Welcome to the August FMA Update. This month we’ve been hitting the road to talk about financial adviser transitional licensing, and preparing for Sorted Money Week.
Now we’re talking - Sorted Money Week
For Sorted Money Week (9-15 September) we’re focusing on helping women to increase their confidence and knowledge around finance, investing and risk. To support this year's theme of talking about money, we’re hosting a free event in Tauranga on 10 September where Mary Holm will lead a conversation about how investing can help women have a better financial future.
Counting down to financial adviser transitional licensing
The FMA team has been out on the road, giving small financial adviser businesses a first-hand look at the new transitional licensing application process.
Kiwi investors and managed funds will now be able to do business more easily with Australia, Japan and Thailand, after New Zealand’s implementation of the Asia Region Funds Passport (ARFP).
Local schemes can now apply to be registered as a passport fund and foreign passport funds can apply for permission to offer their funds in New Zealand. This means that fund managers from New Zealand, Australia, Japan, Thailand can offer eligible products to investors in each other’s economies, bringing more choice and competition to managed fund markets in the Asia/Pacific region.
The second part of the annual investor confidence survey has been published. These results focus on peoples’ attitude to investment risk and their knowledge of concepts such as diversification.
Using behavioural insights to improve KiwiSaver outcomes
We have published the results of a trial with the Inland Revenue Department (IRD) and AMP’s KiwiSaver team to see whether improvements to enrolment communications might increase the likelihood of members making an active fund choice, and reduce the number of people opting out of KiwiSaver.
IOSCO World Investor Week (30 September to 6 October) is a global initiative to promote investor education and protection. In support of the week, the Bay of Plenty branch of the New Zealand Shareholders Association will be hosting an event for investors on Thursday, 3 October. We’re keen to help promote other industry and investor events; to let us know what your organisation is planning, email us at communications@fma.govt.nz.
We have granted a new exemption relieving managers of schemes that invest in secured loans from the requirement to name borrowers in disclosure documents or on the Disclose Register. Alternative information about the secured property must be provided to assist investors.
We don’t think continued exemption support will be needed for digital advice services when the new financial advice regime comes into effect. The new regime is ‘technology neutral’, which enables providers to give digital advice.
We have updated our digital advice exemption information sheet with details of how digital advice can be provided in the new financial advice regime.
The Reserve Bank is consulting on a draft Bill to establish a new regulatory regime for financial market infrastructures (eg payment systems and securities settlement systems). The Bill will establish a standalone act to replace the regime currently contained in the Reserve Bank of New Zealand Act 1989. The FMA and the Reserve Bank will be the joint regulators.
Consultation on new financial advice regime exemptions
The Financial Services Legislation Amendment Act 2019 will introduce a new regulatory regime for financial advice by amending the Financial Markets Conduct Act 2013 (FMC Act). We are seeking feedback on matters relating to current exemptions under the Financial Advisers Act 2008, and also considering where exemptions may be useful to support effective operation of the new regime.
Submissions close at 5pm on Friday 13 September 2019.
Over the past month FMA’s Scott McMurray and Michael Hewes, along with Reserve Bank of New Zealand staff, have presented to the Insurance Council of NZ and to Health Funds Association of New Zealand members on the Life Insurer Conduct and Culture review.
More than 100 people attended various seminars with the clear message that delivering good customer outcomes must be at the centre of what insurers do. Strong governance, conduct and risk management, and remediation activity must be given priority.
The seminar series provided senior executives from the non-life and health industries the opportunity to ask questions of the joint team.
New vision for the Council of Financial Regulators
The Council of Financial Regulators (CoFR) has announced a new vision for New Zealand’s economic wellbeing, and has welcomed the Commerce Commission as a new member.
CoFR comprises the Reserve Bank, the Financial Markets Authority, Treasury, the Ministry of Business, Innovation and Employment and now the Commerce Commission. It was established in 2011 as a forum to share information, identify issues and develop coordinated responses to financial sector issues that may require cross-agency involvement.
We completed our inquiry into disclosure by ANZ of the sale of the property at 269 St Heliers Bay Road, Auckland by Arawata Assets Limited to Deborah Veronica Walsh (the wife of former CEO, David Hisco) and determined that ANZ New Zealand Group should have disclosed this as a related party transaction in its 2017 financial statements.
Steven Robertson convicted on 38 charges relating to PTT Limited and associated entities
The Financial Markets Authority (FMA) has welcomed the Auckland High Court convicting Steven Robertson of 38 charges relating to PTT Limited and associated entities.
We suspended the derivatives issuer licence of AxiCorp Financial Services Pty Limited (trading as AxiTrader) for material breaches of the Financial Markets Conduct Act 2013.
Former Promisia chairman admits insider trading breaches
Eoin Malcolm Miller Johnson, a former director and chairman of NZX-listed Promisia (PIL), has admitted to insider trading conduct and breaching a director’s disclosure obligations. He will pay $75,000, in lieu of a penalty, to the Financial Markets Authority (FMA).
