First DIMS licence granted

GMI is the first investment manager to be granted a class DIMS licence under the Financial Markets Conduct Act, for its Private Portfolios service, through which investment advisers manage portfolios on clients' behalf. Because they make buy and sell decisions without asking the client's input each time, this counts as class DIMS under the Financial Markets Conduct Act.

The licence will allow the Private Portfolios service to continue to operate in this manner once it takes effect at the end of March.

GMI also offers KiwiSaver and a superannuation scheme. Bishop said GMI prioritised the DIMS application but is also working on the licensing process for a Managed Investment Scheme licence.  

Bishop said the new DIMS licensing arrangements would deliver better protection to investors by imposing more obligations and minimum standards on providers.