The Financial Markets Authority (FMA) - Te Mana Tātai Hokohoko - today published its annual report for the year to 30 June 2024.
The report details the FMA's core focus areas: monitoring and supervision of market participants, implementation of new legislation, enforcement action and providing resources for investors and consumers. The FMA achieved six out of nine of its Statement of Performance Expectations. Highlights include:
- Opened licensing for the Conduct of Financial Institutions (CoFI) regime
- The first Financial Advice Provider Monitoring Insights Report
- First climate statements filed under the Climate Related Disclosures regime
- CBLC former directors penalty hearings and admissions from Peter Harris
- Several penalty decisions for fair dealing provision breaches
- Filing of civil proceedings against Booster Investment Management Ltd
- Liquidity Risk Management guidance for fund managers
- Publication of Climate Related Disclosure user guides with the External Reporting Board
- Additional support (information sheet) for smaller firms captured under CoFI
As of June 2024, more than $215 million had been returned to customers by banks and insurers from remediation activity, following the FMA and RBNZ's Conduct and Culture review of banks and life insurers.
FMA Chief Executive, Samantha Barrass, said: "This year has seen the passing of milestones in key areas related to our expanding remit, including Conduct of Financial Institutions and Climate-related Disclosures - a reminder to ourselves and industry of all the hard work and collaborative effort to get here, and that a steadier state of regulation is just ahead. At the same time, the breadth of enforcement activity and outcomes demonstrates we are still focused on taking action where consumers have not received fair treatment."
"We also acknowledge the decline in stakeholder and investor perceptions for some areas of our work. In collaboration with the FMA Board, we have committed to exploring these results further to understand where there are opportunities for improvement."
2024 Ease of Doing Business Survey
Together with the annual report, the FMA released its annual 'Ease of doing business' report, which surveys stakeholders and industry participants to understand the effectiveness of their interactions with the FMA, and their views on FMA's overall effectiveness in delivering its mandate. The survey forms part of the FMA's reporting on its performance measures. Key findings from the 19% who responded include:
- 94% agree financial markets are effectively regulated
- 85% agree the FMA supports market integrity
- 84% agree that FMA communications is relevant to their sector
- 75% agree the FMA helps raise the standards of market conduct
- 80% agree that communications help them understand the FMA's approach to regulation
- 77% agree communications help them understand the FMA's expectations of them
- 53% agree it's easy doing business with the FMA
2024 Annual Report [PDF] 6.4MB
2024 Ease of Doing Business Survey [PDF] 1.9MB
Background
The FMA is an independent Crown entity and New Zealand's principal conduct regulator of financial markets. Our overarching statutory purpose is to promote and facilitate the development of fair, efficient and transparent financial markets. Well-regulated financial markets are a cornerstone of a successful economy and the financial wellbeing of all its participants.
Through the Council of Financial Regulators (CoFR), the FMA maintains strong relationships with government agencies, the Reserve Bank of New Zealand (RBNZ), the Commerce Commission, the Ministry of Business, Innovation and Employment (MBIE), and Treasury.
