The FMA has achieved all its performance measures, according to its latest annual report – which covers the 12 months to June 2023.
The regulator says that customers being overcharged, or otherwise disadvantaged as a result of providers’ “poor practices and inadequate processes and systems”, has been a priority since the Conduct and Culture reviews of banks and life insurers.
In a statement, the FMA says: “Efforts to improve practices and systems have been ongoing following those initial reviews, and in October 2022 the milestone was passed of $150 million returned to customers by banks and insurers from remediation activity, prompted by FMA intervention.”
“The new advice regime successfully coming into effect this year has been a major highlight enhancing the potential for a sustainable and vibrant industry providing quality advice to more New Zealanders,” FMA CEO Samantha Barrass said.
“We have made strong progress delivering on our established mandate and new parts of our remit.
“In partnership with industry, government and other stakeholders, we are creating a rock-solid foundation for a genuinely fair financial system, where markets are trusted based on their integrity and transparency, enabling responsible innovation and growth.”
Barrass says the FMA has been talking to industry about embedding an outcomes-focused approach to regulation.
…we are creating a rock-solid foundation for a genuinely fair financial system…
“This overarching strategy will be progressively more apparent in all facets of our work in the years ahead,” she said.
The FMA has also released the results of its annual Ease of Doing Business survey, which gauges industry participants’ interactions with the regulator, and their views on its effectiveness.
Key findings include:
- 92% agree the FMA supports market integrity
- 95% agree financial markets are effectively regulated
- 89% agree the FMA helps to raise the standards of market conduct
- 67% agree it is easy to do business with the FMA
- 83% agree that communications help them understand FMA’s approach to regulation; readership of FMA’s communication material remains high with the monthly newsletter at 86%, media releases at 71%, and guidance at 66%
- 83% agree involvement with the FMA improved their understanding of what the FMA expects of them
- 82% agree FMA keeps a strong enforcement function and helps to deter misconduct