The New Zealand Financial Markets Authority (FMA) announced that the Conduct of Financial Institutions (CoFI) regime is now fully in force, setting expectations that banks, insurers and non-bank deposit takers treat customers and potential customers fairly under the fair conduct principle. As part of licensing, financial institutions must establish, implement and maintain a fair conduct programme designed to support compliance, and publish summary information about the programme on their websites. Supervision under CoFI will use engagement meetings, monitoring reviews and thematic reviews focused on key issues across the sector, with an emphasis on outcomes and flexibility in how firms meet the regime’s principles-based requirements. The FMA reported it has licensed 77 institutions for CoFI, comprising 17 banks, 46 insurers and 14 non-bank deposit takers (including credit unions, building societies and some finance companies), and noted the regime follows earlier conduct and culture reviews and the Financial Markets (Conduct of Institutions) Amendment Act 2022; since those reviews, more than NZD 215 million has been returned to over 1.5 million customers.
New Zealand Financial Markets Authority 2025-03-31
New Zealand Financial Markets Authority brings the CoFI conduct regime into full effect and confirms 77 institutions licensed
The New Zealand Financial Markets Authority announced the full implementation of the Conduct of Financial Institutions regime, requiring banks, insurers, and non-bank deposit takers to adhere to the fair conduct principle. The FMA has licensed 77 institutions under CoFI, emphasizing outcomes and flexibility in compliance, following previous conduct reviews and the Financial Markets (Conduct of Institutions) Amendment Act 2022.