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Getting the best outcomes

Rob Everett, CE, FMA


Today’s regulation challenges require innovative ideas and sometimes complex solutions. That’s why consultation and feedback are so important to us.  Last month we reached milestones on three pieces of work that will have major implications for us and for the parts of the financial services industry we regulate. And they all depend on consultation.

Firstly, in respect of financial advice the Minister’s Financial Advisers Act review recommendations are a significant step in the right direction for the advice sector and its customers and involved extensive consultation. We’ll be working closely with MBIE and advisers to assist with an effective transition and to create the detail that will sit under the high-level recommendations. 

Secondly, we issued a conduct guide for feedback. This will be a cornerstone document that underpins how we will approach conversations with our licensees across all financial services around what they deliver for their customers. It lays out some of the factors we look for in the behaviour of licensed firms (and individuals) in our monitoring and supervision activities. It is however a guide and not a code of conduct. For financial advice, it does not replace the AFA code of conduct which will be revised in line with the Minister’s FAA review recommendations.

Thirdly, MBIE’s consultation on our funding and levies review published last month sets out a range of future funding models for the FMA. It seeks feedback on the appropriate funding level for us, on how FMA levies should be apportioned across the industry and on how our funding is split between industry and the taxpayer. 

As part of our preparation for that review, we asked Deloitte to scrutinise the effectiveness and efficiency of our operations and structure.  We are in the midst of implementing most of their recommendations although some are dependent on the result of the funding review.  We thought it would be useful to share those with you so on our website we have published Deloitte’s letter which summarises their recommendations and how we are responding to them.

Survey results

Thank you to everyone who responded to our two recent surveys on the Strategic Risk Outlook and our website.  Overall the feedback was positive and suggestions to improve these were helpful. See later in this update for further details.


Rob Everett

Chief Executive, FMA

Regulatory update

Read our latest update on the work we have done using legislative tools to support businesses implementing the FMC Act.




22 August

MBIE’s consultation on the FMA’s funding and levies, the External Reporting Board levy and Companies office fees closes on Monday 22 August.  Have your say ›

31 August

Annual AML/CFT reports - reporting entities supervised by us are required to submit their annual AML/CFT report on their risk assessment and compliance programme by 31 August 2016. Read more ›


15 August - 30 September

AFA Information return - AFAs can start submitting their information return. They should complete their returns through our online system, by 30 September. Please check our website for more information.  Read more ›


31 October


Consultation on our guide on conduct closes Monday 31 October.  Read more ›

FMA website survey results

Our annual website survey attracted a record 369 responses this year - 77% were either regulated, or working for a regulated business. Thank you to those of you who participated, your feedback helps us to improve our site.

84% of respondents said they found the information they were looking for, and 96% said they found the information on our site useful. 28% of respondents said they were looking for information to help them make investment decisions.

The qualitative feedback reflected the fact that our website is information-rich and catering to quite diverse user needs. We have recently done some work to improve the search function, which we hope will make it easier for people to find the information they need quickly and easily. We’ll be using the survey feedback to inform our ongoing website updates and site structure decisions.

Strategic Risk Outlook survey results

Thank you to the 105 readers who responded to our Strategic Risk Outlook (SRO) survey last month. We review the SRO and the underlying drivers of risk annually, but this year we’re likely to re-publish it with refreshed content. The feedback you provided will help us shape this refreshed content.

Of those who responded to the survey, 57% said they had read the SRO. Most respondents (77%) who had not read the document said it was because they were not aware of it. This tells us we need to do more to raise awareness of the SRO, and we’ll be using suggestions included in the feedback to do this.

Overall, respondents thought the document was clear and concise, easy to navigate and provided useful information. However we also received some really useful suggestions for improvements that we could make to ensure it’s easy to read and understand. We will be using this feedback to structure and design the document, and to make the next edition more user friendly.

Upcoming consultation

We are considering disclosure exemptions for managed investment schemes that provide options for investors to create individual investment portfolios. Exemptions are being considered as the standard disclosure required may not be useful, or may be lengthy and unhelpful for investors. Contact us at if you would like to receive a copy of the consultation paper.


Investment scams – are you a target?

As investment scams become more sophisticated, even experienced investors are vulnerable. Our updated scams information tells you when you’re more likely to be vulnerable to scams and shares the story of how John*, a 53-year old chartered accountant was recently scammed.


Coming soon

Look out for the following publications we’ll be releasing before the end of the quarter:

  • KiwiSaver annual review
  • FMA annual report

FMA news

15 August – FMA warns registered financial adviser

4 August - Work to do on corporate governance disclosure, FMA finds

28 July – FMA releases conduct guide for feedback

All news
Industry insights

Conduct Risk Maturity: Eight Steps to Embedding Good Conduct in Financial Services - Read part 1 and part 2

The Programme, Accenture


The ramifications of a ‘relentless focus on costs and fees’
Investment Operations & Custody Asia Pacific


Beyond Risk Profiling: Achieving better investment outcomes for consumers and industry
The Open University


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