Chatswood serves the life and health insurance sector in New Zealand with market intelligence, data, and bespoke consulting services. Some of these are provided in conjunction with Quality Product Research Limited - a subsidiary that brings you Quotemonster.

We believe that good decisions are more likely to occur when we have good information about the market environment in which we operate. Intuitive leaps and creative decisions are always required, of course, but the more they are based on a firm foundation of observation, the better they tend to be.

Kelly O Kelly O

FMA cancel FAP licence – advice process, record-keeping, disclosures, and evidence of suitability all factors

The Financial Markets Authority has cancelled Filcare Services Limited’s Financial Advice Provider licence, at its request. 

The Financial Markets Authority (FMA) has cancelled Filcare Services Limited’s (Filcare) Financial Advice Provider licence, at its request

Filcare held a full financial advice provider licence, and they provided financial advice to approximately 1,800 retail clients, many of whom were migrant workers from the Filipino community. Its cancellation follows the termination of its distribution agreement with Fidelity Life Assurance Company Limited and AIA New Zealand Limited and the FMA’s inquiry into its affairs.

Filcare were found to have contravened its licence obligations by failing to:

  • keep adequate records in relation to advice given to its clients,  

  • ensure its clients understood the financial advice they received,  

  • exercise care diligence and skill when providing financial advice to its clients,  

  • provide adequate disclosures relating to advice, and  

  • demonstrate that recommendations made to clients were suitable.  

From our perspective, that appears to indicate failures in a wide range of areas of the advice process. As a comparison business we are particularly concerned with the areas of care, diligence, and skill, and demonstrating suitability – which we help more than 1,100 advisers with.

FMA’s Head of Perimeter and Response Helena Lewis said

“…we observed that clients did not receive adequate nature and scope disclosures and were therefore unable to make an informed decision about whether to seek, obtain, or act on the advice.

We also found that Filcare advisers failed to demonstrate that the recommendations made to clients were suitable. As an example, for a vast majority of clients, the documentation on file lacked the requisite detail to clearly show how the selected levels of cover were determined, and that the recommendation matched the risk tolerance, financial situation, and needs and goals of the client.

In files concerning replacement advice, there was no evidence that clients were informed of the potential risks of replacing existing policies, such as losing benefits they might have otherwise received under original policies, or the likelihood of exclusions or limitations associated with changes in health, lifestyle, or occupation that have occurred since the original policy has been taken out.”

Filcare clients with concerns are able to complain to Financial Services Complaints Limited.

 

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Legal and regulatory update for the life and health insurance sector

Minister of Commerce and Consumer Affairs April 2025 diary released; former financial adviser pleads guilty to charges of theft by a person in a special relationship; the Depositor Compensation Scheme is now in effect.

27 Jun 2025 - Minister of Commerce and Consumer Affairs, Hon Scott Simpson, April 2025 diary released with the following potential financial services sector related meeting noted:

  • 1 May 2025 – ZOOM: MBIE Officials (MBIE officials)

  • 5 May 2025 – MEET: FMA (Craig Stobo, Adrienne Meikle)

  • 6 May 2025 – MEET: Insurance and Financial Service (Karen Stevens and Sue Suckling)

  • 6 May 2025 – MEET: ACC Officials (ACC, Treasury, MBIE Officials)

  • 7 May 2025 - MEET: MBIE Officials (MBIE Officials )

  • 8 May 2025 – MEET: Commerce Commission (Commerce Commission)

  • 13 May 2025 – MEET: MBIE Officials (MBIE Officials )

  • 13 May 2025 -MEET: ACC Officials (ACC, Treasury, MBIE Officials)

  • 14 May 2025 – MEET: Financial Advice NZ CE (Nick Hakes and Heather Roy)

  • 15 May 2025 – ZOOM: ACC Board Chair & CE (Tracey Batten & Megan Main)

  • 15 May 2025 – MEET: Retirement Commissioner (Jane Wrightson)

  • 19 May 2025 - MEET: ACC Officials (MBIE and Treasury Officials)

  • 20 May 2025 – MEET: ACC Officials (ACC, Treasury, MBIE Officials)

  • 21 May 2025 – MEET: MBIE Officials (MBIE Officials)

  • 21 May 2025 – MEET: Australia Banking Association (Anna Bligh, Chris Taylor)

  • 23 May 2025 – CALL: Chair of FMA (Craig Stobo)

  • 27 May 2025 - MEET: Masterton Financial Community Event (invited guests)

  • 29 May 2025 – ZOOM: ACC Board Chair (Tracey Batten)

  • 30 May 2025 – MEET: ACC Board Chair (Tracey Batten)

  • 30 May 2025 – ZOOM: ACC Culture Reviewers (Phillipa Muir, Doug Craig)

https://www.beehive.govt.nz/sites/default/files/2025-06/Proactive%20Diary%20Release%20Simpson%20May%2025.pdf

30 Jun 2025 - Murray McClune, a former financial adviser, has pleaded guilty to two charges of theft by a person in a special relationship (s 220(1) of the Crimes Act 1961), following an investigation by the FMA. https://www.fma.govt.nz/news/all-releases/media-releases/former-financial-adviser-pleads-guilty-to-charges-of-theft/

1 Jun 2025 - The Depositor Compensation Scheme came into effect today, protecting depositors for up to $100,000 in the unlikely event that their bank or other licensed deposit taker fails.  https://www.rbnz.govt.nz/hub/news/2025/07/depositor-compensation-scheme-now-in-effect

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New Zealanders continue to have a low uptake of personal insurance

New Zealander’s low uptake of insurance is in the news again, with Willie Moala listing some of the reasons why more New Zealanders don’t have personal insurance.

New Zealander’s low uptake of insurance is in the news again, with Advice First’s Willie Moala listing some of the reasons why more New Zealanders don’t have personal insurance. Moala considers the kiwi ‘she’ll be right’ attitude, a distrust of insurance companies, price, and the mistaken belief that ACC will cover people in more instances than it actually does, all lead to people failing to get adequate insurance cover.

Last year the Financial Services Council’s Money & You: Managing Risk Through Challenging Times research found that only 41% of respondents had life insurance, 39% had health/medical insurance, 23% had trauma/critical illness insurance and18% had total and permanent disability insurance.

With the Government’s announcement that financial education will be embedded in the curriculum for Year 1 – 10 students, starting from next year, we can only hope this will help change attitudes around the importance of insurance, and in the longer-term help improve NZ’s underinvestment in insurance.

 

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Study finds NZ banks typically outperformed insurers in the climate-related disclosure regime

ASB appoint Frank Jasper as chief investment officer

MAS sponsor Otago Medical School's 150th anniversary

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Legal and regulatory update for the life and health insurance sector

APRA consult on minor proposals related to the Banking Act; raft of changes coming to ACC; NZ Police run free goAML training sessions; ASIC Commissioner speaks on regulatory priorities in financial advice; FMA release The Financial Conduct Report; FMA release new podcast; RBNZ snapshot compares how banks are working to remove unnecessary barriers to Māori Access to Capital; RBNZ modelling of risk scenarios under the CCCFA; FMA cancel Filcare Services Limited’s Financial Advice Provider licence.

18 Jun 2025 - APRA has released for consultation a set of minor proposals for instruments relating to section 66 of the Banking Act 1959 (the Banking Act). https://www.apra.gov.au/news-and-publications/apra-consults-on-proposals-for-instruments-relating-to-section-66-of-banking

18 Jun 2025 - Changes coming to modernise ACC regulations, including twelve new additions to ACC’s list of occupational diseases; reimbursement rates increasing for claimants having their ACC decisions reviewed, and for those needing to travel to access ACC covered treatment; the age scale used to assess hearing loss for ACC cover is being updated to align with current international standards. https://www.mbie.govt.nz/about/news/changes-coming-to-modernise-acc-regulations

19 Jun 2025 - The NZ Police Financial Intelligence Unit (FIU) is running free goAML training sessions in Auckland and Christchurch across July. https://www.dia.govt.nz/AML-CFT-Free-goAML-training-in-Auckland-and-Christchurch-this-July-2025

23 Jun 2025 - ASIC Commissioner Alan Kirkland spoke at the Professional Planner Licensee Summit on regulatory priorities in financial advice. https://www.asic.gov.au/about-asic/news-centre/speeches/regulatory-priorities-in-financial-advice/

25 Jun 2025 - The FMA have released The Financial Conduct Report, which will be an annual publication for the financial industry that sets out the FMA's priorities and the drivers behind what they are doing. https://www.fma.govt.nz/library/reports-and-papers/financial-conduct-report/

25 Jun 2025 - The FMA have released episode #14 of ‘5 mins with the FMA’ Podcast - Financial Conduct Report. https://www.fma.govt.nz/library/podcast/5-mins-with-the-fma-podcast-14-financial-conduct-report/

26 Jun 2025 - RBNZ has published a primarily qualitative snapshot that offers a comparison of how banks are working to remove unnecessary barriers to Māori Access to Capital. https://www.rbnz.govt.nz/hub/news/2025/06/snapshot-highlights-banks-efforts-to-reduce-unnecessary-barriers-for-maori

26 Jun 2025 - A ministerial briefing summarising RBNZ modelling outlines three risk scenarios for banks’ ability to meet capital requirements under the Credit Contracts and Consumer Finance Act (CCCFA). https://www.mpamag.com/nz/news/general/129bn-lending-law-risk-threatens-nz-financial-system-rbnz/540506

26 Jun 2025 - The FMA has cancelled Filcare Services Limited’s (Filcare) Financial Advice Provider licence, at its request. Filcare held a full financial advice provider licence, providing financial advice to approximately 1,800 retail clients, many of whom were migrant workers from the Filipino community. Filcare’s cancellation follows the termination of its distribution agreement with Fidelity Life Assurance Company Limited and AIA New Zealand Limited, and the FMA's subsequent inquiry into its affairs. https://www.fma.govt.nz/news/all-releases/media-releases/fma-cancels-filcare-licence/

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Fidelity Life welcomes record number of advisers to Career Connect programme

Fidelity Life has announced the fourth intake of its adviser programme, Career connect, for new advisers and the recipients of their eight scholarships.

Fidelity Life has announced the fourth intake of its adviser programme, Career connect, for new advisers. This year sees the programme expand to welcome its largest cohort to date - 30 emerging advisers. The company will also soon invite adviser businesses to join the Career connect registry; to signal their interest in offering work experience opportunities to newly qualified financial advisers. 

Submissions this year attracted greater diversity, , with 56% of applicants under the age of 35, 62% coming from female applicants and just under 30 ethnicities represented across the more than 70 applicants.

The Career connect programme awarded eight scholarships this year, up from seven last year, with each valued at up to $5,000. The recipients of the 2025 Career connect scholarships are:

  • Grace Leaso, Auckland - Kōwhai scholarship (for an outstanding Pasifika applicant)  

  • Grace Shearer, Hastings - Toe Toe scholarship (for an outstanding young applicant aged 21-25)

  • Jada Mandery, Auckland - Women in Finance scholarship (supported by Kaplan Professional)

  • Marcel Stenning, Auckland - Pāua scholarship (for outstanding applicant demonstrating excellence)

  • Michelle Andrews, Auckland - Women in Finance scholarship (supported by Kaplan Professional)

  • Milly Elworthy, Mosgiel – Rural scholarship (supported by FMG) 

  • Olivera Vasic-Wooller, Auckland - Rāngi Po scholarship (for an underrepresented community in financial services)

  • TK Buchanan, Christchurch - Pounamu scholarship (for an outstanding Māori applicant)

Fidelity Life Head of Solutions Michelle Doyle said

“By taking part, advice businesses play a vital role in mentoring fresh talent… It helps new advisers gain industry experience and build confidence as they transition into the profession.” 

The 2025 cohort of 30 will start their journey this week. Over the next six months, they’ll take on part-time study to earn their Level 5 qualification through Kaplan Professional. Fidelity Life will host a graduation ceremony early next year to celebrate their accomplishments.  

 

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Katrina Shanks and Kris Faafoi recognised on the Hot List 2025

Link Financial Group NZ appoints Anton Wicken new compliance manager

The banking industry welcomes the first reading of CCCFA amendment bill

Auckland emergency departments diverting patients to urgent care clinics with vouchers to cover the cost

New Zealanders will soon be able to receive 12-month prescriptions for their medicines

Budget 2025 includes a range of health initiatives

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Nominations for the FSC industry awards open

The Financial Services Council (FSC) has opened entries for their 2025 Awards programme, including two new award categories.

The Financial Services Council (FSC) has opened entries for their 2025 Awards programme. The awards will be presented at the FSC Awards Dinner on 11 September 2025, at the Cordis Hotel in Auckland, as part of the FSC25 Conference. Entries are open to individuals, teams and organisations, with nominations closing 29 June 2025.

There are two new award categories this year.

  • New: Innovation of the Year

  • New: Excellence in ESG

  • Emerging Trailblazer: sponsored by Swiss Re

  • Excellence in Wellbeing and Inclusion: sponsored by Swiss Re

  • Contribution to Community

  • Team of the Year

  • Workplace Savings

  • Chair's Award for Service to the Industry

 

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MAS announce appointment of new CEO

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Partners Life announce new Chief People Officer

Partners Life has announced that Helen Meade has been appointed as their new Chief People Officer, effective April 2025.

Partners Life has announced that Helen Meade has been appointed as their new Chief People Officer, effective April 2025. Most recently Meade was Chief People Officer at Les Mills International and she has over 20 years’ experience in human resources, transformation and communications, having worked in the insurance, wellness/health, technology and FMCG sectors.

Partners Life CEO Michael Weston said

“I'm delighted about Helen joining our executive team. She's a dynamic leader with a proven track record of attracting, developing and retaining great people and teams – who are our most important asset and competitive advantage.”

 

More news:

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ICNZ finds 20% had switched insurance providers in the last two years

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Bigger not necessarily best when it comes to KiwiSaver

Big banks, with their brand recognition and big budgets, have long been an almost default choice for people deciding who to invest their KiwiSaver funds with. That looks like it’s starting to change.

Consumer NZ has taken a look at how KiwiSaver is going. Big banks, with their brand recognition and big budgets, have long been an almost default choice for people deciding who to invest their KiwiSaver funds with. That looks like it’s starting to change. Encouragingly, 29% of new members chose their KiwiSaver scheme independently, and 8% consulted a financial adviser about what their best option would be, though 14% were automatically allocated a default scheme. There is still some reluctance to change providers, with 12% of people feeling it’s too much hassle to change provider, 8% having thought about switching but haven’t gotten around to it and 5% not knowing where to start.

With more than 3.3 million members and more than $111 billion of total funds under management, it’s worth putting in a little effort to see which fund best suits your situation.

While banks in general are big spenders on advertising, ANZ outspends them all. Yet ANZ’s KiwiSaver returns are underwhelming, coming in last (12th) for its management of conservative KiwiSaver funds, 6th (out of 12) for moderate funds, second to last (out of 15) for balanced funds and 10th (out of 12) for growth funds, according to Morningstar’s December 2024 results. Yet ANZ holds the largest share of the KiwiSaver market, with $21.9 billion funds under management.

As of 2021, ANZ and ASB are no longer default KiwiSaver providers, leaving BT Funds (Westpac) and BNZ as the only default big bank providers for new members. It will be interesting to see how this impacts the various banks’ KiwiSaver market share over the next decade or two.

In good news, Consumers NZ’s annual survey on KiwiSaver satisfaction highlights growing satisfaction, with February 2025 results showing 82% were satisfied with their provider.

And what do people most want from their KiwiSaver provider? Good returns with responsible investments came out top (42%), followed by the best returns (37%) and investing responsibly, even if it comes with slightly lower returns (14%)

 

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Concerns and scepticism about AI

While Artificial Intelligence (AI) is rapidly being rolled out globally, concerns remain around privacy, cybersecurity and accuracy and reliability of outputs.

While Artificial Intelligence (AI) is rapidly being rolled out globally, concerns remain around privacy, cybersecurity and accuracy and reliability of outputs.

A survey by the Financial Planning Standards Board of more than 6,000 individual practitioners in finance found that 54% of respondents were either already using or piloting AI in their business (with a further 10% planning to rollout AI in the next 12 months). Respondents believe likely uses of AI will include collecting client information, analysing data and developing recommendations. Yet almost half worried about data privacy and cybersecurity and 42% worried about accuracy and reliability of outputs.

GlobalData’s 2024 Emerging Trends Insurance Consumer Survey, which polled more than 5,500 people across 11 countries, found consumers believed AI could have some benefits. Perceived benefits using AI included shortened time required to reach a customer service representative (73.8%), gains in operational performance (71.5%) and better pattern recognition than humans (71.2%). Those who have engaged with AI insurance chatbots were impressed, with 74.5% reporting being satisfied or very satisfied with the interaction. Despite these beliefs, consumers were found to have data privacy concerns and trust issues.

GlobalData’s 2024 Emerging Trends Insurance Consumer Survey (Q3), found that 39% of respondents would be quite or very comfortable having an AI tool decide the outcome of their insurance claim.

 

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Code of Banking Practice updated with new commitments to better protect customers against scams

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