Plain language law

New Zealand law explained for everyone

Financial Markets Conduct Act 2013

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

446D: When fair conduct principle applies

You could also call this:

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

Illustration for Financial Markets Conduct Act 2013

The fair conduct principle applies when a financial institution is designing a service or product for you. It also applies when they offer or provide a service or product to you. The principle applies to all interactions between you and the financial institution, like when they respond to a complaint.

The fair conduct principle applies even if someone else, like an intermediary, is involved in providing the service or product to you. This means the financial institution must still follow the principle, even if they are not dealing with you directly. They have to make sure they are treating you fairly.

When a financial institution is designing a service or product, the fair conduct principle only applies if the service or product will be used by people like you, who are consumers. You can find more information about the law that applies to financial institutions, including the Financial Markets (Conduct of Institutions) Amendment Act 2022, on the government's website. This law helps make sure financial institutions treat you fairly.

This text is automatically generated. It might be out of date or be missing some parts. Find out more about how we do this.

This page was last updated on

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS1428455.

Topics:
Money and consumer rights > Banking and loansMoney and consumer rights > Consumer protectionBusiness > Industry rulesBusiness > Fair trading
Previous

446C: What is the fair conduct principle, or

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

Next

446E: Meaning of financial institution, or

"What is a financial institution in New Zealand law?"

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

446DWhen fair conduct principle applies

  1. The fair conduct principle applies when a financial institution—

  2. is designing any relevant service or any associated product; or
    1. offers to provide any relevant service or any associated product to a consumer; or
      1. provides any relevant service or any associated product to a consumer; or
        1. has any dealings or interactions with a consumer in connection with any relevant service or any associated product (for example, responding to a complaint or handling a claim under an insurance contract).

          1. The fair conduct principle also applies to a financial institution when an intermediary is involved in the provision of any of the financial institution’s relevant services or associated products to a consumer.

          2. Subsection (1)(a) applies only to the extent that the relevant service or associated product will be provided to consumers.

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