{"id":83023,"date":"2026-06-30T11:43:56","date_gmt":"2026-06-30T01:43:56","guid":{"rendered":"https:\/\/riskinfo.com.au\/news\/?p=83023"},"modified":"2026-07-01T11:53:05","modified_gmt":"2026-07-01T01:53:05","slug":"risk-commissions-under-kiwi-regulators-spotlight","status":"publish","type":"post","link":"https:\/\/riskinfo.com.au\/news\/2026\/06\/30\/risk-commissions-under-kiwi-regulators-spotlight\/","title":{"rendered":"Risk Commissions Under Kiwi Regulator\u2019s Spotlight"},"content":{"rendered":"<p>Following events in Australia over the past decade, New Zealand&#8217;s financial services regulator has placed Kiwi advisers on notice with regard to conflicts of interest when it comes to remuneration.<\/p>\n<p>The Government&#8217;s <a href=\"https:\/\/www.fma.govt.nz\/\" target=\"_blank\" rel=\"noopener\">Financial Market Authority<\/a>&#8216;s 2026\/7<a href=\"https:\/\/www.fma.govt.nz\/assets\/Reports\/FMA-2026-Financial-Conduct-Report.pdf\" target=\"_blank\" rel=\"noopener\"> Financial Conduct Report <\/a>sets out its regulatory priorities for the next financial year.\u00a0It identifies four themes that it states pose significant risks for Kiwi consumers and market outcomes:<\/p>\n<ul>\n<li>Managing conflicts from remuneration structures<\/li>\n<li>Fraud detection and prevention<\/li>\n<li>Use of complaints data to drive improvements<\/li>\n<li>Digitisation opportunities (such as AI) in financial advice\n<p><figure id=\"attachment_83031\" aria-describedby=\"caption-attachment-83031\" style=\"width: 200px\" class=\"wp-caption alignright\"><a href=\"https:\/\/www.fma.govt.nz\/assets\/Reports\/FMA-2026-Financial-Conduct-Report.pdf\" target=\"_blank\" rel=\"noopener\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-83031\" src=\"https:\/\/riskinfo.com.au\/news\/files\/2026\/06\/FMA-report-cover.png\" alt=\"Click on the cover to read the full report.\" width=\"200\" height=\"246\" srcset=\"https:\/\/riskinfo.com.au\/news\/files\/2026\/06\/FMA-report-cover.png 471w, https:\/\/riskinfo.com.au\/news\/files\/2026\/06\/FMA-report-cover-244x300.png 244w, https:\/\/riskinfo.com.au\/news\/files\/2026\/06\/FMA-report-cover-324x400.png 324w, https:\/\/riskinfo.com.au\/news\/files\/2026\/06\/FMA-report-cover-342x420.png 342w\" sizes=\"auto, (max-width: 200px) 100vw, 200px\" \/><\/a><figcaption id=\"caption-attachment-83031\" class=\"wp-caption-text\">Click on the cover to read the full report.<\/figcaption><\/figure><\/li>\n<\/ul>\n<p>In the section regarding managing conflicts from remuneration structures, the report says it will focus on misconduct arising from both upfront commissions and ongoing commissions.<\/p>\n<p>It\u2019ll also focus on whether disclosures clearly explain the nature of ongoing services and related remuneration, so consumers can readily understand what to expect from their financial advice provider over time.<\/p>\n<p>The FMA says that while it recognises that commission-based models can improve access to advice, these carry risks for consumers that need to be managed.<\/p>\n<blockquote><p>&#8230;We are aware of high upfront commissions for financial advice&#8230;<\/p><\/blockquote>\n<p>\u201cWe are aware of high upfront commissions for financial advice across life, health and disability insurance products, and KiwiSaver (Super), which increase the risk of consumer harm,&#8221; states the report. &#8220;We also see inconsistencies in how advisers disclose ongoing (servicing) commissions.\u201d<\/p>\n<p><a href=\"https:\/\/www.fma.govt.nz\/assets\/Reports\/FMA-2026-Financial-Conduct-Report.pdf\" target=\"_blank\" rel=\"noopener\">Click here<\/a> to download the Financial Conduct Report, and see our sister publication for our full story on the FMA&#8217;s change of focus <a href=\"https:\/\/riskinfonz.co.nz\/2026\/06\/30\/risk-commissions-under-regulators-spotlight\/\" target=\"_blank\" rel=\"noopener\">here<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Following events in Australia over the past decade, New Zealand&#8217;s financial services regulator has placed Kiwi advisers on notice with regard to conflicts of interest when it comes to remuneration. The Government&#8217;s Financial Market Authority&#8216;s 2026\/7 Financial Conduct Report sets out its regulatory priorities for the next financial year.\u00a0It identifies four themes that it states [&hellip;]<\/p>\n","protected":false},"author":23,"featured_media":63372,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3,6838],"tags":[],"class_list":["post-83023","post","type-post","status-publish","format-standard","has-post-thumbnail","category-general","category-new-zealand"],"_links":{"self":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/83023","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/users\/23"}],"replies":[{"embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/comments?post=83023"}],"version-history":[{"count":5,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/83023\/revisions"}],"predecessor-version":[{"id":83043,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/83023\/revisions\/83043"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/media\/63372"}],"wp:attachment":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/media?parent=83023"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/categories?post=83023"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/tags?post=83023"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}