Our report about the FMA wanting annual reports from FAPs – so the regulator can keep tabs on the sector – was this week’s most-read article…
The information FAPs must give to the FMA as part of a new annual reporting requirement has been released by the regulator.
The FMA will use the information from FAPs to monitor their capability to perform financial advice services and will include information on the nature, size, and complexity of the service.
“The FMA remains committed to an approach that does not treat regulation as a ‘one size-fits-all’ compliance exercise,” says Clare Bolingford, FMA Executive Director for Regulatory Delivery.
“Overall, these regulatory returns support our supervision approach, so we can target our resources efficiently to identify those areas of highest potential risk of harming consumers.
“We will engage with the sector to provide guidance and expectations for completing the first regulatory returns leading up to the reporting commencement date in July.
“We expect that in subsequent years, FAPs will provide increasingly more accurate answers as their processes mature.”
The first regulatory returns will be due by 30 September 2024, for the reporting period 1 July 2023 to 30 June 2024.