Legal and regulatory review for the life and health insurance sector

10 May 2021 – Privacy Commissioner stated that reported privacy breaches doubled after new Privacy Act took effect. https://privacy.org.nz/publications/statements-media-releases/reported-privacy-breaches-double-after-new-privacy-act-takes-effect/

5 May 2021 – The Financial Markets Infrastructure Bill completed third reading in Parliament. https://www.parliament.nz/en/pb/bills-and-laws/bills-proposed-laws/document/BILL_93550/financial-market-infrastructures-bill

 

 


Legal and regulatory update for the life and health insurance sector

3 May 2021 – Government announced that the Productivity Commission will hold an inquiry into immigration settings to ensure New Zealand’s long term prosperity and wellbeing. Relevant web links are https://www.beehive.govt.nz/release/productivity-commission-inquiry-immigration-settings and https://www.productivity.govt.nz/news/inquiry-into-new-zealands-immigration-settings-confirmed/

4 May 2021 – The New Zealand Superannuation and Retirement Income (Fair Residency) Amendment Bill, which proposes to raise the minimum residency qualification for New Zealand Superannuation from 10 years to 20 years after age 20, was reported back to Parliament from the Select Committee. https://www.parliament.nz/en/pb/bills-and-laws/bills-proposed-laws/document/BILL_80767/new-zealand-superannuation-and-retirement-income-fair

5 May 2021 – RBNZ released the May 2021 Financial Stability Report together with an updated Capital Review Implementation timeline. https://www.rbnz.govt.nz/news/2021/05/financial-system-sound-but-vulnerabilities-remain


Legal and regulatory review for the life and health insurance sector

19 Apr 2021 – Dentons Kensington Swan advised that the international Financial Action Task Force (FATF) had consulted private sector stakeholders on an update to FATF guidance on the risk-based approach to virtual assets and virtual asset service providers, with consultation having opened on 19 March 2021 and with submissions closing on 20 April 2021.

https://www.fatf-gafi.org/publications/fatfrecommendations/documents/public-consultation-guidance-vasp.html

20 Apr 2021 – APRA and ASIC released a Life Insurance Claims and Disputes Statistics publication, covering a rolling 12-month period from 1 January 2020 to 31 December 2020. https://www.apra.gov.au/news-and-publications/apra-and-asic-publish-latest-data-on-life-insurance-claims-and-disputes-3

21 Apr 2021 – FMA media release stating that it was warning the funds management industry to avoid advertising large investment returns for the 12-month period to March 31, 2021, as this could mislead investors. https://www.fma.govt.nz/news-and-resources/media-releases/advertising-investment-returns-could-mislead-investors/

21 Apr 2021 – MBIE opened consultation on outstanding aspects of the upcoming regime governing conduct in the financial sector, including consulting on regulations covering matters such as requirements for claims handling and complaints processes, prohibitions of certain types of sales incentives, and the treatment of intermediaries, with submissions closing on 4 June 2021. https://www.mbie.govt.nz/about/news/consultation-opens-on-additional-measures-in-new-financial-conduct-regime/

21 Apr 2021 – Parliamentary website updated for the Financial Sector (Climate-related Disclosures and Other Matters) Amendment Bill, showing submission closing date as 28 May 2021 and report date as 16 Aug 2021. https://www.parliament.nz/en/pb/bills-and-laws/bills-proposed-laws/document/BILL_109905/financial-sector-climate-related-disclosures-and-other

21 Apr 2021 – IRD advised that it has identified several errors in the recent special report on the Taxation (Annual Rates for 2020–21, Feasibility Expenditure, and Remedial Matters) Act 2021, and is currently in the process of updating it. An updated version will be published by early next week. https://taxpolicy.ird.govt.nz/news/2021/2021-04-21-updates-required-special-report


Legal and regulatory update for the life and health insurance sector

15 Apr 2021 – The Law Commission is seeking feedback on its review of succession law, with submissions closing on 10 June 2021. https://www.lawcom.govt.nz/media-release/law-commission-proposes-changes-succession-law

15 Apr 2021 – RBNZ released a paper titled “An Overview of Māori Financial Services Institutions and Arrangements.” https://www.rbnz.govt.nz/research-and-publications/discussion-papers/2021/dp2021-03

15 Apr 2021 - Financial Sector (Climate-related Disclosures and Other Matters) Amendment Bill underwent first reading and referred to the Economic Development, Science and Innovation Parliamentary Select Committee, to be reported in 4 months and 1 day. https://www.parliament.nz/en/pb/bills-and-laws/bills-proposed-laws/document/BILL_109905/financial-sector-climate-related-disclosures-and-other

15 Apr 2021 – NZ Markets Disciplinary Tribunal released its Annual Report 2020. https://www.nzx.com/announcements/370794


Legal and regulatory review for the life and health insurance sector

29 Mar 2021 – IRD released via an e-mail an AEOI update to the CRS Reportable and Participating Jurisdictions showing additions, with New Caledonia added to Reportable Jurisdictions and Albania, New Caledonia, Nigeria, Peru and Turkey added to Participating Jurisdictions.

29 Mar 2021 – Police Financial Intelligence Unit released the February 2021 Suspicious Activity Report. https://www.police.govt.nz/sites/default/files/publications/fiu-monthly-report-feb2021.pdf

29 Mar 2021 - Protected Disclosures (Protection of Whistleblowers) Bill reported back from Select Committee. https://www.parliament.nz/en/pb/bills-and-laws/bills-proposed-laws/document/BILL_99238/protected-disclosures-protection-of-whistleblowers-bill

Financial Markets Conduct (US Futures Commission Merchants) Exemption Notice 2021. The exemption notice temporarily extends exemptions currently in place for US registered futures commission merchants that are accredited NZX derivatives participants with the notice expiring on 3 December 2021. https://www.fma.govt.nz/compliance/exemptions/current-exemption-notices/financial-markets-conduct-act-exemptions/financial-markets-conduct-us-futures-commission-merchants-exemption-notice-2021/

24 Mar 2021 – RBNZ announced that it had made a number of amendment orders to revise the requirements for banks’ published disclosure statements. https://www.rbnz.govt.nz/regulation-and-supervision/banks/consultations-and-policy-initiatives/completed-policy-development/public-disclosure-of-bank-breaches

25 Mar 2021 – FMA updated and closed the consultation on the content of regulatory returns for licensed DI, MIS managers and DIMS providers, including a “response to submissions” document and release of regulatory returns data templates. https://www.fma.govt.nz/compliance/consultation/consultation-paper-content-of-regulatory-returns-for-licensed-di-mis-managers-and-dims-providers/

29 Mar 2021 - NZX gave notice of amendments to the NZX Derivatives Market Rules (Rules) pursuant to Rule 1.6. The amendments to the Rules were approved by the Financial Markets Authority on 15 February 2021, following consultation with the market in April 2020. These amendments involve updates to bring the Rules in conformance with the 2019 amendments to the NZX Participant Rules. https://www.nzx.com/announcements/369841

29 Mar 2021 – RBNZ advised that it had submitted a response to the Climate Change Commission’s Climate Action for Aotearoa consultation. https://www.rbnz.govt.nz/news/2021/03/reserve-bank-responds-to-call-for-climate-change-consultation


Legal and regulatory review for the life and health insurance sector

19 Mar 2021 – FMA media release advised that James Greig, FMA Director Supervision, will lead monitoring and supervision of financial advice. https://www.fma.govt.nz/news-and-resources/media-releases/james-greig-fma-director-supervision-to-lead-monitoring-and-supervision-of-financial-advice/

19 Mar 2021 – AML/CFT - Department of Internal Affairs release advising that, as of 15 March, Financial Service Providers (FSPs) registering or updating their annual report details on the FSPR are required to declare if they are captured under the Anti-Money Laundering and Countering Financing of Terrorism Act (AML/CFT Act) as a reporting entity and who they are supervised by. The type(s) of financial services registered for as an FSP, and what activities offered in the ordinary course of business will determine if an FSP is a reporting entity. https://www.dia.govt.nz/AML-CFT-New-FSPR-registration-and-reporting-requirement

 18 Mar 2021 – Select Committee submission closing date advised to be 30 Apr 2021 for the Commerce Amendment Bill that underwent first Parliamentary reading on 16 March. https://www.parliament.nz/en/pb/bills-and-laws/bills-proposed-laws/document/BILL_108304/commerce-amendment-bill


Legal and regulatory update for the life and health insurance sector

16 Mar 2021 – Commerce Amendment Bill underwent First Reading and referred to the Economic Development, Science and innovation Select Committee, with report back due by 16 Sept 2021. The Financial Markets Infrastructure Bill completed Second Reading. Relevant weblinks are https://www.parliament.nz/en/pb/bills-and-laws/bills-proposed-laws/document/BILL_108304/commerce-amendment-bill and https://www.parliament.nz/en/pb/bills-and-laws/bills-proposed-laws/document/BILL_93550/financial-market-infrastructures-bill

17 Mar 2021 – Incorporated Societies Bill introduced into Parliament. The purpose of the bill is to put in place a modern framework of basic legal, governance, and accountability obligations for incorporated societies and those who run them. https://www.parliament.nz/en/pb/bills-and-laws/bills-proposed-laws/document/BILL_109429/incorporated-societies-bill

16 Mar 2021 - The Australian Prudential Regulation Authority (APRA) has released its private health insurance risk equalisation statistics publication for the 2019/20 financial year. https://www.apra.gov.au/private-health-insurance-risk-equalisation-statistics


Legal and regulatory update for the life and health insurance sector

10 Mar 2021 – Commerce Amendment Bill introduced into Parliament. The Bill amends the Commerce Act to strengthen the prohibition against misuse of market power and make other changes to improve the functioning of the Act. https://www.parliament.nz/en/pb/bills-and-laws/bills-proposed-laws/document/BILL_108304/commerce-amendment-bill


Legal and regulatory review for the health and life insurance sector

1 Feb 2021 – Minister of Commerce and Consumer Affairs, Hon David Clark, December 2020 diary released with the following potential financial services sector related meetings noted:

  • 2 Dec 2020 – Announcement of clearer lending rules (Attendees not listed)
  • 2 Dec 2020 – Meeting with NZ Bankers Assn (Chief Executive, Government Relations Director, Policy Director, of NZBA)
  • 4 Dec 2020 – Attendance at NZBA end of year luncheon
  • 9 Dec 2020 - Meeting with Commission for Financial Capability (Retirement Commissioner)
  • 10 Dec 2020 – Announcement about Merchant Service Fees (Attendees listed as “stakeholders”)
  • 10 Dec 2020 – Meeting with Financial Markets Authority (Chair, Chief Executive, Director Strategy, of the FMA)
  • 14 Dec 2020 – Meeting with Citizens Advice Bureau (Chief Executive of CAB)
  • 15 Dec 2020 – Meeting with Financial Services Federation (Executive Director, Board Members of FSF)

https://www.beehive.govt.nz/sites/default/files/2021-01/Hon%20Dr%20David%20Clark%20Proactive%20Diary%20Release%20December%202020.pdf


Legal and regulatory update for the life and health insurance sector

23 Dec 2020 - The Commerce Commission released its updated Authorisation Guidelines that explain its approach to assessing applications to authorise agreements or mergers in the public interest. https://comcom.govt.nz/news-and-media/media-releases/2020/commission-publishes-revised-authorisation-guidelines-and-application-forms

23 Dec 2020 – The Open Government Partnership released Progress reports for Third National Action Plan and Meeting Papers. https://ogp.org.nz/latest-news/progress-reports-for-third-national-action-plan-and-meeting-papers/

22 Dec 2020 – Courtesy of Dentons Kensington Swan, note the release of the following regulations and other information during this month, in addition to those items included in the FMA update or the MBIE release on 17 Dec 2020:

  • Financial Markets Conduct (Fees) Amendment Regulations 2020
  • Financial Markets (Derivatives Margin and Benchmarking) Reform Amendment Act Commencement Order 2020
  • Financial Markets Conduct (Licensing of Administrators of Financial Benchmarks) Amendment Regulations 2020
  • Financial Markets Conduct (Overseas Providers of Custodial Services – Assurance Engagement) Exemption Notice 2020
  • Financial Markets Conduct (Australian Licensees) Exemption Notice 2020

22 Dec 2020 – Courtesy of Dentons Kensington Swan, note the submission opportunities closing at the start of 2021 as follows:

Ministry of Business, Innovation and Employment:

  • Updating the Responsible Lending Code – submissions close 15 January 2021, 5pm.
  • Regulating to reduce merchant service fees – submissions close 19 February 2021, 10am.

Reserve Bank of New Zealand:

  • Review of the Insurance (Prudential Supervision) Act 2010 (scope of the Act and treatment of overseas insurers) – submissions close 18 February 2021.
  • Review of the Insurance Solvency Standards – submissions close 18 February 2021.
  • Reinstating Loan-to-Value Ratio restrictions – submissions close 22 January 2021.

Financial Markets Authority:

  • Proposed guidance on advertising offers – submissions close 16 February 2021.

Parliament:

  • Reserve Bank of New Zealand Bill – submissions close 4 February 2021.