BusinessNZ says FMA should shelve its fair outcomes guidelines
The FMA's guidelines will have unintended consequences, “will create confusion” with existing financial markets regulations and, in particular, with the Financial Markets (Conduct of Institutions) Amendment Act 2022 (CoFi) which is due to come fullying into force from March 31, BusinessNZ says in its submission on the consultation document FMA published in November.
“We note the proposed fair outcomes would represent a new concept, something that is neither legislation or regulation, nor guidance for applying such a regulatory requirement,” the organisation said.
BusinessNZ is concerned the guidelines “would create a completely separate rulebook” and add to the complexity of the legislative landscape.
The guidelines should not proceed “until issues including duplication and compliance costs have been resolved through further consultation.”
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