Concerns over FMA's new approach to regulating

The FMA's draft guide in its consultation document outlines seven “fair outcomes,” although it says these are not new rules or regulations.

The shift in emphasis “raises serious questions for how the financial services sector will be regulated in practice and runs a risk of enforcement by hindsight bias,” the law firm says.

“While we agree that considering consumer outcomes is a beneficial lens for decision-making, we query whether it provides the necessary certainty when 'non-compliance' can lead to potential liability,” DLA Piper says.

“This is a crucial consultation for the sector. Robust and thoughtful submissions will be important.”