News · BFSI
New Zealand's Financial Markets Authority faces industry calls for a more proportionate regulatory approach, as survey data show a sharp drop in satisfaction with its outcomes focus.
✦ AI SUMMARY 30-second read
- Agreement that the FMA focuses on outcomes that matter for consumers and markets fell from 73 per cent to 59 per cent in the latest survey.
- The FMA has completed the transfer of consumer credit regulation from the Commerce Commission and shifted AML/CFT supervision to the Department of Internal Affairs.
- The FMA will publish board members' governance interests and conflict management plans on its website.
Why it matters: As the FMA becomes New Zealand's single conduct regulator for financial markets, restoring industry confidence in its proportionality is central to effective oversight.
This summary was generated by AI. Editors may review and update it.
The Financial Markets Authority (FMA) has been urged by industry stakeholders to sharpen its focus on outcomes and adopt a more proportionate regulatory approach, as the regulator finalises its role as New Zealand's single conduct regulator for financial markets.
The feedback emerged from the Ease of Doing Business Survey released alongside the FMA's annual report for the year to 30 June 2026. While respondents continued to recognise the regulator's role in protecting consumers and maintaining market integrity, two areas drew clear criticism: outcomes focus and the proportionality of its regulatory approach.
Agreement that the FMA focuses on outcomes that matter for consumers and markets fell from 73 per cent to 59 per cent, according to the annual report.
What the survey found
The Ease of Doing Business Survey asks industry participants to assess the effectiveness of their dealings with the FMA and how well it is delivering its mandate. The drop in satisfaction on outcomes focus was the most prominent finding, pointing to a gap between the regulator's activity and what industry participants believe matters most.
Newly appointed board chair James Miller said the board takes the feedback seriously. 'As a board, we expect the organisation to listen carefully, respond to those concerns, and continue improving the way it delivers on its mandate,' he said.
The FMA is developing an updated strategy over the coming months and will also appoint a new chief executive.
Transfer of credit and AML/CFT responsibilities
A significant structural change completed during the year was the FMA establishing itself as the single conduct regulator for financial markets. Consumer credit regulation moved from the Commerce Commission, and anti-money laundering and countering financing of terrorism supervision was transferred to the Department of Internal Affairs.
Acting chief executive Alastair Hercus noted that 2025/26 was the first year the FMA reported publicly against the priorities set out in its Financial Conduct Report, and that it delivered on almost all of those priorities.
For mortgage advisers and lenders, the consolidation of conduct oversight under one regulator is a material operational change, bringing credit conduct into the same regulatory framework that governs broader financial market behaviour.
Conflicts of interest in focus for 2026/27
The FMA's Financial Conduct Report 2026/27 identifies managing conflicts arising from remuneration structures in consumer credit and financial advice as a cross-sector priority for the current year.
On board governance, the FMA will publish each board member's relevant governance interests and conflict management plans on its website, alongside its conflicts of interest policy. Miller acknowledged that directors' industry backgrounds provide practical insight but can create conflicts with entities the FMA regulates.
Under the arrangements, board members disclose their interests and do not participate in, or receive information about, matters where a conflict may exist.
What happens next
The FMA is working on an updated strategy and a new chief executive appointment in the coming months. Industry expectations will be a key input as the regulator looks to rebuild satisfaction scores and demonstrate that its regulatory approach is both effective and proportionate.
Elets will update this story as the FMA's strategy review and leadership appointment progress.
