This year’s New Zealand’s FMA report is out and it lays out the details of the institution’s actions in the past year. The report covers the 12 months starting June last year to June 30 2018.
In particular, the report highlights key events over the period in the financial sector. Also, it reviews the launch of the Culture and Conduct review of financial institutions, including life insurers, the Scoop reports.
The Financial Markets Authority (FMA) of New Zealand is responsible for regulating the sector. It acts as the government’s watchdog by ensuring that institutions observe set guidelines. The institution ensures that there is security of depositors and insurance buyers in general.
New Zealand’s FMA report recognises crypto potential
In the new report, the FMA found some banks wanting in terms of their conduct. Working in conjunction with the Australian Royal Commission, the aim is to improve the conduct of financial firms. Further, the report indicates that the conduct review crossed-over to foreign exchange brokers. Normally, the review only focused on banking institutions and life insurance brokers.
Perhaps the most important highlight of the report was the FMA’s sentiment towards cryptocurrencies. According to Finance Magnates, cryptocurrency activity is on the rise in the country. Interestingly, the New Zealand’s FMA report agrees with the assessment. In this light, the FMA introduced initiatives that would educate residents on the nature and use of the digital assets.
Spike in crypto interest
Rob Everett, the Chief Executive of FMA said that the institution focused on the legal aspect of the cryptocurrencies. He says, “Areas we have focused on in the past year include pursuing legal action related to misuse of the Financial Service Providers Register, and issuing guidance about cryptocurrencies for consumers and prospective issuers, to coincide with the sudden spike in interest.”
Nonetheless, the report notes that some cryptocurrency activity is still wanting. Mr Everett advises all firms in the sector to meet all the conditions and obligations set out by their licenses.