New SOI introduces fresh set of measures to track FMA success over medium-term

Media Release
MR No. 2015 – 26
18 June 2015

Tabled in Parliament today, the Financial Markets Authority’s Statement of Intent (SOI) for 2015-2019 marks a further step in the agency’s evolution as a modern, risk-based conduct regulator.

“This year’s SOI marks a major shift for the FMA,” said chief executive, Rob Everett.

“The FMA has matured significantly since its establishment in 2011 and this SOI, which is closely linked with our recently published Strategic Risk Outlook, clearly details how we will measure our success during the next four years,” he said.

The new SOI is different from previous statutory statements as it directly aligns with the seven strategic priorities set out in the Strategic Risk Outlook (SRO).It also includes a fully overhauled set of performance measures to track how well the regulator is meeting its priorities.

“Ultimately, these measures are designed to ensure that the government, businesses and investors can hold us to account in implementing the Financial Markets Conduct Act and providing effective regulation of New Zealand’s financial markets.”

“They also provide a greater level of transparency around what we see as important areas of regulatory focus for the FMA and what behaviour we expect,” said Mr Everett.

One of the key measures introduced in the SOI is the International Monetary Fund’s Financial Sector Assessment Programme. This programme provides a comprehensive and in-depth analysis of a country’s financial sector.

Other key measures include:

• increasing investor confidence in the integrity of New Zealand’s financial markets
• increasing confidence among firms and professionals that are raising capital and making other offers
• the willingness of boards to recognise sound governance principles and apply them.

Published in December 2014, the SRO indicates where the FMA sees the most significant potential risks and consequently where it has chosen to focus its regulatory efforts. The seven strategic priorities reflect the government’s Business Growth Agenda.

Every New Zealand Government agency is required to produce a SOI every four years to outline its intentions and how it will deliver them.

The SOI can be viewed here.

ENDS

Contact:
Shae Skellern
09 300 0­465
021 847 192
[email protected]