You're subscribed as [email address suppressed] View online  |  Preference Centre
Season's Greetings


This year we have worked hard with our regulated sectors to ensure our expectations of them are clear. Throw into that a number of major investigations and court proceedings, the re-licensing of the supervisor cohort and a significant number of potential remit changes and it has been as busy as ever.


Rob Everett, CE, FMA


A major focus for us was working with the Reserve Bank on our two Conduct and Culture Reviews. With the Australian Royal Commission burning away in the background, the Bank review found no evidence of widespread conduct and culture issues here in New Zealand but did conclude that there were plenty of areas of weakness in banks’ management and oversight of conduct risk.


Going into 2019, we expect banks and their boards to address this feedback and ‘hardwire’ good governance, systems and processes into their organisations, with the aim of mitigating risk and ensuring customers are at the heart of what they do. We will be continuing our focus on how financial services firms set themselves up to deliver good customer outcomes by publishing our review into life insurers in late January.

These reviews, and the findings of our thematic reports into bank incentives, soft commissions and QFE insurance replacement business practices have underlined our belief that change must be fundamental, and that all parties involved in the sale of financial products must take responsibility for conflicted conduct that can result from poorly designed sales incentives. 

Last month, we published our Audit Quality Report, which shows that while improvements have been made in the quality of FMC Act audits, even within firms the results can be varied and the effort needs to be sustained. We expect the audit profession to consider and learn from our findings and we acknowledge too that a strong contributor to audit quality is the engagement and collaboration of management and boards in the process.

Encouragingly, through our engagement with the financial services industry we see strong willingness to do the best for New Zealand’s financial markets and investors. I look forward to continuing this work throughout the coming year.

I wish you a happy and restful summer break.

Rob Everett
Chief Executive

Financial Advice Regime update

As we near the end of 2018, it’s likely many of you are starting to think about life in the new financial advice regime.  Read our end of year update for a summary of the year’s main activities and to learn what’s coming next.


Reminder: AFA transition period ends on 1 January 2019

If you are intending to become an AFA utilising the old National Certificate in Financial Services (Financial Advice) Level 5 you MUST be authorised by 1 January 2019. Please contact us urgently to discuss your situation as we cannot guarantee we will be able to process and approve AFA applications before the end of the year. The FMA will be closing at midday Friday 21 December 2018.

Email: or phone: (04) 471 7664.


Recent updates, guidance and publications

Audit Quality Report

This report summarises our findings from audit quality reviews carried out between 1 July 2017 and 30 June 2018. To follow up, early in 2019 we will publish the results of survey of how market participants and investors view audit quality.


Dual Language PDS exemption

We have updated our offer information FAQ page with information to assist issuers who are considering producing a product disclosure statement (PDS) in English and te reo Māori, in reliance on the exemption to enable PDSs in both languages.

MIS manager valuation and pricing practices

Following a review, we have published an information sheet that sets our recommendations for Managed Investment Scheme (MIS) manager pricing and valuation practices, in line with the IOSCO principles for the valuation of collective investment schemes. It will be of particular interest to MIS managers and their supervisors.


Wynyard Report

Last month we published the findings of our investigation into Wynyard Group Limited’s compliance with continuous disclosure and fair dealing obligations. Following Wynyard’s failure in October 2016, the FMA and NZX undertook an investigation into the conduct of the company and its directors. Despite the FMA’s views on the potential contravention of disclosure obligations, the FMA has decided not to pursue enforcement action against the company.

Read the full report.

Intelligence-led regulation in 2019

Cyber Resilience Thematic

Our 2018/19 Corporate plan includes thematic work on cyber-resilience to better understand the level of preparedness and good practice across the population we regulate. A voluntary survey will ask participants to provide a current and a planned future self-rating, across a range of cyber-resilience topics, drawn from internationally recognised frameworks.

The information gathered will be used to provide market guidance, raise cyber-resilience awareness and preparedness, and inform the development of FMA’s risk-based monitoring approach for cyber-resilience. The survey will take place in Q1 2019 by invitation. Individual survey responses will be confidential and any thematic findings and guidance published by FMA will be at an aggregate, anonymised level.

Data mapping

We now have in-house access to the full companies register including details of directors, shareholders, holdings and insolvents. We are working on mapping these company details to the Financial Service Provider Register data to help us understand more about entities in our remit and those on the perimeter. This project is still in the early stages of work in progress.

Email us to find out more.

AML/CFT Monitoring Report

In the second half of next year, we plan to release our AML/CFT Monitoring Report 2019. The collection of information for the report has started in October and the drafting of the report is in progress. This report will cover FMA monitoring activities and findings for 2017 - 2018 and examples of what we are seeing (both good and bad) amongst our reporting entities.


Legislative notices update

We have granted new exemptions, or amended existing exemptions, as follows:

  • a new class exemption relieving Part 3 disclosure for offers of financial products of the same class as ASX-quoted products where the issuer also has a secondary listing with NZX.  The exemption facilitates offers on an equivalent basis as the Schedule 1 ‘same class offers exclusion’ in the FMC Act

See more on the Legislation website.

Make KiwiSaver part of your new year's resolutions

Setting financial goals for 2019? Don’t forget to make sure you’re in the right KiwiSaver fund for your needs. Talk to your provider and use the Sorted Fund finder to help you check you are on track.


We’ve also updated KiwiSaver Tracker data, to help you see who is managing your money and what the results and costs are.


Our tracker tool shows:

  • Returns and fees for each fund.
  • A percentage figure for how much of the return is paid to the fund manager in fees (excluding fixed  management fees) and how much is paid to investors.
  • Data that currently covers the past year and average five-year returns.

Funds that have been invested for less than a year and restricted schemes are excluded.

We're hiring

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


FMA news

5 DecemberAccredited Body Reports Published


30 NovemberFMA reports on Wynyard investigation


28 NovemberPublic warning –Brian (John) Ferguson


26 November FMA publishes 2018 Audit Quality Report & Directors’ Guide


23 NovemberPeer-to-peer lending/crowdfunding 2018 data published

Industry insights

Cyber and technology resilience in UK financial services

Financial Conduct Authority



Whistleblowing - new rules, new policies, new vision

Australian Securities and Investments Commission



Remarks at the Accounting for Sustainability Summit 2018

Bank of England


Christmas Period Office Closure

Our offices in Auckland and Wellington will be closed over Christmas from midday on 21 December, reopening on Monday 7 January. The next FMA update will be issued in February.


FMA - FINANCIAL MARKETS AUTHORITY     Financial Markets Authority
Level 5, Ernst & Young Building
2 Takutai Square
Auckland 1143
Unsubscribe  |  Forward to Friend
Copyright © 2018 Financial Markets Authority. All rights reserved.