Dr David Clark voices his concern
FMA remind advisers to link with FAPs, and more daily news

Legal and regulatory update for the life and health insurance sector - UPDATED

15 Apr 2021 – Privacy Commissioner’s Office released updated guidance on privacy impact assessments, seen as an essential part of many projects and proposals, and able to be used to identify potential risks. https://www.privacy.org.nz/publications/guidance-resources/privacy-impact-assessment/

15 Apr 2021 – Commission for Financial Capability announced the release of the National Strategy for Financial Capability 2021-2024 and the formation of an umbrella group to boost money know-how. https://cffc.govt.nz/news-and-media/news/new-umbrella-group-to-boost-money-know-how/

14 Apr 2021 – Following on from recent consultation, FMA released its guidance on managed fund fees and value for money. This was released together with a submissions report and a republished version of the KiwiSaver performance fees guidance. https://www.fma.govt.nz/news-and-resources/media-releases/kiwisaver-value-for-money/

Most of us have absolutely no issue with the FMA providing guidance on KiwiSaver fees, as Clause 2 of Schedule 1 of the KiwiSaver Act 2006 states that KiwiSaver fees must not be unreasonable. However, the extension of guidance to all Managed Investment Schemes, perhaps even in the future to other financial products under its watch too, possibly under the general conduct provisions, may cause some providers - and even insurers - to wonder just how extensive the FMA role in future pricing may become. Balancing the benefit of a public guardian of the concept of value for money against the benefit of a functioning marketplace and the diversity of offering and innovation that it can offer is therefore certain to be a continuing conversation. It will be interesting to see how industry responds to this prospect. 

14 Apr 2021 – The latest FMA update advised that the FMA had updated the content on its website covering insider trading. https://www.fma.govt.nz/investors/resources/insider-trading/

14 April 2021 – The latest FMA update also reminded Financial Advisers to check their Financial Advice Provider has linked to them on the Financial Service Providers Register, noting that Financial Advisers not shown as linked to a licensed Financial Advice Provider, or authorised body, by 16 June this year may face deregistration if they offer no other services.

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