FMA comments on conflict of interest processes

Media Release
MR No. 2022 – 7

The Financial Markets Authority (FMA) – Te Mana Tātai Hokohoko today welcomed an independent review into the advice provided to the Minister of Commerce and Consumer Affairs in relation to the appointment of default KiwiSaver providers in 2021.

In summary, the review by an independent lawyer concluded:

• The FMA Chief Executive at the time, Rob Everett, had proactively disclosed a conflict of interest with one of the providers and, as a result, took no part in the process.
• The conflict of interest did not have any impact on the advice the FMA provided to the Minister regarding the appointment of default KiwiSaver providers.
• The FMA’s role in the process was limited to advising on whether there were any regulatory compliance issues that may affect the ability of the proposed KiwiSaver fund managers to act as default providers.

The review found that while there were shortcomings in the way this conflict of interest was managed by the FMA, this did not have an impact on, or influence the advice the FMA provided to the Minister regarding the appointment of default KiwiSaver providers.

Beyond these conclusions, the independent review proposed a number of changes to the FMA’s conflicts of interest processes. 

FMA Chief Executive Samantha Barrass said the regulator accepted the findings of the report.

“As the primary conduct regulator of the financial sector, the FMA’s integrity must be beyond reproach,” Ms Barrass said. “We set high standards for ourselves and are implementing all the recommendations.”

ENDS

Media contacts:

Campbell Gibson
FMA Senior Adviser, Media Relations
[email protected]
021 945 323