The FMA's Clare Bolingford outlines why and how New Zealand is getting a conduct regime overseeing financial institutions, and what it means for customers
Following probes into the conduct and culture of banks and life insurers in 2018 and 2019, the Financial Markets Authority (FMA) is preparing to start regulating the conduct of financial institutions.
The incoming regime aims to ensure financial institutions do what's best for their customers over the entire lifecycle of a financial product, and introduces a fair conduct principle through which financial institutions are required to treat customers fairly.
Why is change needed? What problems is the conduct of financial institutions regime designed to address? And what changes will consumers and the public notice?
To address these questions and other issues I spoke with Clare Bolingford, the FMA's Director of Banking and Insurance Conduct, in the latest episode of interest.co.nz's Of Interest Podcast.
"What the new regime does is it puts a legal obligation on banks and insurers to make sure they are treating customers fairly, that's the central principle," Bolingford says.