FMA introduces new regulatory returns for financial institutions

The Financial Markets Authority (FMA) has introduced a new regulatory return framework for licensed financial institutions, requiring them to submit annual reports starting July.

This initiative aims to enhance transparency and monitoring while reducing compliance burdens.

The first regulatory return period will cover July 1 to June 30, 2026, with submissions due by Sept. 30, 2026.

Financial institutions will be required to complete an online form, with prepopulated data based on their licensing details.

Key requirements for financial institutions

Under the new Conduct of Financial Institutions (CoFI) regime, the regulatory returns will be applicable to:

• registered banks
• licensed insurers
• licensed non-bank deposit takers

Each institution must report on all relevant activities conducted under its financial institution licence. Those with authorised bodies will need to provide additional information about their compliance with fair conduct requirements.

“Regulatory returns are a key tool for ongoing monitoring,” FMA said. “By analysing data over time, we can identify trends and adjust our oversight accordingly.”

Streamlining compliance: Fewer questions, greater efficiency

Following a public consultation, FMA, which recently articulated the agency’s proactive stance on AI integration within financial services, has refined the regulatory return process to reduce compliance burdens:

• The original 48-question format has been reduced to 23 questions
• Reporting periods will cover 12 months to ensure consistency
• Only relevant questions will appear based on each financial institution’s business model

This narrower scope maintains valuable oversight while reducing the complexity of compliance.

“We recognise the burden an annual return can place on institutions,” FMA said. “By refining our approach, we ensure the collection of essential data without excessive regulatory strain.”

Six key sections of the regulatory return

The annual regulatory return will cover six sections:

1. General business information
2. Products and services offered
3. Customer interactions and complaints management
4. Compliance with fair conduct obligations
5. Operational risk and governance practices
6. Financial health indicators

FMA, which recently announced its priorities for 2025, clarified that questions do not imply additional requirements beyond existing legislative obligations.

FMA to hold webinars for industry support

To help financial institutions navigate the new requirements, FMA will host webinars in the coming months. These sessions will:

• Provide guidance on regulatory return submissions
• Explain best practices for compliance
• Address common industry concerns

“We encourage all licensed institutions to familiarise themselves with the new requirements ahead of the first reporting period,” FMA said.

For more information, financial institutions can download the full question set on the FMA website.