Conduct is at the core of the Financial Markets Conduct Act (FMC Act). The FMC Act sets new standards for conduct, and adds weight to the FMA’s existing statutory mandate to monitor conduct, and compliance with financial markets legislation, in New Zealand’s financial markets.
The FMA will take a risk-based approach to this job. We will assess which financial service providers (providers), and what conduct, are most likely to pose risks to fair, efficient and transparent markets – and harm to investors and consumers – and direct our regulatory attention and effort accordingly.
This guidance note is for directors and executives of licensed financial services providers.
It gives guidance on what we will focus on when examining how licensed financial services providers demonstrate good conduct, and how they have met their governance and management responsibilities.