FMA boss praises sector's adaptation to new regulatory standards
In her speech at the Financial Advice New Zealand (FANZ) Thrive Conference, Financial Markets Authority (FMA) CEO Samantha Barrass (pictured above) celebrated the financial advice sector’s effective adaptation to new regulatory standards and licensing, calling it “the most successful transition” she has seen in her career.
FMA’s role expansion to include conduct regulation for banks, insurers, and non-bank deposit takers was also confirmed, with a focus on small firms' integration into the Conduct of Financial Institutions (CoFl) regime.
“The lessons we have learned working with you, across the wide range and different scales of business models in this sector, will be harnessed in our approach to bringing firms – and particularly the smaller firms – across the line for the Conduct of Financial Institutions regime. We will be engaging with all these firms in preparation for CoFI, about how they interact with you, their distributors,” Barrass said.
Honouring leadership and looking forward
Barrass paid tribute to Katrina Shanks for her significant contributions and welcomed Nick Hakes as FANZ’s new CEO, expressing eagerness for continued constructive collaboration.
She emphasised the importance of legislation in enabling access to quality advice and shared her vision for the FMA to help more New Zealanders experience a well-functioning financial sector.
Navigating challenges, embracing innovation
Addressing the industry’s adversities, including the COVID pandemic and economic uncertainties, Barrass acknowledged financial advisers’ role in aiding clients through tough times.
“Advice continues to play a critical role in helping people manage their affairs and make well-informed decisions,” Barrass said. “You are an essential ingredient to our mutual and shared goal of a resilient financial services sector where customers and clients are treated fairly and with integrity. So, in reality, this uncertainty is part of the opportunity.”
Barrass also discussed the rise of fintech and the integration of AI and automation, noting the sector’s movement towards a more hybrid advice model. Additionally, she mentioned upcoming shifts in regulatory responsibilities and the FMA’s transition to an outcomes-focused regulatory approach, aimed at fostering better industry and consumer outcomes.
Conclusion: Building trust and confidence
Concluding her speech, Barrass reiterated FMA’s commitment to collaborative regulation and ensuring compliance that is proportionate to the scale of businesses.
She stressed the importance of holding poor conduct accountable while celebrating good practices within the sector, with the ultimate goal of delivering well-regulated, quality advice accessible to more New Zealanders.
Read the full speech on the FMA website.
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