The release of the Financial Markets Authority annual report shows that there has been misunderstandings in respect of the Financial Services Provider Register which has consumed FMA time and money.
The report (see the download link below) was released shortly before enforcement and investigations director Belinda Moffat left the agency and shows that $51 million was recovered during the year with 28 companies removed from the Register.
“Responding to misuse of the FSPR by offshore companies, and New Zealand-based companies offering services outside the scope of their registration or authorisation, has been a significant challenge,” said the FMA.
“Many of the FSPR issues raised with us have involved firms not licensed or otherwise regulated in New Zealand and therefore not subject to our oversight. Nevertheless, we have used considerable resources dealing with them, and responding to complaints and queries.”
The NBR report that companies removed from the register included numerous purported providers of online foreign exchange trading services presenting their FSP registration as a regulatory approval.
Asked whether she thought the FSPR had any value, Ms Moffat said a review currently being carried out by the Ministry for Business Innovation and Employment was timely.
“We welcome that review and we await the outcome of it,” she said. “We have had substantial resources diverted to dealing with issues of entities that are on the FSPR but not regulated by us.”
Read more at the NBR.
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