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'C' is for conduct

Liam Mason, Director of Regulation, FMA

Yesterday I spoke at the Institute of Financial Professionals New Zealand (INFINZ) annual conference, providing more details on conduct regulation as it applies practically.

My slides are attached here.

Conduct regulation is new in New Zealand financial services, and we’re seeing a thirst among market participants to understand exactly how it will work.

Over the next few months, we plan to provide more detail so firms and professionals have a clearer picture of the medium-term change we anticipate under the Financial Markets Conduct Act 2013.

We don’t know all the answers immediately. The UK and Australian experience tells us some things, but the system in New Zealand has been geared for our local conditions.

That means we’ll learn from experience as we right-size.

There are some key points we can make now:

  • disclosure remains a key part of financial services regulation, but it is not sufficient on its own
  • the FMA anticipates participants will have compliance systems that reassure them they are constantly meeting their regulatory obligations, and those systems will provide reassurance to the top of the firm
  • we anticipate boards and senior management teams are able to ensure the conduct standards they set are met, across the firm or network, and that they can remedy systemic conduct shortcomings when they have to
  • we anticipate bigger firms will know how their products and services are being sold, and what the overall results of that are for investors and consumers; where outcomes for investors or consumers are less than anticipated, we expect firms will act to rectify that.

There’s more detail in the slides. In the next few months, we will have more to say.

I know this is the beginning of the road, and it’ll take time for firms to adjust.

You can be reassured that we will provide the high-level information that’s needed to make that adjustment.


Liam Mason

Director of Regulation, FMA

The FMA 2015 KiwiSaver annual report

The FMA’s director of markets oversight, Garth Stanish said the strong overall returns were a positive result for most KiwiSaver members, but market levels had declined since the period in the report.


“Higher returns reflected an extended period of positive market conditions, which have peaked during the last 12 months. However, those levels of positive returns are unlikely to be seen again for some time and investors need to be prepared for a period of lower returns and increased volatility ahead,” said Mr Stanish.

Full report


15 October – Consultation closes TODAY

Employee Share purchase schemes - proposed exemption relief.

5 November - Consultation

Last day to submit feedback on consultation for charities raising funds through debt securities.

6 November - Consultation

Last day to submit feedback on consultation for proposed FMC Act designation and exemption for companies used to manage costs in real property communal facilities.

30 November offers under the Securities Act

Only continuous issuers and entities that did not require a prospectus as a result of an FMA exemption can continue to offer under the Securities Act.

30 November AFAs who are personalised DIMS providers must comply with their statutory annual reporting obligations, including sending notices to their clients describing the service and scope of investment authority.

The FMA 2015 annual report is out

Read our first annual report published under the new regulatory regime.




How well do you know the risks of foreign exchange trading?

Some people use online foreign exchange trading systems to try to make a quick profit by betting on the changing value of foreign currencies. But it's a risky business. Read about the pitfalls and what to look out for on our website.



We have recently added a number of foreign exchange companies to our list of unregistered businesses in the warnings and alerts section of our website. If you, or someone you know, is aware of an unregistered company marketing to New Zealanders, we strongly encourage you to contact us.



Consultation helps us to make informed and effective policy decisions, so is an important part of our policy development process.


Our consultation is designed to encourage quality engagement from interested businesses and individuals, balanced with the need to complete policy work within the required timeframe.



We are currently consulting on a number of matters (see the 'Reminder section' above)  and encourage people to send in their feedback.


For our latest and what we have lined up to consult on, this year and 2016, please see our website.


New ‘Investor Information’ hub on LinkedIn

We’ve set up a dedicated page on LinkedIn to publish information that can help New Zealanders make better-informed investment decisions. We’ll be using this page to share everything from information and tools, to commentary from our in-house experts about what New Zealand investors should be thinking about.  If you’re a LinkedIn user please follow our Investor Information page to keep up to date with our investor capability activities. We’ll continue to publish the latest FMA news and updates from our LinkedIn page.


What's coming up


Information about designations  - will be available on our website. 
Sales and monitoring advice report 
Guidance note on KiwiSaver disclosure fees and performance 
Consultation on annual declaration of compliance for FMC Act licensees 
Custodial survey and information sheet



Guidance on risk indicators and descriptions of managed funds


Audit quality review report


AML/CFT monitoring report

FMA news

30 September - SPG and SPGI director pleads guilty to FMA charges


25 September - Fourth and final director sentenced in OPI Pacific Finance case


23 September - Third director sentenced in OPI Pacific Finance case


18 September - Third guilty plea entered in OPI Pacific Finance case


18 September - Sentences delivered in OPI Pacific Finance case



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