New Zealand’s FMA begins accepting license functions underneath CoFI regime

From right this moment the New Zealand Monetary Markets Authority (FMA) will start accepting licensing functions for monetary establishment licences underneath the Conduct of Monetary Establishments (CoFI) regime.

Beneath CoFI, about 100 registered banks, licensed insurers, and licensed non-bank deposit takers similar to credit score unions will should be licensed by the FMA to supply monetary providers to customers.

CoFI, which comes into pressure on 31 March 2025, requires these establishments to place honest remedy on the coronary heart of their enterprise.

Every establishment should deal with customers pretty – the “honest conduct precept” – by means of the requirement to determine, preserve and implement a good conduct programme. They need to take all cheap steps to adjust to the programme and with rules that ban target-based gross sales incentives and regulate different sorts of incentives.

FMA Government Director of Regulatory Supply Clare Bolingford says:

“It’s necessary for corporations to permit ample time to organize their license software and take into account the contents of their honest conduct programme properly forward of 2025 – we encourage corporations to begin that work now and submit their licence software as early as attainable. We’re right here to assist with the method and reply any questions.”

Establishments want to determine their honest conduct programmes earlier than they submit their licence functions, however they don’t should be totally applied till the regime comes into impact.