Legal and regulatory update for the life and health insurance sector

22 July 2021 – FMA released a report on Insurance conduct and culture: Fire and general insurers update. https://www.fma.govt.nz/news-and-resources/reports-and-papers/fire-and-general-insurers-update/

22 July 2021 – The latest FMA update included information on a report released in June titled “Filing of financial statements: review findings and guidance. https://www.fma.govt.nz/assets/Reports/Filing-of-financial-statements-review-findings-and-guidance.pdf

22 July 2021 – The FMA update also included advice that:

  • The FMA will be consulting in the third quarter of 2021 on proposals for exemptions to provide relief for insolvent FMC reporting entities that are in liquidation, receivership or administration from certain financial reporting requirements under the FMC Act to determine whether a class exemption is required.
  • AML/CFT reports for the period 1 July to 2020 to 30 June 2021 are due by 31 August 2021. AML/CFT supervisors have released updated guidance designed to help reporting entities complete their annual AML/CFT report.

https://www.fma.govt.nz/compliance/guidance-library/annual-amlcft-report-user-guide/

  • Updated the AML/CFT content on the FMA website to include information for Financial Advice Providers and Authorised Bodies.

https://www.fma.govt.nz/compliance/amlcft/faqs/#fapaab

  • A reminder of the new AML/CFT regulations that came into effect on 9 July 2021 and the availability of guidance on the new regulations available on the FMA website.

https://www.fma.govt.nz/compliance/guidance-library/amlcft-regulations-update-2021

22 July 2021 – RBNZ announced a consultation on an interim Solvency Standard for insurers, which will determine the minimum amounts of capital that insurers must hold, with submissions closing 1 October 2021. https://www.rbnz.govt.nz/news/2021/07/reserve-bank-consults-on-interim-insurance-solvency-standard

22 July 2021 – APRA released its Private Health Insurance Annual Coverage Survey for 2020. https://www.apra.gov.au/news-and-publications/apra-releases-its-private-health-insurance-annual-coverage-survey-0

22 July 2021 - Retirement Commission released its latest survey into the financial capability of New Zealanders. https://retirement.govt.nz/news/latest-news/latest-financial-capability-study-proves-knowledge-is-power-with-positive-findings-for-maori/

22 July 2021 – In an article titled “England’s NHS data-sharing to third parties”, the Privacy Commission uses this to highlight the privacy issues relating to patient data that may need to be considered with the consolidation of New Zealand’s district health boards into a single agency called Health New Zealand. https://privacy.org.nz/blog/englands-nhs-data-sharing-to-third-parties/

Probably the two most interesting items here are the conduct report on general insurers and the Privacy Commission's interest in medical data sharing. So many of the options for modernising the sector rest on medical data sharing and banking data sharing that these are likely to be areas under continually increasing scrutiny. 


Legal and regulatory review for the life and health insurance sector

13 July 2021 – The Department of Internal Affairs released an AML/CFT risk assessment guide covering the NZ-to-Pacific Islands money remittance sub-sector. https://www.dia.govt.nz/risk-assessment-of-the-nz-to-pacific-islands-money-remittance-sub-sector

16 July 2021 – RBNZ, FMA & DIA, the three AML/CFT supervisors, released two AML/CFT documents relevant to all reporting entities:

19 July 2021 – At the request of Government, the Productivity Commission is seeking input into Terms of Reference for a new inquiry into the drivers of persistent disadvantage within people’s lifetimes and across generations. https://www.productivity.govt.nz/inquiries/a-fair-chance-for-all/


Legal and regulatory update for the life and health insurance sector

9 July 2021 – Department of Internal Affairs provided clarification on the obligation to undertake customer due diligence for nominee directors and nominee general partners under the Anti-Money Laundering and Countering Financing of Terrorism (Requirements and Compliance) Amendment Regulations 2021, which came into force today. https://www.dia.govt.nz/New-regulation-for-nominee-directors-and-nominee-general-partners

12 July 2021 – The Productivity Commission welcomed the Government’s response to its 2020 Technological change and the future of work inquiry, which confirms work will start on measuring the gig economy. https://www.productivity.govt.nz/news/commission-welcomes-moves-to-measure-the-gig-economy/


Legal and regulatory update for the life and health insurance sector

9 July 2021 – FMA released updated AML/CFT guidance related to the regulation changes coming into force today. https://www.fma.govt.nz/compliance/guidance-library/amlcft-regulations-update-2021

8 July 2021 – RBNZ released the results of its 2021 Relationship Charter performance measurement survey, noting also that this was the first year the insurance sector was included in the survey. https://www.rbnz.govt.nz/regulation-and-supervision/statements-of-approaches/statement-of-relationship-management-approach

7 July 2021 – FMA released survey results showing changing investor preferences and continuing confidence in the markets. https://www.fma.govt.nz/news-and-resources/media-releases/fma-survey-shows-changing-investor-preferences-and-continuing-confidence-in-the-markets/

7 July 2021 – FMA announced cancellation for the first time of a Managed Investment Scheme manager licence, belonging to Fund Managers Otago. https://www.fma.govt.nz/news-and-resources/media-releases/fma-cancels-fund-managers-otago-licence/

7 July 2021 – RBNZ announced that it will be consulting extensively over the remainder of 2021 on issues key to the future of how New Zealanders pay and save, driven by its new stewardship mandate for cash and a broader currency system. https://www.rbnz.govt.nz/news/2021/07/reserve-bank-confirms-consultations-key-to-the-future-of-how-new-zealanders-pay-and-save

7 July 2021 – Department of Internal Affairs released an update to help AML/CFT reporting entities who are involved in real estate transactions understand risks associated with sight unseen property purchases. https://www.dia.govt.nz/AML-CFT-Sight-unseen-property-purchases---ML-FT-Update


Legal and regulatory update for the life and health insurance sector

30 June 2021 – FMA published its NZX obligations annual review. https://www.fma.govt.nz/news-and-resources/media-releases/nzx-obligations-review-2021

1 July 2021 - Department of Internal Affairs published a new AML/CFT guideline for reporting entities supervised by the DIA to assist them assess the money laundering and terrorism financing risks associated with dealing with other countries. https://www.dia.govt.nz/AML-CFT-Assessing-Country-Risk-Guideline-for-reporting-entities-supervised-by-DIA-published

5 July 2021 – NZ Police Financial Intelligence Unit released the May 2021 AML/CFT Suspicious Activity Report. https://www.police.govt.nz/sites/default/files/publications/fiu-monthly-report-may2021.pdf

 


Legal and regulatory updates for the life and health insurance sector

30 June 2021 – Department of Internal Affairs announced the publication of updated AML/CFT Annual Reporting guidance documents – one for Financial Institutions and Casinos (published in conjunction with the FMA and RBNZ), and one for Designated Non-Financial Businesses and Professions. https://www.dia.govt.nz/AML-CFT-Updated-Annual-Reporting-Guidance-Published

30 June 2021 – RBNZ published commentary on the reduction on banking services available to Pacific Island Nations and the related Pacific Remittance Project established in 2019 with the aim of enhancing access to, and reducing the costs of remittances to the Pacific. https://www.rbnz.govt.nz/news/2021/07/tide-going-out-on-pacific-banking-services

1 July 2021 – NZX announced that the NZ RegCo operating and governance model is now fully established and effective from today as a stand-alone, independently-governed agency performing all of NZX’s frontline regulatory functions. https://www.nzx.com/announcements/374894


Legal and regulatory update for the life and health insurance sector

11 June 2021 – ASIC announced that it is extending for 12 months – to 31 March 2023 – transitional relief for foreign financial services providers (FFSPs) from the requirement to hold an Australian financial services (AFS) licence, pending the outcome of the Australian Government’s consultation about the regulation of FFSPs. https://asic.gov.au/about-asic/news-centre/find-a-media-release/2021-releases/21-131mr-asic-extends-transitional-relief-for-foreign-financial-services-providers-following-federal-budget/

11 June 2021 – NZX announced it is proposing hygiene amendments to the Listing Rules as part of its Hygiene Review, with a consultation paper released and submissions closing on 30 July 2021. https://www.nzx.com/regulation/nzx-rules-guidance/consultation

13 June 2021 – Government announced its intent to progress the Births, Deaths, Marriages and Relationships Registration Bill, making it easier for people to formally acknowledge their identified gender, including proposing a range of sex markers to be set in regulations rather than in legislation. https://www.beehive.govt.nz/release/progress-towards-simpler-process-changing-sex-birth-certificates - if this one raises questions about pricing and classification for risk I suggest you look back to my post : https://www.chatswood.co.nz/moneyblog/2021/05/stats-nz-update-data-collection-approach-.html 

14 June 2021 – NZ Herald reported on Government moves in Australia and NZ to allow unclaimed Australian superannuation money to go into KiwiSaver, also reported as agreed on 31 May 2021 in the joint release from the Australian and NZ Prime Ministers. Paragraph numbered 22 in the release at https://www.beehive.govt.nz/release/joint-statement-prime-ministers-jacinda-ardern-and-scott-morrison

8 June 2021 –Anti-money laundering and countering the financing of terrorism regulatory updates released including:

  • Anti-Money Laundering and Countering Financing of Terrorism (Requirements and Compliance) Amendment Regulations 2021

https://www.legislation.govt.nz/regulation/public/2021/0147/latest/LMS499118.html

  • Anti-Money Laundering and Countering Financing of Terrorism (Cross-border Transportation of Cash) Amendment Regulations 2021

https://www.legislation.govt.nz/regulation/public/2021/0144/latest/LMS499306.html

  • Anti-Money Laundering and Countering Financing of Terrorism (Definitions) Amendment Regulations 2021

https://www.legislation.govt.nz/regulation/public/2021/0145/latest/LMS499212.html

  • Anti-Money Laundering and Countering Financing of Terrorism (Exemptions) Amendment Regulations 2021

https://www.legislation.govt.nz/regulation/public/2021/0146/latest/LMS499387.html

 


Legal and regulatory review for the life and health insurance sector

2 June 2021 – IRD released an updated “Public Guidance Work Programme for 2020-21” at the same time as seeking input into the 2021-22 work programme, with any suggestions for inclusion in the latter to be sent to Public.Consultation@ird.govt.nz Weblink to the Work Programme at https://www.taxtechnical.ird.govt.nz/consultations/our-work-programmes

2 June 2021 – The Fair Trading Amendment Bill completed its second reading in Parliament. https://www.parliament.nz/en/pb/bills-and-laws/bills-proposed-laws/document/BILL_93552/fair-trading-amendment-bill

3 June 2021 – NZ Police Financial Intelligence Unit released the April 2021 AML/CFT Suspicious Activity Report. https://www.police.govt.nz/sites/default/files/publications/fiu-monthly-report-apr2021.pdf