We have also identified several developing themes to keep on our risk radar and we hope to discuss and gather perspectives from our market participants on these over the year. These themes include:
The opportunities and threats presented by Fintech and related innovation in financial services: We intend to keep an open, flexible approach to emerging products and new ways of delivering services, and we encourage businesses active in this space to talk to us about their plans at an early stage.
Establishing and responding to our regulatory perimeter: This is complicated by the ability of companies to offer services to New Zealanders from overseas (by phone or online). As we don’t regulate these services we’re focussed on mitigating the potential harm, primarily by warning the public where we see scams operating and raising investor awareness.
Our regulatory perimeter also includes core banking and insurance products that, while not directly licensed or regulated by us, pose a potential risk of harm to New Zealanders. Evaluating and responding to risks in this area will require close collaboration with other agencies such as the Commerce Commission and the Reserve Bank.
The effectiveness of how we deal with these developing themes will depend on strong engagement with our regulated population, market participants, Government agencies and co-regulators.
In 2017 we aim to provide a clearer line of sight between our identification and prioritisation of risks, the regulatory outcomes we’re targeting, actions we take and the costs those actions impose on industry. We’ll also be publishing our annual corporate plan for the first time this year, providing detail on what we plan to do, when and with which sectors of our markets, to deliver on our strategic priorities.
In our next annual report we’ll include an evaluation of how our contribution to confident participation in New Zealand’s financial markets has been balanced against the costs imposed on industry.
We welcome feedback on the new SRO and any of our other documents – you can send this to communications@fma.govt.nz
Simone Robbers
Director of Strategy and Risk, FMA
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