Financial Markets Authority releases Annual Corporate Plan

The Financial Markets Authority (FMA) released its Annual Corporate Plan (Plan) on Tuesday 23 July 2019 outlining its work plan for the next financial year and setting objectives for raising standards of behaviour across financial services. A link to the Plan is available.

The Plan is based on a new sector-based approach set out in the FMA’s Strategic Risk Outlook (SRO), also published on this day. A link to the SRO is available.

Who needs to read it? Why?

The Plan is relevant for all financial markets participants. The Plan provides useful insight into the FMA’s priorities and focuses over the next 12 months. The FMA’s work with RBNZ on the conduct and culture reviews of the banking and life insurance sections will be an ongoing priority and with the FATF review due in 2020, the focus on AML/CFT monitoring and enforcement is to be expected.

What does it cover?

The Plan sets out the FMA’s five key priorities for 2019/20:

  1. Governance, culture, systems and controls – ensure regulated firms exhibit a customer-centric culture that serves the needs of customers.
  2. Credible deterrence of misconduct – deter misconduct through effective enforcement action, particularly in relation to trading misconduct (i.e. insider trading and market manipulation), misconduct on FMA’s perimeter, failure to meet AML/CFT requirements, and misleading and deceptive conduct (i.e. enforcing fair dealing provisions of the Financial Markets Conduct Act 2013).
  3. Successful implementation of potential remit changes – deliver policy objectives while minimising transitional costs to firms and risks to customers – particularly in relation to the Financial Services Legislation Amendment Act and potential changes to the conduct regulation of banking and insurance.
  4. Investor and customer decision-making – ensure investors and customers are engaged and make active choices based on clear, concise and effective information.
  5. Promoting trust and confidence in capital markets – improve quality of audit, disclosure and financial reporting, and effective oversight of NZX and other licensed capital-raising platforms.

The FMA also sets out specific focuses on capital markets, investment management sales, advice and distribution, banking and insurance, and cross-section activities.

What next?

If you have any questions in relation to the Plan or want to understand more about how issues are relevant for your business, please contact one of our experts.

Who can help

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