Photo: RNZ
The Financial markets Authority (FMA) is proposing to axe more than 20 jobs as it looks to cut costs, in line with other public service organisations.
"The FMA has begun a focused consultation on proposed changes that mostly affect our enabling function, Transformation and Operational Delivery, and will have little impact our frontline supervision and monitoring teams," the FMA said in a supplied statement.
"Our focus is on working through the proposal with affected staff at this time."
The restructuring comes at a time when the financial regulator looks to reorient its approach to oversight of investment firms, market behaviour, and consumer treatment.
Last week the FMA issued an explanation of its new approach - outcomes-focused regulation - although reaction from many observers was that it was still unclear what that actually meant, and how it would be applied.
The policy was unveiled last year with the stated aim to get the best outcomes for consumers and markets, and would not be a 'box-ticking' exercise.
Next week the Conduct of Financial Institutions (COFI) comes fully into effect, which among other things requires licensing of financial advisors, regulation of third party commissions, and fair treatment of consumers.
Internal strife
Sources within the FMA have told RNZ Business of division within the agency on what approach to take on enforcement of rules and interaction with market players. Several senior officials have left and some functions restructured.
The FMA said its restructuring and job losses would not affect its performance.
"The proposed changes will enable us to continue to further develop our aim of being a data and intelligence led organisation, while ensuring fiscal sustainability."
The authority's standing in financial markets has fallen in the past year, with its own survey showing growing scepticism about its ability to do its job or even connect with markets about what matters the most.
Before his resignation last month the then Commerce Minister Andrew Bayly said the FMA had been rightly criticised for being "too aloof and sitting in the office".
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