The Financial Markets (Conduct of Institutions) Amendment Bill (CoFI), has been passed in Parliament. CoFI aims to ensure that financial institutions and their intermediaries comply with a principle of fair conduct and associated duties and regulations.
Minister of Commerce and Consumer Affairs David Clark, said the passing of the bill “will establish a new financial conduct scheme that ensures financial institutions put customers before profits”
The FMA welcomes the new bill, with Samantha Barrass, Chief Executive saying
“This will enhance the culture of core financial services in New Zealand, with a focus on putting conduct and the fair treatment of customers at the heart of every business. Firms will be held to account by the FMA for the way they sell products and look after their customers. This brings New Zealand into line with comparable countries overseas."
“It is critical that consumers get the financial products and services they need throughout their life and receive fair treatment in all their dealings with financial institutions. Consumers should have trust and confidence that the institutions who sell products and services to them will always do the right thing.”
“While fund managers, derivatives issuers, and advice providers are already subject to FMA licensing, the same supervision and monitoring powers will now apply to banks, insurers and NBDTs,”
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