That’s despite a guidance note on DIMS issued by the FMA last week.

The FMC requires that an independent custodian hold client money and property when an adviser is providing DIMS.

The FMA released a guidance note last week that said independent custodians would be required unless otherwise permitted by the terms of an AFA’s authorisation. What those exemptions will be and who they will apply to when the new rules kick in next year is unclear.

It has recommended that AFAs who are not currently using independent custodians to hold client property in an investment portfolio to review their options and make changes accordingly. “Although the requirement is not yet in force we encourage AFAs to appoint an independent custodian to hold client property and money.”

That is expected to be particularly onerous for larger sharebroking firms, none of which currently use independent custodians.

Because of the current uncertainty, they face a choice of going through the process of changing to an independent custodian, only to find that they may not have to, or doing nothing and then realising much closer to the time that they need to change.

Rob Dowler, of the Securities Industry Association, said he was still waiting for guidance on what circumstances would permit exceptions. “There is uncertainty.”

The Ministry of Business, Innovation and Employment has released a discussion document on the FMC regulations required to support the parts of phase one of the laws, which come into effect in April. This includes conditions applying to those being licensed as DIMS providers.

Submissions close at the start of next month.