FMA now accepting licensing applications under CoFi regime

Under CoFI, about 100 registered banks, licensed insurers, and licensed non-bank deposit takers such as credit unions will need to be licensed by the FMA to provide financial services to consumers.

CoFI, which comes into force on March 31 2025, requires these institutions to put fair treatment at the heart of their business.

Each institution must treat consumers fairly – the “fair conduct principle” – through the requirement to establish, maintain and implement a fair conduct programme. They must take all reasonable steps to comply with the programme and with regulations that ban target-based sales incentives and regulate other types of incentives. 

FMA executive director of Regulatory Delivery Clare Bolingford says “It is important that consumers get the financial products and services they need throughout their life, when they need them, and have trust and confidence they will do what they are meant to. The overarching requirement for institutions to ‘treat consumers fairly’ is paramount throughout the lifecycle of a financial product.