Being defensive can hide your way out

We notice that when people face criticism, they can miss the obvious arguments in their favour.

When the FMA released its stakeholder survey last month, media highlighted that less than half (41%) of people thought the FMA’s actions had brought about fair, efficient, and transparent financial markets.

But the survey simultaneously showed 70% of investors and customers were confident that New Zealand financial markets and providers treated investors and customers fairly, up from 65% a year earlier.

Whether or not people are right about the FMA’s actions, that second statistic meant that the FMA’s mission is being fulfilled.

The FMA was not powerless against this media angle. It seemed to respond to questions about its reputation without referring to the apparent success of its mission that sat right there in its survey.