporting

DIMS licensees need to make sure their retail clients have all the information about investment decisions, how the investments have performed, and what the fees are. Refer to reg210 and reg 211 for the full list of the information you need to report to retail investors. Your ongoing reporting requirements are:

• Transaction information: record of all transactions, name of issuer, the price of the financial products transacted, the amount and date transacted
• Assets profile: name of each class of financial product in the investor’s portfolio, who issued the financial products, and the number of products held
• Portfolio administration profile: record of all dividends paid, distribution or income received during the period, all percentage-charges paid, individual action fees paid, and other corporate information that might affect an investor’s portfolio (eg, a bonus issue)
• Portfolio valuation: current and most-recent valuation of all financial products in the investor’s portfolio; how and when the valuation is done (eg, the market price of the quoted product), and the total value of the financial products in the portfolio.

Notifying the FMA

All notifications should be emailed to the FMA (unless we state that the relevant notification form is available on our Online Services portal) at [email protected] noting the relevant obligation in the subject line of your email.

Financial reporting

All DIMS licensees are FMC reporting entities. FMC reporting entities need to prepare financial statements that comply with generally accepted accounting practice (GAAP), have them audited by a licensed auditor, and lodge them with the registrar.

Annual regulatory return

All licensed DIMS providers are required to complete and submit an annual regulatory return. The return is a series of questions about your business and how your licensed service is used.

Licensees are required to complete an annual regulatory return for the 12-month period ending 30 June and submit it to the FMA by 30 September of that year.

The information you provide us through the annual return helps us to:

• better understand your business and the services you offer
• ensure the information we have on your business is current
• focus our monitoring activities more effectively

Ahead of submitting your regulatory return, you may wish to familiarise yourself with the DIMS regulatory return data template.

Learn more about the questions you will be asked when you submit your annual regulatory return

Submit their regulatory return online at the FMA's online services portal

There are exemptions for two DIMS licensee categories from having to prepare financial statements that meet GAAP, have them audited by a licensed auditor, and lodge them with the registrar. The table below lists current DIMS financial reporting exemptions: