29 October 2026

Artificial intelligence (AI) is creating new opportunities across the financial sector, with the potential to improve services, increase efficiency and support better outcomes for consumers. Advances in AI are also changing the cyber threat environment, bringing new risks that entities need to be prepared for. 

Earlier this month, the FMA and Reserve Bank of New Zealand (RBNZ), jointly hosted an industry roundtable on cyber risks associated with frontier AI. The Department of the Prime Minister and Cabinet (DPMC) and the National Cyber Security Centre (NCSC) also presented at the event. The discussion brought together financial sector leaders to explore the emerging risks and how the industry can prepare for them. 

The FMA and RBNZ outlined supervisory expectations for how entities manage cyber risks associated with AI. Entities need to understand the risks the technology presents and ensure the appropriate safeguards are in place. Boards and senior management also need to understand how the AI is being used across the business and whether existing controls remain fit for purpose. 

The discussion highlighted the importance of working together to strengthen the resilience of New Zealand’s financial system. As AI continues to evolve, sharing information and coordinating responses across the financial sector will be increasingly important, particularly when responding to significant cyber incidents. 

The FMA will continue working with RBNZ and other agencies to understand emerging risks and engage with industry as technology evolves. Through clear expectations and ongoing collaboration, we can support responsible innovation, protect consumers and maintain confidence in our financial markets. 

You can read our joint FMA and RBNZ speech here. 

Ngā manaakitanga,  
Louise Unger – Executive Director, Response and Enforcement 

We want your feedback on licence standard conditions

The FMA is working to make licensing requirements easier to navigate. As part of this, we're seeking feedback on proposed changes to the standard conditions that apply to market services licences under Part 6 of the FMC Act.

The proposed changes are intended to reduce duplication and complexity across licence types, making obligations simpler for entities that hold multiple licences. The consultation also includes a proposal to introduce six standard conditions for licensed consumer credit providers.

After the consultation closes, we'll consider all submissions before finalising the changes and will formally notify licensees before any new conditions are introduced later in 2027. 
We're also seeking feedback on the proposed implementation timeline, recognising that some may need time to update their policies, processes, systems and controls.

The consultation is open until 11 December 2026, and we encourage all interested stakeholders to make a submission.

We’re hosting a webinar on 12 November 10–11am to discuss the proposed changes including who is affected, how to provide feedback and the implementation timelines. Attendees will have the opportunity to ask questions, either in advance or during the webinar. Questions can be submitted ahead of time to events@fma.govt.nz and you can register for the webinar at the link below. 

Open letter to consumer credit providers

We’ve published an open letter to consumer credit providers outlining our expectations and priorities for the sector.

The letter highlights the key role boards and senior leaders play in delivering good consumer outcomes through strong governance, effective oversight, and ensuring lending practices are fair, transparent and responsible. It details our expectations that policies, systems and controls are appropriate to the nature, size and complexity of their business, and that lenders proactively identify and manage conduct risks, conflicts of interest and customer hardship.

It also covers our current supervisory focus areas, including remuneration-related conflicts, complaints handling and unsuitable or unaffordable lending. Lenders are encouraged to use the Financial Conduct Report 2026/27 to assess whether their current arrangements are meeting consumer expectations and supporting positive outcomes.

FMA extends no action relief for climate reporting entities 

The FMA is extending its ‘no action’ approach on climate reporting obligations for affected climate reporting entities. 

The relief applies to listed issuers with market capitalisation below $1 billion, investment scheme managers and health and life insurers, and covers reporting periods with balance dates from 31 March 2027 up to and including 31 January 2028. 

The extension provides certainty while the future of the Financial Markets Conduct Amendment Bill, which would have put the previously proposed changes into effect, remains uncertain following the end of the current Parliamentary term.

The FMA will continue to work with climate reporting entities if further relief is needed once we understand the policy intention and priorities of the incoming Government. 

World Investor Week 

World Investor Week, which ran from 5-11 October, is a global campaign coordinated by the International Organisation of Securities Commission to promote investor education and protection. The FMA supported the global campaign with its Would you Invest? Socal media series, using real world scenarios to encourage New Zealanders to question what they see before committing their money. 

Explore our new Contracts of Insurance Act webpages

Our new webpages provide key information about the Contracts of Insurance Act 2024, including what is changing, when the new legislation comes into force, and answers to common questions. There is a specific page outlining key changes and new duties for intermediaries. Insurance intermediaries have an important role under the framework and may be subject to specific obligations under the Act. 

We'll continue to add information and refresh content as implementation progresses and questions emerge from industry engagement. 

Summary of submissions on expiring class exemption notices and designations

On 28 October, we published a summary of the feedback received as part of consultation on the 2025-2026 review of expiring class exemption notices, and designations. We would like to thank all submitters for their feedback on the class notices.

FMA presents at the Financial Services Federation conference 

We shared insights into our first 100 days leading the regulation of consumer credit at the Financial Services Federation (FSF) annual conference. 

Head of Licensing and Regulatory Services Anita Frazer, Director Credit, Deposit Taking, Insurance and Advice Michael Hewes and Acting Head of Credit Helena Lewis discussed the transition of consumer credit regulation from the Commerce Commission and outlined the FMA’s approach to licensing, supervision and monitoring work.

The presentation also highlighted the importance of the relationship between the FMA and FSF, both before and after the transfer, in supporting a smooth transition. 

Left to right: Anita Frazer, Michael Hewes and Helena Lewis.

Connecting with Māori leaders at Kohinga Koha 2026

A group of FMA kaimahi attended Kohinga Koha 2026, the Māori economic summit hosted by Ngāti Ranginui, Ngāi Te Rangi and Ngāti Pūkenga in Tauranga Moana last week. The event brought together over 400 Māori leaders, innovators, investors and iwi to discuss Māori economic development, investment and innovation.

The summit provided an opportunity for us to listen, learn and connect with Māori leaders from across Aotearoa.

The insights gained will help inform the FMA’s work as we continue to identify opportunities to remove barriers, support Māori economic aspirations and ensure the financial system delivers positive outcomes for Māori.

The FMA kaimahi at Kohinga Koha 2026. 

Independent Financial Advisers Association Conference 

FMA Director of Credit, Deposit Taking, Insurance and Advice Michael Hewes spoke at the Independent Financial Advisers Association Conference in Christchurch, which brought together financial advisers, industry representatives and product providers.

Michael shared what the FMA is seeing across the financial advice sector, highlighting the progress advisers have made under the licensing regime and the increasing focus on demonstrating that systems, controls and oversight arrangements are working effectively in practice. He also discussed managing conflicts of interest, learning from complaints, the use of AI in advice, fraud prevention, and improving access to financial advice. 

Michael Hewes speaking at the Independent Financial Advisers Association Conference.

Other engagements in October

The FMA engaged with industry at a number of other events in October, including: 

• Corinium New Zealand
• New Zealand Telecommunications Forum
• Resonate 26 Insurance Innovation Summit
• Financial Advice New Zealand webinar - protecting client assets 
• International Organisation of Securities Commissions - enforcement committee meeting
• International Forum of Independent Audit Regulators - global audit quality working group meeting 

Operational resilience findings and insights  

We have published our findings from the latest round of the operational resilience survey, focusing on the discretionary investment management service sector. The report explores how entities prepare for, respond to and recover from operational disruption. 

FMA cancels auditor’s licence for failure to comply with multiple licence conditions

The FMA has cancelled the New Zealand licence of Sydney based auditor, Mr Scott Bennison, to carry out FMC audits in New Zealand. The FMA cancelled Mr Bennison’s licence because it was satisfied, on reasonable grounds, that he had not complied with multiple conditions of his licence. 

Christchurch lender sentenced for unregistered consumer lending

Christchurch lender 4J Enterprise Limited (4J) that mainly served members of the city’s Filipino community has been fined $15,000 for providing consumer credit without being registered on the Financial Service Providers Register. 

In the Christchurch District Court, Judge Elkin also sentenced 4J director Mrs Hope Suan to 140 hours of community work, and senior manager Mr Juvy Suan was sentenced to 150 hours of community work. 

Stay informed

Check out the FMA’s enforcement activity for more about the actions we take to protect investors and maintain market integrity.

We regularly publish warnings containing the names of businesses or individuals you should be wary of if you are planning to invest. 

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