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


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