Starting today, the Financial Markets Authority (FMA) in New Zealand will start accepting applications for licenses from financial institutions under the Conduct of Financial Institutions (CoFI) regime.
CoFI, which starts on 31 March 2025, needs around 100 banks, insurance companies. And credit unions to get a license from the FMA if they want to offer financial services to people. These institutions must prioritize fair treatment in their operations.
Every organization is obligated to treat customers with fairness, known as the “fair conduct principle”, by establishing, maintaining. And executing a fair conduct program. They are required to make reasonable efforts to adhere to the program and comply with regulations that prohibit sales incentives based on targets. And regulate other forms 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.
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