The New Zealand Financial Markets Authority has opened a consultation on updated draft guidance for financial products with ethical characteristics, aimed at helping issuers present ethical claims in disclosures and advertising in a way that is clear and not misleading or deceptive. The draft is positioned as a tool to support investor reliance on ethical claims and to reduce the risk of greenwashing. The updated guidance is intended to be more specific about how the fair dealing provisions apply to common ethical investing practices, and includes practical examples of conduct likely to be misleading alongside examples of good practice observed in the market. It also retires the term “Integrated Financial Products”, on the basis that the guidance is intended to apply to all types of ethical investing decisions. The draft would update and replace elements of the 2020 Disclosure Framework for Integrated Financial Products and guidance in the FMA’s 2022 thematic review of managed fund documentation, and follows the FMA’s 2024 insights work reviewing 10 managed investment scheme funds’ disclosures, advertising, sustainability reporting and alignment with exclusion policies. Consultation is open until 7 November. The FMA indicated that, once finalised, it will work with industry to embed the guidance through feedback and insights.

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