New Zealand’s Financial Markets Authority says it expects businesses to put consumers at the forefront of decision-making as the Conduct of Financial Institutions regime takes effect.  

The new regulatory framework requires industries including insurance to establish, implement and maintain fair conduct programs.  

“CoFI is fundamentally about treating customers and potential customers fairly – this is the fair conduct principle,” FMA deposit-taking, insurance and advice director Michael Hewes said.  

“We expect financial institutions to be analysing how their products are performing, communicating effectively with consumers and acting quickly if something is not working as it should be.”

The FMA says it will use “the full spectrum of tools available” to address issues in the sector.  

Since it held a review of financial services practices, the regulator has recovered more than $NZ215 million ($195.34 million) for 1.5 million insurance customers due to overcharged fees or discounts not being applied.  

Mr Hewes thanked the financial groups that have become CoFI-licensed – including 46 insurers – and says the regulator “will continue to listen, provide guidance, and communicate our expectations”.