Financial Markets Authority announces regulatory updates in New Zealand

The Financial Markets Authority (FMA) has announced several regulatory updates regarding compliance and reporting in New Zealand.

To address concerns regarding Conduct of Financial Institutions (COFI) sales incentives and mortgage adviser obligations, the FMA will implement a targeted information campaign rather than rewriting existing guidance. This decision follows a Commerce Commission probe into the banking sector, which suggested mortgage advisers were not sufficiently promoting price competition. The FMA intends to release a dedicated information sheet to clarify how sales incentive regulations apply to third-party intermediaries and financial advice providers.

Additionally, the FMA is extending its ‘no action’ relief for climate reporting obligations. This extension provides certainty to entities affected by legislative uncertainty following the failure of the Financial Markets Conduct Amendment Bill to pass before the election. The relief covers several reporting periods for 2026/2027, aiming to prevent unnecessary compliance costs for listed issuers, investment scheme managers, and insurers while the future of climate reporting policy remains undetermined.