FMA — Financial Markets Authority
New Zealand | Asia-Pacific | Founded 2011
What is the FMA?
The FMA is New Zealand's financial markets conduct regulator. It oversees securities markets, financial advisers, and derivatives issuers including forex and CFD brokers. New Zealand tightened its derivatives regulations in 2021, introducing mandatory risk warnings and conduct obligations. While not as strict as the FCA or ASIC, the FMA provides a reasonable level of oversight and has been actively removing non-compliant firms from the register.
What the FMA Does
Licenses and supervises derivatives issuers, including forex and CFD brokers
Enforces the Financial Markets Conduct Act 2013
Requires risk warnings and fair dealing obligations
Maintains the Financial Service Providers Register (FSPR)
Can impose penalties, issue stop orders, or cancel licences
Publishes warnings about unauthorised entities and scams
What the FMA Protects You From
Unlicensed entities — the FMA maintains a public register and actively warns against scams
Misleading conduct — licensed brokers must comply with fair dealing obligations
Shell registrations — the FMA has been cleaning up the FSPR by removing firms that registered for credibility but had no real NZ operations
What the FMA Does NOT Protect You From
Trading losses — regulation prevents misconduct, not market losses
There is no investor compensation scheme — no guaranteed fund to reimburse you if the broker goes bankrupt
No prescribed leverage limits for retail forex — unlike ASIC or ESMA, the FMA has not set specific leverage caps
No mandatory negative balance protection requirement
Non-NZ residents have limited recourse — the FMA's complaint mechanisms primarily serve New Zealand residents
Key Requirements for FMA-Regulated Brokers
Register on the Financial Service Providers Register (FSPR)
Obtain a Derivatives Issuer licence from the FMA
Comply with the Financial Markets Conduct Act 2013
Maintain adequate capital and risk management systems
Provide fair dealing and risk disclosures to clients
Submit periodic compliance reports
Investor Compensation Scheme
New Zealand does not have an investor compensation scheme for retail forex or CFD trading. If an FMA-licensed broker becomes insolvent, you rely on the insolvency process.
Jurisdiction Warning
The FMA has improved its oversight significantly since 2021, but New Zealand's forex regulation is still less comprehensive than the FCA, ASIC, or CySEC. The absence of leverage limits and a compensation scheme are notable gaps.
Note for African Traders
FMA regulation is a moderate positive signal. The FMA is a legitimate regulator that has been actively tightening standards. However, without a compensation scheme or leverage limits, it provides less protection than Tier 1 regulators. If your broker also holds FCA or ASIC licences, those are stronger protections.
How to Verify a Broker's FMA Licence
Go to the FMA website and search the Financial Service Providers Register (FSPR). Enter the broker's name or FSP number. The register shows the provider's registration status, services offered, and any conditions or warnings.
Open FMA Register