High‑quality financial reporting now critical for lender and investor trust
Mortgage and finance advisers have fresh reason to pay closer attention to how their lending partners report, as New Zealand’s Financial Markets Authority (FMA) urges directors, preparers and auditors to maintain the quality, accuracy, and timeliness of financial reporting amid ongoing global uncertainty.
The reminder comes as RBNZ holds the OCR at 2.25% and flags upside inflation risks from the Iran conflict, keeping earlier‑than‑planned hikes on the table.
Releasing its Financial Statements Monitoring Insights 2022–2025 report, FMA said high‑quality, timely financial reporting is essential for market trust as global volatility and higher interest and mortgage rates reshape funding conditions.
The review covered 60 sets of audited financial statements and the filing timeliness of all FMC‑reporting entities over the past three years.
For advisers, the findings go to the heart of lender resilience, funding costs and credit appetite, all of which affect borrowing capacity for first‑home buyers and property investors.
Why reporting quality matters for advisers
Jacco Moison, FMA head of audit, financial reporting, and climate-related disclosures, said: “Investors need to be able to understand how relevant market conditions were considered at the time the financial statements were prepared.
“This becomes even more important when economic instability, global tensions and rapid market shifts are creating greater uncertainty,” Moison said in a media release. “High quality reporting enables investors to assess resilience, understand emerging risks, and make well informed decisions with confidence.”
FMA said that while many entities are meeting expectations, recurring weaknesses continue to appear. These include disclosures that do not clearly explain key judgements, assumptions, and risks, and gaps in how significant balances and complex estimates are measured and described. The regulator also highlighted inconsistencies between financial and climate‑related reporting which may undermine user confidence.
Enforcement signals and what’s improving
A positive sign from the review was that late financial statement filings have declined, indicating better processes and awareness of reporting obligations. However, FMA noted that delays can still be a red flag for governance or financial stress, potentially affecting how investors and wholesale funders view an institution’s risk profile.
FMA outlined regulatory responses over the period ranging from feedback letters to infringement notices, licence cancellation, and civil proceedings for serious or repeated non‑compliance. It stressed that directors remain ultimately responsible for financial statements, with Moison stating: “High‑quality financial reporting is a fundamental accountability to investors.”
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