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  3. Market innovation

Market innovation

Page last updated: 21 Feb 2019

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 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?

We want businesses to contact us sooner, rather than later. Engaging with us early in your product’s design phase will help us to help you succeed.

Email us at questions@fma.govt.nz or call us on 0800 434 567 (overseas callers please dial 00 64 3 962 2698).

We’d also like to know

  • if you’ve identified a compliance issue that’s a barrier to your ambitions
  • how we could help New Zealand start-ups break into international markets
  • how we could help overseas start-ups bring their services to New Zealand.

*Fintech: technology used to support or enable banking and financial services