About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds Other Sites:   depositrates.co.nz  |   landlords.co.nz
Last Article Uploaded: Friday, May 29th, 5:56PM
Latest Headlines

FMA reveals its focus for 2013

The Financial Markets Authority has revealed what it will have its eye on in 2013 - and it's encouraging industry participants to dob in others who aren't meeting the standards.

Thursday, February 28th 2013, 10:11AM 1 Comment

by Susan Edmunds

It has released its compliance focus report for this year, outlining its priority areas for monitoring.

Among them are how advisers build consumer trust, industry standards in general, the effectiveness of existing and new regimes, and KiwiSaver.

CEO Sean Hughes said it would give industry participants the chance to assess their activities and take steps to improve compliance.

“The document is not intended to be a complete list of all the work we will do but it outlines our priorities and overall regulatory approach.  Priorities will evolve as we monitor financial markets and evaluate emerging risks but we’re anticipating that these themes will remain beyond 2013.”

The report says industry participants must build customers' trust by being fair and transparent in their dealings, and keeping customers' interests central to their activities.

It notes that low interest rates are pushing investors to look for higher yields. The FMA says what when a product has been designed to achieve higher yield, advisers must properly explain the product and any risks associated with it.

“Retirees are one group that may be affected by the search for higher yielding products, but are less able to recover from loss of capital. FMA expects participants to take into account the vulnerability of these customers when advising on, or delivering, financial products.”

The FMA says it expects industry participants to demonstrate behaviour that exceeds the bare minimum required, and to focus on ethics and integrity.

Advisers are encouraged to tell the FMA about any poor conduct on the part of any other industry participants.

It will look at securities exchanges and futures markets to ensure transparency. “FMA has conducted a number of inquiries into trading on registered securities exchanges, including some that revealed poor administrative proactive by substantial shareholders, directors and officers, resulting in delays in notifying the market of trading.”

It says visits to futures dealers have indicated some have poor compliance controls. And the FMA is concerned about a lack of focus on obligations to investors by some issuers and their directors.

It says advisers need to adapt to new regulatory regimes to get the benefits from them. A focus will be the Financial Markets Conduct Bill and the anti-money laundering legislation, both due this year.

Its fourth focus is KiwiSaver - the FMA says it has already taken a number of steps to raise standards in the market, and has issued warnings and taken action in relation to some sales practices.

"For many New Zealanders, KiwiSaver will be their first investment and will impact their future financial security."

FMA focus areas for KiwiSaver will be investments, unit pricing, disclosure, trustrees, advice and fees.




« Banks ramp up competition Fund managers call for level playing field »

Special Offers

Comments from our readers

On 4 March 2013 at 9:50 am Phil said:
While it's noble that the FMA should seek the support of advisers in "dobbing in" fellow participants for shoddy behaviour, my experience so far would indicate it's a waste of time.

Two of us advisers did just that and advised the FMA of behaviour of another adviser - we received a "thank you email" from the FMA. After hearing nothing more for a period of time, I emailed the writer and asked was our complaint justified, had they spoken to the adviser and what was the outcome? The FMA lady advised that none of that could be discussed with us! So I commented that even the Police get back to complainants and let them know the result of a complaint! She wasn't interested. So I won't be either in future - they can police the industry themselves.

Sign In to add your comment



Printable version  


Email to a friend
News Bites
Latest Comments
  • FMA starts major investigation into churn
    “Does anyone know if the Banks are included in this fishing exercise? And how will the FMA be able to differentiate between...”
    21 hours ago by I was wondering
  • Getting to know...Peter Leitch
    “And a thoroughly nice guy to boot. "Good on yer, Peter! We need more advisers of your ilk" (Wonder how many will scurry...”
    22 hours ago by Robert Oddy
  • Did issues paper miss opportunities?
    “This response is an attempt to get some debate going here. Angus is reported as making 3 major points here. I would grade...”
    22 hours ago by Murray Weatherston
  • Getting to know...Peter Leitch
    “Never met the Mad Butcher, I am sure he is a nice chap. I have met this Peter Leitch and he is definitely a nice chap; and...”
    22 hours ago by Giles Thorman
  • New Zealand advisers won't dodge bullet: Rickerby
    “The reality is and any decent broker knows it, Life Insurance is more of a commodity these days with guarantees of upgrade...”
    1 day ago by Mark Ogden
Subscribe Now

Weekly Wrap

Previous News


Most Commented On
Mortgage Rates Table

Full Rates Table | Compare Rates

Lender Flt 1yr 2yr 3yr
ANZ 6.74 5.59 5.59 5.59
ANZ Special - - 5.39 -
ASB Bank 6.75 5.99 5.99 5.99
ASB Bank Special - 5.35 5.39 5.39
BankDirect 6.75 5.99 6.09 5.99
BankDirect Special - 5.35 5.39 5.39
BNZ - Mortgage One 7.15 - - -
BNZ - Rapid Repay 6.74 - - -
BNZ - Special - - - -
BNZ - Std, FlyBuys 6.74 5.35 5.39 5.49
BNZ - TotalMoney 6.74 - - -
Lender Flt 1yr 2yr 3yr
Credit Union Auckland 6.70 - - -
Credit Union Baywide 6.45 5.95 5.99 -
Credit Union North 6.45 - - -
Credit Union South 6.45 - - -
eMortgage 6.04 6.15 6.69 7.19
Finance Direct 6.10 6.45 6.69 7.10
First Credit Union 6.45 - - -
General Finance 5.95 6.25 6.50 7.10
HBS Bank 6.65 5.69 5.39 5.69
HBS Special - 5.59 5.35 5.35
Heartland 6.70 7.00 7.25 7.85
Lender Flt 1yr 2yr 3yr
Heretaunga Building Society 6.70 5.70 5.40 -
Housing NZ Corp 6.74 5.70 5.99 6.29
HSBC Premier 6.84 5.65 5.65 5.65
HSBC Premier LVR > 80% - - - -
HSBC Special - 5.29 5.29 5.29
ICBC 6.75 5.99 6.39 -
Kiwibank 6.65 5.39 6.09 6.29
Kiwibank - Capped - - - -
Kiwibank - Offset 6.55 - - -
Kiwibank Special - - 5.39 5.39
Liberty - - - -
Lender Flt 1yr 2yr 3yr
Napier Building Society 5.80 6.00 6.70 -
Nelson Building Society 6.95 6.15 6.60 -
NZ Home Loans 6.85 6.09 6.40 6.29
Perpetual Trust 7.70 - - -
Resimac 6.59 5.88 5.86 5.90
SBS Bank 6.65 5.69 5.39 5.69
SBS Bank Special - 5.59 5.35 5.35
Silver Fern 5.95 6.10 6.55 7.05
Sovereign 6.85 ▼5.35 ▼5.39 ▼5.39
Sovereign Special - - 5.39 5.39
The Co-operative Bank 6.70 5.29 5.39 5.49
Lender Flt 1yr 2yr 3yr
TSB Bank 6.74 ▼5.55 ▼5.55 ▼5.75
TSB Special - - 5.29 5.40
Wairarapa Building Society 6.20 5.75 5.95 -
Westpac 6.59 ▼5.59 ▼5.59 ▼5.59
Westpac - Capped rates - 6.74 6.99 -
Westpac - Offset 6.59 - - -
Westpac Special - 5.25 5.39 -
Median 6.70 5.70 5.59 5.67

Last updated: 29 May 2015 5:26pm

News Quiz

Along with Good Shepherd NZ, Ministry of Social Development and The Salvation Army which bank is involved with the No Interest Loan Scheme (NILS)?







About Us  |  Advertise  |  Contact Us  |  Terms & Conditions  |  Privacy Policy  |  RSS Feeds  |  Letters  |  Archive  |  Toolbox
Site by Web Developer and eyelovedesign.com