The Financial Markets Authority (FMA) in New Zealand says it will visit businesses including insurance brokers to ensure clients’ money is held in appropriate trust funds.

The move is revealed in the financial regulator’s compliance focus for this year.

Insurance Brokers Association of New Zealand CEO Gary Young says he has already seen evidence of the new approach.

“They are embedding new regimes, such as on anti-money laundering arrangements,” he told insuranceNEWS.com.au. “Although general insurance is exempt, premium funding isn’t.

“If you have your own premium funding company, you have to do risk assessment and set up an anti-money laundering program, so we’re working with members on what they need to do on that.”

The FMA is pushing the financial industry in general to build customer trust through transparency and fairness. It is encouraging “tips and complaints” from competitors and whistle-blowing by insiders who see inappropriate behaviour.

The regulator’s overall focus for the year “provides an opportunity for participants to assess their activities and take the necessary steps to improve compliance”, CEO Sean Hughes says.

The FMA wants standards in the financial sector raised, with participants’ behaviour exceeding the bare minimum required by law.

The market must also adapt to new regulatory regimes that require greater disclosure from unsolicited offers.

The FMA says it will monitor the marketing and design of “perimeter activities” that fall outside its regulatory fence, but which consumers assume it covers.