Financial institutions will need to apply for a conduct licence from the Financial Markets Authority, which will be supervising, monitoring, and enforcing the regime. Strong financial penalties will be imposed if a financial institution breaches one of its obligations under the bill. The Financial Markets Authority, of course—as members here know—is a risk-based regulator and will take a proportionate approach to guiding the sector and regulating compliance. The FMA, I am informed, has already started engaging with financial institutions to ensure they're prepared for the new regime and for licensing applications to open in mid-2023. 