Sunday, April 21, 2024

Consultation opens on conduct of financial institutions regime

The Ministry of Business, Innovation and Employment (MBIE) has opened consultation on regulations relating to sales incentives and proposed licensing fees to support a new regulatory regime to govern conduct in the financial sector.

The Financial Markets (Conduct of Institutions) Amendment Act 2022, which was passed in June, will require banks, insurers and non-bank deposit takers (collectively, financial institutions) to have the right systems in place to ensure they treat their customers fairly.

Financial institutions will need to hold a licence from the Financial Markets Authority (FMA) in respect of their conduct towards consumers, and the FMA will be responsible for monitoring and enforcing the new regime.

The consultation on an exposure draft of sales incentives regulations is open for six weeks and closes on Wednesday 9 November at 5pm.

You can read more about the consultation, and have your say, at the link below:

Consultation on exposure draft of regulations under the Financial Markets (Conduct of Institutions) Amendment Act 2022 – prohibition of certain sales incentives

The proposed licensing fees consultation is open for four weeks and closes on Wednesday 26 October at 5pm. Read more and have your say at the link below:

Consultation on regulations under the Financial Markets (Conduct of Institutions) Amendment Act 2022 – proposed licensing fees

This regime is expected to come fully into force in early 2025.

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