Regulation of custody sector remains undecided

A review of the sector dates back to the International Monetary Fund (IMF) Financial Sector Assessment Programme 2017. The IMF recommendations include considering whether there is a case for recommending the establishment of a regulatory regime for custodians.

FMA director of regulation, Liam Mason, says a review of the sector is being done, but "it’s a multi-layered problem" and "it's not a simple model" because there are a number of different models being used.

He says the FMA's review has been useful as it's given the regulator "quite a granular look at the different models and risks that come through".

"We are looking at the findings and will decide what are the most important issues."