One of the explicit purposes of the Financial Markets Conduct Act is “to promote innovation and flexibility in financial markets.”
Our objective is to enable innovation, rather than trying to make new products fit into existing requirements. We also work with businesses to ensure any risks are mitigated, so they’re not passed on to investors in ways they don’t understand.
We operate in a flexible financial regulatory system aligned to the government’s Business Growth Agenda. This means we have the tools to respond to what the market is doing, rather than what it might have done 5 years ago. The growth of fintech* and emergence of innovative new products and services is not going to stand still, so neither should we.
Recent examples of market innovation include crowd funding, peer to peer lending, variable annuity retirement income product, and the NXT market.
Now robo-advice (advice by computer programme) is gaining ground. While New Zealand law dictates personalised financial advice can be given only by a human, we are considering an exemption to enable robo-advice ahead of pending law reform.
Our consultation paper outlines draft parameters of this potential exemption, for feedback from any interested businesses or individuals.
We’re learning from other regulators around the world to help us develop the best approach for New Zealand. We are also keen to engage openly with people within the innovation sectors, to understand emerging trends in innovative product and service development. We will incorporate these insights into our approach.
We want businesses to contact us sooner, rather than later. Engaging with us early in your product’s design phase will help us to help you succeed.
Email us at email@example.com or call us on 0800 434 567 (overseas callers please dial 00 64 3 962 2698).
We’d also like to know:
*Fintech: technology used to support or enable banking and financial services