Financial Markets Conduct Act

The Financial Markets Conduct Act 2013 (FMC Act) governs how financial products are offered, promoted, issued and sold, and the ongoing responsibilities of those who offer, issue, manage, supervise, deal in, and trade them. The FMC Act also regulates the provision of certain financial services (including financial advice services) and the conduct of financial institutions.

The FMC Act aims to promote and facilitate the development of fair, efficient and transparent financial markets, and to promote the confident and informed participation of businesses, investors and consumers. This includes facilitating capital markets activity to help businesses fund growth and individuals to reach their financial goals, and facilitating the provision and use of financial services.

It was passed into law in September 2013 following a review of existing securities law.

Financial Markets Conduct Act(external link) — New Zealand Legislation website

Read more about the development of the Financial Markets Conduct Act

Financial Markets Conduct Regulations

The Financial Markets Conduct Regulations 2014 provides the supporting detail to the FMC Act. Supplementary amendment regulations have been made since 2014.

Financial Market Conduct Regulations 2014(external link) — New Zealand Legislation

Read more about the development of the Financial Market Conduct Regulations

Asia Regions Funds Passport

The Asia Region Funds Passport is intended to provide New Zealanders and investors in the Asia region with access to a greater range of investment opportunities.

Read more about the Asia Region Funds Passport

Regulation of financial advice

The Financial Services Legislation Amendment Act 2019 amended the FMC Act to introduce a new regulatory regime for financial advice. It came into force on 15 March 2021.

Read more about the regulation of financial advice 

Conduct of financial institutions

The Financial Markets (Conduct of Institutions) Amendment Act 2022 amended the FMC Act to introduce a new regime for the regulation of core retail banking and insurance services.

Read more about the conduct of financial institutions regime 

Evaluation of the FMC Act

In 2015, we began a multi-year evaluation of the effectiveness of the FMC Act, primarily to assess whether short- and medium-term policy outcomes of the Act have been achieved.

Our framework and methodology for the evaluation is set out in the Financial Markets Conduct Act – Baseline report and evaluation plan.

Financial Markets Conduct Act – Baseline report and evaluation plan [PDF, 559 KB]

An interim report setting out findings after 3 years of the Act being fully in force is set out in the following report.

Financial Markets Conduct Act 2013: Monitoring and Evaluation Report 2020: Phase 2 [PDF, 1.6 MB]

Please note that data for the 2020 Monitoring and Evaluation Report was collected prior to the emergence of COVID-19.

The final phase of the evaluation is expected to begin in late 2024. This is later than previously planned due to the impact of COVID-19.

Last updated: 22 April 2024