FMA lacking ability to fine

In its review of the Financial Markets Authority for the 2016/2017 year, the select committee said the FMA had raised the point that its counterparts in other regimes had the ability to levy fines.

“As well as issuing an infringement notice, fines can be issued without going through a full legal process. The FMA says it will work with the Ministry of Business, Innovation and Employment (MBIE) to address this issue.”

The regulator also told the committee it expected it would have to police advisers who did not notice their new requirements under under the Financial Services Legislation Amendment Bill or who thought they could get away with advising without a license.

“For an organisation with 178 employees as of June 2017, this would be a big challenge. The authority said it will require extra resource to implement this legislation, and is already in contact with MBIE about staffing resources.”