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Page last updated: 04 February 2025

Legislation

The FMA has certain powers granted by legislation, to monitor compliance, investigate, and take enforcement action against conduct that may constitute a contravention of legislation, where it applies to financial market firms and individuals. This section explains the Financial Markets Conduct Act 2013 and other legislation we enforce.

Topics covered in this secton

Financial Markets Conduct Act

The Financial Markets Conduct Act 2013 (FMC Act) lays the groundwork for us to provide high-quality regulation in capital markets and financial services here in New Zealand. It is the largest statutory change in our financial markets in at least 30 years and ensures regulation keeps pace with investor and business expectations.

Conduct of Financial Institutions (CoFI) legislation

The Financial Markets (Conduct of Institutions) Amendment Act 2022 amends the Financial Markets Conduct Act 2013 to ensure financial institutions treat consumers fairly. It is designed to protect consumers by putting the consumer at the forefront of institutions’ decisions and actions.

Financial Services Legislation Amendment Act 2019 (FSLAA)

The laws governing financial advice in New Zealand have changed. As part of the changes, the three adviser types – Registered Financial Adviser (RFA), Authorised Financial Adviser (AFA) and QFE adviser have been removed – and all advisers need to meet the same standards and are subject to a Code of Professional Conduct for Financial Advice Services.

Fair dealing

Conduct is at the core of the Financial Markets Conduct Act 2013 (FMC Act). Underpinning the breadth of the FMC Act are the fair dealing provisions, which set out the core standards of behaviour that those operating in the financial markets must comply with.   

Part 2 of the FMC Act requires “fair dealing” in relation to financial products and services. 

Designations

Designations can change how a product, client, advice or service is categorised, and remove an existing statutory exemption or exclusion. A designation can be applied to:

  • a particular person or transaction (an individual designation)
  • a class of persons or transactions (a class designation)

Under the FMC Act, we have powers to make designations that change the way products and other matters are regulated.

Exemptions (Secondary Legislation)

The FMA has wide powers under the FMC Act to provide exemptions (secondary legislation) to persons or transactions from compliance obligations under financial markets law. This allows us to provide a tailored approach and ensure requirements for businesses are reasonable and cost-effective. 

Current FMC Act exemption notices

FMC Act exemptions
26 Sept 2024
Financial Markets Conduct (Spark New Zealand Limited Group) Exemption Notice 2024
Both Spark and Spark Finance are FMC reporting entities under the FMC Act.
FMC Act exemptions
22 Aug 2024
Financial Markets Conduct (Restricted Schemes-Custodian Assurance Engagement) Exemption Notice 2024
The notice exempts certain custodians of eligible restricted schemes from the requirement to obtain an assurance engagement.
FMC Act exemptions
22 Aug 2024
Financial Markets Conduct (Climate-related Disclosures – Works Finance (NZ) Limited) Exemption Notice 2024
The Financial Markets Conduct (Climate-related Disclosures – Works Finance (NZ) Limited) Exemption Notice 2024 (Notice) exempts Works Finance (NZ) L ...
FMC Act exemptions
07 Aug 2024
Financial Markets Conduct (Obsidian Contributory Mortgage Scheme) Exemption Notice 2024
The Notice is in effect an almost identical renewal of the Financial Markets Conduct (Obsidian Contributory Mortgage Scheme) Exemption Notice 2019.
FMC Act exemptions
02 Aug 2024
Financial Markets Conduct (Mercer Super Trust) Exemption Notice 2024
The Financial Markets Conduct (Mercer Super Trust) Exemption Notice 2024 relates to initial and ongoing registration requirements for workplace saving ...
FMC Act exemptions
29 Jul 2024
Financial Markets Conduct (Climate-related Disclosures—Overseas Banks and Insurers) Exemption Notice 2024
Financial Markets Conduct (Climate-related Disclosures—Overseas Banks and Insurers) Exemption Notice 2024

View all FMC Act Exemptions notices

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FMA’s view of conduct

Guidance on what we will focus on when examining how licensed financial services providers demonstrate good conduct, and how they have met their governance and management responsibilities.

Regulatory response guidelines

This is a guide on how we regulate financial markets and the responses we use in enforcing legislation. It is for all individuals and businesses involved in providing financial market products and services.

Customer vulnerability – our expectations

This information sheet explains the FMA’s expectations for financial services firms to prioritise their customer vulnerability practices, focusing on areas we consider immediate priorities.