Conduct of Financial Institutions for banks and insurers

The introduction of the new conduct regime through the Conduct of Financial Institutions (CoFI) legislation requires registered banks, non-banks and insurers to comply with the fair conduct principle when providing relevant services to consumers. They must hold a licence to act as a financial institution, implement a Fair Conduct Programme (FCP) and comply with incentive regulations.

The legislation is deliberately principles based, with the FMA expecting financial institutions to leverage their own knowledge of their consumers to develop a fit-for-purpose FCP. This blog discusses some of the steps that financial institutions can take to prepare for CoFI and we also attach a summary of the key elements of a FCP.