The New Zealand Financial Markets Authority (FMA) has published its Financial Conduct Report setting regulatory priorities for the 12 months of the 2025/26 financial year, beginning 1 July, and positioning the programme around an outcomes-focused approach to market conduct. Cross-sector priorities include reducing unnecessary compliance burden by continuing a pilot regulatory sandbox and progressing toward a single conduct licence through streamlined Financial Markets Conduct Act Part 6 licensing processes, standard conditions and supervision, followed by simplified regulatory returns. The FMA will also deepen its focus on emerging risks in private markets, virtual assets and tokenisation, and operational resilience. On consumer outcomes, it will test how well firms make complaints and dispute resolution options visible and easy to use, alongside an ongoing emphasis on remediation of harm, particularly for banks, insurers and non-bank deposit takers under the Conduct of Financial Institutions regime. The work programme also targets investment scams, including expanded pilot partnerships with banking and technology firms to enable faster information sharing and removal of scam content, against a backdrop of reported losses of $194 million in the year to 30 September 2024. Alongside continued engagement with the Ministry of Business, Innovation and Employment on custody law reform following the Barry Kloogh case, sector priorities include scrutiny of advisers’ conduct toward vulnerable consumers, adviser and investment fee and incentive disclosures, banks’ and insurers’ proactive reviews of existing products and self-reporting of material issues, insurers’ consumer communications ahead of phased implementation of the Contracts of Insurance Act 2024, action on misleading wholesale offer disclosure and advertising including a High Court case stated on eligible investor certificates, and intensified work with NZ RegCo on insider conduct and continuous disclosure. The FMA expects to use the report as a basis for supervisory engagement over the coming months and has invited dialogue and feedback to shape future annual editions.
New Zealand Financial Markets Authority 2025-06-25
New Zealand Financial Markets Authority publishes Financial Conduct Report setting 2025/26 priorities on streamlining conduct regulation, fair treatment and scam disruption
The New Zealand Financial Markets Authority's Financial Conduct Report for 2025/26 focuses on reducing compliance burdens, addressing risks in private markets and virtual assets, and enhancing consumer outcomes. Key initiatives include a pilot regulatory sandbox, streamlined licensing, tackling investment scams, and scrutinizing adviser conduct and disclosures, emphasizing remediation and proactive reviews by banks and insurers.