New Zealand’s Financial Markets Authority Te Mana Tātai Hokohoko (FMA) has released final guidelines for financial institutions that distribute products and services through intermediaries as part of the Conduct of Financial Institutions (CoFI) regime. 

A series of workshops, consultation and 15 submissions from stakeholders have helped inform the guidelines which cover banks, licensed insurers, and licensed non-bank deposit takers. The guidelines come into effect in March 2025. 

CoFI’s new conduct regime ensures financial institutions comply with a fair conduct principle to treat consumers fairly, and establish, implement, and maintain a fair conduct program.  

The FMA says it is not prescriptive as to what financial institutions must do to comply with CoFI because a ‘one-size-fits-all’ approach is not suitable. 

FMA Executive Director for Regulatory Delivery Clare Bolingford says the guidelines are principals-based and practical. 

“This is consistent with our outcomes-focused approach to regulation, the new conduct regime, and our intention to empower financial institutions to take ownership of how they drive fair treatment of consumers in their businesses,” she said. 

“This includes how they manage the risk of consumers not being treated fairly. We want firms to have the flexibility to design and implement fair conduct programs that are fit for purpose and right-sized for their businesses and distribution models.” 

When the new regime starts on March 31, 2025, registered banks, licensed insurers, and licensed non-bank deposit takers providing services to consumers will have to operate under a financial institution licence. The FMA will begin accepting licence applications from July 25 this year.