New Zealand's FMA Starts License Applications Under CoFI Regime

The New Zealand's Financial Markets Authority​ (FMA) announced that it would begin accepting licensing applications for financial institution licences under the Conduct of Financial Institutions (CoFI) regime from today (July 25).

CoFI, which will be put into effect on 31 March 2025, requires registered banks, licensed insurers, and licensed non-bank deposit takers such as credit unions to put fair treatment at the heart of their business.

Besides, under this regime, around 100 these institutions will need to be licensed by the FMA to deliver financial services to consumers.

Each institution must treat consumers fairly through the requirement to establish, maintain and implement a fair conduct programme. They need to abide by the programme and comply with regulations that ban target-based sales incentives and regulate other types of incentives. 

FMA Executive Director of Regulatory Delivery Clare Bolingford says, "It is important that consumers get the financial products and services they need throughout their life, when they need them, and have trust and confidence they will do what they are meant to. The overarching requirement for institutions to 'treat consumers fairly' is paramount throughout the lifecycle of a financial product."

Intitutions are supposed to prepare their license application and consider the contents of their fair conduct programme well ahead of 2025.