pc
nid 92470
May 12, 2026
kgurnani@vixio.com
New Zealand
Financial Markets Authority
financial services
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1741 charsNew Zealand Financial Markets Authority Releases Updated Sustainability Disclosure Guidance
On 12 May 2026, the Financial Markets Authority (FMA) released updated guidance providing issuers with greater clarity on disclosing financial products with sustainability-related characteristics. The guidance applies to issuers promoting environmental, social, or value-based considerations in their financial products and sets out how existing fair-dealing and disclosure obligations apply when sustainability-related characteristics are promoted.
The updated guidance is built around four core principles: claims must be clear, claims must be substantiated, messages must be consistent, and third-party involvement must be effectively managed. The FMA emphasises that issuers remain responsible for their investment decisions but must ensure any promotion of sustainability-related characteristics clearly discloses all material information and is not misleading. The guidance does not direct issuers how to invest; rather, it supports them in providing investors with clear and accessible information so investors can make well-informed decisions aligned with their investment objectives.
The guidance has been renamed from the draft version to "Sustainability-related disclosure guidance" to better reflect current market practice. Changes have been made throughout the guidance in response to feedback received during the consultation process, although the underlying principles remain unchanged. The updated guidance replaces guidance previously issued in the 2020 Disclosure Framework for Integrated Financial Products and the 2022 Integrated Financial Products: Review of Managed Fund documentation review observations.
The FMA has published the updated guidance, a summary of key themes, and a submissions report on its website.
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1931 charsNew Zealand Financial Markets Authority Releases Updated Sustainability Disclosure Guidance
On 12 May 2026, the Financial Markets Authority (FMA) released updated guidance providing issuers with greater clarity on disclosing financial products with sustainability-related characteristics.
The guidance applies to issuers promoting environmental, social, or value-based considerations in their financial products and sets out how existing fair-dealing and disclosure obligations apply when sustainability-related characteristics are promoted. It is aimed at preventing "greenwashing" and is built around four core principles:
Claims must be clear.
Claims must be substantiated.
Messages must be consistent.
Third-party involvement must be effectively managed.
For investment products specifically, the FMA expects firms to explain:
Whether sustainability factors are central to investment decisions or only considered alongside financial factors.
Whether exclusions are binding.
What percentage of investments meet sustainability criteria.
How performance against sustainability goals is measured.
The document also highlights governance expectations, including:
Board and senior management oversight of sustainability claims.
Proper record-keeping.
Internal controls around disclosures.
Ongoing review of statements made to investors.
The FMA emphasises that issuers remain responsible for their investment decisions but must ensure any promotion of sustainability-related characteristics clearly discloses all material information and is not misleading. The guidance does not direct issuers how to invest; rather, it supports them in providing investors with clear and accessible information so investors can make well-informed decisions aligned with their investment objectives.
The updated guidance replaces guidance previously issued in the 2020 Disclosure Framework for Integrated Financial Products and the 2022 Integrated Financial Products: Review of Managed Fund documentation review observations.