FMA to review CoFI Guidance
The Financial Markets Authority (FMA) is considering a limited review of the Conduct of Financial Institutions (CoFI) Intermediated Distribution Guidance before the end of this financial year, confirmed FMA director Michael Hewes.
Friday, April 10th 2026, 8:07AM
by Lesley Springall
Hewes said the FMA was looking at whether “targeted, limited updates” to the Guidance were needed following the Commerce Commission’s Market Study into personal banking services during his talk at last month’s National Adviser Conference.
“The Market Study highlighted how distribution settings can affect competition and consumer choice and outcomes, particularly through intermediated channels such as mortgage advisers.
"We are considering whether the Guidance continues to adequately reflect those considerations, as well as the newer sales incentives regulations,” he said. “If this work proceeds to a consultation, it would not be intended to introduce new requirements, instead it will seek to clarify expectations and provide relevant examples.”
Hewes reiterated that CoFI and the financial advice regime were deliberately designed to operate side-by-side, not hierarchically.
“One regime should not be used to shift accountability or impose requirements that sit outside the legislative framework. Where institutions extend controls into adviser businesses, those controls need to be risk-based, targeted and clearly linked to the fair conduct principle to treat consumers fairly — not blanket or duplicative.
The FMA is considering how best to reinforce these expectations through supervisory messaging,” he said, adding that advisers should expect the FMA to continue to engage where boundaries become unclear, for example, when an entity has imposed additional compliance burden.
To reinforce these expectations, Hewes said the FMA will continue to share its observations, especially about behaviours it believes drive poor customer outcomes, through its usual channels, including its monthly newsletter the FMA Update.
The FMA also has a series of roundtables planned over the coming months on the findings from its Access to Financial Advice research review and its annual Financial Advice Provider Forums commencing in July.
“These are a chance for advisers to engage with the FMA on the work we are doing across all regulatory priorities for financial advice.,” he said.
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