Insights, milestones, and enforcement efforts
The Financial Markets Authority (FMA) has published its annual report for the financial year ending June 30, outlining the regulator’s main activities, including market oversight, enforcement efforts, regulatory implementation, and investor education.
FMA’s key areas of focus
Six out of nine goals in the FMA’s Statement of Performance Expectations were achieved, with several significant accomplishments highlighted:
- Launched licensing for the Conduct of Financial Institutions (CoFI) regime
- Released the first Financial Advice Provider Monitoring Insights Report
- Facilitated the first climate statements under the Climate-Related Disclosures framework
- Progressed penalty hearings involving CBLC directors and Peter Harris admissions
- Issued penalty rulings for breaches of fair dealing rules
- Initiated civil proceedings against Booster Investment Management Ltd
- Issued guidance on liquidity risk management for fund managers
- Published Climate-Related Disclosure guides with the External Reporting Board
- Provided an information sheet to assist smaller firms under CoFI requirements
Remediation delivers more than $215 million
Through joint efforts with the Reserve Bank, remediation programs stemming from the Conduct and Culture review of financial institutions resulted in more than $215m being returned to affected customers by banks and insurers.
FMA CEO reflects on milestones and challenges
FMA CEO Samantha Barrass (pictured above) acknowledged the agency’s achievements.
“This year has seen the passing of milestones in key areas related to our expanding remit, including Conduct of Financial Institutions and Climate-related Disclosures – a reminder to ourselves and industry of all the hard work and collaborative effort to get here, and that a steadier state of regulation is just ahead,” Barrass said.
She also emphasised the importance of accountability: “The breadth of enforcement activity and outcomes demonstrates we are still focused on taking action where consumers have not received fair treatment.”
Barrass noted areas for improvement.
“We also acknowledge the decline in stakeholder and investor perceptions for some areas of our work,” she said. “In collaboration with the FMA board, we have committed to exploring these results further to understand where there are opportunities for improvement.”
FMA survey reveals mixed industry sentiment
In addition to the annual report, the FMA published its 2024 Ease of Doing Business survey, which gathered industry feedback on interactions with the regulator.
Although only 19% of stakeholders responded, the findings provide useful insights:
- 94% believe financial markets are well-regulated
- 85% say FMA supports market integrity
- 84% find FMA’s communications relevant to their sector
- 75% agree the regulator raises market conduct standards
- 80% say FMA’s communications clarify its regulatory approach
- 77% understand FMA’s expectations through these communications
- 53% believe it is easy to do business with FMA
The survey served as part of FMA’s performance measurement framework, offering a window into its effectiveness and opportunities for further refinement.
Both the 2024 Annual Report and 2024 Ease of Doing Business Survey are now publicly available.
Read the FMA media release here.
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