The Financial Markets Authority (FMA) has published its December 2024 update on its consultation on proposed fair outcomes for consumers and markets that closed on 1 March 2024. The submissions respond to the seven proposed “fair outcomes” for consumers and markets, discussed in our previous update here. The consultation received approximately 56 submissions, published across four submissions documents on the FMA’s website.  

The December 2024 update and links to the submissions can be found here.

What does it cover?

The December update included publication of the submissions received on the fair outcomes consultation, with the aim to keep stakeholders informed. The FMA received submissions from prominent industry groups and players, including the New Zealand Banking Association and the New Zealand Law Society, and New Zealand’s major banks, fund managers, and law firms. 

The FMA noted that the submissions received broadly supported the idea of using customer and market outcomes as a basis for prioritising the FMA’s work. However, submissions detailed numerous concerns, particularly in relation to how the proposed “fair outcomes” may impact regulation and compliance for financial services providers. Financial services providers are concerned with the potential breadth of application and seek clarity on how enforcement and monitoring will be approached. 

What next?

The fair outcomes consultation raised a lot of interest in the market. We intend to look more deeply into the responses received and write more about the key themes in January.

The FMA also intends to publish a document explaining its regulatory approach in 2025. Financial services providers should pay close attention to the FMA’s response, as its regulatory approach will impact how providers deliver on the “fair outcomes” and demonstrate good conduct. 

If you have any questions about or want to discuss the FMA’s December update on the consultation and consultation submissions, please contact one of our experts. 

This article was co-authored by Darlene Hu, an Intern in our Financial Services team.