Consumers Tell the FMA What is ‘Fair’

A survey carried out by the FMA has sought to establish what New Zealanders think is fair when it comes to decisions made by financial institutions.

Around 3,000 consumers were invited to assess 33 hypothetical scenarios they could have experienced with financial providers. Respondents evaluated how fair each scenario was.

Of the 33 scenarios pitched in the questionnaire, 29 described potentially unfair treatment by a financial service provider, and four were neutral scenarios.

Of the unfair risk scenarios in its Understanding Fairness survey, 26 were judged by respondents as unfair, whereas the four neutral scenarios were evaluated as fair.

The FMA concludes that while results were not absolute, its findings suggest there is a consistent understanding of what is fair or unfair in financial services by consumers.

From March 2025 financial institutions will be required to ensure they treat consumers fairly under the Financial Markets (Conduct of Institutions) Amendment Act 2022 (CoFI).

Hear the FMA discuss fairness in its podcast.

Key findings of the FMA’s fairness survey:

• 81% of respondents believe it’s important everyone has the same opportunities in life
• 72% expect fair treatment from their financial service provider
• 69% believe they receive fair treatment from their KiwiSaver provider
• 63% believe they receive fair treatment from their bank
• 57% believe they receive fair treatment from their insurance provider

FMA Chief Economist, Stuart Johnson, said: “This research has shown that when presented with specific customer focused scenarios, people have a remarkably consistent understanding of what constitutes fairness in financial services. Markets need to be fair for providers, investors and consumers alike.”

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