In 2018, joint reviews conducted by the FMA and Reserve Bank of New Zealand identified a significant gap in financial services regulation. They found that banks and insurers didn't have sufficient systems in place to monitor the risks of poor conduct or outcomes.
In late June, New Zealand's Parliament passed the Financial Markets (Conduct of Institutions) Amendment Bill. The legislation, also referred to as the “CoFI" bill, introduces a new regime that will require financial institutions to comply with a “fair conduct principle.” A firm's license to do business will depend on how New Zealand's Financial Markets Authority (FMA) assesses its conduct toward consumers.
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