The New Zealand Financial Markets Authority (FMA), Te Mana Tātai Hokohoko, is introducing new business continuity requirements for various market licence holders. The new licence condition will come into effect on 1 July 2024.
The new condition will apply to:
- Managers of registered schemes (but not restricted schemes)
- Providers of discretionary investment management services
- Derivatives issuers
- Prescribed intermediary services (peer-to-peer lending providers and crowdfunding service providers).
Licence holders will need to have and maintain a business continuity plan that is appropriate for the scale and scope of its service. Licence holders will also be required to make sure that their critical technology systems are operationally resilient. Additionally, if the licence holder suffers an event that materially affects the supply of its service, it must notify the FMA as soon as possible, or no later than 72 hours after it has determined the event is a material incident.
