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Corporate Governance Handbook

This handbook assists directors, executives and advisers of non-listed and public-sector companies, and other entities, to apply corporate governance principles to their particular entity.


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Are directors asking the right questions?

Liam Mason, Director of Regulation

Good corporate governance supports confidence – for investors, and in our financial markets overall.

It is a key focus area highlighted in our 2017 Annual Corporate Plan - that’s why the best practice guidance contained in our recently updated Corporate Governance Handbook is so important - and timely - given recent events.

Effective corporate governance is never a ‘box-ticking’ compliance exercise. Governance is about the communication, decision-making and conduct of those who control and lead New Zealand companies. Our updated handbook is principles-based, to assist a wide range of businesses of all sizes and types, understand ‘what good looks like’ in the corporate governance space. This, in turn, can underpin a solid base for their future growth, value creation, investor confidence and long-term sustainability.

Asking the questions that matter

Consulting with the market is an important part of what we do. We need to ask the right questions to get the right information, at the right time. That way we can identify issues or themes we need to explore, without creating unnecessary regulatory burden. This week, we released a consultation on regulatory returns for derivatives issuers, MIS managers and DIMS providers asking for their feedback on what we want to know about their businesses.

Improving advertising practices

Peer-to-peer lending and crowdfunding has gained momentum in recent years. We welcome this innovation, and also keep an eye on how practices develop in this area, as outlined in our Strategic Risk Outlook. This week, we release guidance which sets out our expectations of licensed providers when they communicate or advertise to their customers; and their obligations under the laws of fair dealing. The guidance will help them consider how their conduct and advertising links to better informed consumer choices.

Ultimately, it’s consumers who benefit from the increased competition and innovation these kinds of markets offer - but what matters most is trust. Putting consumers at the heart of everything they do is critical, and this is what our guidance aims to highlight.

Liam Mason

Director of Regulation, FMA

KiwiSaver Tracker data updated

Our KiwiSaver Tracker has now been updated with data from the period 1 October to 31 December 2017.

You can see data from the previous period (1 July to 30 September 2017) at this link.

Reminders

11 April 2018

Consultation: Content of regulatory returns for licensed DI, MIS managers and DIMS providers – submissions close Wednesday 11 April. More >

30 April 2018

Consultation: The Financial Advice Code Working Group is now asking for submissions and feedback on the proposed Code of Professional Conduct for Financial Advice Services. More >

Intending to become an AFA?

If you are going to use the old National Certificate in Financial Services (Financial Advice) Level 5 to become an AFA, please submit your application no later than 1 November 2018. See our website for more details.


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Financial Services Legislation Amendment Bill – update on progress

The Financial Advice Code Working Group is now consulting on the proposed code of professional conduct for financial advice services. See the Financial Advice Code Working Group page for further information. To check how the Bill is progressing and view public submissions, go to Parliament’s website.

Digital advice applications now open

Applications for those wanting to offer personalised digital advice are now open. Providers will operate under an exemption from the current Financial Advisers Act 2008. See our website for more information and how to apply.

Information sheet for self-select retirement scheme managers

Self-select retirement schemes allow investors to choose their own investments from a list of options. Our information sheet explains how these schemes are regulated, and what exemptions may be available from standard MIS obligations that self-select schemes have difficulty complying with.

What’s coming up?

Look out for the following consultation, publications and guidance coming out soon.

Fair dealing guidance for crowdfunding and peer-to-peer service providers

This week we release our guidance to help licensed providers of these platforms understand their fair dealing obligations when they advertise to, or communicate with, customers about, the offers of financial products made by or through these services.

Report on MIS manager valuation and pricing practices

This report, published in the next couple of months, presents our view of the valuation and pricing practices of Managed Investment Scheme (MIS) interests. Where applicable, we have also commented on practices where there are some opportunities for improvement.

Upcoming consultation

We will be conducting a consultation on the proposal for all licensees to make an annual declaration of compliance as part of their regulatory returns. We will also be asking your views on updating the current standard condition and the process for making minor amendments to regulatory returns in the future.