26 February 2026

Our focus in 2026 continues to be on regulating in a clear, proportionate way, centred on what matters most: fair treatment of consumers and investors, support for businesses, and well-functioning financial markets.

The FMA’s Financial Conduct Report reinforces this focus. It supports our statutory objective to promote fair, efficient and transparent financial markets, and demonstrates our outcomes focused approach in practice. We will continue to use it to guide our engagements with industry in the coming months, including at the FintechNZ Hui Taumata and the FANZ National Adviser Conference next month. 

We want New Zealand’s financial regulatory system to enable innovation that improves consumer outcomes and enhances efficiency. At the FinTech Hui in March, I will discuss our regulatory sandbox pilot, share updates on last year’s participants, and outline the next steps. I will also share feedback we received on our discussion paper on tokenisation in financial markets, as we consider its current and future role in New Zealand’s financial markets.

We are finalising findings from our review of access to financial advice, which examines whether, where and who New Zealanders go to for guidance and identifies key challenges and opportunities for improving access. I will share insights from this work at FANZ’s National Adviser Conference in Auckland. 

The Credit Contracts and Consumer Finance Amendment Bill is progressing through its remaining stages in Parliament. While the transfer date has not yet been determined, the Commerce Commission, FMA and MBIE are working closely together to ensure a seamless transition. 

Thank you for your continued engagement and collaboration as we work together to support a financial sector that works well for all New Zealanders. I’m looking forward to connecting with many of you soon. 

Ngā manaakitanga,  
Samantha Barrass, Chief Executive  

Board appointments

The FMA has welcomed new appointments and reappointments to its board.

Steven Bardy has been appointed Deputy Chairperson, from 1 January 2026 to 28 February 2027. Steven has extensive experience in financial services, regulation, compliance and risk management, and has been a member of the FMA board since 2022. 

Philip Doak and Alastair Hercus join the board as new members, appointed for terms from 1 January 2026 to 31 December 2030. Philip has over 35 years’ experience in New Zealand’s financial services sector, with senior executive and governance roles across banking, fund management, and wealth management. Alastair is an experienced director and lawyer with extensive public and private sector governance experience, including roles in corporate and non-profit organisations.

Christopher Swasbrook has been reappointed for a term from 23 December 2025 to 22 December 2030, having served on the board since 2019.

We also acknowledge the contributions of Prasanna Gai, who resigned at the end of 2025, and Sue Chetwin, who completed her term in November 2025.

Engaging with industry helps the FMA stay connected to real world practices, identify emerging risks, and provide clearer, more practical guidance. These conversations support a collaborative, effective regulatory approach that promotes good conduct and better outcomes for consumers, markets and the wider financial system. Our planned engagements for March include:

Regulatory outlook and good practice insights discussed with IBANZ

Our Financial Advice team recently presented at a webinar hosted by the Insurance Brokers Association of New Zealand (IBANZ), attended by around 260 members.

The session discussed the FMA’s 2025/26 regulatory priorities for the financial advice sector and explored what good practice looks like in real-world advice settings. Through practical scenarios, the team highlighted how clear processes, effective documentation and strong communication can support fair outcomes for clients across the advice lifecycle.

Thank you to IBANZ for hosting the webinar and to members for their thoughtful questions and engagement.

CoFR welcomes new strategic advisor

Following last year’s review into the Council of Financial Regulators (CoFR), Luke Meehan has been appointed as CoFR Strategic Advisor to strengthen system leadership and drive implementation of CoFR review outcomes. 

Reporting to both the FMA and Reserve Bank of New Zealand, Luke will focus on the implementation of the new CoFR operating model, develop system-wide processes, and advise CoFR on priorities, and effective governance and industry engagement. 

An economist by background, Luke brings more than a decade of regulatory strategy and intelligence experience, most recently with the Australian Securities and Investments Commission (ASIC). He has also been on several Australian CoFR working groups and has considerable experience in identifying emerging risks and helping set regulatory priorities. Luke has started a targeted programme of engagement with key stakeholders to support the implementation of CoFR review outcomes.

Operational resilience findings and insights  

We have published our findings from a series of surveys reviewing operational resilience across financial services in New Zealand. Covering peer-to-peer lenders and crowdfunding service providers, the reports explore how entities in these sectors prepare for, respond to, and recover from operational disruption. 

These surveys support priorities outlined in our 2025/26 Financial Conduct Report. The reports are the first of a series covering individual sectors, and findings will contribute to a broader thematic review planned for the end of the 2027 financial year. 

Market cleanliness in the New Zealand equity market    

Earlier this month we published our latest market cleanliness report, which builds on the measures established in our 2024 report and applies them to more recent data. The analysis shows a clear decline in the abnormality of stock returns and trading volumes in New Zealand over the past 20 years, indicating an overall improvement in market cleanliness.

Season 2 of Jess learns to invest

Season 2 of the FMA’s podcast Jess Learns to Invest has landed, and we’re starting with the part of investing many people underestimate: the psychology. In Episode 1, Jess is joined by Dr Pushpa Wood, Director of the Financial Education and Research Centre at Massey University, to explore how emotions and biases influence the way we make money decisions.

What’s new this season
While the first season concentrated on core investing concepts, this season goes deeper into the ‘why’ behind investing, exploring behaviour, psychology, and real-world decision making. 

AML/CFT update: Transition to a single supervisor

Work is continuing across government agencies to support the transition to a single Anti-Money Laundering and Countering Financing of Terrorism (AML/CFT) supervisor. Subject to parliamentary approval, from 1 July 2026 the Department of Internal Affairs (DIA) will become the sole supervisor of all reporting entities under the AML/CFT Act. 

We are working closely with DIA, Reserve Bank of New Zealand and the Ministry of Justice to support the transition, including working on legislative reforms and existing class exemptions.

What this means for FMA reporting entities
For reporting entities currently supervised by the FMA, there is no change to AML/CFT obligations. We will continue to be your supervisor until 30 June 2026. Ahead of 1 July, FMA reporting entities are advised to register for the DIA AML Online system in preparation for the transition.

DIA has published an information sheet outlining key milestones and preparation steps. This has been sent to all reporting entity compliance officers and is also available on the DIA website. 

We’ll continue to share updates as timelines are confirmed and further information becomes available. 

Reporting entities survey 
In preparation for the upcoming transition, DIA has created a short voluntary survey to understand areas of interest, engagement preferences and any questions entities may have about the changes. The survey closes on Thursday 5 March.

In the Know
You can subscribe to DIA’s newsletter ‘In the Know’ for the latest AML/CFT updates.
 

Financial institution regulatory returns

The first annual regulatory returns for financial institutions, for the period 1 July 2025 to 30 June 2026, is this year. The online return form will be available from 1 July and must be submitted to the FMA by 30 September 2026. 

Financial institutions should already be preparing to collect the information they will need to report. 

To support financial institutions as they prepare for their first return, the FMA will hold webinars over the coming months. These sessions will provide information on the regulatory returns, including how to complete them. 

Regulatory returns are one of the tools the FMA uses to monitor financial institutions. The information collected each year will be analysed to identify trends over time and may inform future monitoring and engagement activities.

New guides around online money advice

We have recently updated our guides about giving and taking online advice about investing. 

The regulations around financial advice apply to everyone, including influencers, bloggers and content creators. They are designed to protect people from misleading or unsuitable advice and ensure that anyone giving regulated financial advice to New Zealand retail clients is qualified, licensed, and accountable.

There are two guides:

1. Staying Safe with Online Money Advice helps people learn what to look out for and how to protect themselves when engaging with online money advice.

2. Talking About Money Online is a guide for influencers, bloggers, content creators and anyone else discussing money matters online to help them understand where they stand in terms of the law around regulated financial advice.

FMA issues a warning to insurance company for failure to apply advertised discounts

The FMA has issued a public warning to Aioi Nissay Dowa Insurance (AIOI) after it failed to apply advertised multi-vehicle and multi-policy discounts to eligible customers. Over a nine-year period, 5,055 customers were overcharged nearly $700,000. 

There was no evidence of deliberate misconduct. AIOI self-reported the matter after becoming aware of the issue, has remediated affected customers, and has taken steps to prevent the issue recurring.

FMG admits to making misleading statements and makes payment of $2.1 million

FMG Insurance Limited and Farmers Mutual Group (together FMG) has admitted breaching the fair dealing provisions of the Financial Markets Conduct Act following an FMA investigation. FMG has agreed to pay $2.1 million in lieu of a pecuniary penalty under an enforceable undertaking and has remediated affected customers.

The breaches related to customers being charged additional premiums for specified items that provided no additional benefit, and inflation adjustments that were inconsistent with policy wording. Between 2014 and 2024, more than 58,000 customers were impacted across the two issues, and total remediation of approximately $5.3 million has now been paid. The FMA acknowledged FMG’s cooperation and its commitment to strengthen systems and improve policy wording.

FMA Update on Liquidation Proceedings for Chance Voight Group 

The FMA investigation into the following entities in the Chance Voight group is ongoing:

• Chance Voight Investment Corporation Limited
• Chance Voight Investment Partners Limited
• CVI Partners Mortgage Fund Limited
• CVI Partners Mortgage Income Fund Limited
• CVI Securities Limited
• CVI Financial Limited 

In December 2025, the FMA filed applications seeking the appointment of interim liquidators and the final liquidation of these six companies. The Court appointed interim liquidators on 10 December 2025, pending the determination of the final liquidation application, and required the interim liquidators to report to it by 26 January 2026 as to the circumstances of the business.   

The interim liquidators have now provided their report to the Court and the FMA is continuing to seek orders placing the companies in liquidation. The High Court has scheduled a three-day hearing (expected to be 29 June to 1 July 2026) to determine the FMA’s final liquidation application.

Publication of the interim liquidators’ report

The interim liquidators’ report is currently subject to a court suppression order and the director, Mr Whimp, has on behalf of the companies asked the Court for several orders in respect of the report, including an order that it be permanently suppressed.  

The FMA is opposing Mr Whimp’s application because we consider there is strong public interest in the report being made available to investors and the wider public, subject to any redactions considered necessary by the liquidators. 

We have asked the Court to determine whether the interim liquidators’ report can be published at the same time as a related hearing which is already scheduled for 3 March 2026 and relates to the FMA’s interim asset preservation orders against Mr Whimp and a subsidiary of Chance Voight Investment Corporation Limited, named Hanmer Equities Limited. The Court will confirm whether it will hear the issue of publication then in due course.

Stay informed

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

Scams involving shares or initial public offerings (IPOs) have existed for decades, often relying on repeated tactics and resulting in significant investor losses. 

We remind investors to be cautious of unsolicited investment offers, including cold calls, unexpected emails, or contact through social media platforms. Investors should avoid offers that promise guaranteed high returns and ensure they only deal with brokers or investment managers who are registered or licensed in New Zealand.

Investors are also encouraged to take their time, conduct their own research, and seek a second opinion before committing funds. Anyone who suspects a scam is encouraged to report it to the FMA.

Read our latest IPO scam warnings below:

Scam targeting communities in Tonga and New Zealand

We recently collaborated with the National Reserve Bank of Tonga on a joint media release highlighting a scam proliferating in the Tongan community in particular. The Ponzi-style investment scam, currently known as BG Wealth/DSJ EX, is part of a wider scam known as TXEX, which uses multi-level marketing-type recruitment tactics. Our warning currently lists 813 websites and 30 entities that have been linked to this investment scam. 

Understanding relationship scams

Valentine’s Day may be over, but relationship scams continue long after the flowers have drooped and the chocolates have melted.

As part of our ongoing efforts to make sure Kiwi consumers and investors are well informed, we’ve launched a new series about investment scams called Inside a Scam. The first video covers relationship scams. 

Scammers often use convincing fake or stolen profiles on dating apps, social media, messaging apps and even gaming platforms. They invest time in building what feels like a genuine connection before introducing a so-called ‘lucrative investment opportunity’, often promising unrealistic or guaranteed returns.

Once trust is established, victims may be pressured to send money, invest in fake platforms, use cryptocurrency, or share personal and financial details. After funds are transferred, the scammer typically disappears.

We’ll be posting new videos regularly along with additional information about how to recognise and protect yourself from scams.

Recovery scams target victims of previous investment scams

We are warning investors about recovery scams that target people who have already lost money to investment scams. 

Scammers contact victims claiming lost funds have been recovered and direct them to a website that appears legitimate, including the use of New Zealand banking logos, where victims are prompted to enter their bank account login details.

The FMA recommends investors exercise caution and independently verify who they are dealing with. Anyone asked to share financial information should contact their bank immediately. For more information about this scam, and tips on how to avoid it, visit the FMA website.

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