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Financial Markets Conduct Act 2013

Licensing and other regulation of market services - Regulating conduct of financial institutions - Fair conduct principle

446C: What is the fair conduct principle

You could also call this:

"Treating you fairly: how financial institutions must act honestly and help you make good decisions"

Illustration for Financial Markets Conduct Act 2013

The fair conduct principle is that a financial institution must treat you fairly. This means they must pay attention to your interests and act in a way that is honest and transparent. They should help you make informed decisions and make sure their services meet your needs.

When a financial institution provides services and products, they must think about what you need and want. They should not try to pressure or influence you in a way that is unfair. The institution must act in good faith and make sure you are not treated unfairly.

The rules about treating you fairly include helping you make good decisions and making sure you are not pressured into doing something that is not right for you. The financial institution must think about what is best for you and make sure their services are suitable for you. You can find more information about the law that requires financial institutions to treat you fairly in the Financial Markets (Conduct of Institutions) Amendment Act 2022.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS1428454.

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446D: When fair conduct principle applies, or

"When companies offer you financial services or products, they must treat you fairly."

Part 6Licensing and other regulation of market services
Regulating conduct of financial institutions: Fair conduct principle

446CWhat is the fair conduct principle

  1. The fair conduct principle is that a financial institution must treat consumers fairly.

  2. The requirement to treat consumers fairly includes—

  3. paying due regard to consumers’ interests; and
    1. acting ethically, transparently, and in good faith; and
      1. assisting consumers to make informed decisions; and
        1. ensuring that the relevant services and associated products that the financial institution provides are likely to meet the requirements and objectives of likely consumers (when viewed as a group); and
          1. not subjecting consumers to unfair pressure or tactics or undue influence.

            1. Subsection (2) does not limit subsection (1).

            Notes
            • Section 446C: inserted, on , by section 12 of the Financial Markets (Conduct of Institutions) Amendment Act 2022 (2022 No 36).