There was strong reader interest this week in news that the FMA will be changing its regulatory approach next year…
No new rules will be introduced by the FMA next year says its CEO Samantha Barrass in an end-of-year message to the sector, but she has flagged the regulator will be changing its approach.
In referring to the organisation’s Financial Advice Provider Monitoring Insights report, which focused on gaps that could lead to poor outcomes for consumers, Barrass says the FMA has taken onboard what the industry said.
“We have taken time to consider the industry’s early 2024 response to our consultation on fair outcomes,” writes Barrass.
“These were intended to help explain how we intend to prioritise and carry out a more forward-looking approach to regulation. I assure you they will not be new rules. We will share more in a publication in the New Year.”
In 2025 the FMA will launch the Financial Conduct Report, which will examine conduct across all the sectors it regulates.
“This report will highlight key conduct issues, showcase good practices, and identify areas for improvement,” she states.
“It will provide the industry with clarity on areas of focus for the FMA and our key regulatory priorities. We aim to publish this report mid-year 2025 and will make it a regular publication.”
Barrass also states the FMA has changed its regulatory approach to be “…more forward-looking, prioritising our work based on our assessment of risks to consumer and market outcomes, to streamline our approach and reduce unnecessary regulatory burden on providers”.
“We are already developing this new approach,” she states.