The FMA has certain powers granted by legislation, to monitor compliance, investigate, and take enforcement action against conduct that may constitute a contravention of legislation, where it applies to financial market firms and individuals. This section explain
The FMA has certain powers granted by legislation, to monitor compliance, investigate, and take enforcement action against conduct that may constitute a contravention of legislation, where it applies to financial market firms and individuals. This section explains the Financial Markets Conduct Act 2013 and other legislation we enforce.
The Financial Markets Conduct Act 2013 (FMC Act) lays the groundwork for us to provide high-quality regulation in capital markets and financial services here in New Zealand. It is the largest statutory change in our financial markets in at least 30 years and ensures regulation keeps pace with investor and business expectations.
The Financial Markets (Conduct of Institutions) Amendment Act 2022 amends the Financial Markets Conduct Act 2013 to ensure financial institutions treat consumers fairly. It is designed to protect consumers by putting the consumer at the forefront of institutions’ decisions and actions.
We oversee a range of financial markets legislation.
The laws governing financial advice in New Zealand have changed. As part of the changes, the three adviser types – Registered Financial Adviser (RFA), Authorised Financial Adviser (AFA) and QFE adviser have been removed – and all advisers need to meet the same standards and are subject to a Code of Professional Conduct for Financial Advice Services.
Designations can change how a product, client, advice or service is categorised, and remove an existing statutory exemption or exclusion. A designation can be applied to:
Under the FMC Act, we have powers to make designations that change the way products and other matters are regulated.
The FMA has wide powers under the FMC Act to provide exemptions (secondary legislation) to persons or transactions from compliance obligations under financial markets law. This allows us to provide a tailored approach and ensure requirements for businesses are reasonable and cost-effective.
Conduct is at the core of the Financial Markets Conduct Act 2013 (FMC Act). Underpinning the breadth of the FMC Act are the fair dealing provisions, which set out the core standards of behaviour that those operating in the financial markets must comply with.
Part 2 of the FMC Act requires “fair dealing” in relation to financial products and services.