The Financial Markets Authority – Te Mana Tatai Hokohoko (FMA) is seeking feedback on proposed changes to the standard conditions imposed on market services licences issued under Part 6 of the Financial Markets Conduct Act 2013.

Currently each type of licensed market service has its own standard conditions, with a degree of overlap between them, creating greater complexity for multiple licensees.  The FMA is proposing to simplify standard conditions, align requirements and remove those that are outdated or duplicated.  However, the FMA also intends to begin imposing standard conditions on consumer credit providers.

The submission form can be found here, the consultation here, and the consolidated conditions here.

What is being proposed?

The FMA is proposing the following changes:

  • Consolidating all standard conditions into a single document to reduce complexity for licence holders that offer more than one market service

  • Removing some standard conditions, including those relating to compliance, governance arrangements, notification of material changes, professional indemnity insurance, and skills and expertise, largely to reduce duplication and overlap

  • Introducing six new standard conditions for creditors under consumer credit contracts, which are not currently subject to any standard conditions.  The proposed conditions cover business continuity and technology systems, internal complaints processes, ongoing requirements, outsourcing, record keeping, and regulatory returns

  • Exploring with the Reserve Bank whether conduct licence conditions can be streamlined where they substantially duplicate prudential licensing conditions

  • Updating existing standard conditions, including changes to the wording of standard conditions and their supporting materials to align them across different market services licences.

Our thoughts and next steps

The planned simplification of licensing standard conditions aligns with the market services licence consolidation proposed as part of the Financial Markets Conduct Amendment Bill, which narrowly missed enactment during this Parliament (see our previous articles on that Bill here and here).  Market services licensees, and in particular multiple licensees, will welcome all moves towards making licensing obligations easier to understand and manage.

However, newly licensed consumer credit providers, who are not yet subject to standard conditions, will want to carefully analyse, understand, and potentially submit on the conditions proposed to be imposed on them, such as requirements to provide regulatory returns.

Submissions close at 5pm on 11 December 2026.  Following this, the FMA will consider all submissions and finalise the standard conditions it intends to impose.

This article was prepared by Lily Hosseini (solicitor) and Andrew Suggate (partner).