February 16  2023

FMA Update

Samantha Barrass – Outlook 2023

FMA chief executive Samantha Barrass gave the keynote address at the Financial Services Council's recent Regulatory and Economic Outlook event.

Read the full speech here or watch on video here.

'5 mins with the FMA' podcast: climate-related disclosures 

What does the new regime require business to do and who counts as a new climate-reporting entity? We hear from FMA climate-related disclosures manager Jenika Phipps in our latest '5 mins with the FMA' podcast.

Listen here.

More about the new CRD regime here.

Her Money Matters – a kōrero on financial wellbeing

In celebration of International Women's Day, the FMA will host a panel event on Wednesday 8 March aimed at women retail investors.

Hosted by FMA Chief Executive Samantha Barrass, confirmed speakers include Frances Cook, Te Kahukura Boynton (Māori Millionaire), Sarah Kelsey, and Mary Holm.

The event is designed to bring together women of all ages who are interested in their financial wellbeing and supporting better financial outcomes for women.

New appointments

We welcome Sharon Thompson to the FMA's newly formed enterprise leadership team as Executive Director – Transformation and Operational Delivery.

She has extensive senior leadership experience in both the New Zealand public sector and financial services industry. Sharon joins the FMA from Inland Revenue - Te Tari Taake, where she was Deputy Commissioner for the Customer and Compliance Services (Individuals) group. 

Read more about her appointment and background here. 

Stuart Johnson has been named FMA's first Chief Economist.

He brings nearly 20 years’ experience to the FMA, as an economist and behavioural science expert within the financial services industry spanning banking, insurance and government regulation. 

Stuart will lead a team of economists, research specialists, data analysts and consumer insight experts, to take forward the FMA’s strategy to become more research-driven, data and intelligence-led. 

More about Stuart here.

Validus – interim stop order

We have issued an interim stop order against Validus International LLC, as we consider there is real risk of investor harm arising from its activities.

We encourage people to come forward with complaints about Validus, especially if they have made investments or deposits.

The public should exercise caution in dealing with this company and its associates.

Advice sector in good shape for second birthday

The new financial advice regime turns two on 16 March – a date that also marks the end of transitional licensing. With more than 2400 financial advice providers now holding, or operating under, full licences and serving customers across New Zealand, the sector is in good shape to mark this milestone birthday.

From 17 March 2023, anyone who provides a financial advice service to retail customers must either hold or operate under a FAP full licence, and the full competency requirements apply. Anyone still holding a transitional licence is urged to apply for a full licence immediately or contact licensing@fma.govt.nz to advise us of your intentions.

Financial advice regulatory returns

The final Regulatory Returns for Financial Advice Providers (FAPs) were published on February 15. You can find the question set for each licence class and the Regulatory Impact Statement (RIS) here. 

We would like to thank all FAPs, industry bodies, consultancy firms and other stakeholders who took the time to provide their valuable and insightful feedback.

Guidance and expectations for keeping proper accounting records

Our finalised guidance and expectations for keeping proper accounting records has now been released.

This aims to help FMC reporting entities and their directors to meet their statutory requirement that reporting entities must keep proper accounting records at all times.

Regulatory initiatives calendar

The Council of Financial Regulators (CoFR) provides quarterly updates about upcoming consultations, reviews and engagements with industry across the five CoFR members.

You can find an overview of what’s underway and planned here.

Reasonable grounds for financial advice about financial products

New guidance explaining our approach to applying and enforcing Code Standard 3 of the Code of Professional Conduct for Financial Advice Services   in relation to financial advice about financial products purchased for investment purposes has now been published.

It is particularly relevant to situations where it is difficult or impractical to access information to support reasonable grounds for financial advice on an investment product.

Exemption notice – voice broking services

The FMA has recently granted an exemption to BGC Partners (Australia) Pty Limited (BGC) which through voice broking services, operates a financial product market restricted to wholesale clients. The exemption provided was relief for BGC from having to hold a financial product market licence pursuant to section 310 of the Financial Markets Conduct Act 2013.

This exemption may give rise to questions for other entities that provide voice broking services. You can read more about the exemption here and email us at questions@fma.govt.nz to discuss any aspect relevant to your services.

Consultation – renewal of class exemption for dual language PDSs

We have released a consultation on whether to renew for a further five years an existing class exemption notice that allows product disclosure statements to be provided in full in both te reo Māori and English.

This exemption provides relief to issuers of financial products from the prescribed length limits and, if necessary, some prescribed statements and formatting. Feedback closes March 1.

Update – market index exemption

The Financial Markets Conduct (Market Index) Exemption Notice 2018 for managed funds is due to expire on 16 July 2023.

We have decided to renew it for an interim period of one year on the same terms and aim to finalise a new notice before the current exemption notice expires.

This renewal is intended to allow sufficient time to consult on a more fulsome renewal for a further five years and consider potential amendments We expect to begin this consultation in the coming weeks and will publish a consultation paper on our website.

Guilty plea from Forestlands director

Rowan Kearns, the founder and sole director of the Forestlands group of companies, last week pled guilty to charges in criminal proceedings relating to disclosure and financial record keeping breaches.

He will be sentenced at the Nelson District Court in May. 

Read more here.

Annual report, ease of doing business research published

Our latest Annual Report details a year with four main areas of focus: monitoring and oversight of financial market participants; preparations for new financial markets legislation; building investor capability; and enforcement activity. 

We have also released the latest ‘Ease of doing business’ report, which surveys key stakeholders to understand the effectiveness of interactions with the FMA, and our overall effectiveness in delivering our mandate. 

Investor warnings 

- Validus
- Tecmactrade 
- wewe.global / lyopay.com
- Global Venture
- Magnitude Financial Group
- VB-FX
- Artemis Investment Limited
- REO Funds
- Fake Macquarie Asset Management Bond prospectus
- Krypto Security
- Bay Exchange
- ctrlex.com
- coinfinancelimited.com
- IKICI

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