Latest news with #FinancialMarketsAuthority
RNZ News
4 days ago
- Business
- RNZ News
FMA confirms job cuts
Photo: RNZ / Quin Tauetau The country's leading financial market regulator has confirmed it cut 20 jobs in a recent backroom restructuring to cut costs. RNZ business revealed the move in March and the Financial Markets Authority said the job losses have not compromised its priorities. The FMA said it had reorganised its corporate and other support functions. It said some staff took voluntary redundancy, and others redeployed within the FMA, but did not detail if there were forced redundancies. It now has a staff of 350 from 370 previously. The Authority's executive director transformation and operational delivery, Kari Jones, said the agency continued to deliver priorities in a financially sustainable way, and was ensuring its people were supported through the process. It was not clear how much the FMA had refined its balance between rule enforcement and consumer protection on the one hand, and improving finance industry relations on the other, which were said to be a cause of tension within the organisation.
Scoop
13-06-2025
- Business
- Scoop
FMA Consults On Class Exemption For Buy-Backs Of Quoted Debt Securities
Press Release – Financial Markets Authority If granted, the exemption would allow listed issuers to buy back their own quoted debt securities off-market, without needing to prepare certain information in a disclosure document or adhere to certain timing requirements. The Financial Markets Authority (FMA) – Te Mana Tātai Hokohoko – is seeking feedback on a proposed class exemption for listed issuers from certain unsolicited offer regulations for buy-backs of their own quoted debt securities. FMA Executive Director, Evaluation and Oversight Liam Mason said: 'One of our key priorities is to support innovation and growth by removing unnecessary regulatory burden. This consultation responds to feedback from the market that this is an area where changes could be made to make it easier for firms while still ensuring appropriate investor protection.' The purpose of the unsolicited offer regulations in the Financial Markets Conduct Act 2013 (FMC Act) is to provide a comprehensive and robust framework to protect against 'low-ball' unsolicited offers, as well as to allow the FMA, as the regulator, to take both a proactive and reactive approach to monitoring and enforcement. However, where an issuer is seeking to buy back its own quoted debt securities, the regulations' prescriptive disclosure and timing requirements may limit the flexibility of issuers to manage their debt efficiently. If granted, the exemption would allow listed issuers to buy back their own quoted debt securities off-market, without needing to prepare certain information in a disclosure document or adhere to certain timing requirements. The exemption would be subject to conditions that the issuer must make available information about the offer to buy back the debt securities. 'Issuers are already subject to ongoing disclosure and governance obligations under the FMC Act, as well as the listing rules of the relevant licensed market, and already have a relationship with their debt security holders. Therefore, the risks may be substantially lower compared to other unsolicited, potentially low-ball, offers.' The consultation is open until 25 July 2025
Scoop
13-06-2025
- Business
- Scoop
FMA Consults On Class Exemption For Buy-Backs Of Quoted Debt Securities
The Financial Markets Authority (FMA) – Te Mana Tātai Hokohoko – is seeking feedback on a proposed class exemption for listed issuers from certain unsolicited offer regulations for buy-backs of their own quoted debt securities. FMA Executive Director, Evaluation and Oversight Liam Mason said: 'One of our key priorities is to support innovation and growth by removing unnecessary regulatory burden. This consultation responds to feedback from the market that this is an area where changes could be made to make it easier for firms while still ensuring appropriate investor protection.' The purpose of the unsolicited offer regulations in the Financial Markets Conduct Act 2013 (FMC Act) is to provide a comprehensive and robust framework to protect against 'low-ball' unsolicited offers, as well as to allow the FMA, as the regulator, to take both a proactive and reactive approach to monitoring and enforcement. However, where an issuer is seeking to buy back its own quoted debt securities, the regulations' prescriptive disclosure and timing requirements may limit the flexibility of issuers to manage their debt efficiently. If granted, the exemption would allow listed issuers to buy back their own quoted debt securities off-market, without needing to prepare certain information in a disclosure document or adhere to certain timing requirements. The exemption would be subject to conditions that the issuer must make available information about the offer to buy back the debt securities. 'Issuers are already subject to ongoing disclosure and governance obligations under the FMC Act, as well as the listing rules of the relevant licensed market, and already have a relationship with their debt security holders. Therefore, the risks may be substantially lower compared to other unsolicited, potentially low-ball, offers.' The consultation is open until 25 July 2025
Scoop
07-06-2025
- Business
- Scoop
New Zealand AML/CFT Compliance Updates To Require A Customer Risk Rating Model
Press Release – Asia Pacific AML Businesses that are captured under the Anti-Money Laundering and Countering Financing of Terrorism Act must now rate customers (interchangeably referred to as clients) and retain record keeping of the Customer Risk Rating Model. The Financial Markets Authority has issued the AML/CFT Customer Risk Rating Guideline. The Department Internal Affairs, another AML/CFT Supervisor, has set its boundaries of what regulatory expectation looks like for a Customer Risk Rating Model. Regulation 12AC Regulation 12AC came into force on 1 June 2025 and relates to obligations under the Anti-Money Laundering and Countering Financing of Terrorism Act. Businesses that are captured under the Anti-Money Laundering and Countering Financing of Terrorism Act must now rate customers (interchangeably referred to as clients) and retain record keeping of the Customer Risk Rating Model. Fast Implementation AML360™ has a demonstrable solution for all sized businesses. Our systems allow businesses to quickly implement a reliable and tested risk-based solution. Providing a flexible scorecard and risk matrix model, risk configurations are easily updated to meet sector environment changes and regulatory updates. AML/CFT Risk Score Card The term Risk Score Card and Risk Matrix can be used interchangeably. The Score Card may in practice refer to the Risk Indicator level with a score of 1 for Very Low and a score of 5 for Very High. In between may be Low, Medium and High. The Score Card reflects the risk level that either increases (drives upward) or reduces (drives downward) the overall risk level. Where Score Cards reflect the individual risk sources, the Risk Matrix reflects the overall Risk Range. AML/CFT Ongoing Monitoring A Customer Risk Rating will feed into the frequency of Ongoing Monitoring and Reporting. Customer Risk Rating Reports and Ongoing Monitoring Records need to be maintained to demonstrate decision-making. AML/CFT Auditors and AML/CFT Supervisors will expect to test adequacy. Risk-Based Approach There does not need to be perfection in a risk-based approach. The AML/CFT Act expects reasonable adequacy. Ongoing Monitoring and Reporting should reflect that the Customer Risk Rating is in alignment with the Account Activity. When the risk levels of the account activity increase – so too should the Customer Risk Rating. When the risk levels of the account activity or products services decrease – so too should the Client Risk Rating. Case Management and Escalations Case Escalation systems should be available to enable the Anti-Money Laundering Compliance Officer to make determinations of whether a 'red flag' triggers suspicious activity. Customer Risk Ratings and Ongoing Monitoring This is where the real elbow grease starts with an AML/CFT compliance framework. If the business operations rely on labour intensive systems, then AML/CFT Compliance costs will likely be high. Not only will AML/CFT compliance costs be high, but AML/CFT compliance efficiency will likely be low. Labour Intensive Processes Push Up Costs AML/CFT compliance frameworks rely heavily on data management and risk decision-making. The process of decision-making is required to be demonstrated. Humans cannot think very fast when determining a lot of difference data sources. To streamline AML/CFT compliance, data science and data reporting systems are necessary. AML360™ AML/CFT regulatory technology combines data analysis and reporting to assists AML/CFT compliance efficiency, reduce operational cost and protect business brand. Ongoing Monitoring Requires Flexibility A Customer Risk Rating Model needs to have flexibility. This flexibility should enable Risk Score Cards and Risk Appetites to adjust to the business environment and regulatory updates. Regulatory updates may come from Sector Risk Assessments, National Risk Assessments, Codes of Practice or Guidelines. The quicker an AML/CFT Programme can adjust to these changes, the better the level of regulatory compliance. AML360™ Regulatory Technology Don't make the mistake of leaving AML/CFT compliance on the back-burner. Take control, reduce operational costs and gain compliance efficiency with AML360™. Our Customer Risk Rating Models are flexible to the Nature, Size and Complexity of business and industry sectors. AML360™ incorporates testing reports to support your risk rating methodology. Don't waste time or take regulatory risk with labour-intensive processes.
Scoop
07-06-2025
- Business
- Scoop
New Zealand AML/CFT Compliance Updates To Require A Customer Risk Rating Model
The Financial Markets Authority has issued the AML/CFT Customer Risk Rating Guideline. The Department Internal Affairs, another AML/CFT Supervisor, has set its boundaries of what regulatory expectation looks like for a Customer Risk Rating Model. Regulation 12AC Regulation 12AC came into force on 1 June 2025 and relates to obligations under the Anti-Money Laundering and Countering Financing of Terrorism Act. Businesses that are captured under the Anti-Money Laundering and Countering Financing of Terrorism Act must now rate customers (interchangeably referred to as clients) and retain record keeping of the Customer Risk Rating Model. Fast Implementation AML360™ has a demonstrable solution for all sized businesses. Our systems allow businesses to quickly implement a reliable and tested risk-based solution. Providing a flexible scorecard and risk matrix model, risk configurations are easily updated to meet sector environment changes and regulatory updates. AML/CFT Risk Score Card The term Risk Score Card and Risk Matrix can be used interchangeably. The Score Card may in practice refer to the Risk Indicator level with a score of 1 for Very Low and a score of 5 for Very High. In between may be Low, Medium and High. The Score Card reflects the risk level that either increases (drives upward) or reduces (drives downward) the overall risk level. Where Score Cards reflect the individual risk sources, the Risk Matrix reflects the overall Risk Range. AML/CFT Ongoing Monitoring A Customer Risk Rating will feed into the frequency of Ongoing Monitoring and Reporting. Customer Risk Rating Reports and Ongoing Monitoring Records need to be maintained to demonstrate decision-making. AML/CFT Auditors and AML/CFT Supervisors will expect to test adequacy. Risk-Based Approach There does not need to be perfection in a risk-based approach. The AML/CFT Act expects reasonable adequacy. Ongoing Monitoring and Reporting should reflect that the Customer Risk Rating is in alignment with the Account Activity. When the risk levels of the account activity increase – so too should the Customer Risk Rating. When the risk levels of the account activity or products services decrease – so too should the Client Risk Rating. Case Management and Escalations Case Escalation systems should be available to enable the Anti-Money Laundering Compliance Officer to make determinations of whether a 'red flag' triggers suspicious activity. Customer Risk Ratings and Ongoing Monitoring This is where the real elbow grease starts with an AML/CFT compliance framework. If the business operations rely on labour intensive systems, then AML/CFT Compliance costs will likely be high. Not only will AML/CFT compliance costs be high, but AML/CFT compliance efficiency will likely be low. Labour Intensive Processes Push Up Costs AML/CFT compliance frameworks rely heavily on data management and risk decision-making. The process of decision-making is required to be demonstrated. Humans cannot think very fast when determining a lot of difference data sources. To streamline AML/CFT compliance, data science and data reporting systems are necessary. AML360™ AML/CFT regulatory technology combines data analysis and reporting to assists AML/CFT compliance efficiency, reduce operational cost and protect business brand. Ongoing Monitoring Requires Flexibility A Customer Risk Rating Model needs to have flexibility. This flexibility should enable Risk Score Cards and Risk Appetites to adjust to the business environment and regulatory updates. Regulatory updates may come from Sector Risk Assessments, National Risk Assessments, Codes of Practice or Guidelines. The quicker an AML/CFT Programme can adjust to these changes, the better the level of regulatory compliance. AML360™ Regulatory Technology Don't make the mistake of leaving AML/CFT compliance on the back-burner. Take control, reduce operational costs and gain compliance efficiency with AML360™. Our Customer Risk Rating Models are flexible to the Nature, Size and Complexity of business and industry sectors. AML360™ incorporates testing reports to support your risk rating methodology. Don't waste time or take regulatory risk with labour-intensive processes.
