Consultation: Proposed standard conditions for financial institution licences

Following consultation, we carefully considered all submissions. We have decided to impose six standard conditions on financial institution licences. View the resulting documents above for more detail.

20 July 2022

The Financial Markets (Conduct of Institutions) Amendment Act 2022 (CoFI Act) will introduce a new regulatory regime for the conduct of registered banks, licensed insurers and licensed non-bank deposit takers. If you are currently operating as a registered bank, licensed insurer or licensed non-bank deposit taker providing relevant services to consumers (collectively, financial institutions) or you may do so in the future, this will affect you. Relevant services are defined in section 446F(1) of the CoFI Act.

Once the new regime comes into force, you will need to operate under a licence relating to the market service of acting as a financial institution (financial institution licence) issued by the FMA in order to continue providing relevant services to consumers in New Zealand.

We are considering imposing six standard conditions on financial institution licences. All holders of financial institution licences and each of their authorised bodies will need to comply with the standard conditions. The standard conditions we are proposing are consistent with those imposed on other licences issued by the FMA, such as the standard conditions that are imposed on financial advice provider licences.