Where we have these options it gives us much greater flexibility in responding to issues, particularly where the speed and proportionality of response are key criteria for us. As a conduct regulator, influencing financial services providers to focus on better outcomes for customers and investors is essential.   Sometimes that is how we respond to things that have gone badly but more often it is how we set expectations and guide providers towards best practice. This year, to accompany the full report, we will have an online summary of key themes on our website.

Cryptocurrencies

Like everyone else, we have also been focused over this period on cryptocurrencies and how regulators should respond to the challenges in how these ‘products’ are created, offered and traded. While some of the Bitcoin mania we saw before Christmas has died down, we and other regulators in NZ and around the world, expect this to continue be an area of significant challenge – balancing the wish to encourage innovation that brings potential benefits to consumers against the risks to consumers of unregulated products that carry unusual or poorly understood risks.

Digital advice

On 22nd February we open applications to provide digital advice (also known as robo-advice). Over time we think this will be a significant addition to the channels where financial advice is accessed in NZ, though we believe that ‘in-person’ advice will continue to be the dominant channel.

Rob Everett

Chief Executive

23 February

Consultation: NZ Parliament - Financial Services Legislation Amendment Bill

Parliament is now publicly consulting on the Financial Services Legislation Amendment Bill. This particular Bill effectively sets out a new approach to financial advice and will require all providers of financial advice to retail clients to be covered by a licence. We strongly encourage people to take part in this consultation, which closes next Friday (23 February). Read more ›

In May 2017, a class designation came into effect that designates certain shares in investment companies as managed investment products (MIPs). 

We recently made some technical amendments to the designation to clarify how it applies to redeemable shares (which are classed as debt securities under the FMC Act) and appointing alternate directors. These amendments came into effect on 12 February 2018. They confirm investment companies can issue redeemable shares, and can have a power in their constitutions for directors to appoint alternate directors, without triggering the designation.

Email us at communications@fma.govt.nz