2025 09 16 OIA response monitoring visit.pdf

16 September 2025

FYI.org.nz
By email: [FYI request #31866 email]

Dear Sir or madam

Official Information Act 1982 Request (OIA) – OIA Request – monitoring review

I refer to your OIA request on 3 August 2025 for the following:

“For the period 1 July 2023 to 30 June 2024, and the  period 1 July 2024 to 30 June  2025, please
provide the following broken down by type of financial institution (eg bank, insurer, derivative issuer,
MIS manager, DIMS provider, advice provider (that is not a bank or insurer), AML reporting entity):
-
Number of feedback letters issued by the FMA following a monitoring review
-
Number of findings detailed in the feedback letters issued
-
Number of monitoring visits that resulted in enforcement action being commenced”

OIA response
We have considered your request under the Official Information Act 1982.

We have reviewed our systems and compiled data within the scope of our systems. Please note:
•  Some of our data are not categorised according to the type of financial institution you referred to in
your  request.  The  FMA  system  do  not  distinguish  or  differentiate  between  different  types  of
providers specifically as per your request for our monitoring visit data.
•  As such, some of our response will not align precisely with your request for the data to be broken
down by type of financial institution. We have considered your request in relation to each front-line
team at the FMA, and we may not hold some of the data you requested. We are unable to provide
this data to you pursuant to section 18(e) of the OIA, as the document or information alleged to
contain the requested data does not exist. Furthermore, if such data did exist, we would be unable
to review each case individually to determine its content. We therefore refuse your request pursuant
to  section  18(f)  of  the  OIA,  as  the  information  requested  cannot  be  made  available  without
substantial collation or research.
•  We have provided the data in relation to each of the front-line regulatory teams here at the FMA.
•  Please note that the Insurance team and Deposit Taking team has not specifically conducted any
monitoring reviews during the period you requested. As such, we are unable to provide this data to
you pursuant  to section 18(e)  of the  OIA, as the document or information alleged to contain the
requested data does not exist.
•  Your request asked for data on the type of financial institutions; however, some of the examples in
your request are not defined as financial institutions under the Financial Markets Conduct Act, such
as MIS managers. As a result, we have generally included all data relating to our monitoring visits.

Please find the following appendices outlining the data for the following types of market participants:

A-  Financial Advice Provider
B-  Investment Management
C-  Audit and Climate-Related Disclosures (CRD)
D-  Financial Reporting
E-  Accredited Bodies, FMIs Market Operators and Licenses Supervisors
F-  AML

Conclusion
You  have  the  right  to  complain  to  the  Ombudsman  regarding  our  assessment  of  your  OIA  request,  in
accordance with section 28 of the Official Information Act. Information about how to make a complaint is
available at www.ombudsman.parliament.nz or phone 0800 802 602.

Yours sincerely

Nath Lostitmonton
Senior Legal Counsel

A – Financial Advice
As  outlined  in  the  Information  sheet:  Monitoring  of  licensed  Financial  Advice  Providers,  at  the  end  of  a
monitoring engagement, we collate our findings and generally communicate the outcome to the entity in the
form of a feedback letter, unless it is being referred within the FMA.
In  the  feedback  letter,  findings  are  classified  as  high,  medium,  or  low  priority  to  indicate  their  level  of
seriousness.
Regardless of the  priority level, we expect the  entity to rectify any issues identified within the stipulated
timeframes.
Depending on the priority level, the stipulated timeframes may vary. For example, low-priority findings may
allow for a longer resolution period (e.g. up to 12 months), whereas high-priority findings require prompt
attention (e.g. within 3 months).
1.  Number of Feedback Letter issued

# Feedback letter issued
1 July 2023 - 30 June 2024  43
1 July 2024 - 30 June 2025  18

2.  Number of Findings

Priority-High  Priority-Medium  Priority-Low
1 July 2023 - 30 June 2024  54
54
49
1 July 2024 - 30 June 2025  29
14
21

3.  Number of monitoring visits that resulted in enforcement action being commenced
One matter was referred for further investigation/assessment (to the FMA’s Perimeter and Response
team).

B – Investment Management
Monitoring engagements led by the Investment Management team primarily focused on entities holding a
Managed Investment Scheme (MIS) licence. A total of 37 monitoring engagements were conducted for this
licence type.
This figure includes three rounds of monitoring for default KiwiSaver providers (18 individual
engagements), as well as thematic monitoring involving 18 KiwiSaver managers.
A further 10 monitoring engagements were carried out for entities holding a Discretionary Investment
Management Service (DIMS) licence.

Total Number of Monitoring's - by time period
1/7/24 - 30/6/25
20
1/7/23 - 30/6/24
27
Sum Total
47

Total Number of Feedback letters sent - by time period
1/7/24 - 30/6/25
20
1/7/23 - 30/6/24
12
Sum Total
32

Total Number of Feedback Letter Findings
Sum Total
159

Total Number of Enforcement Action taken as a result of monitoring
Sum Total
0

C – Audit and Climate-Related Disclosures (CRD)
Audit
As part of our mandate under the Auditor Regulation Act 2011, we monitor auditor’s and audit firms on
compliance with the Auditing and Assurance Standards. We both review the audit firm’s compliance with
the quality controls standards, but also a reasonable number of audit files for their compliance with the
auditing and assurance standards. Audit firms are not considered financial institutions, but our monitoring
plan and findings (as per your request) are further set out publicly in the following documents:
•  Monitoring plan
•  Our annual monitoring findings reports

CRD
Under Part 7A of the FMA Act we monitor if Climate Reporting Entities (CRE’s) timely file climate statements
that do comply with the  Climate Reporting Standards set out  by the External Reporting Board (XRB). We
approximately have 180 CRE’s. The first year of reporting covers year end dates of 31 December 2023 to 30
December 2024. During 2024 we reviewed 109 sets of Climate Statements of which 52 related to financial
institutions.
Please find below our findings from our monitoring in relation to financial institutions:
•  Timely filing of the climate statements by financial institutions
o  5 entities had some technical issues filling their climate statements, but all of them were
prepared on time and available on the entities own website, therefore no action was taken
against these technical breaches.
•  Compliance with the climate reporting standards
o  We did review the total of 52 Climate Statements and issued a total of 5 feedback letters
o  In  total  we  raised  15  individual findings  across  the  5  feedback  letters, which  result  to  an
average of 3 findings per letter
o  We did not take any other regulatory action against CRE’s in relation to their compliance with
part 7A of the FMA Act.

You can find more information publicly regarding our monitoring approach and findings in:
•  Monitoring plan
•  Our trends report of December 2024
•  Our trends report of July 2025

D – Financial Reporting
Under Part 7 of the FMA Act we monitor if FMC Reporting Entities timely file audited financial statements
that do comply with the Accounting Standards set out by the External Reporting Board (XRB). Approximately
FMC reporting entities file around 1,200 financial statements, financial institutions are  a sub-set of these
1,200 financial statements. For both years these is the monitoring performed on financial institutions.

Infringement  Feedback
Total
License
Reviewed

notice issued  letters/emails  findings
cancelled
Monitoring on filing
deadlines 2023/24
All
1
10
10
1
Monitoring financial
statement compliance
2023/24
3
0
1
1
0
Monitoring on filing
deadlines 2024/25
All
0
9
12
0
Monitoring financial
statement compliance
2024/25
14

4
12

Total
17
1
24
35
1

There were no referrals to the enforcement team.

link to page 7

E – Accredited Bodies, FMIs Market Operators and Licensed Supervisors

1 July 2023 to 30 June
1 July 2023 to 30 June
1 July 2024 to 30 June
1 July 2024 to 30 June
2024
2024
2025
2025

Type of
Number of feedback
Number of findings
Number of feedback
Number of findings
entities
letters issued by the
detailed in the
letters issued by the
detailed in the
FMA following a
feedback letters issued  FMA following a
feedback letters issued
monitoring review
monitoring review
Accredited
2 published reports
See reports published
2 published reports
See reports published
Bodies
on the FMA website
on the FMA website1
FMIs
n/a
n/a
FMIs were subject to
FMIs were subject to
regular monitoring with  regular monitoring with
observations and
observations and
feedback provided as
feedback provided as
appropriate; no formal
appropriate; no formal
monitoring visits were
monitoring visits were
undertaken given
undertaken given
recent implementation
recent implementation
of the FMI regime))
of the FMI regime))
Market
3 published reports
Reports published on
5 published reports
Reports published on
Operators
FMA website
FMA website

Licensed
0
0
4
We made a number of
Supervisors
recommendations for
improvements.  There
were no findings of
breaches.

There were no referrals to the Enforcement team or Perimeter and Response team.

1 For Accredited Bodies, there is a published report and there is an additional feedback letter that sits behind it that
gives further detail.  Number of feedback letters would equate to number of published reports. The published reports
also advise the outcomes/ feedbacks.

F – AML
AML Regulated Entities
Whether you have conducted any monitoring reviews during the period specified below. Please advise the
number.
•  1 July 2023 – 30 June 2024 – 5 Desk-based reviews and 3 On-sites were undertaken. Each of these
result in feedback letters to the entity.
•  1 July 2024 – 30 June 2025 – 7 Desk-based reviews and 7 On-sites were undertaken. Two of these
on-sites have not been finalised with a feedback letter in the time-period given
The subsequent actions taken following the monitoring reviews.
•  Each entity as noted above received a feedback letter which indicates areas they need to make
changes.
If any matters were referred to investigation or enforcement, please provide the number.
•  One on-site monitoring was referred to investigation during the 2023-2024 year.