Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


FMA releases conduct guide for feedback

28 July 2016

FMA releases conduct guide for feedback

The Financial Markets Authority (FMA) has released a guide to how it will examine whether financial services providers are demonstrating good conduct under the Financial Markets Conduct Act (FMC Act). The guide is open for consultation today.

The conduct guide describes for financial service providers how conduct will be the FMA’s ‘lens’, through which it will examine what providers do, how they do it, and how that translates to what their customers experience.

Conduct is at the core of the FMC Act, as good conduct is vital to fair, efficient and transparent financial markets. A mandate to focus on conduct shifts the FMA’s emphasis from compliance with regulations, including disclosure – both of which remain necessary, but not sufficient for good conduct – to assessing whether providers can show that they consistently and purposely deliver good outcomes to their customers.

Rob Everett, Chief Executive said “The guide is not a checklist or a manual. It is principles-based guidance about how we view conduct. It will inform how we license, supervise, monitor and enforce. It will affect, for example, how we consider incentive structures and customer complaints.”

“We draw a strong link between good conduct and good business. So we hope senior leadership of providers will find this guide useful when considering what they do, how they do it, and whether they need to change anything so that they can show us how they demonstrate good conduct,” Mr Everett said.

The FMA is seeking feedback from providers licensed under the F MC Act and also welcomes submissions from others in the financial services industry.

Mr Everett said: “Conduct is a debate but also a core part of how we plan to operate. So we are particularly interested to hear providers’ views on whether the guide is a useful contribution to the debate; and whether it also makes sense on a practical level.”

A copy of the guide and submission form can be seen here. Given the importance of the subject matter, the FMA has decided a longer consultation period is appropriate so submissions will be accepted until 31 October.


© Scoop Media

Business Headlines | Sci-Tech Headlines


By May 2018: Wider, Earlier Microbead Ban

The sale and manufacture of wash-off products containing plastic microbeads will be banned in New Zealand earlier than previously expected, Associate Environment Minister Scott Simpson announced today. More>>


Snail-ier Mail: NZ Post To Ditch FastPost

New Zealand Post customers will see a change to how they can send priority mail from 1 January 2018. The FastPost service will no longer be available from this date. More>>


Property Institute: English Backs Of Debt To Income Plan

Property Institute of New Zealand Chief Executive Ashley Church is applauding today’s decision, by Prime Minister Bill English, to take Debt-to-income ratios off the table as a tool available to the Reserve Bank. More>>


Divesting: NZ Super Fund Shifts Passive Equities To Low-Carbon

The NZ$35 billion NZ Super Fund’s NZ$14 billion global passive equity portfolio, 40% of the overall Fund, is now low-carbon, the Guardians of New Zealand Superannuation announced today. More>>


Split Decision - Appeal Planned: EPA Allows Taranaki Bight Seabed Mine

The Decision-making Committee, appointed by the Board of the Environmental Protection Authority to decide a marine consent application by Trans-Tasman Resources Ltd, has granted consent, subject to conditions, for the company to mine iron sands off the South Taranaki Bight. More>>