The Financial Markets Authority (FMA) is an independent supervisory entity in charge of regulating the business conduct of banking (deposit-taking, payment services, mortgages, etc.) financial advice providers, non-life insurance providers, money management companies, investment scheme providers, forex brokers, investment advisors, and so on in New Zealand. It is worth mentioning that FMA is a member of the Council of Financial Regulators (CoFR), RBNZ, MBIE, Treasury, and the Commerce Commission. The organization was founded in 2011 to supervise the entire industry in terms of fair dealing practices under specific laws and regulations. Furthermore, FMA is to ensure that not only the laws are followed by all the participants of the financial markets, but also the lawbreakers are pursued and prosecuted. FMA also provides the required information to the investors so they can make informed financial decisions for better future investments. The most noteworthy pieces of legislation observed by FMA are the Auditor Regulation Act 2011, Auditor Regulations 2012, Financial Markets Conduct Act 2013, Financial Markets Conduct Regulations 2014, Anti-Money Laundering and Countering Financing of Terrorism Act 2009, and Anti-Money Laundering and Countering Financing of Terrorism Regulations. As a risk-based financial supervisor, FMA tries to identify risky business areas that could entangle clients as well as the markets, and thereby, take the necessary actions to eliminate the latent risks. It stands to reason that such efforts be further focused on the outcome that would benefit all the participants. In addition, the same set of examinations and reviews are regularly dedicated to FMA resources for more improvement. FMA also finds that consistency, transparency, and flexibility of its intentions and approaches could go a long way in setting the precedent for the participants of the financial markets.
The Financial Service Providers Register is a regulatory entity in New Zealand responsible for regulating and licensing all the Forex brokerage firms, insurance companies, investment scheme providers, financial service providers, etc. FSPR was founded under the Financial Service Providers (Registration and Dispute Resolution) Act 2008. FSPR is very devoted to providing a clean and approachable trading environment for all the participants of New Zealand’s financial markets. It should be noted that FSPR is held accountable by the Registrar under the Ministry of Business, Innovation, and Employment (MBIE). The organization seeks to regulate, monitor, and register all the individuals, organizations, and companies that want to be a part of the financial markets by providing relevant services. FSPR focuses on transparency when it comes to providing the public with the required data concerning financial service providers (FSP) as well as their dispute resolution scheme (DRS).
Moreover, FSPR does not allow persons with past criminal records to enter financial markets as an FSP or a part of it. Like any other law-abiding regulator, FSPR takes its international duties, such as preventing money laundering and financing of terrorism very seriously. To help fulfill its duties better, FSPR holds a record of FSPs including their name, registration number/date, address, as well as their registered bank/non-bank deposit takers, credit providers, fund managers, insurers, and so on. FSPR is also empowered as a regulator by the following pieces of legislation: the Reserve Bank of New Zealand Act 1989, the Insurance (Prudential Supervision) Act 2010, the Financial Markets Supervisors Act 2011, the Financial Markets Conduct Act 2013, and the Non-bank Deposit Takers Act 2013. The financial service providers that want to be registered members of FSPR and use its online services and support are required to agree to the T&Cs set forth by the MBIE. These terms and conditions are to protect the FSPs and their consumers and make sure that everything is transparent and fully compliant with the required standards.
The FMA organization was established in the hope of creating a solidified and united financial center to welcome all the consumers, investors, and service providers alike. This objective can only be acquired by ensuring that the economy of New Zealand thrives on all fronts without even the slightest hiccups. To that end, the customers of New Zealand’s Markets will always come first, and therefore, can put their trust in this financial center to meet their expectations. Moreover, FMA has taken the necessary steps to make certain that every registered member engages in fair, transparent, and justifiable practices so the integrity of the markets remains intact. To maintain a stable market environment, FMA informs the consumers in matters concerning investment products, KiwiSaver, high-risk investments, scams, as well as receiving assistance. It should be noted that FMA also works side by side with governmental agencies and organizations, again in the hope of maintaining a unified and well-established marketplace for all. Some of the well-known member organizations of the Customer Advisory Network are the Banking Ombudsman Scheme, Consumer New Zealand, Financial Dispute Resolution, Financial Services Complaints Limited (FSCL), Insurance and Financial Services Ombudsman Scheme, and National Building Financial Capability Charitable Trust.
FSPR is first and foremost concerned with keeping the integrity of the financial markets intact in all of New Zealand. The organization paves the way for a trustworthy business environment by promoting honesty, transparency, and code of conducts in all aspects of its regulatory framework. The FSPs and their services need to be transparent so New Zealand can prosper as a financial center. FSPR makes sure that all the registered members comply with the laws and regulations and do not engage in financial crimes of any sort. FSPR realizes that security is of utmost importance, especially in today’s fast-paced world, which is why it guarantees that unauthorized parties will not be able to access the documents and information provided by the members. FSPR expects licensed members such as Forex brokers, financial advisors, and credit unions to be forthcoming about their business endeavors and future directions so the organization can fulfill its regulatory duties without any obstacles. FSPR also takes into account all the relevant international measures and standards within the scope of its jurisdiction.
