FMA tackles fairness and compliance in 2024 annual report
FMA tackles fairness and compliance in 2024 annual report | Insurance Business New Zealand
Insurance News
FMA tackles fairness and compliance in 2024 annual report
Consumer rights take center stage as FMA introduces new regulatory regimes
Insurance News
By
Mav Rodriguez
The Financial Markets Authority (FMA) of New Zealand has published its 2024 Annual Report, outlining an active year marked by key regulatory milestones, significant enforcement actions, and new guidance aimed at strengthening the integrity of New Zealand’s financial markets.
A pivotal achievement was the FMA’s introduction of CoFI licensing for banks, insurers, and non-bank deposit takers, effective in March 2025, which will hold these institutions to a “fair conduct” standard. FMA executive director of regulatory delivery Clare Bolingford described it as focusing on fairness throughout the customer relationship – from product design and sale to post-sale service.
The FMA also saw the first mandatory climate-related disclosure statements filed under the new regime, a step intended to bring transparency to corporate climate strategies and risk management. In partnership with the External Reporting Board (XRB), the FMA issued practical guides on climate reporting, helping entities comply with the new standards and assisting investors in understanding climate impacts on business strategies.
On the enforcement front, the FMA pursued several high-profile cases to uphold fair dealing and consumer rights. Vero Insurance, Medical Assurance Society New Zealand, and Kiwibank were collectively ordered to pay millions in penalties for not providing customers with promised multi-policy discounts and other benefits.
Over $215 million was returned to affected customers by June 2024, as confirmed by FMA through remediation activities jointly conducted with the Reserve Bank of New Zealand.
Additionally, the FMA intensified efforts to combat financial scams and unregulated investment activity. Through a series of public warnings and educational campaigns, it aimed to increase public awareness, achieving a 356% rise in views of its scam-related content. The FMA also collaborated with domestic and international regulatory bodies to tackle cross-border fraud and scams, showing its broader commitment to investor protection.
While the FMA reported a slight decline in public confidence, FMA chief executive Samantha Barrass stated that the agency would investigate these perceptions and consider enhancements to its processes, acknowledging the importance of public trust in effective regulation.
“We are committed to collaborating and engaging with industry, and will continue to do so as we evolve our outcomes-focused approach. Having more New Zealanders believe the financial services sector works well for them is a goal that can unite us all,” Barrass said.
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