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NZX general obligations review

Read our annual review of how well NZX is meeting its statutory obligations.



Improving disclosure to build investor confidence

Garth Stanish, Director of Capital Markets, FMA


High quality disclosure is vital for ensuring the investor confidence necessary to sustain capital markets. Accordingly, enhancing disclosure for investors is always a key focus for the FMA. We have engaged with a number of NZX-listed companies over the last year over disclosure concerns. Through these engagements we have been able to enhance disclosure and we will continue to proactively engage with financial reporting entities where we have concerns that disclosure is not clear, concise, and effective.

Additionally, we have also recently produced two pieces of work focussing on how entities are communicating the information that is most important and relevant to their investors. It is essential for investors to receive clear, effective and timely communication so that they are aware of the most material and critical matters impacting an entity’s performance or future plans.

Helping investors to make sense of financial information

The first of these pieces of work is our Improving financial statements monitoring report. This summarises the findings from our thematic review looking at the presentation of financial statements and provides suggestions to further improve their effectiveness. We will continue to monitor efforts made in this area, engage with stakeholders, and promote improvements in the quality and value of financial statements.

We also released an information sheet focusing on the disclosure of significant accounting estimates. This was in response to recent market engagements where our view was that disclosure in this area was disappointing. The information sheet is a timely reminder to preparers of financial statements, their advisers and auditors, of the disclosure requirements for significant accounting estimates. When there are high levels of uncertainty, or assumptions based on future events that give rise to a risk of material misstatement, entities must clearly state these risks within their financial statements.

Constructive engagement

As a final point, if we are raising matters with you, it may reflect a genuine concern on our part or we may just wish to understand more. We place considerable value on constructive engagement but please note that reluctant or defensive engagement with us makes the process of enhancing transparency in the market more difficult for both the FMA and those we regulate.


Garth Stanish

Director of Capital Markets, FMA

Investor Confidence survey

The FMA 2018 Investor confidence survey shows confidence has remained steady over the last 21 months, despite significant headwinds at home and abroad. See the full results with additional question this year on investor knowledge and attitude to risk.



23 July


Consultation closes: Proposed exemption from requirement to name assets. More >

31 August 


Consultation closes: Exemptions, other legislative notices, and unnecessary compliance costs. More >


Annual AML/CFT reports - reporting entities supervised by us must submit their annual AML/CFT report through our online system between 3 July and 31 August 2018. More >


Crowdfunding and peer-to-peer lending providers annual regulatory return – licensees must submit their annual regulatory return between 2 July and 31 August 2018. More >


13 August - 30 September


AFA information returns – Submissions open on Monday 13 August until 30 September 2018. More>

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New guidance and publications

Disclosure of significant accounting estimates

We have published an information sheet to explain our expectations on disclosure of significant accounting estimates. It is part of our work on improving the overall quality of information being disclosed in financial statements. More >


Improving the quality of financial reporting

This monitoring report summarises the findings from our review of improvements in the presentation of financial statements, and include suggestions for further improvement. More >

Considering transferring your UK Pension to New Zealand?

We’re aware of overseas companies cold calling New Zealand residents and offering UK pension transfers when it may not be in their best interests. Often, people are offered different ways to invest, special ‘deals’ or opportunities to access their money before 55.

We’ve refreshed our online content – giving investors 5 things to ask before they transfer and strongly recommending they get help from an authorised financial adviser first. We’ve been sharing this content through our investor Facebook page.

Intending to become an AFA?


If you plan to become an AFA using the old National Certificate in Financial Services (Financial Advice) Level 5, please submit your application no later than 1 November 2018. See our website for more details.


Exemptions update

Dual-language product disclosure statements in te reo Māori and English

Following a recent consultation, we have decided to grant an exemption to enable dual-language product disclosure statements provided in both te reo Māori and English. We will be carrying out a targeted consultation on the draft exemption notice, including the scope of the conditions and aim to finalise the exemption in the coming months.  Please email if you are interested in producing a dual-language PDS in te reo Māori and English.

AML/CFT guidance on the managing intermediaries class exemption

This month we expect to issue updated guidance on how the FMA’s AML/CFT reporting entities may rely on the managing intermediaries class exemption. The exemption was renewed by the Associate Minister for Justice before it was due to expire on 30 June. Reporting entities may now rely on the exemption when dealing with the customers of the managing intermediary, subject to conditions.


MIS market index exemption/guidance

We have granted an exemption for managed investment scheme managers. It will take effect on 17 July. MIS Managers will no longer have to publish a market index in their quarterly fund updates if there is no appropriate broad-based securities index. The exemption has conditions attached – one of which is that managers use a peer group index instead, if this is useful to investors. The exemption and an accompanying guide will be available on our website shortly.


Class legislative notices summary


Read our latest update that summarises all of our class legislative notices, including exemptions, designations, frameworks or methodologies, and public accountability notices granted. The summary is a good resource for those interested in a brief overview and scope of the different types of notices we grant.


Making compliance easier


We have a new web page to explain what we are doing to make it easier for those who have to comply with financial markets regulation. The Making compliance easier page discusses regulatory burden and steps we are taking to reduce unnecessary compliance costs while making sure businesses, investors and consumers benefit from fair, efficient and transparent financial markets. If you have feedback on how we are doing with this email


We have also released a consultation paper seeking input on the effectiveness of our legislative notices in minimising unnecessary compliance costs. Submissions close on 31 August 2018.

Publishing responses to Official Information Act requests

As part of our commitment to carry out our functions and responsibilities in an open, transparent and accountable manner, we have updated our Official Information Act webpage to reflect our new policy to publish statistics and some responses to information requests. We will begin publishing these from the end of July.


What’s coming up?


QFE insurance providers’ replacement business practices


This month we'll release a thematic review focused on QFE insurance providers’ replacement business practices. It will look at how these providers’ policies and procedures are ensuring consumer protection. This work is part of a suite of reviews of conflicted conduct in the financial services sector. We will follow up later this year with a report on the structure of bank incentives.


Upcoming consultation


We intend to consult on guidance on how to determine whether a business has been acquired (or is to be acquired). Under the FMC Regulations, prescribed financial information about business acquisitions must be included in the PDS for an offer of debt or equity.  It is sometimes not clear what is a business acquisition for these purposes.


In August, we plan to consult on a proposal to exempt certain restricted schemes from custodial assurance engagement requirements where the scheme is administered by an administration manager. It is proposed that instead that administration manager will obtain an assurance engagement.


Market Misconduct Risks: A guide for MIS managers

We are in the process of updating a guidance note for MIS managers to clarify how the law prohibiting market manipulation is applied. The guide also outlines the type of controls managers should be considering to minimise the risks of inappropriate trading conduct within their organisations. 


MIS manager valuation and pricing practices


Following our review of the valuation and pricing practices of Managed Investment Scheme (MIS) interests, we will shortly release an information sheet on our findings and recommendations. 


Annual Corporate Plan

Next month we’ll publish our Annual Corporate Plan, which outlines our priorities for 2018/19.


Ease of doing business survey

We will soon be completing our annual 'ease of doing business survey' with a wide sample of participants and stakeholders. Some of you will be invited to take part through an email from our research partner in the next fortnight. 


We’re hiring

Join a vibrant and dynamic team that embraces work-life balance, a commitment to employee well-being, and opportunities for learning and development. Check our website to find out more.


FMA news

12 July - Investors show mixed levels of understanding while confidence in financial markets remains stable

5 July - Individual falsely holding himself out as financial adviser sentenced to community work and community detention


3 July - FMA statement on Blackfort/Arena sentencing

28 June - Annual review of NZX published

All news
Industry insights

EBA assesses risks and opportunities from Fintech and its impact on incumbents business models

European Banking Authority


Climate change

Australian Securities & Investments Commission


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