Firms told to 'open up' to regulator
FMA expects firms to do much more than just meet the basics with the new regulations.
The Financial Markets Authority expects firms to do more than just comply with new securities and financial services laws, saying compliance is “inadequate on its own.”
FMA compliance director Elaine Campbell said in a recent speech to legal advisers the FMA is concentrating on supervision as its main tool under the new Financial Markets Conduct Act.
About 11,000 businesses and professionals come under the FMA’s mandate through licensing and supervision.
From December last year, about 400 derivatives issuers and managed funds also began the transition to gain licenses under the new act.
Ms Campbell says it expects firms to do much more than just meet the basics with the new regulations, creating systems that show how the “highest standards of conduct are apparent.”
A big shift in the FMA’s new supervision approach is to identify and anticipate potential causes of harm, she said.
“We anticipate that boards and senior management will understand the systems their firms are running, and the results they are producing.
“We advise against parking regulation down the ranks.
“It won’t get the priority it requires.”
Ms Campbell says the FMA is encouraging firms to be open with the regulator, including when things went wrong.
“We’re seeing a positive response, with firms actively bringing to us remediation plans where they have identified shortcomings or problems.”
Hamish McNicol
Mon, 09 Mar 2015
Mon, 09 Mar 2015
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Firms told to 'open up' to regulator
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