Fair Conduct Programme Summary

Why should I read this?

As a registered bank, Heartland Bank Limited (Heartland) is required to establish, maintain, and implement a Fair Conduct Programme.

The purpose of our Fair Conduct Programme, summarised below, is to outline how we comply with the fair conduct principle with respect to our customers. At Heartland, we are committed to treating customers fairly, acting ethically and responsibly, serving our customers’ needs and keeping good customer outcomes at the heart of everything we do.

What is the Fair Conduct Principle?

The Conduct of Financial Institutions regime (CoFI), under the Financial Markets Conduct Act 2013 with effect from 31 March 2025, has an overarching principle that financial institutions must treat consumers fairly (the Fair Conduct Principle), including by:

• paying due regards to consumers interests;
• acting ethically, transparently and in good faith;
• assisting consumers to make informed decisions;
• ensuring that the relevant products and services that Heartland provides are likely to meet the requirements and objectives of consumers; and
• not subjecting consumers to unfair pressure or tactics or undue influence.

This principle applies when Heartland is:

• designing any associated product or relevant service;
• offering to provide any associated product or relevant service;
• providing any associated product or relevant service to a customer or potential customer; and
• having dealings or interactions with a customer in relation to Heartland’s associated products or relevant services.

Compliance with the Fair Conduct Principle

Heartland’s Fair Conduct Programme requires our people to follow processes and procedures to support our compliance with the Fair Conduct Principle and all other consumer protection legislation (such as the Credit Contracts and Consumer Finance Act 2003, the Fair Trading Act 1986 and the Consumer Guarantees Act 1993).

We manage compliance with these laws and the fair dealing provisions of the Financial Markets Conduct Act using the following established processes:

• Mandatory induction and compliance training and setting clear expectations of conduct for our people, including requiring adherence to our Heartland Code of Conduct.
• Having a Risk Management Framework and Strategy to provide oversight and assurance over business risk and compliance management activities.
• Established risk and compliance processes and capability.
• Consideration during the design phase for new products, and for the ongoing management of products, including reviews to assess whether the design and distribution of our products meet the needs of our customers.
• Quality assurance processes to validate how we are meeting these obligations.
• Digital channels providing our customers with the flexibility of self service in relation to certain matters, accompanied by options for our customers to contact us and dedicated, specialist customer service teams who provide support and guidance to our customers.

Heartland is a Financial Advice Provider (FAP), and holds a licence issued by the Financial Markets Authority (FMA) to provide regulated financial advice. Information about this about this and Heartland’s other licence and the financial services it provides is available at the Financial Service Providers Register at  fsp-register.companiesoffice.govt.nz.

As a FAP, we engage Nominated Representatives to give financial advice to you on our behalf. Heartland’s Nominated Representatives can only provide financial advice about our deposit products, to help you make informed savings decisions.

You can read our Financial Advice Disclosure Statement here or contact us to seek more information on our Fair Conduct Programme at any time.

Governance of our Fair Conduct Programme

Our Fair Conduct Programme has been created by us at Heartland with reference to the nature, size and complexity of our business and reflecting the unique factors and characteristics of the products and services that we offer to our customers. We have procedures for regularly assessing and updating the Fair Conduct Programme to ensure its continued relevance and effectiveness in promoting fair outcomes for our customers.

The governance of our Fair Conduct Programme is as follows:

• The Heartland Board has ultimate accountability for the approval and oversight of our Fair Conduct Programme. Our Chief Executive Officer has day to day responsibility for its application across the business.
• The Board is committed to setting the tone from the top and maintaining the highest standards of professional behaviour, including that we act with honesty and integrity in all our activities.
• To enable this commitment, the Board is provided with regular reporting about conduct risks and any failures to comply with the fair conduct principle.
• Our Fair Conduct Programme is reviewed at least annually, and outcomes are presented to the Board for approval.

Monitoring compliance with our Fair Conduct Programme is crucial to ensuring its operational effectiveness. We have developed risk assurance and monitoring programmes to confirm that all relevant frameworks, policies, processes, systems and controls are adhered to, the results of which are regularly reported to management committees and the Board.

Training and oversight of employee conduct

Heartland sets clear expectations for our employees. Our Code of Conduct describes the way we do things at Heartland and is underpinned by one of our mātāpono (values), including Mahi Tika (do the right thing).

Our employees are required to complete all mandatory training, including training on our products and services and treating customers fairly. Where our employee’s conduct does not meet the standards we expect, we have processes in place to address this, including monitoring improvements until the employee has returned to an acceptable level of performance. 

Incentives

Incentives paid by Heartland to employees and intermediaries comply with relevant regulations that prohibit incentives involving targets or thresholds related to the volume or value of services or products sold to consumers.

Our employee incentives are designed and managed to mitigate or avoid adverse effects on the interests of customers. Employees, including those authorised to provide financial advice, do not receive commission for the sale of Heartland products or services, and are not incentivised to sell one product over another. More detail on Heartland’s approach to employee remuneration can be found on our website.  

Heartland remunerates intermediaries for their distribution services, reflecting the value proposition for all parties, balancing customer, intermediary and Heartland interests.

Conflicts of Interest

Our staff, including the Nominated Representatives, are trained to identify and report conflicts of interests and we have policies and processes to manage and mitigate these if they were to occur.

Communication

We seek to support customers and potential customers understanding of our products and services when we advertise, market and promote them to help customers assess the value they would receive from our products and services.

We have internal processes in place to ensure that all communications with our customers is clear, concise and effective, able to be readily understood and our advertising meets New Zealand laws and the principles and guidelines within New Zealand Advertising Standards.

What happens if you have a complaint?

If at any time you consider we have breached the Fair Conduct Principle as described above, or are unhappy with our service or Nominated Representatives, you can contact us using the details outlined on the following page of our website: How do I make a complaint?

If you have raised a complaint with us first and are not satisfied with the outcome, you can contact the Banking Ombudsman Scheme, which is an independent and free service who help with unresolved complaints.  Contact details for this service are below: