Financial regulators in NZ and UK target fund manager compliance

Financial regulators in New Zealand and the United Kingdom are addressing compliance and disclosure standards for investment fund managers.

In New Zealand, the Financial Markets Authority (FMA) conducted a review of 61 managed investment scheme (MIS) managers, finding that most provided only minimal information regarding related-party transactions. The FMA noted that disclosures often failed to sufficiently explain the nature of relationships, fee structures, and the valuation of underlying assets. The regulator is urging managers to improve transparency to ensure users can understand potential conflicts of interest and valuation uncertainties.

In the United Kingdom, the Financial Conduct Authority (FCA) has proposed a significant overhaul of the alternative investment fund manager (AIFM) regime. The proposal introduces three manager categories based on net asset value: small (under £750 million), medium (£750 million to £5 billion), and large (over £5 billion). While the FCA estimates the reforms could save firms £128 million annually by reducing reporting burdens, industry observers warn that costs may shift unevenly, potentially increasing the burden on smaller authorized managers.