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

19 Oct 2021 - Minister of Commerce and Consumer Affairs, Hon David Clark, September 2021 diary released with the following potential financial services sector related meetings noted:

  • 1 Sept 2021 – NZ Fin-Ed Centre, Massey University (Dr Pushpa Wood and David Kneebone)
  • 14 Sept 2021 – Meeting with the Council of Financial Regulators (CoFR) (Adrian Orr (Reserve Bank Governor), Rob Everett (CE Financial Markets Authority), Caralee McLiesh (Secretary of the Treasury), Carolyn Tremain (CE MBIE), Adrienne Meikle (CE ComCom), Liam Mason (General Counsel at the FMA), Hon Grant Robertson)
  • 30 Sept 2021 - Meeting with Simplicity NZ Ltd (Justin Lester, David Kneebone, and Sam Stubbs)

https://www.beehive.govt.nz/sites/default/files/2021-10/Hon%20Dr%20David%20Clark%20Proactive%20Diary%20Release%20September%202021_1.pdf

19 Oct 2021 - The committee stage of the Financial Sector (Climate-related Disclosures and Other Matters) Amendment Bill was completed in Parliament. 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 - The Financial Markets Authority set 30 September 2022 as the target date by when all transitional financial advice providers should apply for their Class 1 or Class 2 full licences. For Class 3 licence applicants, the target date is 30 June 2022. https://www.fma.govt.nz/news-and-resources/media-releases/fmtarget-dates-for-fap-full-licence-applications/

20 Oct 2021 - The Reserve Bank of New Zealand announced a review and consultation on its policy for branches of overseas banks, with submissions closing on 2 March 2022. https://www.rbnz.govt.nz/news/2021/10/review-of-overseas-bank-branches-underway


Legal and regulatory update for the life and health insurance sector

27 Sept 2021 - Minister of Commerce and Consumer Affairs, Hon David Clark, August 2021 diary released with the following potential financial services sector related meetings noted:

  • 12 Aug 2021 – Financial Markets Authority (Chair of the Financial Markets Authority)
  • 26 Aug 2021 – Financial Markets Authority (Mark Todd (Chair), Rob Everett (CE), Edwin Mitson (Government and Industry Relations))

https://www.beehive.govt.nz/sites/default/files/2021-09/Hon%20Dr%20David%20Clark%20Proactive%20Diary%20Release%20%20August%202021.pdf

28 Sept 2021 - Financial Sector (Climate-related Disclosures and Other Matters) Amendment Bill completed second reading in Parliament. https://www.parliament.nz/en/pb/bills-and-laws/bills-proposed-laws/document/BILL_109905/financial-sector-climate-related-disclosures-and-other

29 Sept 2021 - Digital Identity Services Trust Framework Bill introduced into Parliament, designed to establish a legal framework for the provision of secure and trusted digital identity services for individuals and organisations. https://www.parliament.nz/en/pb/bills-and-laws/bills-proposed-laws/document/BILL_116015/digital-identity-services-trust-framework-bill

29 Sept 2021 – FMA announced the appointment of its current Head of Enforcement, Karen Chang, as Acting General Counsel until the FMA’s new Chief Executive joins next year. https://www.fma.govt.nz/news-and-resources/media-releases/fma-appoints-karen-chang-as-acting-general-counsel/


FSC health insurance sector snapshot ,and more daily news

The FSC found that a total of $1.5 billion in health insurance claims were paid since July 2020. The snapshot also highlighted that $400 million in claims were paid in the three months to June 2021. Of the estimated 5.1 million New Zealand residents, 1.42 million have health insurance cover as of June 2021. FSC health committee chairman Lance Walker has noted that an increasing number of young New Zealanders view health cover as an important part of their financial and overall wellbeing, with 1 in 3 health insurance customers under 30. 

“The Financial Services Council (FSC) released its latest health insurance sector snapshot, showing a total of $1.5 billion in claims have been paid to New Zealander's since July 2020.

This is an increase of just under $60 million in comparison to the previous three month period with the data also showing that more than 1.4 million Kiwis have some form of health cover.

“Although the current lockdown has impacted the availability of private health services, with most elective surgeries being postponed, we expect to see services restored as New Zealand moves down alert levels,” says FSC chief executive Richard Klipin.

“Importantly, customers will remain covered for any medical conditions that they may develop during the lockdown period.”

FSC health committee chairman Lance Walker says more younger Kiwis view health cover as an important part of their financial and overall wellbeing, showing that around 1 in 3 customers with health cover are under the age of 30.

He says last year, orthopaedic surgery, cancer and gynaecological treatments were the top three areas of support funded by health insurers.” Click here to read more

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In other news

FSC: FSC Connect: Leading Lawyers

FSC: Building Resilience and Maintaining Wellbeing Through Lockdowns

FSC: The why, what, when and how of climate-related disclosure in Aotearoa New Zealand

FSC: FSC's Diversity and Inclusion Committee established in August. FSC is accepting expressions of interest to be involved

FSC: FSC is reviewing upcoming events, including the FSC ReGenerations Conference

FSC: Get In Shape Session 19: Business Continuity Plans and Cyber Security


Legal and regulatory review for the life and health insurance industry

16 Aug 2021 - Financial Sector (Climate-related Disclosures and Other Matters) Amendment Bill reported back from Parliamentary Select Committee. https://www.parliament.nz/en/pb/bills-and-laws/bills-proposed-laws/document/BILL_109905/financial-sector-climate-related-disclosures-and-other

13 Aug 2021 - Inland Revenue advised it is seeking public feedback on the proposed scope of the topics outlined for its 2022 long term insights briefing on tax, investment and productivity, with submissions closing on 6 September 2021. https://taxpolicy.ird.govt.nz/news/2021/2021-08-13-consultation-ltib

11 Aug 2021 - The Takeovers Panel issued updated guidance on acceptance forms to recognise the phasing out of the use of cheques. https://www.takeovers.govt.nz/guidance/codeword/issue-52/guidance-on-acceptance-forms/

11 Aug 2021 – The Births, Deaths, Marriages, and Relationships Registration Bill completed its second reading in Parliament with the Minister for Internal Affairs inviting the Governance and Administration select committee to consider improvements to the self-identification process and to provide a further opportunity for public submissions. Relevant web links are https://www.beehive.govt.nz/release/simple-self-identification-one-step-closer and https://www.parliament.nz/en/pb/bills-and-laws/bills-proposed-laws/document/BILL_74854/births-deaths-marriages-and-relationships-registration

12 Aug 2021 – ASIC released information outlining its approach to new laws reforming the Australian financial services sector. https://asic.gov.au/about-asic/news-centre/find-a-media-release/2021-releases/21-213mr-asic-s-approach-to-new-laws-reforming-financial-services-sector/


Legal and regulatory update for the life and health insurance sector

12 Apr 2021 – RBNZ advised that it is ceasing to publish certain weekly banking customer lending metrics, as it also resumes publishing certain insurance financial statistics. https://www.rbnz.govt.nz/statistics/statistics-news-and-updates

12-13 Apr 2021 - Financial Sector (Climate-related Disclosures and Other Matters) Amendment bill introduced into Parliament, intended to amend the Financial Markets Conduct Act 2013, the Financial Reporting Act 2013, and the Public Audit Act 2001 by implementing a single broad policy to broaden non-financial reporting by requiring and supporting the making of climate-related disclosures by certain FMC reporting entities and supporting related matters. Relevant web links are https://www.parliament.nz/en/pb/bills-and-laws/bills-proposed-laws/document/BILL_109905/financial-sector-climate-related-disclosures-and-other and https://www.beehive.govt.nz/release/nz-becomes-first-world-climate-reporting

13 Apr 2021 – FMA provided a breakdown of financial advice providers in the new regime. https://www.fma.govt.nz/news-and-resources/media-releases/breakdown-fa-providers/

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13 Apr 2021 – RBNZ announced the establishment of a new standalone Enforcement Department to promote confidence in compliance across regulated sectors. The Enforcement Department is operationally separate from the Bank’s Supervision team, but the two will work closely together to achieve the Bank’s compliance goals. https://mailchi.mp/rbnz.govt.nz/reserve-bank-launches-new-enforcement-department?e=1769bcd465


University adviser course finalised, and more daily news

Massey University and Kaplan Professional’s Certificate in Business Studies (Financial Services pathway) adviser course is now ready. Massey University worked with Kaplan Professional to create a course that’ll help new advisers and existing advisers. Dr. Jeff Stangl, international and strategic partnerships director at Massey Business School has said that the 18 months spent on the development of the course ensures that those registered will improve their skills.

“Massey has been working with Kaplan Professional for one-and-a-half years to make sure that the course will allow advisers to leave feeling confident and settled in the new regime.

Dr Jeff Stangl, Massey Business School international and strategic partnerships director, says that now is a time for New Zealand’s business community “to lift their game nationally as far as the educational requisite for advisers is concerned”.

Stangl says that the amount of work that went into creating this course means that those who enrol should expect to see their skills improve greatly.”

The course was created using material from both New Zealand and Australia. The digital course will cost $1,800 and will provide advisers access to Ontrack, Kaplan Professional’s continuing education platform. Additionally, New Zealand advisers will have access to personalised support. The course includes a compulsory Financial Advice Fundamentals course and an elective specialisation. Adviser wishing to take additional courses they will need to pay $900 for each specialisation.

“The creation of this programme was pretty intense, we engaged subject matter experts on both sides of the Tasman. It was truly a trans-Tasman collaborative effort to create a programme specifically for the New Zealand market.”

A big part of the course’s attraction is the fact that it allows participants to have one-year’s access to Ontrack, Kaplan Professional’s continuing education platform. Stangl says the product is a game changer. “This is a newly released CPD tracking software that is already becoming the standard in the Australian market. It is just a brilliant piece of engineering.”

The Certificate in Business Studies (Financial Services pathway) will be delivered online and New Zealand advisers will have access to personalised support.

The course costs $1,800 and includes the compulsory Financial Advice Fundamentals course, plus one elective specialisation (investment; life, disability and health insurance; general insurance; or residential property lending). Additional specialisations are $900 each.” Click here to read more

In other news

SwissRe: CEO Christian Mumenthaler said even though companies don’t know how to achieve net-zero by 2050, they should take “a leap of faith” and set the target.

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FSC Get in Shape Conference

The FSC Get in Shape Conference is just around the corner and we thought it was a good time to highlight what to expect if attending. The conferences will be held in Wellington, Auckland, Christchurch and Dunedin. The FSC has ensured relevant topics are discussed by industry leaders in the sessions and Masterclass. Highlights of the conference include:

  • Meet and engage with the leaders shaping our sector and regulatory landscape. These include Leaders from the MBIE, the FMA, the CFFC and the financial advisory sector.
  • Consumer focus - We will unpack the latest research from across the NZ and the globe  and understand how Financial Advice is helping Kiwis lead better lives.
  • Engage with Leading legal minds at the Masterclass - The masterclass is curated by those that understand what it really means to succeed under the new regulation. Our line up of legal experts and leading advisers will be run in a practical workshop style to have you thinking outside the box and teach you how to best use resources available to you.
  • Connect  and network with your colleagues - After a very tough 2020, join your colleagues for a morning of learning, engaging and getting inspired for the year ahead.
  •  Meet  you in the market place – Once again our marketplace expo is the meeting place to connect with your suppliers and partners.
  • CPD -  Get your CPD & learning program off to a strong start for 2021. All sessions will be assessed and all attendees will receive CPD certificates for sessions attended. 

Those interested in attending can register here and find the dates and location below.

WELLINGTON
Wednesday, 10 February 2021
Arrival from 7:15am, welcome at 8:00am, advice summit close 12:45 followed by Masterclass from 1.15pm until 3.15pm

Members Gallery
Sky Stadium
105 Waterloo Quay
Pipitea,
Wellington 6140

AUCKLAND
Thursday, 11 February 2021
Arrival from 7:15am, welcome at 8:00am, advice summit close 12:45 followed by Masterclass from 1.15pm until 3.15pm

North Level 5 Lounge
Eden Park Function Centre
10 Reimers Ave
Kingsland
Auckland 1024

CHRISTCHURCH
Wednesday, 17 February 2021
Arrival from 7:15am, welcome at 8:00am, advice summit close 12:45 followed by Masterclass from 1.15pm until 3.15pm

Tait Technology Centre
245 Wooldridge Road
Harewood
Christchurch 8051

DUNEDIN
Thursday, 18 February 2019
Arrival from 10:00am, welcome at 10:30am, close 3.00pm followed by Masterclass from 3.15pm until 5.15pm

Dunedin Centre
1 Harrop Street
Dunedin 9016

Get In Shape 2021 Big Banner v1 - Financial Services Council


Is your insurer aligned to your values?

In December Paul Brownsey, of Pathfinder Asset Management, writing at Stuff, asked "Is your KiwiSaver making an impact?" The question is elaborated upon by drawing a link between spending decisions we make all the time and whether or not your KiwiSaver manager is supporting those goals: 

"In our daily lives, many of us are conscious consumers. We make active choices about where we spend our money, and increasingly we are making choices based on ethical considerations."

Brownsey believes that your KiwiSaver should be supporting the values you may exercise when you make other spending decisions. Should your insurance do likewise? While most insurers are very conservative managers they may retain impact, through corporate bonds for example,  and through information and incentives. Insurers may have little leverage through investments, but what about other incentives? How much should insurers take a stand to try and improve the lives of the people that they insure? Here in New Zealand we have some great contributions to make to wellbeing - and some areas where we fall far short. Some of those problems are quite diffuse - the costs seem distant and too difficult for people to appreciate. But insurers understand how choices that seem without consequence can affect risk substantially. 

Whatever the method, the question of whether the substantial monthly expenditure on insurance is supporting consumer values or not is bound to come up again and again as consumer's wealth and level of education continues to rise.