29 Nov 2019 – RBNZ & FMA announced that the Council of Financial Regulators had set its priorities for the 2020 year, incorporating:
- Climate change
- Financial inclusion and consumer engagement
- Conduct and governance
- Residential Property Insurance
- Credit Unions
- Review of the Regulatory System Charter
Climate change earns its place at the top of the list mainly due to the risks general insurers and banks face. For general insurers the risks are more obvious: losses due to extreme weather conditions are already a factor considered by most. That they are increasing now means that regulators are seeking those risks to be quantified and stated as a starting point for assessing systemic risk and portfolio issues.
Then exclude the points on residential property insurance and credit unions and you have a good guide to the issues that may inspire thematic reviews, or inform things like the development of license conditions for FAPs.
Consumer engagement is particularly relevant to advice process, but will also turn up as a strong theme in conduct of financial institutions. A more engaged and informed customer is more likely to make better use of their product, complain when things go wrong, and understand disclosures.