New Zealand’s FMA begins accepting license applications under CoFI regime
From today the New Zealand Financial Markets Authority (FMA) will begin accepting licensing applications for financial institution licences under the Conduct of Financial Institutions (CoFI) regime.
Under CoFI, about 100 registered banks, licensed insurers, and licensed non-bank deposit takers such as credit unions will need to be licensed by the FMA to provide financial services to consumers.
CoFI, which comes into force on 31 March 2025, requires these institutions to put fair treatment at the heart of their business.
Each institution must treat consumers fairly – the “fair conduct principle” – through the requirement to establish, maintain and implement a fair conduct programme. They must take all reasonable steps to comply with the programme and with regulations that ban target-based sales incentives and regulate other types of incentives.
FMA Executive Director of Regulatory Delivery Clare Bolingford says:
“It’s important for firms to allow sufficient time to prepare their license application and consider the contents of their fair conduct programme well ahead of 2025 – we encourage firms to start that work now and submit their licence application as early as possible. We’re here to help with the process and answer any questions.”
Institutions need to establish their fair conduct programmes before they submit their licence applications, but they don’t need to be fully implemented until the regime comes into effect.