While the transitional period to the Financial Markets Conduct Act 2013 (FMCA) ended on 1 December 2016, wider changes are set to impact on FMCA reporting entities and trusts.

The effective dates for the NZ IFRS 9 (Financial Instruments), NZ IFRS 15 (Revenue from Contracts with Customers) and NZ IFRS 16 (Leases) standards are imminent, particularly the former two standards:

  • NZ IFRS 9 and NZ IFRS 15 will be effective from 1 January 2018; and
  • NZ IFRS 16 will be effective from 1 January 2019.

The new standards are wide in scope and will touch on many different kinds of transactions. They are likely to impact the financial statements for most FMC reporting entities.

The International Organisation of Securities Commissions (IOSCO) has recently highlighted the importance of sound procedures to implement these standards.