The Financial Markets Authority (FMA) – Te Mana Tātai Hokohoko – has today published its annual report for the year to June 2021.
Throughout the year, the FMA continued to prepare for three new regulatory regimes, including the licensing and supervising of banks, insurers and non-bank deposit takers for conduct, climate-related financial disclosures that will become mandatory for some entities, and monitoring compliance with new requirements for insurers regarding policies and protections for customers¹.
Meanwhile, the FMA’s interest in KiwiSaver fees shifted to a more holistic focus on value for money, with new guidance issued for all managed funds. And the new financial advice regime commenced, following strong engagement, consultation and collaboration with the industry and Government over the past five years.
Further, in response to the rise of online investment platforms, the FMA produced resources and online content to raise awareness of the risks and responsibilities related to share trading.
Enforcement activity to deter misconduct was varied and extensive, with notable cases including (chronologically):
- criminal charges being filed against Forestlands founder and director Rowan Charles Kearns;
- a warning to an individual for behaviour that likely amounted to market manipulation;
- Pegasus Markets director Michael Reps being sentenced for abuse of the FSPR;
- imposing conditions on CLSAP NZ’s derivatives licence for failing to meet its obligations and latterly, the firm admitting to breaches of the AML/CFT Act in the High Court;
- ANZ being ordered by the High Court to pay a $280,000 civil penalty for misleading representations in the supply of credit card repayment insurance;
- court decisions that will see victims of convicted fraudsters Steven Robertson and Rodney McCall receive a portion of their money back; and
- continuing work on the civil proceedings against CBL Corporation, six of its directors and the CFO.
Liam Mason, FMA Acting Chief Executive, said: “2021 marked the FMA’s 10th anniversary and while some focus areas have remained constant over the past decade, in other areas we continue to take on new responsibilities. The FMA is growing and adapting to implement these new responsibilities, which will benefit the wellbeing of New Zealanders. It is encouraging to see through our regular surveys that stakeholders continue to see the FMA as supporting market integrity and good conduct.”
Mark Todd, FMA Chairman, said: “I want to acknowledge the enormous contribution and outstanding service of Rob Everett, who resigned as Chief Executive in late 2021 after a significant tenure. We’re delighted that Samantha Barrass has now joined us as our new Chief Executive, bringing strong experience as a regulator and leader.”
|Stakeholders agree that the FMA supports market integrity|
Source: Data from the 2021 Ease of Doing Business survey of 112 key FMA stakeholders