Information sheet on sales incentives to replace revised intermediary guidance
The Financial Markets Authority (FMA) will not update its Conduct of Financial Institutions (CoFI) intermediated distribution guidance to address sales incentives or the mortgage adviser issues raised in the Commerce Commission's personal banking market study, the regulator said in its September 2026 update.
Instead, the FMA will publish a dedicated information sheet on the CoFI sales incentives regulations. The sheet will explain how the rules apply in practice and how they fit within the wider CoFI framework.
Practical examples on access to advice
The FMA said it is also looking at publishing practical examples as part of its work on access to financial advice. These would show what good practice looks like, and how flexible, proportionate compliance can support access to mortgage advice and more effective competition.
The regulator said it had heard feedback on how CoFI has been implemented and on the practical impact of compliance requirements on intermediaries. It is considering next steps and will engage further with relevant stakeholders.
Returns and licensing changes ahead
Licensed financial advice providers must complete their annual regulatory return in the myFMA portal, covering 1 July 2025 to 30 June 2026. This will also be the first regulatory return for licensed financial institutions.
In October, the FMA will open consultation on changes to the standard conditions for market services licences issued under Part 6 of the Financial Markets Conduct Act. The aim is to reduce overlap for entities that hold more than one licence. The consultation will include a proposal to introduce standard conditions for licensed consumer credit providers, with any changes taking effect in mid-2027.
The FMA also urged financial service providers to keep their details up to date on the Companies Register and the Financial Service Providers Register, as recent cases show scammers using cloned websites and deepfake content to impersonate legitimate businesses.
KiwiSaver growth brings scrutiny
The update also covered the FMA's 2026 KiwiSaver Annual Report, which showed more than 50,000 members withdrew a record $2.2 billion to help buy a first home. The report noted evidence of fraudulent KiwiSaver withdrawals and more promotional activity as providers compete for members.
FMA executive director Clare Bolingford (pictured) wrote that "providers need to make sure their marketing supports informed decision-making."
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