Legal and regulatory update for the life and health insurance sector

13 May 2024 - The FSC has published the March 2024 Life Insurance quarterly snapshot. https://blog.fsc.org.nz/life-insurance-industry-spotlight-march-2024

13 May 2024 - The FSC has published the March 2024 KiwiSaver quarterly snapshot. https://blog.fsc.org.nz/kiwisaver-spotlight-march-2024

13 May 2024 - The three AML/CFT Act supervisors – FMA, DIA and RBNZ – along with their partner agencies – MFAT and NZ Police – have provided a Guidance Note for duty holders that are AML/CFT reporting entities. The Guidance Note specifically relates to notifying a customer of an asset freeze or blocked transaction under the Russia Sanctions Act. https://www.fma.govt.nz/library/guidance-library/guidance-note-for-duty-holders-that-are-amlcft-reporting-entities/

15 May 2024 - ASIC has published Information Sheet 282 Unsolicited contact leading to financial advice (INFO 282), which outlines how financial services laws apply to unlicenced entities referring consumers to a third party for the provision of financial advice. https://asic.gov.au/about-asic/news-centre/news-items/asic-issues-information-for-unlicensed-entities-making-unsolicited-contact-with-consumers/

16 May 2024 - The Reserve Bank of New Zealand is consulting on the first set of standards under the Deposit Takers Act 2023. https://www.rbnz.govt.nz/hub/news/2024/05/deposit-takers-act-standards-open-for-consultation

Legal and regulatory update for the life and health insurance sector

29 Apr 2024 - The FMA is holding a series of forums to dicuss the report on their monitoring of Class 1 and 2 Financial Advice Providers (FAP). Sessions will be held on 11 June in Auckland; 13 June on the North Shore, 19 June in Wellington; 20 June in Palmerston North, 25 June in Hamilton and 27 June in Christchurch. Invitations to register for these sessions will be sent to the relevant FAPs in May.

29 Apr 2024 - The Commerce Commission will hold a consultation conference on the banking competition draft report in Auckland on May 13. https://www.goodreturns.co.nz/article/976523089/having-a-say-on-draft-banking-report.html

29 Apr 2024 - The Department of Internal Affairs, the Financial Markets Authority and the Reserve Bank of New Zealand have produced new and updated guidelines related to customer due diligence ahead of the new regulations due to come into effect from 1 June 2024. https://www.dia.govt.nz/AML-CFT-Updated-guidelines-related-to-customer-due-diligence

29 Apr 2024 - The Contracts of Insurance Bill introduced to Parliament. https://bills.parliament.nz/v/6/019dad64-3f9e-46b8-5cd9-08dc67f794e8

Legal and regulatory update for the life and health insurance sector

21 March 2024 - Insurance Contracts Bill had first reading in Parliament. https://bills.parliament.nz/v/6/fcc98f82-e1f8-4aa4-6c02-08dc494421e8?Tab=history

25 March 2024 - The Reserve Bank of New Zealand has published an analytical note proposing improvements to the methodology used by the Reserve Bank of New Zealand  to assess labour market indicators of inflationary pressure. Measuring inflationary pressure from the labour market can be improved by watching a narrow set of four high-quality indicators: 1) the job transition rate (the share of workers switching between jobs), 2) the job vacancy-to-unemployment ratio, 3) the unemployment rate, and 4) a survey measure of labour as a limiting factor for business production. https://www.rbnz.govt.nz/hub/news/2024/03/improving-how-we-measure-inflationary-heat-in-the-labour-market

26 Mar 2024 - The Reserve Bank of New Zealand has published Guidance for our regulated entities on managing climate-related risks.  https://www.rbnz.govt.nz/hub/news/2024/03/guidance-issued-on-managing-climate-related-risks

26 March 2024 - The Financial Markets Authority has issued warnings to Southern Cross Medical Care Society (SCMCS) and Southern Cross Pet Insurance (SPCI) for failing to apply advertised discounts to each entities’ respective insurance products. The FMA is satisfied, and both entities accept, that they breached the fair dealing provisions of the Financial Markets Conduct Act by making false or misleading representations. The representations relate to the failure on each entities’ part to correctly apply advertised discounts to affected customers’ invoices, resulting in overcharged premiums. The FMA determined that the cause of each issue was due to poor controls and/or technical errors. 
SCPI made an initial report to the FMA in November 2022 disclosing some of the contraventions and later reported more details. Following these disclosures, further enquiries from the FMA and an internal review in the wider Southern Cross Group, the extent of the contraventions was established.

SCPI failed to correctly apply the following discounts:
Additional pet discount
Direct debit discount
Southern Cross membership discount.

SCMCS failed to correctly apply the following discounts:
Free child discount
Healthy lifestyle rewards discount
Low claims discount.

The total amount of SCPI premiums overcharged was $424,508, affecting 7,542 customers, approximately 1.28% of its customer base. SCMCS overcharged $161,547 across 1,957 customers, approximately 0.2% of its customer base. 

https://www.fma.govt.nz/news/all-releases/media-releases/fma-warns-southern-cross/

28 Mar 2024 - The Council of Financial Regulators has released an updated Regulatory Initiatives Calendar for the financial sector for Q1 2024. https://www.cofr.govt.nz/files/regulatory-initiatives-calendar/regulatory-initiatives-calendar-q1-2024.pdf

28 Mar 2024 - The FMA is warning the public to be cautious after fake documents claiming to be issued by the FMA were sent out as part of what appears to be a ‘recovery scam’ - where previous victims of financial crimes are targeted by criminals promising to help get lost money back. https://www.fma.govt.nz/library/warnings-and-alerts/

28 Mar 2024 - DIA encourages reporting entities to get RealMe verified before annual reports are due. From 1 July 2024, you’ll be able to file your AML/CFT annual report via AMLOnline. https://www.dia.govt.nz/AML-CFT-Get-your-RealMe-verified-early-this-annual-reporting-season

28 Mar 2024 - The FMA has said that overtime they will assess whether their regulatory framework needs strengthening to support better deployment of Generative Artificial Intelligence. https://www.fma.govt.nz/library/opinion/gen-ai/

28 Mar 2024 - The Commerce Commission sees "good reasons" to recommend designation of the interbank payment network to Commerce and Consumer Affairs Minister Andrew Bayly. https://www.interest.co.nz/banking/127024/commerce-commission-wants-more-influence-over-interbank-payments-potentially

Legal and regulatory update for the life and health insurance sector

31 Aug 2023 - Pae Ora (Healthy Futures) (Improving Mental Health Outcomes) Amendment Bill introduced to Parliament. This bill amends the Pae Ora (Healthy Futures) Act 2022 to better enable the long-term planning and delivery that is required to improve mental health and addiction outcomes. https://bills.parliament.nz/v/6/955109f7-830e-4b94-2089-08dba9b9dfac?Tab=history

4 Sep 2023 - RBNZ publish Kerry Beaumont's speech '(Another) Seismic Shift in New Zealand: Banking regulatory reform - the Deposit Takers Act 2023" https://www.rbnz.govt.nz/hub/news/2023/09/evolving-financial-services-regulation-brings-rbnz-closer-to-international-best-practice

4 Sep 2023 - The Department of Internal Affairs has released a statement "If you have not filed your annual AML/CFT report by 31 August 2023, you are in breach of with your legal obligations under the Anti-Money Laundering and Countering Financing of Terrorism Act 2009." https://www.dia.govt.nz/AML-CFT-ITK-Annual-AML-CFT-reports-are-now-overdue.

4 Sep 2023 - The Financial Intelligence Unit (FIU) are running free goAML training sessions in Hamilton and Tauranga on Tuesday 19 September https://www.dia.govt.nz/AML-CFT-Free-GoAML-Training-for-Hamilton-and-Tauranga

5 Sep 2023 - A cross-sector thematic review of regulated entities’ governance practices by RBNZ and the FMA has highlighted the need for boards to be focused on continuous improvement to ensure future success. https://www.fma.govt.nz/news/all-releases/media-releases/rbnz-and-fma-governance-thematic-review-outlines-good-practices-and-areas-for-improvement/

Legal and regulatory update for the life and health insurance sector

1 Jun 2023 - Following consultation on draft regulations, the Ministry of Justice have decided six of the proposed changes need to be in primary legislation. https://www.dia.govt.nz/AML-CFT-Update-on-changes-to-AML-CFT-Act-regulations

1 Jun 2023 - The FMA has filed High Court proceedings against Medical Assurance Society New Zealand Limited (MAS) and its subsidiaries for fair dealing breaches under section 22 of the Financial Markets Conduct Act 2013 (FMC Act). The FMA claims that between 2014 and 2022, MAS failed to apply the correct inflation adjustments on its customer policies, failed to apply multi-policy discounts and no claims bonuses, and underpaid life and disability claims to eligible clients. https://financialmarketsauthority.cmail20.com/t/r-l-tttjqly-btuitpxk-y/

1 Jun 2023 - The Accident Compensation (Access Reporting and Other Matters) Amendment Bill, was read a third time. This means people will now be able to access the minimum rate of compensation earlier – from the second week of injury instead of having to wait until the sixth week. https://www.beehive.govt.nz/release/faster-acc-payment-top-ups-and-fairer-system