What is a financial institution licence?
The CoFI Act creates a new market service of “acting as a financial institution." We refer to this market service as the “financial institution service”. The licence for this new market service will be known as a “financial institution licence”.
Who needs a licence?
From the start of the new CoFI regime, any registered bank, licenced non-bank deposit taker in the business of providing one or more relevant services will need to hold a financial institution licence to continue operating, if that service is received by a consumer in New Zealand.
This means a financial institution that is in New Zealand but only provides relevant services or associated products to consumers outside New Zealand will not need to hold or operate under a financial institution licence.
The following diagram is a useful tool you can use to determine whether you require a financial institution licence.

How to prepare for the CoFI licensing regime
Key dates
Early-2023:
- we will publish draft intermediated distribution guidance for consultation
- MBIE is expected to confirm the date that the new regime will come into force and the fees that will be charged for licence applications
25 July 2023:
- financial institution licence applications open for submission.
Early-2025:
- the new regime will come into force. All existing banks, insurers and non-bank deposit takers will be required to have a financial institution licence when the new regime comes into effect
How to apply for a licence
Licence applications must be made online via the FMA website. Before applying for a financial institution licence, you must be registered on the Financial Service Provider Register (FSPR), and you will need a RealMe login to use our online application form. Further information may be found in our licensing guide.
Download the financial institutions licensing guide for more information.
What to expect from the licence application form
- A single online application form for all applicants, aimed at understanding the applicant’s business
- Applicants will need to have an established fair conduct programme (FCP) before applying. While we do not expect these to be fully implemented by at the time of applying, we do expect the FCP to have been approved by the applicant’s board of directors.
Licensing costs
The application fee for a financial institution licence has not yet been set by MBIE. When the fees have been determined, these will be published on our website. All amounts will include GST.
Standard conditions
All financial institutions and their authorised bodies need to comply with standard conditions. These conditions relate to the following:
- Ongoing requirements
- Notification of material changes
- Regulatory returns
- Outsourcing
- Business continuity and technology systems
- Record keeping
View the consultation page about standard conditions for financial institution licences for background and all related financial institutions standard conditions consultation documents.
Technical terms introduced by the CoFI regime
The Financial Market (Conduct of Institutions) Amendment Act has introduced some technical terms to describe how the CoFI regime operates. Some of those new terms are referred to in the licensing guide, the FCP information sheet and the standard conditions. Read through the list of most common terms and their explanation.
CoFI licensing FAQs