nib Putting Health into Life seminar, and more daily news
Compliance culture

FMA looking to obtain power over mergers and acquisitions, and more daily news

After a policyholder raised concerns over the sale of AMP Life the FMA has stated that it would like to obtain the power to oversee mergers and acquisitions relating to banking, insurance and non-bank lenders. The proposed expansion of regulatory power would give the FMA power to require a conduct assessment be completed before purchase.

"The Financial Markets Authority (FMA) wants to be given the power to block mergers and acquisitions that affect banking, insurance and non-bank deposit takers’ products.

The regulator wants to be able to require a prospective new owner of a financial institution, or a particular loan or insurance book for example, to undergo a conduct assessment first.

It says it would exercise this power as the overseer of a conduct regime to be introduced once the Financial Markets (Conduct of Institutions) Amendment Bill is passed."

The FMA has presented their idea to MBIE and has suggested that additional clauses be added to CoFI to permit the FMA to oversee future mergers and acquisitions.

"The FMA argues that in the same way the Reserve Bank (RBNZ) needs to ensure a financial institution meets its prudential requirements before it becomes licenced, so has to give its approval for a merger/acquisition to proceed, the FMA should be given similar powers when it comes to conduct.

It has discussed the matter with the Ministry of Business Innovation and Employment, and suggests clauses be added to the Financial Markets (Conduct of Institutions) Amendment Bill, which is currently before the Finance and Expenditure Committee." Click here to read more

In other news:

Department of Internal Affairs: Department of Internal Affairs advised that it is calling a list of businesses who operate in the sectors that it supervises for AML/CFT that have not registered with the Department or confirmed that they do not provide products or services that would require them to comply with the AML/CFT Act, to obtain clarity about their status.

FANZ: Trusted Adviser mark criteria revealed

'Make real money': Client sues over 'sophisticated' investor tag

This last story is well worth a look too. Here is a quick snippet. It is worth considering that compliance structures are now complex. If clients do not understand the consequences of their choices within the establishment of the nature of the relationship, then it is likely that advisers, advice providers, and even product providers will be blamed: they have experience and information on their side. This may be hard to distinguish from a client who knew exactly what they were doing and simply reach for any and all means to recover losses that they should take responsibility for. It is always complicated 

'A woman who says she lost hundreds of thousands of dollars on funds of fallen investment manager Blue Sky claims she was wrongly steered into classing herself as a “sophisticated” investor."

Comments

Feed You can follow this conversation by subscribing to the comment feed for this post.

The comments to this entry are closed.