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FMA publishes revised investor capability strategy

Media Release
MR No. 2017 – 55
29 November 2017

The Financial Markets Authority (FMA) has revised its 2015 investor capability strategy based on the insights gained about New Zealand investors during the last two years.

The FMA’s original strategy focused on KiwiSaver and New Zealanders aged over 50 with money to invest. However, the results of FMA and other surveys, online communication with investors and other work showed the target audience needed to be broader. For example, New Zealand men in their 20s and 30s are the group showing most interest in online, offshore investments that carry a high risk of being scams.

The strategy will see the FMA working to positively influence the behaviour of all New Zealand investors in the following areas:

  • choosing and using investment products
  • complex investment products
  • KiwiSaver
  • high-risk ‘investments’
  • frauds and scams
  • getting help and advice.

The FMA will seek to achieve this influence through direct contact with investors through a range of communication channels. The FMA will also focus on how providers engage and inform investors, through supervision, monitoring and contribution to cross-agency policy work and other activities.

For the FMA, investor capability is one of the two key drivers of fair, efficient and transparent financial markets in New Zealand. The other driver is providers’ conduct.

Paul Gregory, Director of External Communications and Investor Capability said, “New Zealand financial markets cannot be vital, resilient and attractive without the confident, informed participation of investors. For that to happen, providers must have the interests of their customer at heart, with a customer-centric perspective embedded in their business.

“Investors must also help themselves by knowing the warning signs for scams, using licensed providers, reviewing their investments and questioning their providers,” Mr Gregory said.

The strategy continues to have a strong focus on KiwiSaver, as this is the first – or only – investment for most New Zealanders. “We want KiwiSaver members to choose a fund appropriate to their goals and situation and to understand the impact of risk and fees on their returns. We developed the KiwiSaver Tracker to help with this and will do more work to increase healthy discussion and debate about KiwiSaver.”

The FMA’s strategy is part of the broader national financial literacy strategy and involves a strong element of joint research and action with other bodies including the Ministry of Business, Innovation and Employment and the Commission for Financial Capability.

The revised strategy can be found here

Ends

Contact:
Edwin Mitson
Ph: 021 702 036
Edwin.mitson@fma.govt.nz