Legal and regulatory update for the life and health insurance sector

AML/CFT review submissions have been reviewed and a summary released

https://consultations.justice.govt.nz/policy/aml-cft-review/

The Government is reviewing the Search and Surveillance Act 2012 with targeted engagement being carried out during the first part of 2022 to be followed by wider public engagement later in the year

https://www.justice.govt.nz/about/news-and-media/news/review-of-the-search-and-surveillance-act-2012/

Review of a national framework to improve access to civil justice with submissions closing on 30 June 2022.

https://www.justice.govt.nz/about/news-and-media/news/have-your-say-on-a-national-framework-to-improve-access-to-civil-justice-wayfinding-for-civil-justice/

29 March 2022 – NZ Parliament completed the third reading of the Taxation (Annual Rates for 2021-22, GST, and Remedial Matters) Bill and introduced the Fair Pay Agreements Bill.

https://www.parliament.nz/en/pb/bills-and-laws/bills-proposed-laws/document/BILL_115767/taxation-annual-rates-for-2021-22-gst-and-remedial-matters

https://www.taxpolicy.ird.govt.nz/news/2022/2022-03-30-tax-bill-passed

https://www.taxpolicy.ird.govt.nz/news/2022/2022-03-31-special-reports-new-legislation

https://www.parliament.nz/en/pb/bills-and-laws/bills-proposed-laws/document/BILL_121328/fair-pay-agreements-bill

31 March 2022 – The Incorporated Societies Bill completed third reading in Parliament.

https://www.parliament.nz/en/pb/bills-and-laws/bills-proposed-laws/document/BILL_109429/incorporated-societies-bill

https://www.beehive.govt.nz/release/incorporated-societies-act-updated-first-time-1908

https://www.mbie.govt.nz/about/news/greater-clarity-and-protection-for-incorporated-societies-passes-into-law/

31 March 2022 – The International Financial Reporting Standards (IFRS) Board advised that the International Sustainability Standards Board (ISSB) had delivered proposals that create comprehensive global baseline of sustainability disclosures. The ISSB communicated plans for building upon the Sustainability Accounting Standards Board (SASB) Standards and for embedding SASB’s industry-based standards development approach into the ISSB’s standards development process.

https://www.ifrs.org/news-and-events/news/2022/03/issb-delivers-proposals-that-create-comprehensive-global-baseline-of-sustainability-disclosures/

https://www.ifrs.org/news-and-events/news/2022/03/issb-communicates-plans-to-build-on-sasbs-industry-based-standards/

 


Legal and regulatory update for the life and health insurance sector

16 March 2022 - The External Reporting Board has released the second part of the Climate-related Disclosure standards for public consultation. This release focuses on Strategy, and Metrics and Targets which combined, outline how entities need to assess current and future climate risks and opportunities and report on corresponding financial implications. Submissions close on 13 April 2022. https://www.xrb.govt.nz/news/media-releases/

18 March 2022 – All three AML/CFT supervisors and the NZ Police Intelligence Unit published information for AML/CFT reporting entities on what is required of them under the Russia Sanctions Act 2022.

https://www.police.govt.nz/advice-services/businesses-and-organisations/nz-financial-intelligence-unit-fiu/fiu-reports

https://www.fma.govt.nz/compliance/guidance-library/impact-of-russia-sanctions-on-amlcft-reporting-entities/

18 March 2022 – The FMA released the independent report on conflict-of-interest processes undertaken by the FMA relating to its former CEO and the advice provided to the Minister of Commerce and Consumer Affairs in relation to the appointment of default KiwiSaver providers in 2021. https://www.fma.govt.nz/news-and-resources/media-releases/conflict-of-interest-processes/

21 March 2022 – Commerce Commission issued a warning to businesses about the consequences of cartels. https://comcom.govt.nz/news-and-media/media-releases/2022/businesses-warned-about-the-consequences-of-cartels


Legal and regulatory update for the life and health insurance sector

22 Dec 2021 – Statutes Amendment Bill introduced into Parliament, an omnibus Bill amending many Acts, including amendments to the Privacy Act and the Anti-Money Laundering and Countering Financing of Terrorism Act. https://www.parliament.nz/en/pb/bills-and-laws/bills-proposed-laws/document/BILL_118346/statutes-amendment-bill


Legal and regulatory update for the life and health insurance sector

14 Dec – Financial Services Council released the latest ‘Money and You’ research focused upon “Women and Financial Wellbeing in New Zealand”. https://www.fsc.org.nz/bulletin_display/x_blog_code/2159.html

14 Dec 2021 – DIA and FMA issued an AML reminder about the obligations for reporting entities that outsource Customer Due Diligence (CDD) requirements to a specialist AML third-party provider. https://www.dia.govt.nz/aml-cft-outsourcing-customer-due-diligence


Legal and regulatory review for the life and health insurance sector

6 Dec 2021 – RBNZ sought feedback on the draft legislation for the proposed Deposit Takers Act, with submissions closing on 21 Feb 2022. https://www.rbnz.govt.nz/news/2021/12/feedback-sought-on-deposit-takers-bill

6 Dec 2021 – FMA introduced a vaccine mandate protocol requiring anyone working in or visiting any FMA office (or attending any events the FMA hosts on or off-site) to be fully vaccinated against COVID‑19. This policy came into effect today. https://www.fma.govt.nz/news-and-resources/covid-19/fma-covid-19-vaccination-protocol/

7 Dec 2021 - The FMA published its Anti-Money Laundering and Countering Financing of Terrorism (AML/CFT) Sector Risk Assessment 2021, which updates the regulator’s 2017 version. https://www.fma.govt.nz/news-and-resources/media-releases/amlcft-risk-ratings-confirmed-for-sectors-under-fma-supervision/

7 Dec 2021 – The RBNZ reported that its latest annual bank stress tests show strengthening resilience in the banking sector and the benefits of continuing to build capital buffers. https://www.rbnz.govt.nz/news/2021/12/stress-tests-show-strengthening-bank-resilience


Legal and regulatory review for the life and health insurance industry

Nov 2021 - The International Organization of Securities Commission released its final report titled “Recommendations on Sustainability-Related Practices, Policies, Procedures and Disclosure in Asset Management. https://www.iosco.org/library/pubdocs/pdf/IOSCOPD688.pdf

12 Nov 2021 – Department of Internal Affairs released a document on its website dated August 2021 titled “DIA’s approach to regulation of anti-money laundering and countering financing of terrorism”. https://www.dia.govt.nz/diawebsite.nsf/Files/AML-CFT-2021/$file/DIA's-approach-to-regulation-of-AMLCFT-12-Nov-2021.pdf


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

20 Oct 2021 - The Digital Identity Services Trust Framework Bill was read a first time and referred to the Economic Development, Science and Innovation Parliamentary Select Committee with report back due by 19 April 2022.

https://www.beehive.govt.nz/release/govt-helps-protect-new-zealanders-digital-identities

https://www.parliament.nz/en/pb/bills-and-laws/bills-proposed-laws/document/BILL_116015/digital-identity-services-trust-framework-bill

20 Oct 2021 – Department of Internal Affairs issued a reminder regarding AML/CFT obligations following release of the “Pandora Papers.” https://www.dia.govt.nz/AML-CFT-Reminder---Pandora-Papers

20 Oct 2021 - The third reading of the Financial Sector (Climate-related Disclosures and Other Matters) Amendment Bill was completed in Parliament.

https://www.beehive.govt.nz/release/nz-passes-world-first-climate-reporting-legislation

https://www.parliament.nz/en/pb/bills-and-laws/bills-proposed-laws/document/BILL_109905/financial-sector-climate-related-disclosures-and-other

20 Oct 2021 – FMA media release outlining its expanded role as a result of the passage of the Financial Sector (Climate-related Disclosures and Other Matters) Amendment Bill. https://www.fma.govt.nz/news-and-resources/media-releases/climate-related-disclosure-fma-responsibilities/

Oct 2021 – External Reporting Board released a consultation on climate related disclosures focused on the proposed Governance and Risk Management sections, Aotearoa New Zealand Climate Standard 1: Climate-related Disclosures (NZ CS 1)., with submissions closing on 22 November 2021. The Board is also working on the proposed sections for Strategy, and Metrics and Targets and intend to issue those for consultation in March 2022. https://www.xrb.govt.nz/extended-external-reporting/climate-related-disclosures/consultation-and-engagement/governance-and-risk-management-consultation-document/

20 Oct 2021 – The Financial Professional Services Trading Advice Transparency Bill was introduced to Parliament as a member’s bill, proposing to prevent financial advisers who recommend that a third party take over the management or disposal of a business or its assets from performing such a function themselves. https://www.parliament.nz/en/pb/bills-and-laws/bills-proposed-laws/document/BILL_116381/financial-professional-services-trading-advice-transparency


Legal and regulatory update for the life and health insurance sector

12 Oct 2021 – The FMA released advice that the Ministry of Justice commenced a statutorily required review of the AML/CFT Act on 6 Oct 2021, with the MOJ releasing a consultation document with submissions closing on 3 Dec 2021. https://consultations.justice.govt.nz/policy/aml-cft-review/

12 Oct 2021 – IRD released a commentary on the Supplementary Order Paper No. 64 to the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Bill, containing proposals aimed at limiting the deductibility of interest incurred for residential property investments. https://taxpolicy.ird.govt.nz/publications/2021/2021-commentary-sop-argrm-bill

13 Oct 2021- FMA issued guidance on the advertising of financial products. https://www.fma.govt.nz/news-and-resources/media-releases/fma-issues-guidance-on-advertising-of-financial-products

13 Oct 2021 – RBNZ issued a consultation seeking views on its enforcement framework with submissions closing on 24 November 2021. https://www.rbnz.govt.nz/news/2021/10/views-sought-on-enforcement-framework

13 Oct 2021 - 13 Oct 2021 – MBIE advised that the Minister of Commerce and Consumer Affairs has issued the Updated Addendum to the Responsible Lending Code: COVID-19. The addendum elaborates on and offer guidance on how lender responsibility principles and lender responsibilities may be implemented by lenders while dealing with borrowers who have been impacted by COVID-19. https://www.mbie.govt.nz/dmsdocument/17505-updated-addendum-to-the-responsible-lending-code-covid-19

 

 


Legal and regulatory update for the life and health insurance industry

5 Oct 2021 – RBNZ issued advice of a change of the implementation date from 1 Jan 2022 to 1 Jan 2023 for the interim Solvency Standard applicable to insurers. Insurers will be particularly relieved at this decision, as there were some significant challenges with the 2022 date, and the modelled requirements for additional capital. https://www.rbnz.govt.nz/regulation-and-supervision/insurers/consultations-and-policy-development-for-insurers/active-policy-development/review-of-the-insurance-solvency-standards

5 Oct 2021 – FMA advised that MBIE has commenced a review of FMA funding and levies, with submissions closing on 7 November 2021.

https://www.fma.govt.nz/compliance/consultation/consultation-fma-funding-and-levy-review

https://www.mbie.govt.nz/about/news/consultation-opens-on-2021-fma-funding-and-levies-review/

6 Oct 2021 – Ministry of Justice launched a public survey seeking views on the impact of New Zealand’s anti-money laundering laws, with the survey closing on 3 Dec 2021. https://www.justice.govt.nz/about/news-and-media/news/what-do-you-think-of-our-anti-money-laundering-laws/


Legal and regulatory update for the life and health insurance sector

For novelty seekers I commend to you the last item on this list. If you are unsure about the role of digital currencies then there are some excellent backgrounders available at https://www.economist.com/ :

30 Sept 2021 – Law Commission published a supplementary discussion paper on Class Actions and Litigation Funding with submissions closing on 12 November 2021. https://www.lawcom.govt.nz/our-projects/class-actions-and-litigation-funding

29 Sept 2021 - The Treasury published its 2021 Statement on the Long-Term Fiscal Position. https://www.treasury.govt.nz/news-and-events/news/treasury-publishes-2021-statement-long-term-fiscal-position

30 Sept 2021 – Commission for Financial Capability media release noting the 20-year anniversary of “helping Kiwis get their money Sorted”. https://retirement.govt.nz/news/latest-news/20-years-of-helping-kiwis-get-their-money-sorted/

30 Sept 2021 – FMA released the AML/CFT Monitoring Insights Report covering the regulator’s monitoring of the AML/CFT Act over the past three years (1 July 2018 – 30 June 2021). https://www.fma.govt.nz/news-and-resources/media-releases/fma-steps-up-enforcement-of-anti-money-laundering-breaches/

30 Sept 2021 – RBNZ issued a consultation on the future of money consisting of two issues papers titled “Stewardship and Future of Money” and “Central Bank Digital Currency”, with submissions closing on 6 Dec 2021. https://www.rbnz.govt.nz/news/2021/09/reserve-bank-consults-on-the-future-of-money