Relief covers five reporting periods as proposed legislative changes remain unresolved
The Financial Markets Authority (FMA) – Te Mana Tātai Hokohoko has extended its “no action” approach to climate reporting obligations for affected climate reporting entities while proposed legislative changes remain unresolved.
The extension covers all requirements under Part 7A of the Financial Markets Conduct Act for the first five 2026–27 reporting periods. It applies to reporting periods with balance dates from 31 March 2027 up to and including 31 January 2028.
The government had previously announced changes that would remove listed issuers with market capitalisation below $1 billion, investment scheme managers, and health and life insurers from the climate reporting regime. The proposed changes form part of the Financial Markets Conduct Amendment Bill (FMCAB).
However, the legislation did not pass before the last sitting day in the House ahead of the upcoming election. The FMA said this has created uncertainty for entities affected by the proposed reforms.
FMA General Counsel Liam Mason said many entities face uncertainty about their reporting requirements because Parliament has not passed the amending legislation.
“We will not have clear direction on the future of this policy until the new government forms after the November election,” Mason said in a statement.
He said entities therefore do not know whether they will remain required to lodge climate statements and may remain uncertain for several months.
The FMA said the no-action approach would avoid unnecessary compliance costs and provide affected climate reporting entities with greater certainty in the interim.
The extension applies to reporting periods starting on 1 April, 1 July, and 1 October 2026, and 1 January and 1 February 2027. Their respective balance dates range from 31 March 2027 to 31 January 2028, with lodgement due dates extending from 31 July 2027 to 31 May 2028.
The relief does not extend to the reporting period beginning 1 April 2027, which has a balance date of 31 March 2028, and a lodgement deadline of 31 July 2028.
If the incoming government progresses the policy, the FMA said it will work with affected climate reporting entities to provide further relief if required, taking into account the timing of any reform.
If the incoming government does not support passage of the FMCAB, the regulator will work with climate reporting entities on a smooth transition back to reporting. The FMA acknowledged that those entities may be unable to provide comparative information for the previous reporting year.
Under a no-action approach, the FMA will not take action against a person for breaching a statutory or regulatory obligation. The approach expresses the FMA's regulatory intention for how it will exercise its functions and does not necessarily prevent third parties from taking legal action for the same conduct or similar conduct.
