New Zealand's Financial Market's Authority Podcasts (Financial Markets Authority NZ)

FMA Director of Supervision James Greig discusses the FMA’s new message to financial service providers to ensure their cyber defences are robust, in an age of increasingly sophisticated and successful cyber attacks. 

Here he explains why the regulator issued the “Cyber Security & Operational Systems Resilience” information sheet in June 2022, which includes details around standard FMC Act licence conditions, threat monitoring, staff training, board obligations, customer remediation and post incident reporting.

FMA Director of Banking and Insurance Conduct Clare Bolingford discusses the incoming Conduct of Financial Institutions (CoFI) regime, which will require New Zealand's retail banks, insurers and non-bank deposit takers to treat customers fairly at all stages of the relationship.

Here she outlines the key changes CoFI will bring about, what treating customers ‘fairly’ means in practice, and what firms can do now to prepare before CoFI comes into effect in 2025.

FMA Director of Investment Management Paul Gregory talks about the FMA’s latest KiwiSaver Annual Report, for the 2021-22 financial year. The report includes figures and trends found in KiwiSaver providers’ consolidated data, and summaries of the FMA’s key activities and ongoing focus areas.

Here we talk about the key stats, including the early impact of lower fee settings for default members, another jump in members in “socially responsible” funds, and liquidity risk management.

FMA Director of Capital Markets Paul Gregory discusses the FMA’s recently-published review of the wholesale property investment sector, which led to the FMA issuing formal warnings to several entities.

He explains why the FMA conducted the review and what the major findings were, particularly in relation to some firms using deficient eligible investor certificates. Mr Gregory says the report and warnings have put the industry on notice and the FMA has reinforced its expectations about what firms need to be doing to comply.

See:

• Media release: FMA formally warns wholesale property investment firms after discovering non-compliant practices
• Report: Thematic review of use of the wholesale investor exclusion

Today we discuss New Zealand’s new climate-related disclosures regime with the FMA’s Jenika Phipps. 

Organisations covered (known as Climate Reporting Entities or CREs) will soon have to make annual disclosures covering governance arrangements, risk management, strategies and metrics and targets for mitigating and adapting to climate change impacts.  

This applies to the larger publicly listed companies, big insurers, banks, non-bank deposit takers and investment managers. 

The FMA is responsible for independent monitoring and enforcement of the regime, providing guidance about compliance expectations, and reporting on monitoring activities and findings. 

We talk about who is covered by the regime, what’s happening around the world and what business should start thinking about as the new rules come into force this year.  

Featuring FMA Manager of climate-related disclosures Jenika Phipps.  

See: 

• https://www.fma.govt.nz/business/focus-areas/ethical-finance/climate-related-disclosures/  
• Report: Climate-related disclosures: Initial monitoring approach for record keeping https://www.fma.govt.nz/assets/Information-sheets/Climate-related-disclosure-Record-keeping-initial-monitoring-approach.pdf  
• Sign up for climate-related disclosure news and updates by selecting Climate Reporting Entity (CRE) information on the FMA subscription checklist: https://www.fma.govt.nz/subscribe-to-fma-news-and-alerts/  

Today we discuss the licensing of Financial Advice Providers (FAPs) with the FMA’s Michael Hewes.   

From March 17, 2023 all financial advice providers (FAPs) must hold or operate under a full licence from the FMA if they want to provide regulated financial advice to retail clients.  

With full licensing now in effect, this will continue to give Kiwis greater confidence in consistent standards across the financial advice industry. The value of quality financial advice is particularly relevant in the current environment, when many New Zealanders are navigating challenging financial decisions.  

This follows a two-year transition period, since 15 March 2021, during which they were allowed to operate under a transitional licence. 

Featuring FMA Director of Deposit Taking, Insurance and Advice, Michael Hewes. 

See: 

https://www.fma.govt.nz/business/services/financial-advice-provider/  

Financial advice regulatory regime - now in full effect 
https://www.fma.govt.nz/news/all-releases/media-releases/financial-advice-regulatory-regime-now-in-full-effect/  

Sign up for the monthly FMA Update on the FMA subscription checklist: https://www.fma.govt.nz/subscribe-to-fma-news-and-alerts/  

Today we’re looking at scams – particularly those investment scams that have led to Kiwis losing a lot of money – we’re talking retirement savings, house deposits and hard-earned savings being stolen by overseas criminals.  

We’re speaking to Sam McGuire, the FMA’s Regulatory Services manager. She sees a lot of the scam complaints that come in and she’s got some good advice for keeping safe.   

• Check out the FMA’s Warning and Alerts page here: https://www.fma.govt.nz/library/warnings-and-alerts/   
• Sign up for regular updates on scams, warnings and alerts here:  https://www.fma.govt.nz/subscribe-to-fma-news-and-alerts/   
• And the FMA’s main scams page here: https://www.fma.govt.nz/scams/  

In this episode, we look at the latest KiwiSaver Annual Report, with John Horner, Director of Markets, Investors and Reporting at the FMA.

The FMA’s latest KiwiSaver Annual Report shows that KiwiSaver has held firm through a continuing period of market volatility. Total funds in KiwiSaver have grown again this year, by $4 billion, due to contributions of $10.5bn from members, employers, and government.

This growth in total KiwiSaver funds is despite $1.9bn in investment losses at the March year end, the fourth time total investment returns have gone backwards in the scheme’s 16-year history. This points to the importance of ongoing contributions from investors, employers and the Government in building long-term retirement savings.

We talk with John about what’s happening with KiwiSaver fees, withdrawals by over 65s and what impact volatile world markets have had on KiwiSaver investor behaviour.

You can read the latest KiwiSaver report here.

• More on KiwiSaver here.
• Checking your KiwiSaver statement – Own your tomorrow

To find out more about the different types of KiwiSaver funds, see our Spotlight on Funds series:

• KiwiSaver Default Funds
• Spotlight on Balanced Funds
• Spotlight on Conservative Funds
• Spotlight on Growth Funds

In this episode, to mark World Investor Week, we take a look at ethical investing, with Paul Gregory, Executive Director, Response & Enforcement at the FMA. 

We talk with Paul about the challenges facing investors looking for ethical investments and the role of a regulator in making sure fund managers really are doing what they promise. We also explore the main things that investors should think about when looking at ethical investments.  

How do investors go about making these decisions – and is “greenwashing” is getting better or worse? 

Read more: 

• Ethical Investing
• Disclosure framework for integrated financial products
• Integrated financial products: Review of managed fund documentation  
• Ethical investing journey research  

In this special episode of our 5 mins with the FMA podcast, we take a look at outcomes- focused regulation with Liam Mason, FMA Executive Director of Evaluation and Oversight and General Counsel. 

The FMA is moving towards an outcomes-focused approach to regulation and part of this change is setting out ideas around fair outcomes for consumers and markets. 

Our new guide: "Fair outcomes for consumers and markets" introduces outcomes-focused regulation and what it means for engagement with industry. It's open for consultation now and describes seven fair outcomes for consumers and markets we consider providers should be working towards. 

We are seeking feedback and invite submissions via our website:
https://www.fma.govt.nz/news/all-releases/media-releases/fma-opens-consultation-on-fair-outcomes-for-consumers-and-markets/

 Read more:  

Download the proposed fair outcomes for consumers and markets consultation, PDF 

View the consultation page with all relevant documents  

In the first episode of our new podcast series ‘Occasional Conversations,’ Chief Economist, Stuart Johnson and Senior Adviser, Sophia Scragg discuss a new piece of research around fairness in financial services.

Overall, this research has shown that when presented with specific customer focused scenarios, consumers have a remarkably consistent understanding of what constitutes fairness in financial services. 

In the second episode of our new podcast series ‘Occasional Conversations,’ Chief Economist, Stuart Johnson discusses a new piece of research around AI in financial services.

To download the research paper in full head over to www.fma.govt.nz.  

KiwiSaver has just reached a huge milestone! According to our latest KiwiSaver Annual Report, the KiwiSaver funds under management have soared to $111.8 billion as of March 31, 2024, marking a 19.3% jump from last year’s $93.6 billion. This is a big win for New Zealanders who rely on KiwiSaver for their retirement savings. 

The growth this year came from a mix of $13.1 billion in investment returns and $11.2 billion in contributions from members, employers, and the Crown. 

Read the 2024 KiwiSaver Annual Report here: https://loom.ly/9lXTogQ 

The FMA has just published its latest piece of research from the economics team, looking at Commercial Real Estate and the Managed Funds Industry.   

We’re joined by FMA chief economist Stuart Johnson to tell us more. 

Want to learn more about KiwiSaver? This is episode 1 of our new navigating KiwiSaver series.

This first episode is a KiwiSaver 101, you will learn what KiwiSaver is and how it works. 

Jess asks Chief Economist Stuart Johnson how much she should be contributing and when to review her contributions.

This podcast has been prepared by the FMA. The advice is of a general nature, and is not intended to be financial advice and FMA does not accept responsibility for any loss that any a person may suffer from following it. The FMA recommends that our audience seek their own financial advice in respect of investing in KiwiSaver.

In this episode, Jess asks Stuart to break down the different types of KiwiSaver funds.

Funds are grouped by how much of the riskier investments they hold, like shares and property (also known as "growth assets"). Whether you're looking to dial your risk up or down, it's important to pick the right fund that aligns with your savings goals. 

Stuart also shares where to find out exactly which KiwiSaver fund you’re in — because knowing your current fund is the first step to making sure it’s working for you.

This podcast has been prepared by the FMA. The advice is of a general nature, and is not intended to be financial advice and FMA does not accept responsibility for any loss that any a person may suffer from following it. The FMA recommends that our audience seek their own financial advice in respect of investing in KiwiSaver. Anyone considering investing in KiwiSaver or making changes to their investment in KiwiSaver should seek advice from a financial adviser.

Did you know there are five contribution rates when it comes to your KiwiSaver — 3%, 4%, 6%, 8% or 10?  

Along with your personal contributions, your employer contributes to your KiwiSaver as well as the Government.

Episode 3 of our Navigating KiwiSaver series is out now! This week Stuart explains to Jess the importance of contribution rates and why a yearly review could be beneficial.

This podcast has been prepared by the FMA. The advice is of a general nature, and is not intended to be financial advice and FMA does not accept responsibility for any loss that any a person may suffer from following it. The FMA recommends that our audience seek their own financial advice in respect of investing in KiwiSaver. Anyone considering investing in KiwiSaver or making changes to their investment in KiwiSaver should seek advice from a financial adviser.

Jess and Stuart are back for episode 4 of our Navigating KiwiSaver series. Last week they discussed contributions, this week Stuart explains KiwiSaver fees, he also touches on active and passive investments.

The fee is calculated as a percentage of the net asset value of each fund, and is already deducted from your investment, so returns will be reduced.

Actively managed funds are where investment managers make active decisions on what investments to buy or sell in your KiwiSaver. On the other hand, passive investments copy what the market is doing by tracking and buying the index.

This podcast has been prepared by the FMA. The advice is of a general nature, and is not intended to be financial advice and FMA does not accept responsibility for any loss that any a person may suffer from following it. The FMA recommends that our audience seek their own financial advice in respect of investing in KiwiSaver. Anyone considering investing in KiwiSaver or making changes to their investment in KiwiSaver should seek advice from a financial adviser.