The Financial Markets (Conduct of Institutions) Amendment Act 2022 amends the Financial Markets Conduct Act 2013 to ensure financial institutions treat consumers fairly. It is designed to protect consumers by putting the consumer at the forefront of institutions’ decisions and actions.
Also known as the Conduct of Financial Institutions (CoFI) legislation, it introduces a new regulatory regime to ensure registered banks, licensed insurers and licensed non-bank deposit takers comply with the fair conduct principle when providing relevant services to consumers. It is important that consumers get the financial products and services they need throughout their life, when they need it, and have trust and confidence it will do what it should.
CoFI significantly expands the FMA’s mandate as a conduct regulator to include financial institutions, and confers new responsibilities in terms of licensing, monitoring and enforcement.