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17 November 2021
FMA Update
Climate related disclosures - preparing for a new regime
New legislation will require around 200 New Zealand Climate Reporting Entities to produce annual climate statements, with the first expected to be filed from April 2024.
The FMA has published its implementation approach for the new regime. Download that here.
Sarah Vrede, FMA Director of Capital Markets, talks here about the new rules and the FMA's approach to the new regime.
Enforcement and FMA expectations
Acting General Counsel Karen Chang outlined the FMA's views on self-reporting potential misconduct issues at a recent speech in Auckland.
“We all want New Zealanders to have trust and confidence in the financial services they receive," she said. "That means investing in systems that put customer interests first and showing a willingness to deal with the regulator in a way that is open, transparent and engaged."
Audit quality improves despite pandemic challenges
The FMA's latest Audit Quality Monitoring Report has found improvements and positive developments that increased the overall quality of the audits reviewed this year.
Despite COVID-19 creating higher levels of economic uncertainty and preventing some auditors from performing on-site procedures, we noted improvements in how auditors applied professional scepticism and supported accounting estimates with enhanced documentation.
New self-assessment tools aim to boost success of financial advice providers
Not sure where to start with getting ready for your Class 1 or Class 2 full licence?
We’ve developed new self-assessment tools for sole adviser and smaller Financial Advice Provider transitional licence holders to help prepare for full licensing.
Liquidity risk management guidance update
We have previously noted concerns about liquidity risk management practices used by many local fund managers.
We will be publishing formal guidance on this late next year but, in the meantime, we encourage Managed Investment Scheme (MIS) managers to assess their practices against our June 2021 report and the Good Practice Guide from 2020 and address any weaknesses sooner rather than later.
The ability to manage a liquidity crisis is a key conduct issue, heightened by the trend toward increasing alternative and illiquid exposures, and harm to investors from an unprepared MIS manager will be taken seriously.
Advertising financial products - FMA guidance
Advertising can significantly influence people’s investment decision making, so it’s critical that marketing materials don’t mislead or confuse consumers.
We're encouraging market participants to follow the principles set out in our new guidance on advertising of financial products - and to also to consider how their conduct actively assists investors to make appropriate and considered investment decisions.
Around one in five New Zealanders has been targeted by an investment scam, according to FMA research. Unfortunately many have lost money.
This year's Fraud Awareness Week is focusing on together fighting scams and fraud. We've collected real stories of everyday Kiwis who lost money to investment scams – but took positive action by reporting it to the FMA. They've generously shared their stories to help others see what scams look like.
Read here about one local man who lost $700,000 in a sophisticated investment scam.
Latest scam warnings:
- Saga Trade
- Adler Acquisitions and Financial Services Inspectorate / Finansiell Tjänster Inspektorat
- www.campartnersinvestment.org
- Mido Finance Limited
- www.osakalenders.com
- www.invest-az.com
- Neptune Blocks
- SG Consultancy
- CV Markets
- Synergy Capital Asset Management
- Bloom Wealth
- Income Analysts
- magnaumbrellafund.org
- Pacific Forex Asset Management
- GTV Media Group Inc
- TradeVtech / UMedia LLC
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