In this episode of the 2025 Litigation Forecast Podcast, two of our litigation partners Andrew Horne and Jane Standage, are joined by Senior Associate Olivia de Pont also from our litigation team to discuss the latest developments in regulatory engagement and enforcement by the Financial Markets Authority (FMA). Together they delve into the FMA's recent publication on outcomes-focused regulation, the introduction of new supervisory approaches, and the implications of the FMA's budget constraints. They also explore the role of the FMA's perimeter and response team and the use of the case-stated procedure to gain legal clarity.

[01:05] Jane highlights the FMA’s recent publication and Olivia explains the FMA’s approach to supervisory engagement and enforcement, highlighting the annual financial conduct report and its regulatory priorities.

[02:11] Olivia discusses the FMA's proposal for a forward-looking supervisory approach and the importance of aligning with regulatory priorities. Jane inquires about changes to the FMA's supervisory processes.

[03:56] Olivia talks about the FMA's budgetary constraints and its focus on significant issues rather than minor technical non-compliance. Jane asks Andrew about the FMA's recent guidance on COFI. Andrew highlights the FMA's satisfaction with fair conduct programs and the importance of compliance with policies, processes, systems, and controls (PPSCs).

[05:42] Andrew discusses the need for financial institutions to adapt their programs to evolving risks, including innovation, AI, technology, and cyber risks.

[06:38] Olivia explains the FMA's plans for more industry roundtables, roadshows, webinars, and meetings with senior management to ensure flexible regulation. Olivia mentions the regulatory sandbox pilot for testing new products and services.

[07:36] Andrew provides an overview of the FMA's perimeter and response team and its role in addressing regulatory grey areas and new jurisdictions introduced by COFI. Andrew emphasises the importance of taking communications from the perimeter and response team seriously.

[10:18] Jane introduces the topic of the FMA's use of the case-stated procedure to gain legal clarity. Jane explains the case-stated process and its application in the FMA's recent case regarding eligible investor certificates for wholesale investments. Jane provides background on the thematic review that led to the case-stated.

[12:41] Jane outlines the advantages of the case-stated procedure, including cost-effectiveness and speed and discusses potential unintended consequences using the Harmony case as an example.

Information in this episode is accurate as at the date of recording: Wednesday, 7 April 2025.

Please contact Andrew Horne, Jane Standage or Olivia de Pont in our Litigation team if you need legal advice and guidance on any of the topics discussed in this episode. 

Please get in touch to receive an episode transcript. Please don't forget to rate, review or follow MinterEllisonRuddWatts wherever you get your podcasts. 

You can sign up to receive updates via your inbox here. 

You can read our full Litigation Forecast 2025 here.