2 Sep 2012

FMA still considering new finance company prosecutions

6:54 am on 2 September 2012

The Financial Markets Authority says it still has work to do on a number of cases of finance companies it is considering prosecuting over the next 12 months.

The authority, which was established a year ago, has released a report looking at the work it has done overseeing market activities.

It says its key focus has been on education and making sure that the market understands the compliance obligations.

FMA head of enforcement Belinda Moffat says the thrust of the report was to illustrate what it has done to increase confidence and participation in the financial markets.

She says a number of cases are still before the courts, and the authority is assessing a number of finance companies in terms of what is in the public interest and the appropriate regulatory action that needs to be taken.

Ms Moffat says in the last 12 months the authority has been focusing on ensuring that the market understands compliance obligations.

She says that over the next year the authority would expect the rules to be understood and properly implemented, and this is not the case it will respond using its full range of regulatory and enforcement rules.