New Zealand’s Financial Markets Authority (FMA) says it has moved from transition mode to establish itself as a “fully fledged” conduct regulator.

CEO Rob Everett says the framework is now in place to use the full suite of powers to drive good conduct in the areas it regulates.

“This is where we are shifting through the gears to demonstrate how we will focus on culture, conduct and customer outcomes,” he says in the annual report for the year to June 30.

The FMA recorded a loss of $NZ4 million ($3.8 million) in the year, compared with a loss of $NZ2.5 million ($2.4 million) the previous year.

Revenue was little changed at $NZ29.9 million ($28.2 million), while expenditure increased 4% to $NZ33.9 million ($32 million).

This year marks the fifth anniversary of the FMA replacing the Securities Commission and taking over the functions of agencies including the former Ministry of Economic Development and the Government Actuary.

The regulator received 3555 queries last financial year, down 25% from an unusually high number the previous year. It also handled 970 complaints received about markets, products entities and individuals.

The FMA says it has been preparing for the final pieces of the Financial Markets Conduct Act to take effect in December.

Mr Everett says a core element of the Act is to help foster the growth and integrity of New Zealand’s financial markets, and to clear the way for new and innovate sources of capital.