Conduct of financial institutions review

Days left

Submissions due: 07 June 2019, 11:59pm

Consultation is now open on the conduct of financial institutions options paper

About the consultation

Recent reports from the Financial Markets Authority and the Reserve Bank of New Zealand have highlighted failures in how conduct risk is managed in the financial sector, particularly among banks and life insurers.

We want to ensure that conduct and culture in the financial sector is delivering good outcomes for all customers.

The key problems that have been identified include:

  • An imbalance of power between financial institutions and consumers.
  • Some products are not designed with good customer outcomes in mind.
  • Sales are prioritised over good customer outcomes.
  • There are weak systems and controls to manage conduct risk.
  • There is a lack of accountability to ensure good conduct.

We have a broad range of options that we want your feedback on. This includes:

  • Overarching duties to govern the conduct of financial institutions
  • Executive accountability for breaches of any new legal duties
  • A legal duty regarding how insurance claims are handled
  • Measures to address conflicted remuneration
  • Measures to ensure financial products are suitable for customers
  • A robust enforcement package.

Review of insurance contract law

You may also be interested in the review of insurance contract law which is currently underway. 

Find out more and make a submission

How to make a submission

You can:

We strongly prefer that you make submissions through our online forms.

If you are preparing a comprehensive submission in collaboration with others, you may wish to first prepare answers to each question in Microsoft Word or similar. That is because the online form does not save progress if you exit the browser. 

If you are unable to access or use the online form, please either:

  • contact us at to make other arrangements to receive your electronic submission; or
  • mail your submission to:

    Financial Markets Policy
    Building, Resources and Markets
    Ministry of Business, Innovation & Employment
    PO Box 1473
    Wellington 6140
    New Zealand

Your submission may respond to any or all of the issues in this paper, or raise issues not covered in the paper. Where possible, please include evidence to support your views, for example references to independent research, facts and figures, or relevant examples.

If you have any questions about the submissions process, contact us at

The consultation period closes at 11.59pm on 7 June 2019.