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Regulation

FMA kicks-off monitoring reviews

Friday 27th of May 2011

Director of Financial Adviser Regulation, Mel Hewitson, says as monitoring activity increases, AFAs may be selected for an ABS review, an interview or a visit as part of random checks, in response to information received about their business, or because FMA is investigating a particular theme across the industry.

"Regulation is new for advisers so our focus in these early months is on giving feedback to help all advisers understand and reach full compliance with their obligations," Hewitson says.

"If initial monitoring indicates advisers need more guidance, FMA is likely to issue hints and tips for all advisers.  Expect us to be clear, fair and transparent about our regulatory expectations.  However, repeated errors may indicate some remedial action is due."

Hewitson also warned that if FMA does find deliberate or reckless misconduct, or if there is evidence advisers have intended to deceive or defraud, action will be taken.

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