New Zealand Regulator Turns to Industry to Gauge Operational Resilience Across Financial Sectors

Key Takeaways

• Regulator Focus on Resilience: The Financial Markets Authority is assessing operational resilience as part of its broader effort to identify emerging risks and strengthen market integrity.
• Voluntary Industry Participation: Surveys were conducted on a voluntary basis, with firms sharing practices to support a collaborative, improvement-focused approach.
• Three Key Sectors Reviewed: The review covered peer-to-peer lending, crowdfunding service providers, and derivatives issuers, each with tailored findings.
• Strengths and Gaps Identified: Across all sectors, the FMA highlighted both areas of maturity and opportunities for further development.
• Practical Guidance Issued: Each report includes recommendations aimed at helping firms strengthen operational resilience over time.

Deep Dive

New Zealand’s financial sector is getting a closer look under the hood as regulators seek to understand how well firms can keep running when disruption hits. In a new set of findings, the Financial Markets Authority has pulled together insights from across several corners of the market, offering a clearer picture of how operational resilience is taking shape in practice, and where gaps may still remain.

The initiative sits within the regulator’s broader agenda, outlined in its 2025 Financial Conduct Report, to better understand emerging risks while promoting stronger, more resilient markets. But rather than relying solely on enforcement or formal supervision, the FMA has taken a different route, asking firms themselves to help paint the picture.

A Voluntary Window Into Risk

At the heart of the review is a set of sector-specific surveys designed to assess the maturity of operational resilience practices. Firms were invited to participate voluntarily, sharing insights into their own frameworks, challenges, and approaches.

It is a subtle but important shift in tone. Instead of positioning the exercise as a compliance check, the FMA has framed it as a collaborative effort, one aimed at identifying risks early, understanding where weaknesses may lead to harm, and encouraging continuous improvement across the market.

Participants, the regulator notes, demonstrated a clear willingness to strengthen their own resilience, not just for internal benefit but for customers and the wider financial system.

Three Sectors, One Theme

The findings span three distinct parts of New Zealand’s financial landscape, each with its own operational dynamics but a shared exposure to disruption.

The peer-to-peer lending sector was surveyed between 9 and 30 September 2025. The resulting report outlines where firms are performing well, while also identifying areas that may require further attention as the sector continues to evolve.

Over the same period, the FMA conducted a parallel survey of crowdfunding service providers. Here too, the regulator highlights both strengths and opportunities for improvement, pointing to the need for continued development as platforms scale and operational complexity grows.

A third survey focused on derivatives issuers, carried out between 10 and 31 October 2025. The findings follow a familiar pattern, offering a balanced view of current practices while underscoring the work still to be done.

Across all three sectors, the reports provide practical recommendations intended to support firms as they refine and strengthen their operational resilience over time.

Creating a Clearer Picture

The surveys offer more than just sector snapshots. They reflect an effort by the FMA to build a deeper, more nuanced understanding of how operational risk is managed in practice and where it might break down.

That matters in an environment where disruption can come from multiple directions, whether through technology failures, external dependencies, or broader market shocks. Weaknesses in resilience are rarely contained within a single firm. They can ripple outward, affecting customers and, in some cases, confidence in the market itself.

By drawing directly on industry input, the regulator is effectively mapping those risks in real time, while encouraging firms to learn from one another along the way.

The GRC Report is your premier destination for the latest in governance, risk, and compliance news. As your reliable source for comprehensive coverage, we ensure you stay informed and ready to navigate the dynamic landscape of GRC. Beyond being a news source, the GRC Report represents a thriving community of professionals who, like you, are dedicated to GRC excellence. Explore our insightful articles and breaking news, and actively participate in the conversation to enhance your GRC journey.