Ongoing Regulatory Requirements For Issuers Under The Trans-Tasman Mutual Recognition Scheme

The formal warning recently issued by the New Zealand Financial Markets Authority (FMA) to Vanguard Investments Australia Limited (Vanguard Australia) on 29 March 2023 provides a timely reminder of the ongoing notifications requirements applicable to New Zealand and Australian financial product issuers relying on the trans-Tasman mutual recognition scheme (TMRS).

On 2 December 2022, the Australian Securities and Investments Commission (ASIC) issued three infringement notices to Vanguard Australia for statements that may have been misleading, contained in the product disclosure statements for the Vanguard International Shares Select Exclusions Index Funds. Understood at the time to be indicative of a broader ASIC crackdown on 'greenwashing', the infringement notices have since triggered a formal warning by the FMA to Vanguard Australia for failing to lodge a required notice on the New Zealand Companies Office Disclose Register.