The Financial Markets Authority enforces securities, financial reporting, and company law as they apply to financial services and securities markets.
We also regulate securities exchanges, financial advisers and brokers, trustees and issuers - including issuers of KiwiSaver and superannuation schemes. Shortly we will also regulate auditors.
Efficient financial markets are critical to achieving economic and social goals. They ensure investment finance reaches productive firms - helping them to grow, and create employment and wealth. Efficient financial markets also offer investors the opportunity to create diversified portfolios that can achieve their personal financial goals, including a comfortable retirement.
FMA's role is not to direct investors' capital or remove risk from investing. No regulator can prevent all loss. We can, however, promote investment markets that are fair, efficient and transparent.
Impacts
As a result of the work we do, we aim to have the following impacts on financial markets:
- financial markets participants have clear and well-understood responsibilities
- investors have access to the information they need to make informed decisions
- investors clearly understand and have confidence in the regulation of financial markets
- emerging risks to FMA's objective are identified, and appropriate responses are developed
- financial markets are efficient, resilient and internationally attractive
- the costs and benefits of the regulatory regime are proportionate.
History
FMA was established in 2011 under the Financial Markets Authority Act 2011.
It replaced the Securities Commission and took over some roles of the Ministry of Economic Development, in particular the regulatory role of the Government Actuary and some of the roles of the Registrar of Companies.