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FMA publishes first annual corporate plan

Find out more about the sectors which will be impacted by our upcoming work.



Prevention is better than court

Nick Kynoch, General Counsel, FMA


Sometimes court proceedings are the best deterrent, because they offer the most appropriate punishment, or the best (or only) option for getting compensation for victims.


They can also help clarify the law, providing certainty for us and for market participants. Recent good examples of this include the decisions on Prince and Partners and Mr Warminger.


Litigation is an important tool for the FMA, but it’s also expensive and time-consuming. On average, a large case takes at least two years or more to conclude, and a result is not guaranteed.


Fortunately, we are not required always to go to court.

Litigation is the big stick in a toolkit which includes warnings, enforceable undertakings, stop orders, licence revocation, and asset protection orders. What we reach for depends on the risk and harm we see, our regulatory objectives and other circumstances. Our regulatory response guidelines provide more detail on how we determine our response.


From an industry perspective, the ideal is prevention, and the best prevention is achieving good customer outcomes and demonstrating good conduct. This is achieved partly through formal governance systems and controls, and (mostly) through culture and behaviour. Look at the guide to our view of conduct for detail.


We accept that having the right attitude and doing the right things are no guarantee. Things go wrong. When that happens, we want to see people and firms owning their mistakes and working with us to resolve them. Get in touch with us sooner rather than later. Be open and transparent with us.


Our second annual conduct outcomes report – to be published in early 2018 – will outline what good conduct looks like, and our expectations in this area. It will contain case studies illustrating what we are seeing from our monitoring and supervisory ‘field work’.  It will evaluate what consumers tell us about the conduct they’re experiencing from their financial services providers, and assess our own effectiveness in driving good conduct and market integrity.


Our 2017 conduct outcomes report can be viewed here.


Nick Kynoch, General Counsel, FMA


19 September


Consultation: APEC's consultation on Asia Region Funds Passport guidance - submissions close Tuesday 19 September. Read more ›


22 September


Feedback is due on some exemption extensions or revocations. See more information in the exemption and designation news section of this newsletter.

30 September

AFA information returns - submissions close 30 September 2017.  Read more ›

Introducing...World Investor Week

World Investor Week (WIW) is a new global campaign promoted by IOSCO to raise awareness about the importance of investor education and protection.


As an active IOSCO member, we’re committed to participating in the first WIW, which will run 2-8 October 2017.


Our focus

Our focus for WIW 2017 is on communicating a few simple home-truths to Kiwis new to investing. These will include:

  • the importance of using a licensed provider
  • avoiding unregulated offshore (and often online) providers, and
  • ‘it’s okay to hang up’ on unsolicited offers.
Get involved

We’ll also be promoting the ‘what to expect when dealing with a financial services provider’ video we developed earlier this year.  World Investor Week is a great opportunity to connect with NZ investors about the things that matter. If you’re interested in getting involved, or receiving further updates and links to our content, please contact us via


Switzerland recognises NZ audit oversight regime

The Swiss Government has announced its recognition of the New Zealand audit oversight regime as equivalent to Swiss standards.


Exemption and designation news

Exemption extension - for industry who offer financial products through AFAs providing DIMS

We are proposing to extend this exemption until legislative changes in the Financial Services Legislative Amendment Bill have been brought into effect. 


The notice currently exempts offerors of financial products from disclosure where offers are made through AFAs providing personalised DIMS. Once changes in the law come into force, it will require anyone providing DIMS to have an FMC Act DIMS licence. Existing AFAs authorised to provide DIMS will be treated as holding an FMC Act DIMS licence. 


This means, after enactment of the Bill, offerors can rely on the statutory exclusion from disclosure for offers made through FMC Act DIMS licensees.

Exemption revocation

We are proposing to revoke the following exemptions because they are now redundant:

Financial Markets Conduct (Financial Reporting: Balance Dates of Managers and Registered Schemes) Exemption Notice 2015 - the FMC Act now addresses this matter.

Financial Markets Conduct (Dual-listed FMC Reporting Entities) Exemption Notice 2015 – the broader Financial Markets Conduct (Overseas FMC Reporting Entities) Exemption Notice 2016 now provides relevant relief. Businesses relying on the 2015 notice can use the 2016 notice for relief.


We would like your feedback about these proposals so please email your questions or comments to by 22 September 2017.

Market index exemption update

Consultation closed earlier this month on a proposed exemption for MIS managers from the market index requirements. We are considering the submissions received and expect to finalise our decision in October.

Decisions made

We have decided to issue the following designation and exemptions. As they become finalised in the next couple of months, we will publish them on our website.



  • Short duration forward foreign exchange contracts: After consulting on this in April, we decided that short duration forward foreign exchange contracts, that are physically settled, are not derivatives for the purposes of the FMC Act.


  • Irrigation companies: We decided to exempt irrigation companies operating under co-operative principles (but not legally structured as co-operative companies) from some disclosure, governance, and financial reporting requirements. The relief will vary depending on whether the shareholder investment is small and/or the annual revenue low. This is equivalent to relief currently available to co-operative companies.
  • Multiple-participant schemes: Managers of multiple-participant schemes will be exempt from having to register participation agreements on the Disclose register.
  • Notional registered schemes: Managers will be exempt from providing scheme financial statements for notional registered schemes. Notional registered schemes are registered schemes comprising a number of funds registered together as a scheme, where each of the funds is a separate legal entity with no cross-liabilities to other funds.

Coming soon....


Get a heads-up on what we'll be publishing in the next few months.


Guidance on substantial product holder disclosures

Following consultation in June, we will be publishing our finalised guidance later this month to help promote consistency in disclosures.

Guidance and resource sheet about New Zealand’s Bank Bill Benchmark Rate (BKBM) and closing rates.

Look out for our information to raise awareness about how BKBM and closing rates are calculated and the controls around this type of wholesale trading.  Our information will include a guidance note for industry that sets out our expectations around this wholesale trading conduct and a resource sheet for finance teams within New Zealand businesses that may have exposures linked to BKBM.

Financial service providers register report

We will shortly publish a report into the work we’ve undertaken to try to prevent the abuse of the Financial Services Providers Register (FSPR) over the last three years. While the FMA does not oversee the FSPR, since 2014 we have had the power to direct the Registrar to deregister businesses or individuals from the FSPR or prevent them from registering in the first place.

KiwiSaver and FMA annual reports - these are our due out before the end of September.


Audit quality monitoring report 2017

This report will be published in November and will summarise our findings from quality reviews carried out between 1 July 2016 - 30 June 2017.


FMA news

28 August 2017 FMA publishes annual corporate plan


28 August 2017 Prince & Partners admits failings as Viaduct Trustee, FMA recovers $4.5 million


17 August 2017 Not all bonds are equal – FMA survey

Industry insights

Cyber Risk, Market Failures, and Financial Stability
IMF working papers

Beyond Fintech: A Pragmatic Assessment Of Disruptive Potential In Financial Services

World Economic Forum


The fine art of influencing customer-centricity


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