FMA statement of intent: Keep watch on incentives
It has released an updated Statement of Intent for 2020 to 2024.
It said its overarching purpose continued to be to promote and facilitate the development of fair, efficient and transparent markets.
Within that, it wants to have financial service providers demonstrate an appropriate customer-centric culture and improvements in governance, incentive structures, sales and advice processes, and systems to mitigate conduct risk; the FMA’s actions to promote credible deterrence of misconduct; for the FMA to work with other regulatory and government agencies, and engage market participants, efficiently and effectively; to have engaged and informed investors and customers; and to promote trust and confidence in and sustainable development of New Zealand capital markets.
It said concerns had been identified in supervisory monitoring that some firms did not have appropriate systems, governance and control to identify, manage and mitigate conduct risks. Only 40% of market participants had demonstrated alignment of sales and advice processes to serve the interest of customers.
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