FMA – Financial Markets Authority

The FMA - Financial Markets Authority is a financial conduct regulator and an independent Crown entity. It is responsible for overseeing financial markets.

DESCRIPTION

The FMA – Financial Markets Authority is a financial conduct regulator and an independent Crown entity. It is responsible for overseeing financial markets and promoting the growth of capital base in New Zealand. The regulator was formed in 2011 under the Financial Markets Authority Act 2011. The FMA’s vision is to promote the development of transparent, fair and efficient financial markets in New Zealand.

Responsibilities of FMA – Financial Markets Authority

The FMA is amidst three major regulatory bodies in the country, the two others being Reserve Bank of New Zealand and Commerce Commission. All three entities cooperate together to regulate the economy and promote the sound financial environment.

The Reserve Bank is responsible for prudential regulation and supervision as well as implementation of the monetary policy. While, the Commerce Commission observes mergers & acquisitions, regulated industries, and ensures fair trading. Among those two, the FMA is responsible for the licensing, compliance, supervision, and systems oversight.

How does the FMA regulate? Who?

Referring to the process of the regulation, it includes several facets: licensing; monitoring and supervision; investigations and enforcement; policy and investigation; education and information.

The sectors that the financial regulator supervises are as follows: financial entities, licensed managed investment schemes, licensed DIMS providers, derivative issuers, licensed auditors, and registered audit firms. The FMA also oversees licensed independent trustees, licensed financial products markets, authorized futures exchanges, authorized futures exchanges, authorized financial advisers, registered financial advisors, and registered KiwiSaver providers.

Warnings

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