The majority of New Zealanders generally agree on what constitutes fairness in financial services, research commissioned by the Financial Markets Authority (FMA) – Te Mana Tātai Hokohoko – has found.

The research centres on a consumer survey of approximately 3000 New Zealanders who answered a range of questions about fairness. Respondents were invited to assess 33 hypothetical scenarios that New Zealanders could have experienced with financial providers. Respondents evaluated how fair each scenario was on a scale. Of the 33 scenarios, 29 were written that described people experiencing potentially unfair treatment by a financial service provider. These were called ‘unfair risk scenarios’. Four more scenarios without an unfair risk were included, called ‘neutral scenarios’, to provide a comparison. 

Of the unfair risk scenarios, 26 of the 29 were more likely to be seen as unfair by New Zealanders, whereas the four neutral scenarios were likely to be evaluated as fair. While results were not absolute, these two key findings suggest there is a consistent understanding of what is fair or unfair in financial services.

In one scenario, 86% of respondents believed it was unfair that a bank took over a year to repay a client who had been overcharged fees. At the other end of the scale, 63% believed it was fair that one client’s investment fund had lower fees than his mother’s because his fund manager spent less time researching markets and making changes to his investment. The findings are helpful in distinguishing between a consumer outcome with financial services that may be disappointing, but is not necessarily unfair.

The research was designed to offer a methodology to test whether there is a consistent view of how people qualify fairness. The FMA’s purpose is built on promoting fair, efficient, and transparent financial markets. Further, from March 2025, financial institutions (including banks, insurers, and non-bank deposit takers) will be required to ensure they treat consumers fairly under the Financial Markets (Conduct of Institutions) Amendment Act 2022 (CoFI). The research is intended to support evidence-based conversations with industry and stakeholders on what fair treatment means. The research is not guidance for financial service providers.

Key findings

• 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: “With fairness in financial services at the heart of our purpose and mandate, we wanted to test the hypothesis on whether there is a reasonable consensus on what constitutes fairness in practice. Fairness generally, is a broad concept which some perceive as too personalto apply to everyday financial activities. 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. Licensed firms may find the research helpful in thinking about treating customers and investors fairly. For institutions covered by CoFI, this should be useful while considering the development of their fair conduct programmes. We hope this research is a helpful conversation starter and we encourage providers to read the findings and provide us with feedback.”

Download the Understanding fairness in financial services research report