Financial Markets Authority

About FMA

The Financial Markets Authority, also known as Te Mana Tātai Hokohoko, is New Zealand’s principal conduct regulator for financial markets. It was established on 1 May 2011 as an independent Crown entity. The FMA licenses, supervises and monitors a broad range of financial market participants, including derivatives issuers, financial advice providers, managed investment scheme managers, discretionary investment management providers, market operators, auditors and licensed financial institutions. Its responsibilities include enforcing the Financial Markets Conduct Act and other financial markets legislation, promoting fair dealing, supervising licensed providers, investigating misconduct and taking enforcement action where regulatory obligations have been breached. For forex and CFD trading, contracts linked to movements in currency prices are generally treated as derivatives. A business making regulated offers of these products to retail investors in New Zealand must normally hold a derivatives issuer licence issued by the FMA. Licensed derivatives issuers are subject to requirements relating to disclosure, client suitability, governance, financial resources and the handling of derivatives investor money. Retail financial service providers must also provide access to an approved independent dispute resolution scheme where the relevant legal requirements apply.