The Financial Markets Authority (FMA) in New Zealand has released the final version of its conduct guide.

It will serve as a “conduct lens”, through which the regulator will monitor and supervise financial services providers under the Financial Markets Conduct (FMC) Act.

It does not create, replace or supplement legal obligations, but is intended to illustrate a good conduct profile. The guide sets the following criteria:

• The provider has the skills and experience to competently provide an appropriate service or product to the customer, and can meet professional standards of care.
• The cost of the provider’s product or service is reasonable (and does not reduce the return or benefit customers get from it).
• The customer’s interests are served as well as the provider’s business interests, and any arrangements with related parties are transparent.
• The provider’s culture encourages and recognises good conduct, from the leadership down, and consistently acts in the customer’s interest.
• The provider acts with integrity, honestly and fairly.
• Checks and balances exist to support good conduct and identify and address poor conduct.
• The provider can convincingly demonstrate all of this internally (for example in a code of conduct) and externally.

Director of Regulation Liam Mason says the FMA’s focus is on ascertaining whether providers have customers’ interests at heart.

View the guide, including submissions, here.