FMA publishes annual report for 2020/21

Yesterday, the Financial Markets Authority (FMA) published its annual report for the year to June 2021, discussing its activities and performance over that period.

The FMA’s media release, and the 2020/21 annual report itself, can be found on the FMA’s website.

Who needs to read it?  Why?

This will be of interest to all those participating in the financial markets, where the FMA is the principal conduct regulator, as it provides insight into its priorities.

What does it cover?

With the year to June 2021 covering the 10th anniversary of the FMA’s 1 May 2011 establishment, the report reflects on the constants and the developments in the FMA’s role, and summarises its key activities, since then.

Highlighted in the report are:

  • the three impending regulatory regimes that the FMA will be responsible for, namely:
    • licensing and supervising banks, insurers, and non-bank deposit takers for conduct;
    • reviewing the climate-related financial disclosures that will be required for some entities; and
    • monitoring compliance with new insurer requirements around policies and protections for customers;
  • a holistic focus on value for money that has broadened from focussing on KiwiSaver fees to all managed funds;
  • the commencement of the new financial advice regime (currently in a transitional phase), following years of engagement, consultation, and collaboration with the adviser industry and Government;
  • the offering of insights and regulatory relief options through the COVID-19 pandemic; and
  • a range of enforcement activity carried out against both individuals and corporations for misconduct.

Other matters that the report goes on to cover include:

  • the strategic intentions and performance measures from the FMA’s Statement of Intent, and its performance against them;
  • the activities of the FMA, and its expectations and approach in carrying them out;
  • key persons and demographics at the FMA;
  • the structure and governance of the FMA; and
  • the FMA’s financial statements.

What next?

If you have any questions in relation to the regimes raised in the FMA’s annual report, or financial services regulation more generally, please contact one of our experts.

Who can help