How we supervise FMI

Our joint supervision approach with the Financial Markets Authority (FMA). We work together to support a safe, efficient and resilient financial system.

Published:

17 September 2026

How we work with the FMA

Together with the Financial Markets Authority (FMA), we jointly supervise designated Financial Market Infrastructures (FMIs) under the Financial Market Infrastructures Act 2021. We are the sole regulator and supervisor of pure payment systems.

This statement outlines our joint supervision approach, and how it supports the purposes and obligations of the Financial Market Infrastructures Act 2021 reflecting the FMA and our shared commitment to collaborative, risk-based supervision.

View the list of designated FMIs

Delivering the purposes of the FMI Act

FMIs are critical pieces of financial infrastructure that enable the clearing, settlement and processing of financial transactions. Because these systems underpin confidence in New Zealand's financial markets and financial system, our approach aims to support the purposes of the FMI Act to:

promote the maintenance of a sound and efficient financial system.
avoid significant damage to the financial system arising from problems with an FMI, an FMI operator, or an FMI participant that could threaten financial stability or confidence.
promote the confident and informed participation of businesses, investors and consumers in New Zealand's financial markets.
promote and facilitate the development of fair, efficient and transparent financial markets.

Our role and approach to supervision

The FMI Act requires the FMA and RBNZ to act together as the regulator for certain designated FMIs.

Our supervision is risk-based and outcomes-focused. We focus our attention on the areas that present the greatest potential harm to New Zealand's financial markets and financial system.

As separate agencies, we both maintain our own supervisory frameworks and expertise, while working together to develop a single, coordinated supervisory programme for each designated FMI. This allows us to draw on the strengths of both organisations and ensure a broad and informed assessment of risks.

We take a cyclical approach to supervising each designated FMI. Each cycle we:

assess the key risks facing the FMI
identify priority areas requiring supervisory attention
develop and carry out a joint supervision and engagement programme
inform the FMI of any observations and recommendations
adapt our approach in response to supervisory outcomes and as risks evolve throughout the year.

This aims to create a dynamic supervision model that responds to changes in the FMI, industry developments and emerging risks.

Principles that guide the way we work together

Our joint supervision approach is underpinned by a shared commitment to:

We strive to provide clear, consistent and coordinated communication to FMI operators and stakeholders.

We work as one supervisory team, sharing information, expertise and perspectives. A united purpose focused on the best regulatory outcomes.

We foster a relationship built on respect and integrity, communicate openly with each other and seek to understand differing viewpoints constructively.

We prioritise our supervisory activities based on the significance of risks and the potential harm those risks could create. Focus resources on achieving meaningful outcomes, proportionate to risk, rather than process compliance alone.

Both agencies are jointly accountable for supervisory outcomes and regulatory decisions relating to jointly supervised FMIs.

We are flexible and regularly review our supervisory practices and risk assessment approaches to ensure they remain effective and responsive.

Our cooperation is underpinned by provisions in the FMI Act as well as our Memorandum of Understanding dated 13 August 2021.

How we supervise FMIs

We seek to achieve the statutory purposes of the FMI Act through supervision that promotes strong governance, effective risk management, operational resilience, continuity of critical services, fair access and transparency across designated FMI. Our supervision activities include:

Monitoring and information gathering

We collect information through regular reporting and incident notifications, planned and targeted supervisory reviews, and reactive enquiries and engagements through triage.

Risk assessment and analysis

We assess risks to governance and culture, system operations and resilience, risk management, financial stability and regulatory compliance.

Our assessment of each designated FMI recognises its individual risk profile and the standards applicable to it. The outcomes of all monitoring inform future risk-based assessments.

Regulatory decisions and approvals

We make relevant regulatory decisions jointly, including outcomes of supervisory activity, assessment of rule changes, applications and any other significant changes requiring regulatory approval under the FMI Act.

Influencing change

Where concerns are identified, we work with FMI operators to improve practices and strengthen controls. When necessary, we may use regulatory powers under the FMI Act.

Responding to issues

We jointly assess incidents, emerging risks and compliance concerns, determining the most appropriate supervisory response.

A shared commitment to New Zealand's financial system

The FMA and RBNZ are committed to delivering effective, coordinated and forward-looking supervision of FMI.

By working together, we aim to strengthen the resilience of critical FMI, support confidence in New Zealand's financial markets, and contribute to a sound and efficient financial system for all New Zealanders.

Information sharing and gathering

We have a strong information-sharing framework**.** The FMI Act enables the RBNZ and FMA to share specified information for the purposes of, or in connection with our regulatory functions, supporting coordinated oversight, risk assessment, and decision-making.

Information gathering and use are in accordance with the FMI Act and guided by the established policies of both agencies, supported by common principles of lawfulness, necessity, proportionality, transparency, reasonableness, and good governance. Information is collected, managed, and shared responsibly in accordance with the FMI Act, to support effective, risk-based supervision, informed decision-making, and the delivery of regulatory outcomes while maintaining appropriate safeguards and accountability.

Other connecting roles of the agencies

Beyond joint FMI supervision, both agencies have independent regulatory roles that require separate engagements with related entities.

**Our wider remit:**We aim to keep prices stable and protect the stability of our financial system. Our work as prudential regulator supports a holistic view of supervision for FMI supervisors. In addition, we have a statutory function to ‘act as a central bank’. Under this function, we own and operate 2 designated FMI which are both supervised under the FMI Act.

FMA's wider market oversight: The FMA regulates financial market operators such as NZX and ASX24. Insights gained through this work can inform supervision of connected clearing and settlement FMI and support a holistic view of market infrastructure risks.