FMA
NZBA appreciates the FMA’s engagement on licensing under the Financial Markets (Conduct of Institutions) Amendment Act 2022 (CoFI). We understand the licensing conditions are intended to support the purpose and scope of CoFI and help the FMA effectively monitor the licensed population that is required to comply with the fair conduct provisions of the Financial Markets Conduct Act.
The proposed conditions capture multiple services that are already regulated by existing regimes, and in some cases those existing regimes cover the same matters in the proposed licence conditions. To help avoid an unintended compliance burden on Financial Institutions (FIs) that are subject to overlapping prudential requirements, our view is that the language used in the conditions needs to be more specific and targeted so that the intended reach and scope of each condition is sufficiently clear