Everyday finance

The FMA oversees how banks, insurance companies, credit unions, building societies and some finances companies behave. We make sure they follow the rules and operate fairly and use the Conduct of Financial Institutions Act to ensure that they treat all consumers of their services fairly.  

These pages explain everyday financial services like banking and insurance, what conduct you should expect from them and what to do when things don't go as expected. 

Why the Conduct of Financial Institutions (CoFI) Act was introduced

The FMA wants New Zealanders to have confidence in a strong and trusted financial services sector that treats people fairly. Ensuring our financial institutions have a licence for their conduct towards consumers helps us achieve this.

Starting from 31 March 2025, banks, insurers credit unions, building societies and some finance companies must have a financial institution licence to continue operating and providing services to consumers in New Zealand. This licensing requirement was introduced under the Conduct of Financial Institutions Act, or CoFI for short.

Fairness in financial services: What the Conduct of Financial Institutions Act (CoFI Act) means for you

The Conduct of Financial Institutions Act (CoFI) strengthens consumer protections in banking and insurance by ensuring fair treatment. 

You should:

• be able to access the financial products and services you need when you need them,
• have trust and confidence that the financial products and services will do what has been promised, and
• know that the financial products and services are right for your circumstances.

Being licensed by the FMA means that banks, insurance companies, credit unions, building societies and some finance companies need to create their own fair conduct programmes, which must explain how they will treat you fairly. This includes:

• adequately considering your interests
• acting ethically, transparently, and in good faith
• assisting you to make informed decisions
• ensuring that the services and products, (like transactions and savings accounts, investments and insurances) that the financial institution provide are likely to meet the needs of most consumers, when considered as a group
• not subjecting you to unfair pressure or tactics or undue influence.

All financial institutions must display summary information about their fair conduct programme on their website. This is to make it clear for you how your chosen provider should be treating you, which may be relevant if you feel you have been treated unfairly. Look out for this information on your providers website.