16 December 2025

Chief Executive’s message 

As we wrap up 2025, I’ve been reflecting on what has been an incredibly busy year continuing work to secure a financial sector that works well for all New Zealanders. It’s impossible to list all that we have done, but I want to acknowledge some of the key achievements.  

We implemented the Conduct of Financial Institutions regime, which gives us formal oversight of banks, insurers and deposit takers for the first time.  

Following extensive consultation with industry we published our approach to outcomes-focused regulation, which outlines how we direct our resources to focus on the end results that regulation is aiming to achieve for consumers and financial markets. 

We launched our first Financial Conduct Report to ensure industry understands what we are focused on and why.  

We set up the regulatory sandbox pilot and have been working with six participant firms, making significant steps towards fostering innovation, encouraging competition, and creating a more dynamic financial services landscape in New Zealand.  

We took action where consumer harm was evident, using our wide range of regulatory tools – from warnings, stop orders and direction orders, to licence cancellations and civil and criminal proceedings.  

Looking ahead to 2026, there is much to anticipate, including the Financial Markets Conduct Amendment Bill being passed, which will see firms offering multiple market services move to a single licence.  

The Credit Contracts and Consumer Finance Amendment Bill is progressing through too, with a few more steps in the Parliamentary process before it becomes an Act. This will transfer the responsibility of regulating credit from the Commerce Commission to the FMA. While the transfer date is yet to be determined, the Commerce Commission, FMA and MBIE are continuing to work together to achieve a seamless transfer, in parallel with the Parliamentary process. 

Thank you for your continued support and collaboration – we look forward to working with you to build an even stronger financial sector in 2026. 

I wish everyone a safe and happy summer break.  

Ngā manaakitanga,  
Samantha Barrass, Chief Executive  

FMA Christmas closing dates 

FMA offices are closed from midday, Wednesday 24 December, and will reopen 8.30am, Wednesday 7 January 2026.  

Complaints and enquiries can still be lodged during this period by emailing questions@fma.govt.nz, however they will not be actioned until 7 January. Our licensing portal will remain open during the holiday period, but application processing will not begin until 7 January.

If you require urgent assistance, please call 0800 434 566 from 5 January 2025. 

Review: Product and service reviews in financial institutions 

This report reveals key insights from thematic monitoring into how financial institutions ensure their products and services meet consumer needs and objectives. This area is an FMA priority outlined in our 2025 Financial Conduct Report. 

The review of 20 deposit takers and insurers found that while all participants conduct reviews of products and services, approaches vary widely.  

Good practice includes comprehensive, consumer-focused reviews that remain proportionate to the size and complexity of the business. Dynamic, risk-based scheduling and clear governance structures also support better outcomes. 

Areas for improvement include the need to consider stakeholders such as intermediaries and dispute resolution schemes, inconsistent communication of review outcomes to consumers, and limited recognition of risks posed by legacy systems and products. 

Regular, proactive reviews are essential to identify risks early, maintain fair treatment of consumers, and meet obligations under the Conduct of Financial Institutions (CoFI) regime. 

View of Waiapu River taken from Te Kautuku, on the East Coast near Tikitiki, where Toha Network and the East Coast Exchange are supporting environmental initiatives with an innovative technological approach that aligns with te ao Māori principles. (Photo: Renee Raroa) 

Kaupapa Māori research  

Last week we published two Kaupapa Māori research papers as our first steps to better understand the experiences of Māori consumers and providers in Aotearoa New Zealand’s financial markets.

Chief Executive Samantha Barrass said: “The Māori asset base has grown at a significantly faster rate than the overall economy, from $69 billion in 2018 to $126 billion in 2023. Yet there are significant gaps in data and knowledge about Māori consumers’ and providers’ experiences across the sector.

“The FMA is committed to understanding the perspectives of Māori participants in the financial services sector in Aotearoa New Zealand. The FMA’s vision that more New Zealanders than ever believe the financial sector is working well for them must be true for Māori.”

The first report, Matangirua research wānanga: A case study on Māori consumer experiences of investment and savings, presents the kōrero of three wānanga held with Te Ora Hou Centres in Ōtautahi (Christchurch), Whanganui and Pōneke (Wellington) about Māori consumer experiences with investment and savings.

The second report, He Kākahu Whenua: A case study of Toha Network and East Coast Exchange explores the opportunities, challenges and barriers encountered by innovative Māori fintech provider Toha Network, in a pre-licensing context. 

“This research is a beginning for the FMA, our first step into this area, and we want to listen, to learn, to understand and to make changes,” said Ms Barrass. 

A year of Jess learning to invest

Over the past twelve months, FMA team member Jess has been on a journey to learn the not-so-subtle art of investing. Guided by a range of experts, she’s explored everything from understanding risk and setting goals to building confidence and starting small, even just $10 a week.

In the final episode for the year, Jess looks back at the tips and practical lessons that shaped her approach. From crypto to shares, this wrap-up brings together the key insights every investor should know.

And there’s more to come! Jess is working on season two, so let us know what topics or guests you would like to hear next year.

Watch the wrap‑up below. 

Exemptions granted

We have granted a new class exemption that provides five years’ relief to financial advisers in the United Kingdom who provide mandated advice to individuals in New Zealand relating to the withdrawal of funds from safeguarded pensions in the United Kingdom.

We have renewed an existing exemption for listed issuers and registered banks that are climate reporting entities. It provides up to three years (i.e. three reporting cycles) of continued relief from the requirement to include in their annual report a copy of or link to the climate statement, subject to certain conditions.  

In-principle decisions

We decided in principle to grant the following class exemptions:

• For listed debt issuers from certain unsolicited offer regulations when making offers to buy back their own quoted debt securities. Read more here.
   
• To provide relief from certain reporting, audit and assurance obligations for Managed Investment Schemes that are in wind-up.  Read more here.
   
• For climate reporting entities that are incorporated in approved foreign jurisdictions from climate reporting duties if subject to a comparable regime (initially limited to Australia). Read more here. 
   
• The renewal, for a further two years, of the existing class exemption for climate reporting entities that provides relief from the requirement to obtain an assurance engagement in respect of scope 3 GHG emissions. This matches the recent change to XRB relief for assurance in respect of scope 3 GHG emissions.

We may consult with interested stakeholders on drafting of the exemption notices that will give effect to these decisions. If you would like to be added to the list of stakeholders, please email your request to exemptions@fma.govt.nz. Please specify the exemption notice(s) you are interested in.

EU allows continued use of NZ regulated financial benchmarks

Earlier this month we welcomed the European Commission decision to recognise New Zealand’s legal and supervisory framework for financial benchmarks as equivalent to the European Union’s. 

Together with the FMA’s decision to issue New Zealand Financial Benchmark Facility Limited (NZFBF) a benchmark administrator’s licence, this means that the New Zealand Bank Bill Rate benchmark (BKBM) can continue to be used in the European Union (EU) from 1 January 2026.

FMA General Counsel Liam Mason said: “This is a significant outcome for New Zealand, and for all financial institutions and businesses that trade between New Zealand and the EU that use the BKBM in their commercial transactions. 

“It means that the more than EUR 50 billion of financial instruments currently in use in the EU that reference the New Zealand BKBM can continue to be used without disruption from 1 January 2026.”

The decision marked the close of a multi-year effort to have New Zealand’s benchmark recognised in the EU, including introducing a bespoke licensing regime to comply with the updated EU benchmark regulatory requirements.  

Tokenisation in financial markets discussion closed for now

The extended consultation period for our Tokenisation in financial markets discussion paper closed on Friday 14 November 2025.

We received over 20 submissions from a wide range of market participants and other interested parties, including businesses, exchanges, fund managers, banks, law firms and industry groups. We thank submitters for their helpful and insightful comments and observations, which we are now reviewing and summarising.

We aim to publish thematic insights in the first calendar quarter of 2026 and indicate the direction of travel for our focus in this area.

FMA represented at the International Association of Insurance Supervisors AGM

In November, FMA Head of Insurance Jane Brown travelled to Albania for a series of meetings with international counterparts as part of the International Association of Insurance Supervisors Annual General Meeting. 

The FMA has been a member since 2022 and participates as part of the Market Conduct Working Group. Attending these meetings enables the FMA to understand global trends and the work of its counterparts across the globe, supporting our new role as conduct supervisor of insurers under CoFI. 

A particular focus was the need for more collaboration between international regulators, strengthening financial inclusion and tackling protection gaps.
 

Licence cancellation for Hope Group Limited 

Christchurch-based Hope Group Limited (HGL) has had its financial advice provider licence cancelled.

HGL has held a full financial advice provider licence and provided personal risk insurance advice (life and health insurance, income protection insurance, trauma and disability insurance) to retail clients.    

Louise Unger, FMA Executive Director, Response and Enforcement, said HGL’s licence cancellation followed the termination of its distribution agreement with the impacted insurer, and the FMA’s subsequent inquiry into its affairs.   

Tower ordered to pay $7 million penalty for misleading representations 

General insurer Tower has been ordered to pay a $7 million penalty for misleading representations that resulted in more than $11 million in overcharges to its customers.
 
The $7 million penalty follows admissions in civil proceedings brought by the FMA at the High Court in Auckland after Tower self-reported the issue to the FMA in March 2021. 

Tower admits it breached section 22 of the Financial Markets Conduct Act by misleading customers in its invoices about its multi policy discount (MPD) offer since 10 September 2016, resulting in the overcharges. This overcharging continued until February 2025.

Tower has also admitted to making false or misleading representations in marketing material in relation to MPDs.

Margot Gatland, FMA’s Head of Enforcement said: “Tower’s issues stemmed from deficiencies in its systems that meant the insurer failed to deliver to customers a publicly advertised discount. 

Opes censured for breaching financial advice provider licensee obligations

The FMA has censured Christchurch-based financial services firm Opes Group Holding Company Limited (Opes) for failing to comply with a number of obligations under its financial advice provider licence.   

FMA Executive Director for Response and Enforcement Louise Unger said: “We made the decision to censure Opes because there were shortcomings in its record keeping, how it ensures client understanding of the advice, its management of conflicts of interest and oversight of its advisers.  

Meet the Enforcement team

Our Response and Enforcement function is made up of the teams that assess and address conduct that poses serious harm to New Zealanders, as well as our specialist supervision teams, which supervise, monitor and deal with conduct related to regulatory obligations that apply across multiple sectors. We are introducing these teams, sharing more about the work they do as well as the impact they hope their work will have. You can read more about the teams we have already profiled.

This month we are introducing the Enforcement team, our lawyers who work alongside the Evidence and Investigation team throughout an investigation and who make enforcement recommendations, which often include civil proceedings and criminal prosecutions.

The team is responsible for managing court proceedings across a range of conduct, from fair dealing to fraud. The inherent seriousness of different types of conduct varies, as does the harm and impact of it. However, in all cases the FMA’s enforcement responses will be appropriate and proportionate to the conduct at issue.   

If you have any questions about their work, you can email questions@fma.govt.nz.

There has been a rise in fraudulent lending offers as the holiday season approaches. Scammers are targeting consumers via social media, phone, text and messaging apps with promises of guaranteed approval, no checks, and low interest rates. Some impersonate legitimate financial service providers. Consumers risk financial loss, and providers face reputational harm.

What financial service providers can do:

• Monitor online for misuse of your brand
• Educate clients on identifying and verifying genuine offers
• Report impersonations and scams to the FMA and relevant platforms to help prevent further harm.

For more information read Beware of loan scams during festive seasons.

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