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Financial Markets Conduct Act 2013

Licensing and other regulation of market services - Regulating conduct of financial institutions - Fundamental duties to meet fair conduct principle

446G: Duty to establish, implement, and maintain effective fair conduct programme

You could also call this:

"Financial institutions must have a fair plan to treat customers right and follow the rules."

Illustration for Financial Markets Conduct Act 2013

If you are a financial institution, you must create, put in place, and keep a fair conduct programme that works. You have to make sure your programme follows the rules set out in section 446J. You also have to follow the rules in a specific way.

A fair conduct programme is a set of policies, processes, systems, and controls that help you comply with the fair conduct principle. You need to design these to ensure you are doing the right thing. This is an important part of being a financial institution.

You must comply with the duty to have a fair conduct programme in the way that is prescribed. This means you have to do it in a specific way that is set out in the rules. If you are a financial institution, this applies to you.

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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=LMS1428465.

Topics:
Money and consumer rights > Banking and loansMoney and consumer rights > Consumer protectionBusiness > Industry rulesBusiness > Fair trading
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446H: Duty to make information about fair conduct programme publicly available, or

"Financial institutions must share their fair treatment plans with you"

Part 6Licensing and other regulation of market services
Regulating conduct of financial institutions: Fundamental duties to meet fair conduct principle

446GDuty to establish, implement, and maintain effective fair conduct programme

  1. Every financial institution must establish, implement, and maintain an effective fair conduct programme.

  2. The financial institution must—

  3. ensure that the programme complies with section 446J; and
    1. otherwise comply with the duty in subsection (1) in the prescribed manner.

      1. A fair conduct programme means policies, processes, systems, and controls that are designed to ensure the financial institution’s compliance with the fair conduct principle.

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