1 Title 5 2 Commencement 5 Part 1 Amendments to Financial Markets Conduct Act 2013 to come into force by first anniversary of Royal assent 3 Principal Act 6 4 Section 5 amended (Overview) 6 5 Section 6 amended (Interpretation) 6 6 Section 351 amended (Regulations modifying this Part or Part 7 7 for licensed markets) 7 Section 461C amended (Failure to comply with authoritative 7 notice does not give rise to pecuniary penalty) 8 New Part 7A inserted 7 Part 7A Climate-related disclosures for certain FMC reporting entities with higher level of public accountability Subpart 1—Overview, application, and interpretation 461N Overview 461O Meaning of climate reporting entity 461P Definitions relating to listed issuers 461Q Meaning of large (in relation to registered banks, licensed insurers, credit unions, and building societies) 461R Meaning of large after amalgamation 461S Meaning of large manager 461T Application if person’s status changes during accounting 461U period Miscellaneous provision relating to application Subpart 2—CRD records 461V Climate reporting entities must keep proper CRD records 461W Manner in which CRD records to be kept 461X Period for which CRD records to be kept 461Y Inspection of CRD records Subpart 3—Preparation of climate statements Climate statements of climate reporting entities 461Z Climate statements must be prepared 461ZA Group climate statements must be prepared 461ZB Climate statements for overseas climate reporting entities Climate statements relating to registered schemes 461ZC Climate statements for separate funds of registered 461ZD schemes, etc Application if manager of registered scheme changes and new manager is not large manager Miscellaneous 461ZE Climate statements may be combined in single document 461ZF Failure to comply with authoritative notice does not give rise to pecuniary penalty Offences 461ZG Offence to knowingly fail to comply with climate 17 standards Subpart 4—Assurance engagements 461ZH No requirement for assurance of climate statements on 18 commencement of Part Subpart 5—Lodgement of climate statements 461ZI Lodgement of climate statements 18 461ZJ Information about climate statements of climate reporting 18 entities to be made available in annual report Subpart 6—Civil liability for certain contraventions of this Part 461ZK Part 7A climate-related disclosure provisions 19 9 Section 462 amended (When FMA may make stop orders) 19 10 Section 468 amended (When FMA may make direction orders) 19 11 Section 470 amended (FMA may order that simplified disclosure 20 PDS may not be used) 12 Section 474 amended (FMA may order that exclusion for offers of 20 products of same class as quoted products does not apply) 13 Section 485 amended (What are civil liability provisions) 20 14 Section 489 amended (When court may make pecuniary penalty 20 orders) 15 Section 490 amended (Maximum amount of pecuniary penalty) 20 16 Section 501 amended (Additional disclosure or financial reporting 20 defence for directors who are treated as contravening) 17 Section 534 amended (Directors treated as having contravened in 20 case of defective disclosure or financial reporting contravention) 18 Section 554 amended (Regulations or exemptions may require 21 compliance with generally accepted accounting practice, standards, or FMA frameworks or methodologies) 19 Section 556 amended (FMA may grant exemptions) 21 20 Section 561A amended (Financial reporting exemptions) 21 21 Schedule 4 amended 21 Part 2 Amendments to Financial Markets Conduct Act 2013 to come into force by third anniversary of Royal assent 22 Section 6 amended (Interpretation) 22 23 Section 461N amended (Overview) 22 24 Section 461V amended (Climate reporting entities must keep 22 proper CRD records) 25 Section 461ZH replaced (No requirement for assurance of climate 22 statements on commencement of Part) 461ZH Assurance engagement required for parts of climate 22 statements relating to greenhouse gas emissions 461ZHA Assurance engagement must be carried out in accordance 23 with auditing and assurance standards 461ZHB Assurance practitioner’s report 23 461ZHC Assurance engagement may cover other parts of climate 23 statements Assurance practitioner access to information 461ZHD Climate reporting entity must give assurance practitioner 24 access to information 461ZHE Assurance practitioner may require information and 24 explanations from director or employee 26 Section 461ZI amended (Lodgement of climate statements) 25 27 Section 461ZJ amended (Information about climate statements of 25 climate reporting entities to be made available in annual report) 28 Section 461ZK amended (Part 7A climate-related disclosure 26 provisions) 29 Section 501 amended (Additional disclosure or financial reporting 26 defence for directors who are treated as contravening) 30 Section 534 amended (Directors treated as having contravened in 26 case of defective disclosure, financial reporting contravention, or climate-related disclosure contravention) 31 Schedule 4 amended 26 Part 3 Amendments to Financial Reporting Act 2013 32 Principal Act 26 33 Section 3 amended (Purpose) 26 34 Section 4 amended (Overview of financial reporting duties) 26 35 Section 5 amended (Interpretation) 27 36 New section 9AA inserted (Meaning of climate-related disclosure 28 framework) 9AA Meaning of climate-related disclosure framework 28 37 Section 12 amended (Functions of Board) 28 38 Section 14 amended (Membership of Board) 28 39 Subpart 2 heading in Part 2 replaced 28 Subpart 2—Standards 40 New sections 19A to 19C and cross-heading inserted 28 19A Guidance for purposes of non-financial reporting 29 Climate standards 19B Purpose of climate standards and climate-related 29 disclosures 19C Climate standards 29 41 Section 27 amended (When standards and authoritative notices 29 take effect) 42 Section 44 amended (Purpose) 30 43 New subpart 6 heading in Part 2 inserted 30 Subpart 6—Monetary amounts adjusted for inflation 44 Section 48 amended (Minister must regularly review amounts to 30 take into account inflation) 45 Section 49 amended (Order may amend amounts) 30 46 Section 51 amended (Levies) 30 47 Schedule amended 30 Part 4 Amendments to other Acts Subpart 1—Public Audit Act 2001 48 Principal Act 31 49 Section 4 amended (Interpretation) 31 50 New section 15B inserted (CRD assurance practitioner for public 31 entities) 15B CRD assurance practitioner for public entities 31 51 New section 34A inserted (Appointment of CRD assurance 31 practitioners) 34A Appointment of CRD assurance practitioners 31 52 Section 35 amended (Delegation of powers) 32 53 Section 41 amended (Protection from liability) 32 54 Section 42 amended (Audit fees) 32 Subpart 2—Related and consequential amendments 55 Related and consequential amendments 32 Schedule 1 33 New Part 7 inserted into Schedule 4 of Financial Markets Conduct Act 2013 Schedule 2 35 New Part 8 inserted into Schedule 4 of Financial Markets Conduct Act 2013 Schedule 3 36 New Part 2 inserted into Schedule of Financial Reporting Act 2013 Schedule 4 38 Related and consequential amendments
This Act is the Financial Sector (Climate-related Disclosures and Other Mat‐ ters) Amendment Act 2021.
(a) Part 3, other than sections 44(1) and 45: (b) section 55(1).
(a) any part of this Act, other than Part 2 and subpart 1 of Part 4, that has not come into force by the first anniversary of Royal assent comes into force then: (b) any part of Part 2 and subpart 1 of Part 4 that has not come into force by the third anniversary of Royal assent comes into force then.
LA19 s 69(1)(c) LA19 s 114, Sch 1 cl 32(1)(a)
This Part amends the Financial Markets Conduct Act 2013.
After section 5(1)(g), insert: (ga) Part 7A provides for climate-related disclosure obligations:
(a) is incorporated outside New Zealand; and
(a) in Part 7 and subpart 1 of Part 7A, means a group comprising an FMC reporting entity and its subsidiaries: (b) in Part 7A (other than subpart 1), means a group comprising a climate reporting entity and its subsidiaries
(c) in Part 7A, does not include a Lloyd’s underwriter (within the meaning of that Act) or an insurer that is included in a class of insurers that is the subject of an exemption under section 238(1)(b) of that Act
(ab) providing that section 451(1)(d) does not apply in respect of persons that are listed issuers only in respect of a licensed market or class of licensed markets, and providing for replacement or modified requirements to apply relating to— (i) accounting records and financial reporting: (ii) CRD records and climate-related disclosures (for those listed issu‐ ers that would otherwise be climate reporting entities under sec‐ tion 461O(1)(a)):
Repeal section 461C(3).
After Part 7, insert:
(a) keep proper records relating to their obligations to make climate-related disclosures; and (b) prepare climate statements; and (c) lodge those statements.
(a) a listed issuer that— (i) is a large listed issuer; and (ii) is not an excluded listed issuer: (b) a registered bank that is large: (c) a licensed insurer that is large: (d) a credit union that is large: (e) a building society that is large.
(a) the manager is a large manager; and (b) section 461K(1)(b) applies to the manager in respect of the scheme.
(a) the listed issuer,— (i) at any time in the accounting period, has quoted equity securities; and (ii) as at the balance date of each of the 2 preceding accounting periods, has equity securities (whether quoted or unquoted) that have a total value, as implied by the market price or fair value of those equity securities, that exceeds $60 million: (b) the listed issuer,— (i) at any time in the accounting period, has quoted debt securities; and (ii) at any time in the 2 preceding accounting periods, has quoted debt securities with a total face value that exceeds $60 million: (c) the listed issuer is large after amalgamation (within the meaning of sec‐ tion 461R) in respect of the accounting period.
(a) any equity securities of the issuer and any debt securities of the issuer that are quoted are quoted only on a growth market; or (b) the issuer has no quoted equity securities and no quoted debt securities.
(a) the operator has a licence to operate the market issued under section 316; and (b) either or both of the following apply: (i) the licence is subject to a condition that limits the size of issuers that are eligible to become, or to remain, listed issuers on the financial product market (for example, a limit based on the issu‐ er’s market capitalisation): (ii) the market is otherwise designed for, and clearly targeted at, small- and medium-sized entities.
(a) as at the balance date of each of the 2 preceding accounting periods, the total assets of A and A’s subsidiaries (if any) exceed $1 billion: (b) A is large after amalgamation (within the meaning of section 461R) in respect of the accounting period.
(a) as at the balance date of each of the 2 preceding accounting periods, the total assets of the licensed insurer and its subsidiaries (if any) exceed $1 billion: (b) in each of the 2 preceding accounting periods, the annual gross premium revenue of the licensed insurer and its subsidiaries (if any) exceeds $250 million: (c) the licensed insurer is large after amalgamation (within the meaning of section 461R) in respect of the accounting period.
(a) subsections (1) and (2) do not apply; and (b) the overseas company is large for the purposes of section 461O(1)(b) to (e) if its New Zealand business, or its group’s New Zealand business, is large under subsection (4).
(a) as at the balance date of each of the 2 preceding accounting periods, the total assets of the New Zealand business exceed $1 billion: (b) the overseas company is a licensed insurer and, in each of the 2 preced‐ ing accounting periods, the annual gross premium revenue of the New Zealand business exceeds $250 million.
For the purposes of this Part, a person (A) is large after amalgamation in respect of an accounting period if— (a) A amalgamated with a large entity during the accounting period; or (b) A is a new entity formed on the amalgamation of 2 or more entities dur‐ ing the accounting period, and at least 1 of those entities was a large entity. If A is large after amalgamation under subsection (1) in respect of an account‐ ing period, A continues to be large after amalgamation in respect of the next accounting period. In this section, large entity means an entity that, in respect of the accounting period, was any of— (a) a large listed issuer under section 461P(1) (other than an issuer described in section 461P(2)(a) or (b) for the accounting period up to the time of amalgamation): (b) a registered bank, licensed insurer, credit union, or building society that is large under section 461Q.
For the purposes of this Part, a manager (A) that holds a market services licence that covers the service referred to in section 388(a) is a large manager in respect of an accounting period of A if, as at the balance date of each of A’s
exceed $1 billion: (a) all schemes for which A is manager; and (b) all schemes for which the manager is an authorised body that provides the service of acting as a manager of a registered scheme under A’s mar‐ ket services licence. If A is a large manager, every manager described in subsection (1)(b) is also a Company A holds a licence that covers acting as a manager of registered schemes. A’s subsidiaries, B and C, also provide this service under A’s licence (as authorised bodies). The assets of the schemes for which A is manager total $700 million on the bal- ance date of each of A’s 2 preceding accounting periods (the relevant balance The assets of the schemes managed by B total a further $300 million, and the assets of the schemes managed by C total $200 million, on each of the relevant balance dates. The total assets therefore exceed $1 billion. A is a large manager. B and C are also large managers. Subsections (4) and (5) apply if— (a) a manager and a scheme managed by the manager have different balance dates; and (b) the manager becomes, or ceases to be, a large manager. If the manager was not a large manager in respect of an accounting period (AP1) but becomes a large manager in respect of the next accounting period (AP2), the manager— (a) is not treated as a large manager in respect of the scheme in relation to the accounting period of the scheme that starts in AP1 and ends in AP2 unless paragraph (b) applies: (b) must be treated as a large manager in respect of the scheme in relation to the accounting period of the scheme that starts in AP1 and ends in AP2 if— (i) the manager was not the manager of the scheme at the start of that accounting period of the scheme; and (ii) the manager at the start of that accounting period of the scheme was a climate reporting entity in respect of the scheme. If the manager was a large manager in respect of an accounting period (AP3) but ceases to be a large manager in the next accounting period (AP4), the man‐ ager must be treated as a large manager in respect of the scheme in relation to the accounting period of the scheme that starts in AP3 and ends in AP4. In this section, the total assets of a scheme are— (a) as reported in the most recent audited financial statements, prepared in accordance with generally accepted accounting practice, for the scheme; or (b) if there are no such statements, as calculated— (i) for a date as near as possible to the balance date of the manager; and (ii) as if for the purpose of preparing financial statements for the scheme in accordance with generally accepted accounting prac‐ tice. In this section, scheme means a registered scheme (other than a restricted scheme).
If a person ceases to be a climate reporting entity during an accounting period, that person is treated as continuing to be a climate reporting entity in relation to that accounting period for the purposes of this Act and every other enactment.
(a) ceased to be a climate reporting entity under section 461O(1); and (b) on the balance date, is not a climate reporting entity under section 461O(1) (disregarding the rule in subsection (1)).
(a) A is not required to ensure the completion of climate statements or group climate statements under any of sections 461Z to 461ZB and the lodge‐ ment of those climate statements in relation to the accounting period: (b) records required to be kept by A up to the date that A ceased to be a cli‐ mate reporting entity under section 461O(1) are CRD records for the purposes of sections 461W to 461Y.
(a) section 461S(5) (which applies if the manager and the scheme have dif‐ ferent balance dates); or (b) section 461ZD (which may apply if the manager of a scheme changes during an accounting period).
Nothing in this Part requires a climate reporting entity to ensure the completion of climate statements or group climate statements and the lodgement of those climate statements in relation to an accounting period that ended before the accounting period in which that person became a climate reporting entity.
CRD records, or copies of them, must be retained by the climate reporting entity for a period of at least 7 years after the date the records are made.
(a) the directors of the climate reporting entity; and (b) any supervisor (if the climate reporting entity is an issuer of debt secur‐ ities or the manager of a registered scheme); and (c) the FMA; and (d) any other persons authorised or permitted by an enactment to inspect the CRD records of the climate reporting entity or scheme.
(a) completed in relation to the entity and that balance date; and (b) dated and signed on behalf of the entity by 2 directors of the entity or, if the entity has only 1 director, by that director. However, subsection (1) does not apply to— (a) a climate reporting entity that, on the balance date referred to in subsec‐ tion (1), has 1 or more subsidiaries; or (b) an overseas climate reporting entity, unless it is a climate reporting entity under section 461O(1)(a); or (c) a person that is a climate reporting entity only under section 461O(2). A company (incorporated in New Zealand and with no subsidiaries) is a large man- ager of 2 registered schemes.
(a) completed in relation to the group and that balance date; and (b) dated and signed on behalf of the entity by 2 directors of the entity or, if the entity has only 1 director, by that director.
(a) an overseas climate reporting entity, unless it is a climate reporting entity under section 461O(1)(a); or (b) a person that is a climate reporting entity only under section 461O(2).
(a) prepared for its New Zealand business as if that business were conducted by a company formed and registered in New Zealand; and (b) dated and signed on behalf of the entity by 2 directors of the entity or, if the entity has only 1 director, by that director.
that, within 4 months after the balance date of the entity, climate statements that comply with the climate-related disclosure framework are— (a) prepared for the group’s New Zealand business as if the members of the group were companies formed and registered in New Zealand; and (b) dated and signed on behalf of the entity by 2 directors of the entity or, if the entity has only 1 director, by that director.
(a) completed in relation to each separate fund of the scheme and that bal‐ ance date; and (b) if any liabilities of the manager and the scheme are not limited to a sep‐ arate fund, completed in relation to the scheme and that balance date; and (c) dated and signed on behalf of the manager by 2 directors of the manager or, if the manager has only 1 director, by that director.
(a) the manager of a registered scheme changes during an accounting period of the scheme; and (b) the person who was the manager of the scheme at the start of the accounting period (the old manager) was a climate reporting entity in respect of the scheme; and (c) the person who is the manager of the scheme at the end of the account‐ ing period (the new manager) is not a large manager (within the mean‐ ing of section 461S).
Nothing in this Part prevents any of the following from being combined in a single document: (a) climate statements and group climate statements that are required to be prepared under any of sections 461Z to 461ZB in relation to an account‐ ing period and 1 or more members of a group: (b) climate statements that are required to be prepared under section 461ZC in relation to an accounting period and a registered scheme.
Compare: s 461C
(a) any of the following fail to comply with an applicable climate standard: (i) the climate statements of the entity prepared under section 461Z: (ii) group climate statements in relation to a group comprising the entity and its subsidiaries prepared under section 461ZA: (iii) the climate statements or group climate statements prepared by the entity under section 461ZB: (iv) in the case of a manager of a registered scheme, the climate state‐ ments for any separate fund or for the scheme prepared under sec‐ tion 461ZC; and (b) the entity or the director (as the case may be) knows that the climate statements or group climate statements fail to so comply when those statements are lodged.
(a) in the case of an individual, to imprisonment for a term not exceeding 5 years, a fine not exceeding $500,000, or both; and (b) in any other case, to a fine not exceeding $2.5 million. Compare: s 461I
(a) climate statements or group climate statements under any of sections 461Z to 461ZB; and (b) an annual report under the Companies Act 1993 or any other enactment.
(a) a statement that the entity is a climate reporting entity for the purposes of this Act; and (b) a copy of the climate statements or group climate statements prepared by the entity under any of sections 461Z to 461ZB, or the address of (or a link to) the Internet site where a copy of those statements can be accessed.
(a) section 461V (climate reporting entities must keep proper CRD records): (b) sections 461Z to 461ZC (climate statements and group climate state‐ ments must be prepared): (c) section 461ZI (climate statements must be lodged).
In section 462(1)(ga), after “7”, insert “or 7A”.
After section 468(1)(f), insert: (fa) a Part 7A climate-related disclosure provision:
After section 470(1)(b), insert: (ba) any provision under Part 7A:
After section 474(1)(b), insert: (ba) any provision under Part 7A:
After section 485(g), insert: (ga) a Part 7A climate-related disclosure provision:
In section 489(3)(b), replace “or 461C” with “, 461C, or 461ZF”.
After section 490(2)(f), insert: (fa) a Part 7A climate-related disclosure provision (other than section 461X):
(cb) a climate reporting entity has contravened any of sections 461Z to 461ZC and 461ZI (climate-related disclosure obligations); or
(a) after “FMC reporting entity,”, insert “climate reporting entity,”; and (b) after “(ca),”, insert “(cb),”.
(baaa) the climate-related disclosure framework, either generally or in speci‐ fied circumstances: (ba) a climate standard:
In section 556(1)(a), replace “7” with “7A”.
(1A) An exemption granted under this subpart in relation to any provision of Part 7A may, if the FMA thinks fit, apply to an accounting period that commenced before the exemption is granted (including an accounting period that ended before the exemption is granted) if the exemption is granted before the climate statements or group climate statements for that period are required to be lodged under that Part.
(g) Part 7 provides for transitional provisions relating to Part 1 of the Finan‐ cial Sector (Climate-related Disclosures and Other Matters) Amendment Act 2021.
(a) insert the Part set out in Schedule 1 of this Act as the last Part; and (b) make all necessary consequential amendments.
In section 6(1), insert in its appropriate alphabetical order:
After section 461N(1)(b), insert: (ba) to the extent that those statements are required to disclose greenhouse gas emissions, obtain an assurance engagement in relation to those state‐ ments; and
Replace section 461V(1) and (2) with:
(a) the climate reporting entity to ensure that the climate statements of the climate reporting entity comply with the climate-related disclosure framework; and (b) the assurance engagement required by section 461ZH to be readily and properly carried out.
(a) the manager to ensure that the climate statements relating to the regis‐ tered scheme comply with the climate-related disclosure framework; and (b) the assurance engagement required by section 461ZH to be readily and properly carried out.
Replace section 461ZH with:
to 461ZC are, to the extent that those statements are required to disclose green‐ house gas emissions, the subject of an assurance engagement.
(a) a director, an officer, or an employee of the climate reporting entity: (b) a person who is in partnership with, or in the employment of, a person specified in paragraph (a): (c) a liquidator or a person who is a receiver in respect of the property of the climate reporting entity: (d) a person who, by virtue of paragraphs (a) to (c), may not carry out an assurance engagement under this Part for a related body corporate of the climate reporting entity.
An assurance practitioner must, in carrying out an assurance engagement under this Part, comply with all applicable auditing and assurance standards.
(a) the FMA; and (b) the External Reporting Board; and (c) in the case of a climate reporting entity that is an issuer of debt securities or a manager of a registered scheme, the supervisor.
(a) the assurance practitioner’s report must separately identify the matters that are required to be the subject of the assurance engagement under section 461ZH; and (b) this subpart applies, with any necessary modifications, in relation to the whole of the assurance engagement.
(a) the CRD records of the climate reporting entity or scheme; and (b) any other documents of the climate reporting entity or scheme that are relevant to the assurance engagement.
$50,000.
(a) the climate reporting entity took all reasonable steps to ensure that sub‐ section would be complied with; or (b) the director took all reasonable steps to ensure that the climate reporting entity complied with that subsection; or (c) in the circumstances, the director could not reasonably have been expec‐ ted to take steps to ensure that the climate reporting entity complied with that subsection. Compare: 2013 No 101 s 38
(a) the employee did not have the information required in their possession or under their control; or (b) by reason of the position occupied by the employee or the duties assigned to them, they were unable to give the explanations required. Compare: 2013 No 101 s 39
Replace section 461ZI(1) and (2) with:
(a) the climate statements or group climate statements that are required to be prepared; and (b) the assurance practitioner’s report on those statements.
(a) the climate statements that are required to be prepared under section 461ZC; and (b) the assurance practitioner’s report on those statements.
Replace section 461ZJ(2)(b) with: (b) either— (i) a copy of the climate statements or group climate statements pre‐ pared by the entity under any of sections 461Z to 461ZB, together with a copy of the assurance practitioner’s report on those state‐ ments; or (ii) the address of (or a link to) the Internet site where a copy of those statements, together with the assurance practitioner’s report on those statements, can be accessed.
After section 461ZK(3)(b), insert: (ba) section 461ZH (parts of climate statements must be subject to assurance engagement):
In section 501(1)(a), after “461ZC,”, insert “461ZH,”.
In section 534(1)(cb), after “461ZC”, insert “, 461ZH,”.
(h) Part 8 provides for transitional provisions relating to Part 2 of the Finan‐ cial Sector (Climate-related Disclosures and Other Matters) Amendment Act 2021.
(a) insert the Part set out in Schedule 2 of this Act as the last Part; and (b) make all necessary consequential amendments.
This Part amends the Financial Reporting Act 2013.
(d) provide for standard provisions relating to climate-related disclosure duties under the Financial Markets Conduct Act 2013.
(2A) This Act also provides for various matters relating to climate-related disclosure duties under the Financial Markets Conduct Act 2013, including— (a) defining key concepts (for example, climate-related disclosure frame‐ work, climate statements, and group climate statements); and (b) providing for the Board to prepare and issue climate standards.
(a) means an entity whose financial statements, group financial statements, reports, or other information is required by any enactment to comply, or be prepared in accordance, with generally accepted accounting practice or non-GAAP standards; or (b) means an entity whose climate statements, group climate statements, reports, or other information is required by any enactment to comply, or be prepared in accordance, with the climate-related disclosure frame‐ work
(aa) a climate standard; or
After section 9, insert:
In this Act, climate statements, group climate statements, a report, or other information complies with the climate-related disclosure framework only if the statements, report, or other information complies with— (a) applicable climate standards; and (b) in relation to matters for which no provision is made in applicable cli‐ mate standards, an authoritative notice.
(aa) to prepare and, if it thinks fit, issue climate standards for the purposes of any enactment that requires climate statements or group climate state‐ ments, or a statement, report, or other information to comply, or be pre‐ pared in accordance, with the climate-related disclosure framework:
(c) to prepare and, if it thinks fit, issue authoritative notices for the purposes of— (i) the definition of generally accepted accounting practice; or (ii) the definition of climate-related disclosure framework:
In section 14(2), replace “or law” with “law, or sustainable development”.
In Part 2, replace the subpart 2 heading with:
After section 19, insert:
(a) must not be inconsistent with any financial reporting standard or authori‐ tative notice; and (b) must state that it is non-binding.
(a) applies regardless of whether an Order in Council is made under section 17(2): (b) does not limit the general powers of the Board.
The purpose of climate standards is to provide for, or promote, climate-related disclosures, in order to— (a) encourage entities to routinely consider the short-, medium-, and long- term risks and opportunities that climate change presents for the activ‐ ities of the entity or the entity’s group; and (b) enable entities to show how they are considering those risks and oppor‐ tunities; and (c) enable investors and other stakeholders to assess the merits of how entities are considering those risks and opportunities.
(a) have general or specific application: (b) differ according to differences in time or circumstance.
In section 27(2)(a), replace “accounting,” with “climate-related,”.
Repeal section 44(b).
In Part 2, after section 47, insert:
After section 49(h), insert: (i) amending the amounts specified in sections 461Q and 461S of the Financial Markets Conduct Act 2013: (j) amending the amounts in the example in section 461S of the Financial Markets Conduct Act 2013.
After section 51(3)(f), insert: (fa) climate reporting entities; and
(a) insert the Part set out in Schedule 3 of this Act as the last Part; and (b) make all necessary consequential amendments.
This subpart amends the Public Audit Act 2001.
After section 15A, insert:
After section 34, insert:
(a) an employee of the Auditor-General: (b) a person who, under section 461ZH(2) of the Financial Markets Conduct Act 2013, may carry out the assurance engagement.
After section 35(2)(a), insert: (aa) the power of appointment of CRD assurance practitioners under section 34A; or
In section 41(1)(c), replace “or not” with “or an appointed CRD assurance practitioner or neither”.
s 21(2)
In this Part, climate standard has the same meaning as in section 5(1) of the Financial Reporting Act 2013.
In sections 461P(1), 461Q, and 461S, a reference to preceding accounting periods may include an accounting period regardless of whether the accounting period commenced before, on, or after the commencement of this clause.
(a) subpart 2 of Part 7A (which relates to CRD records): (b) subpart 3 of Part 7A (which relates to preparation of climate statements): (c) subpart 5 of Part 7A (which relates to lodgement of climate statements).
(a) subpart 2 of Part 7A (which relates to CRD records): (b) subpart 3 of Part 7A (which relates to preparation of climate statements): (c) subpart 5 of Part 7A (which relates to lodgement of climate statements).
s 31(3)
In this Part,—
(a) new section 461ZH (which relates to assurance engagements required for parts of climate statements relating to greenhouse gas emissions); and (b) new section 461ZI (which relates to lodgement); and (c) except in clause 96(2), new section 461ZJ (which relates to annual reports).
(a) an accounting period that commenced before, but ends on or after, the commencement date: (b) accounting periods that commence on or after the commencement date.
(a) an accounting period that commenced before, but ends on or after, the commencement date: (b) accounting periods that commence on or after the commencement date. s 47(2)
In this Part, 2021 Amendment Act means the Financial Sector (Climate-rela‐ ted Disclosures and Other Matters) Amendment Act 2021.
Guidance issued by the Board in accordance with section 19A (as inserted by section 40 of the 2021 Amendment Act) may apply in relation to— (a) accounting periods that commence before, but end on or after, the com‐ mencement of section 19A: (b) accounting periods that commence on or after the commencement of section 19A.
(a) accounting periods that commence before, but end on or after, the com‐ mencement of this clause: (b) accounting periods that commence on or after the commencement of this clause.
(a) accounting periods that commence before, but end on or after, the com‐ mencement of this clause: (b) accounting periods that commence on or after the commencement of this clause.
(a) if the monetary amounts in sections 461Q and 461S of the Financial Markets Conduct Act 2013 do not form part of the first review under section 48(2) of this Act: (b) despite the date on which section 45 of the 2021 Amendment Act (which amends section 49 of this Act) comes into force.
s 55
In section 4(1), replace the definition of entity with: (a) a reporting entity within the meaning of paragraph (a) of the definition of that term in section 5 of the Financial Reporting Act 2013; or (b) a subsidiary (within the meaning of section 5 of the Financial Reporting Act 2013) of a reporting entity referred to in paragraph (a)
After section 211(1)(c), insert: (ca) if the company is required to prepare climate statements or group cli‐ mate statements under section 461Z or 461ZA of the Financial Markets Conduct Act 2013 for the accounting period, include the matters required by section 461ZJ(2) of that Act; and In section 4, definition of financial markets participant, after paragraph (b)(iv), insert: (v) a climate reporting entity (within the meaning of section 461O of the Financial Markets Conduct Act 2013); and In section 238(1)(b), replace “from being—” with “—”. Replace section 238(1)(b)(i) with: (i) from being— (A) an FMC reporting entity (and, consequentially, a climate reporting entity) for the purposes of the Financial Markets Conduct Act 2013 by virtue of section 451(1)(h) of that Act; or
(B) a climate reporting entity for the purposes of the Financial Markets Conduct Act 2013 by virtue of section 461O(1)(c) of that Act: In section 238(1)(b)(ii), before “an issuer”, insert “from being”.
This Act is administered by the Ministry of Business, Innovation, and Employment. Wellington, New Zealand: Published under the authority of the New Zealand Government—2021