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Example: "How do I apply for a financial institution licence?", "FMA Annual Report 2024"
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E-money is a digital cash equivalent where value is held electronically, for example on a prepaid card. In some jurisdictions, providers of e-money services require a licence (and “e-money” and “e-money institution” have specific regulatory definitions). This is not the case in New Zealand; however, some regulations will still apply.
The FMA’s 2021 guidance on managed fund fees and value for money introduces an expectation for Managed Investment Scheme (MIS) managers to carry out regular reviews of scheme fees and whether customers are receiving value for money.
The managers of New Zealand managed investment schemes (MIS or KiwiSaver/fund managers) are showing repeatable performance, relative to appropriate market indices. However, the benefits of their skill to investors in some funds is reduced by fees, and the costs of commission paid by managers to third parties.
Fund managers are expected to annually review their fees and value for money with their supervisors and prove to the Financial Markets Authority (FMA) the review has happened, as a result of final guidance on fund manager fees and value for money, published today (14/4/2021).
OIA response: Request for Value for Money discussion document
FMA and Supervisor report for Managed Investment Scheme Managers and KiwiSaver Managers that covers FMA and Supervisor findings from the Value for Money implementation pilot.
In December 2020 we published a consultation paper seeking input from KiwiSaver managers, KiwiSaver supervisors, other MIS managers, and other interested parties, on the regulatory approach to the statutory requirement that KiwiSaver fees must not be unreasonable and the related overarching statutory duties. This report summarises the feedback we received.