What does ‘treat fairly’ mean in new conduct law?
There is a fair conduct principle in the draft new conduct law.
The challenge is that this is principles-based law, and fairness is not defined. Each company, if they were operating under the draft law, would have to define a conduct programme – without a requirement for a standard set of principles we are immediately setting ourselves up to have a different definition of fair conduct from each product provider.
Sure, these must each be approved by the FMA who will issue conduct licences under the law, but they will not be the sole arbiters of what is considered fair, because these are not regulations – this is law.
Fairness, undefined, could mean different things to different people.
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