FMA focussed on fraud and commissions paid to advisers

The Financial Markets Authority has laid out its plans for regulating financial over the next year and is targeting supervision of specific conduct risks.

In its Financial Conduct Report, released today, it has a number of priorities for the advice sector including conflicted remuneration and a new focus on fraud.

FMA Executive Director, Licensing and Conduct Supervision, Clare Bolingford, says the regulator has seen an increase in potential fraud across mortgages, insurance and KiwiSaver with the latter often related to mortgage fraud with first home withdrawals.

“We were getting some emerging insights that fraud was becoming more prevalent in the market, and certainly from the work that we've done, both with financial advice providers and also with banks and insurance companies have shown that it is increasing as an issue within the sector.