FMA Financial Markets Content Review in New Zealand

The Financial Markets Authority (FMA) regulates financial markets in New Zealand under the Financial Markets Conduct Act 2013 (FMC Act). While the FMA's role spans licensing, monitoring, and enforcement, its focus on fair dealing provisions has direct implications for how financial services firms produce content. Sections 19 to 23 of the FMC Act prohibit misleading or deceptive conduct, false or misleading representations, and unsubstantiated representations in relation to financial products and services.

The FMA has made clear through its guidance and enforcement actions that these fair dealing obligations apply to all forms of content: websites, social media, advertising, product disclosure statements, client communications, and any material that promotes or describes a financial product or service.

Fair Dealing Content Obligations

What the FMC Act Prohibits

The "Fair, Clear, and Not Misleading" Standard

The FMC Act introduces a standard that goes beyond simply prohibiting false statements. Content relating to financial products must be:

• Fair: Not exploiting information asymmetry or consumer vulnerability
• Clear: Understandable by the intended audience, using plain language where possible
• Not misleading: Not creating an impression that is inconsistent with reality, either through statements, omissions, or presentation

This standard applies to the overall impression of the content, not just individual statements. The FMA assesses content from the perspective of a reasonable member of the target audience.

High-Risk Content Areas

Performance and Returns Claims

Claims about investment returns are among the most common sources of FMA concern. Content must:

• Present performance data for appropriate and representative time periods
• Include any relevant benchmark comparison
• Not cherry-pick periods that show favourable performance
• Clearly state whether returns are before or after fees, taxes, and other costs
• Include appropriate disclaimers about past performance not indicating future results
• Not use phrases like "guaranteed returns" or "risk-free" for investment products

Fees and Costs Disclosure

All content that references financial products must accurately represent the fees and costs involved:

• Total fees must be disclosed, not just management fees
• Fees must be presented in a way that allows meaningful comparison
• Any performance-based or conditional fees must be explained
• Fee changes must be communicated promptly and clearly

Risk Disclosure

Financial content must present risks proportionally to benefits:

• Risk disclosures must be prominent, not relegated to fine print
• The specific risks of the product must be addressed, not generic risk warnings
• Risk language must be understandable to the target audience
• Content must not downplay or trivialise investment risks

Digital and Social Media Content

The FMA has explicitly addressed digital channels in its guidance on advertising. Key points:

• Social media posts are subject to the same fair dealing requirements as any other content
• Character limits do not excuse non-compliance with disclosure obligations
• Sponsored content and influencer posts must comply with the FMC Act
• Online advertising must include required disclaimers and warnings
• Video and audio content must meet the same standards as written content

Product Disclosure Statement Content

Product Disclosure Statements (PDS) for managed investment schemes and other financial products must meet specific content requirements under the FMC Regulations 2014:

• Prescribed information presented in a prescribed order
• Key information summary at the start of the document
• Plain language appropriate for the target audience
• Not misleading by omission, emphasis, or presentation
• Current information reflecting the product as it is, not as it was at launch

The FMA reviews PDS documents as part of its monitoring programme and has issued stop orders where PDS content does not meet requirements.

Common Content Compliance Failures

Overly promotional language in what should be balanced communications. Fund manager updates that read like marketing materials rather than objective performance reports, or adviser communications that emphasise returns without proportional risk discussion.

Inconsistency between marketing and disclosure. Marketing materials that create expectations the PDS does not support. The FMA expects consistency across all content touchpoints.

Inadequate social media compliance. Posts that make return claims or product recommendations without required disclosures. The brevity of social media does not reduce compliance obligations.

Generic risk warnings that do not address the specific risks of the product. A boilerplate risk disclaimer does not satisfy the requirement for clear, product-specific risk disclosure.

Failure to update content when material circumstances change. Website content and marketing materials that remain live after fees change, performance deteriorates, or product terms are amended.

Building an FMA Content Review Checklist

Before publishing any financial services content:

• All factual claims are accurate and can be substantiated
• Performance data covers appropriate, representative time periods
• Fees and costs are disclosed completely and accurately
• Risks are presented proportionally to benefits
• Language is fair, clear, and not misleading
• Content is consistent with the PDS and other disclosure documents
• Required disclaimers and warnings are present and prominent
• Social media content includes necessary disclosures
• Content has been reviewed for the overall impression it creates
• Target audience can reasonably understand the content

How Content Review Tools Support FMA Compliance

Financial services firms in New Zealand produce content across multiple channels including websites, social media, email, PDS documents, fund updates, and client communications. Each piece must meet the FMC Act's fair dealing requirements, and the FMA actively monitors published content.

Content review platforms can systematically check financial content against fair dealing requirements, flag potentially misleading claims or unsubstantiated representations, verify that risk and fee disclosures are present and prominent, assess readability for the target audience, and check consistency between marketing content and disclosure documents. By configuring review criteria based on the FMC Act and FMA guidance, compliance teams can review content at scale.

This provides a consistent compliance check that catches common issues before publication. It does not replace qualified compliance and legal review for complex content, but it helps firms maintain baseline compliance across their content output and reduces the risk of FMA enforcement action.

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This article provides general information about FMA fair dealing requirements for financial services content and is not legal or regulatory advice. Always consult the FMA for current guidance and seek qualified compliance advice for your specific situation.