The Financial Markets Authority (FMA) of New Zealand has entered into a consultation agreement with the Financial Markets Standards Board (FMSB), signifying a formal commitment to bolstering the integrity and efficiency of global wholesale financial markets.

The FMA, recognising the FMSB's objectives, aims to provide clear, actionable guidance to minimise market vulnerabilities and advocate for the broad adoption of these standards. The alignment of interests between the two entities is evident in their shared goal of enhancing the functioning of wholesale fixed income, currency, and commodities markets.

This partnership, while not a substitute for New Zealand's legal obligations, is seen as a complementary force to existing principle-based laws. It aims to foster strong operational practices within market intermediaries. The agreement allows for a more integrated approach in the development of FMSB's guidance and publications, with the FMA playing a consultative role.

“This agreement supports FMA’s alignment with international best practice and will help the FMA strengthen its engagement with the wholesale industry and market to deliver regulation that sets robust standards and supports innovation,” said Samantha Barrass, FMA chief executive. “New Zealand is a small, open economy, and so market and regulator-led thinking on global standards is an important part of the FMA’s outcomes-focused approach to regulation.”

The FMA also recently initiated a consultation phase to discuss its strategy towards outcomes-focused regulation in the financial services sector.

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