Enforcing the law

Our enforcement policy is intended to guide and inform financial market participants. It is also intended to be a living policy and we may revise it from time to time according to what our objectives and priorities are. It is not exhaustive and is not binding.

View our enforcement policy page for more information on this topic.

The FMA’s prosecution policy explains when and how the FMA might take criminal action for serious misconduct. It supports our broader enforcement policy.

View our Prosecution Policy for more information [302KB]

In the event of a breach of financial markets legislation, we may intervene on an informal basis or at a low level where such action is proportionate to the misconduct and will achieve an appropriate market outcome. However, where appropriate, we will take strong action and hold individuals and entities accountable when they break the law and fail to meet the standards that are expected of them. If harm has been identified, we may also take regulatory action of some sort even though no ‘rules’ appear to have been broken.

View our list of enforcement activity

The hearings page outlines our approach to conducting hearings and explains the process we follow if you are entitled to a hearing and request one.

Read more about our approach to hearings

Individuals who are precluded from engaging in certain activities in respect of the governance and/or management of companies as a consequence of action taken by the FMA.

View the list of management bans and undertakings of non-participation

During the period 2006-2012, 51 New Zealand finance companies went into liquidation or receivership, or frozen payments. Many New Zealanders lost their money.

The scale and circumstances of the sector gave rise to concerns of inappropriate behaviour and breaches of the Securities Act and a programme of investigations into the failures was initiated.