One of the explicit purposes of the Financial Markets Conduct Act is “to promote innovation and flexibility in financial markets." We support people developing new markets, platforms, products and services because we’re here to help markets work well and businesses succeed.
Our objective is to enable innovation, rather than trying to make new products fit into existing requirements. We also work with businesses to ensure any risks are mitigated, so they’re not passed on to investors in ways they don’t understand.
We operate in a flexible financial regulatory system. This means we have the tools to respond to what the market is doing, rather than what it might have done 5 years ago. The growth of fintech* and the emergence of innovative new products and services is not going to stand still, so neither should we.
Recent examples of market innovation include crowdfunding, peer to peer lending, variable annuity retirement income product, and the NXT market.
Now digital-advice (advice by a computer programme) is gaining ground. While New Zealand law dictates personalised financial advice can be given only by a human, we have recently granted an exemption to enable digital-advice ahead of pending law reform and we are now accepting digital advice applications.
We’re learning from other regulators around the world to help us develop the best approach for New Zealand. We are also keen to engage openly with people within the innovation sectors, to understand emerging trends in innovative product and service development. We will incorporate these insights into our approach.
Are you developing an innovative new financial product or service? Engaging with us early in your product’s design phase will help us to help you succeed.
We’d also like to know
*Fintech: technology used to support or enable banking and financial services
Let us know what you think
Did you find what you were after?