Time the only true test for outcomes-focused regulation

“It’s a definite improvement,” says DLA Piper Partner Tom Barnes, who specialises in financial services and funds management.

“One of the issues with the earlier consultation draft was it wasn't clear who was responsible for achieving the outcomes.”

The fresh guidance carries tweaks the regulator has made to its approach following its consultation on fair outcomes for markets and consumers last year. The consultation drew more than 50 submissions, many wanting more clarity on what fair outcomes looked like in the FMA’s eyes, particularly where outcomes are not within financial service providers’ control.

“There were some statements, for example, that boards needed to take responsibility for the achievement of these outcomes, which then puts boards in the position of figuring out, well, what is it that we can actually do to try and achieve these outcomes?” says Barnes.