Financial Markets Authority (FMA) | Definition & History


The Financial Markets Authority is New Zealand’s regulatory backbone for its financial market, ensuring compliance with rules and regulations by all market participants.

Financial regulations are crucial to make any nation’s economic environment stable. All nations have financial regulatory authorities overseeing the functioning of the stock markets and other institutions. Financial Markets Authority, also called FMA, is one such body in New Zealand. 

Financial Markets Authority (FMA) in a nutshell

  • The Financial Markets Authority oversees compliance with financial regulations in New Zealand’s stock markets.
  • Established in 2011, it ensures transparency and fairness in the country’s financial system.
  • It regulates industries, educates consumers, and licenses brokers to ensure market stability and reliability.
  • FMA also regulates binary options trading in New Zealand, requiring brokers to obtain licenses for operation.

What exactly is the Financial Markets Authority (FMA) New Zealand?

The Financial Markets Authority oversees whether the stock exchanges perform transparently in the country. It checks all the market participants and ensures their compliance with the laws. 

This authority intends to establish a fair and efficient market system in New Zealand. It does everything to ensure that the New Zealand stock market becomes an investment haven for investors

It takes legal actions against various fraudulent companies and brokers in the country. Thus, it takes the utmost care that investors’ trust in New Zealand’s economy stays intact. 

The history of the Financial Markets Authority (FMA)

Mission statement of the Financial Markets Authority of New Zealand (FMA)

The authority was the result of several discussions and the need for reforms. It was established in 2011 as a regulator of the financial markets. 

This authority is an independent crown authority. It has its focuses on the task of making the stock exchanges and brokers compliant with the laws. Thus, the authority puts the consumer’s interests above everything else. 

FMA also contributes to supporting New Zealand’s economic prosperity. It drives the market in the right direction and ensures its stability. Hence, investors and traders feel secure when investing in the New Zealand stock market.

The Role of the Financial Markets Authority (FMA)

Financial Markets Authority plays a very crucial role in handling the economy. Let us look at some of its roles. FMA helps achieve the following things in the New Zealand financial’s market:

  • It regulates and monitors the industries to ensure they follow the code of conduct and the established laws. It also checks whether the market participants treat customers and traders fairly. 
  • It enforces the laws and checks whether there is any misdemeanor by any party. If a party breaches its laws and regulations, it takes strict action against such defaulters. 
  • FMA educates consumers by providing them with accurate information from time to time. This information helps traders and investors in making informed decisions. 
  • The authority also seeks to clarify any confusion concerning the industry standards. It guides industries on how they should treat customers fairly. 
  • The biggest role is licensing the brokers and financial institutions and regulating them. It also checks the financial products they bring and their authenticity. 

Therefore, the FMA is not just any other authority. It is an authority on the efficient functioning of which the fate of New Zealand’s financial markets depends. Thus, it protects and preserves the country’s financial system. It works to make it stable and reliant on the investors.  

Does the Financial Markets Authority regulate Binary Options?

Yes, the Financial Markets Authority (FMA) regulates binary options trading in New Zealand. As the government organization responsible for overseeing the country’s financial services and capital markets, the FMA imposes strict regulations on brokers operating within New Zealand. These brokers are legally required to obtain a derivatives’ issuer license from the FMA. Traders can engage in binary options trading with confidence by choosing reputable brokers licensed by the FMA or by selecting one of the recommended offshore brokers.

Here are some brokers operating in New Zealand that are regulated by the Financial Markets Authority (FMA) and are recommended for binary options trading:

  • Quotex: A licensed binary options broker offering a modern platform, diverse payment options, and a wide range of tradable instruments.
  • IQ Option: With over a decade of experience, IQ Option provides a user-friendly interface, diverse asset options, and educational resources for traders.
  • Olymp Trade: Recognized for its bonuses and promotions, Olymp Trade offers a variety of account types and assets, catering to both beginners and experienced traders.
  • Pocket Option: Trusted since 2017, Pocket Option offers deposit bonuses, a demo account, and a user-friendly interface with various payment methods available.

About the author

Percival Knight
Percival Knight is an experienced Binary Options trader for more than ten years. Mainly, he trades 60-second trades at a very high hit rate. My favorite strategies is by using candlesticks and fake-breakouts

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