The authority was established on 1 May 2011 as part of the Financial Markets (Regulators and KiwiSaver) Bill which was passed by the New Zealand parliament on the 7 April 2011.

It was introduced by Commerce Minister Simon Power, with him saying "This move is at the centre of the Government's drive to restore the confidence of mum and dad investors in our financial markets.

"[2][3] The FMA is controlled by a board appointed by the Minister of Commerce and run by chief executive Samantha Barrass.

The board comprises chairman Craig Stobo and members Suzanne Chetwin, Prasanna Gai, Christopher Swasbrook, Kendall Flutey, Steven Bardy, Tracey Berry, Nick Hegan and Mariette van Ryn.

[4] The FMA's official website says its key statutory objective is "to promote and facilitate the development of fair, efficient, and transparent financial markets" and that it "will use the full range of its enforcement powers, targeting conduct that presents the greatest likelihood of harm to the function of open, transparent and efficient capital markets.