MR No. 2015 – 47
2 October 2015
The Financial Markets Authority (FMA) 2015 annual report marks a turning point for the FMA and for New Zealand’s financial markets. This is the first report published under the fully implemented Financial Markets Conduct (FMC) Act and highlights activity for the 12 months to 30 June 2015.
The report demonstrates the steady re-organisation of priorities and focus at the FMA as the operating model for conduct regulation begins to emerge.
Rob Everett, FMA chief executive, said “While the new regime is still in its infancy, we are pleased with the progress in establishing the framework for delivering a modern and flexible approach to regulating financial services.
“The new licensing framework and our focus on the conduct of the regulated sectors give us a bigger mandate, and with that comes higher expectations.
“The FMA will be demanding in the standard of conduct we want to see from providers of financial services and products and, in turn, the industry, investors and stakeholders have high expectations for the regulator to achieve results. This report shows a gear change in the new regime as the FMA and firms begin to make full use of it.”
Some of the changes apparent in the FMA’s activities this year include:
Mr Everett said the FMA remained focused on applying its resources to the most significant harms and risks to the fair, efficient and transparent operation of the markets.
“The challenge remains to continue to deliver on our expanded remit with the resources we have available. Publishing our Strategic Risk Outlook was a significant step that has enabled us to explain how we apply our resources and indicate where we will be focused in the medium term.
“Our aim across all our activities is to increase confidence in financial markets and to support economic growth in New Zealand.”
Other key achievements this year include:
The financial statements for the 2015 year showed that revenue was $30.2 million, expenditure increased slightly above forecast to $32.7 million, up from $29.4 million in 2014. This increase reflects the considerable effort required to implement the FMC Act and to assist newly regulated populations in preparing for the new regime. The deficit of $2.5 million for the year has been covered by accumulated funds and the FMA continues to manage resources carefully.
Read the full report here.
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The FMA is an independent Crown entity, established in 2011 as the main conduct regulator for New Zealand’s financial markets. The FMA is responsible for licensing and supervising financial market participants and for enforcing the FMC Act and other financial markets legislation.
This regulatory oversight includes:
Fund managers, KiwiSaver providers, superannuation schemes, the NZX, publicly listed firms and issuers, qualifying financial entities, financial advisers, futures dealers, discretionary investment managements service providers, derivatives issuers, equity crowd funding platforms, peer-to-peer lending platforms, securities trustees and statutory supervisors, auditors of issuers and independent trustees.
The Financial Markets Conduct Act 2013, Phase one was effective from 1 April 2014. Phase two was effective from 1 December 2014. Transition arrangements for licensing certain activities, for example managed investment schemes, will be in place by December 2016.