MR No. 2018-01
20 February 2018
The Financial Markets Authority (FMA) today published its Conduct Outcomes Report for the calendar year 2017, setting out some of the key issues and actions taken by the regulator’s enforcement and supervision teams.
The report not only explains how the FMA responded to particular cases of misconduct, it explains why the FMA took these steps.
Where the FMA identifies risks or threats to fair, efficient and transparent markets, it will take proportionate action to reduce potential harm to investors and maintain market integrity.
Key actions in the FMA Conduct Outcomes Report:
Nick Kynoch, FMA General Counsel said, “The FMA is fully prepared to use its enforcement powers to deal with misconduct by bringing cases to both civil and criminal courts where necessary. We also look to use our full range of regulatory tools to achieve the right outcome and a proportionate use of our resources. We strive, through all of our interactions, to guide and influence providers to improve their focus on delivering good outcomes for investors.
This includes engagement with the industry by our frontline supervisory teams, for example through licensing and monitoring activities, as well as publishing reports to communicate our expectations to the market.”
The FMA remains focused on monitoring activity and conduct on the regulatory perimeter, in particular those that undertake activities without appropriate registration. The FMA urges investors to remain sceptical about ‘get-rich-quick’ offers and cold-calling investment schemes.
Alongside regulators around the world, the FMA is concerned at the high number of investment scams that are driven increasingly through online and digital operations. Investors should only deal with a New Zealand licensed provider wherever possible.
Other work on the perimeter included taking action where businesses and individuals misused Companies Office’s Financial Services Providers Register (FSPR). The report sets out information on some of the cases where the FMA has either prevented registration on the FSPR or directed the registrar to deregister a company from the FSPR.
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