FMA Opens Consultation on Fair Outcomes for Consumers

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The FMA wants to hear your views on its approach to regulations covering fair outcomes for consumers via a new consultation initiative.

The regulator states that a focus on outcomes means it will be prioritising the end results it wants to see for consumers and markets, adding that rules and ‘tick box’ compliance “…are not an end in themselves”.

Since the FMA published its Guide to the FMA’s View of Conduct in 2017, it has expected firms to deliver fair outcomes. The consultation signals the approach it will take when working with industry to deliver on this goal.

The consultation will cover:

  1. Consumers have access to appropriate products and services that meet their needs
  2. Consumers receive useful information that aids good decisions
  3. Consumers receive fair value for money
  4. Consumers can trust providers to act in their interests
  5. Consumers receive quality ongoing care
  6. Markets are trusted based on their integrity and transparency
  7. Markets enable sustainable innovation and growth

FMA General Counsel & Executive Director for Evaluation and Oversight, Liam Mason says the consultation will support its work towards the regulator’s vision of “…more New Zealanders than ever believing our financial markets work well for them”.

Liam Mason, the FMA's Executive Director, Evaluation & Oversight.
Liam Mason, the FMA’s Executive Director, Evaluation & Oversight.

“We will always be a risk-based regulator, able to use a range of tools to respond proportionately to the harms and misconduct we identify,” says Mason.

“We believe that beginning our conversations with firms based on the outcomes we want to see, will help prevent harm in the first place.

“As we become a more outcomes focused regulator, this will require a shift in culture and mindset from us and firms to think about the results we want and have a shared interest in delivering for New Zealanders.

“The first step in this shift is the consultation, and we will be engaging and listening to all of our stakeholders over the next few months.”

Click here for more information and links to the FMA’s consultation documents.