CoFI licensing aid
The Financial Markets Authority (FMA) has released a new information sheet aimed at assisting smaller firms in navigating the requirements for a Fair Conduct Programme (FCP) and obtaining a Financial Institution (CoFI) licence.
This initiative is part of the FMA’s ongoing effort to support a diverse range of financial entities under the evolving regulatory framework.
Ensuring fair consumer treatment
The newly published sheet provides detailed guidance and examples to help smaller financial institutions develop, implement, and maintain their FCPs.
The FMA said the programmes are critical for ensuring compliance with the fair conduct principle mandated by the Financial Markets (Conduct of Institutions) Amendment Act 2022, which requires that financial institutions treat consumers fairly.
“The fair conduct principle is the overarching principle of CoFI that a financial institution must treat consumers fairly,” the FMA said in a media release.
Preparing for the 2025 CoFI regime
With the CoFI regime set to take effect in March 2025, the FMA is intensifying its efforts to educate and transition firms into the new system.
“We have some great examples of working with a diverse range and size of businesses from the financial advice sector while we implemented the new advice regime,” said Clare Bolingford (pictured above), FMA executive director of regulatory delivery.
Bolingford highlighted the principle-based approach of CoFI, which avoids a one-size-fits-all strategy, allowing for tailored FCPs that reflect the specific needs and complexities of each business.
FMA’s engagement and support efforts
The FMA has conducted extensive market engagements, including webinars and one-on-one clinics, to clarify the new obligations under CoFI. These initiatives have reached hundreds of stakeholders, with many firms actively seeking further personalised guidance.
“I encourage all small firms to read the information sheet and attend our CoFI workshops. The FMA is here to support firms on their journey,” Bolingford said, urging firms to commence their licensing applications well before the 2025 deadline.
Read: CoFI information sheet for smaller firms.
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