Legal and regulatory update for the life and health insurance sector

21 Oct 2020 – Department of Internal Affairs published a new webinar on the AML/CFT enhanced customer due diligence obligation on its website. https://www.dia.govt.nz/Enhanced-Customer-Due-Diligence-Webinar

22 Oct 2020 - Simone Robbers, RBNZ Assistant Governor & General Manager of Governance, Strategy and Corporate Relations, delivered a speech to the 16th Annual Financial Markets Law Conference titled “Working together to support economic recovery, strengthen resilience, and develop culture”. https://www.rbnz.govt.nz/news/2020/10/working-together-to-support-economic-recovery-strengthen-resilience-and-develop-culture

22 Oct 2020 – FMA released a consultation titled “Recognition of Australian adviser qualifications”, relevant to the upcoming financial advice provider regime, with submissions closing on 20 Nov 2020. https://www.fma.govt.nz/compliance/consultation/consultation-recognition-of-australian-adviser-qualifications/

20 Oct 2020 – MBIE published information on its website an update on COVID-19-related business relief measures, noting that some have been extended, while others are no longer available or are soon to expire. https://www.mbie.govt.nz/about/news/update-on-covid-19-related-business-relief-measures/

21 Oct 2020 - The first statement defining the purpose of New Zealand’s retirement income system was released by the Retirement Commissioner. https://cffc.govt.nz/news-and-media/news/purpose-of-nz-retirement-income-system-defined/


Legal and regulatory update for the life and health insurance sector

2 Oct 2020 – Government released the Request for Proposal documents to appoint the next set of KiwiSaver default providers. https://www.mbie.govt.nz/about/news/kiwisaver-default-provider-rfp-opens/

5 Oct 2020 – Department of Internal Affairs posted on its AML/CFT News and Information website information on some of the risks associated with compliance with election financing laws. https://www.dia.govt.nz/AML-CFT-Election-financing-laws

5 Oct 2020 – The Financial Advisers Disciplinary Committee website has again been amended such that the “Next Hearing” has been changed from 5 Oct 2020 to 2 Nov 2020, again with no further information provided. https://fadc.govt.nz/upcoming-hearings/


FSC Generations: Professional Advice - Get In Shape: The Next Bite of the Apple, supported by Chatswood Consulting

Chatswood Consulting is pleased to support the FSC's Generations conference and the professional advice session in particular. In a time of great transition, why not meet with the decision makers of the regulatory change?

This year’s panelists

  • Sharon Corbett, Manager Financial Markets, MBIE

Sharon manages the financial markets policy team at MBIE. She has been leading the Ministry's team amending New Zealand's financial advice legislation since the review commenced in 2014

  • John Botica, Director of Market Engagement, FMA

John Botica is the Director of Market Engagement at Financial Markets Authority. John is an experienced senior executive, director and consultant in the financial services industry. He was co-founder of the Assure NZ Group, Managing Director at Guardian Trust and General Manager Wealth Management at AXA

  • Angus Dale-Jones, Chair, Code Working Group

Angus is the Chair of the Code Working Group and is a chartered accountant and former financial services regulator in Australia and NZ. Angus runs a conduct, compliance and regulatory strategy consultancy

  • Derek Grantham, Principal Consultant, FMA

Derek works directly with the Director of Market Engagement, and has successfully represented the FMA at numerous industry events, often as a speaker or panelist. This has helped build effective relationships between the regulator and market participants and presented the FMA as a modern and approachable regulator. He is passionate about engaging with the financial sector to ensure that New Zealand financial markets remain transparent and fair.

Why you would attend

In this time of change, some may feel overwhelmed, some may be looking for further insight and guidance while others may want reassurance that they have made the best possible choice for their adviser business.

The FMA recently reported that over seven thousand advisers are associated with transitional licenses and that two thousand advisers are yet to apply.  Hear directly from Director of Market Engagement, John Botica and Principal Consultant Derek Grantham from the FMA on all that you need to know about transitional licenses. Sharon Corbett, Manager Financial Markets at MBIE and Angus Dale-Jones, Code Working Group Chair, will be part of the panel to share their insights.

The line-up of panelists provides any advice professional the opportunity to gain a better understanding of different aspects relating to transitional licenses.

Benefits of attending

  1. Hear directly from the regulator
  2. Independent industry expert insights
  3. Your licensing questions answered

How to attend

Find out more about the programme and how to register at this link.

Learn more about structuring your adviser business for the new regime

If you want an unbiased view on the right next steps from a structuring point of view, do contact us, we are happy to engage with your preferred compliance consultants to bring an industry and environmental context to your decision, or recommend either of our preferred consultants to help you make that choice. 


Legal and regulatory update for the life and health insurance sector

16 Sept 2020 – Treasury published the pre-election economic and fiscal update. https://www.treasury.govt.nz/news-and-events/news/2020-pre-election-economic-and-fiscal-update-published-today

16 Sept 2020 - MBIE released a statement that the Government planned responding to the retirement income policy review this year, but is taking further time to consider New Zealand’s retirement settings in light of the impacts of COVID-19. https://www.mbie.govt.nz/about/news/update-on-government-response-to-retirement-income-policy-review/

17 Sept 2020 – Minister of Commerce and Consumer Affairs, Hon Kris Faafoi, released a statement that the  Government is working on how New Zealand’s retirement income policies and settings can best support Kiwis in light of the COVID-19 economic recovery, with the help of the Retirement Commissioner’s latest review. https://www.beehive.govt.nz/release/economic-recovery-guides-govt-response-retirement-income-policy-review


Legal and regulatory update for the life and health insurance sector

1 Sept 2020 – The FMA advised licenced Managers, and Supervisors, of Managed Investment Schemes (MIS) that, as result of the enactment of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act in January 2020, overpaid PIE tax can now be refunded in some circumstances, and the FMA is encouraging MIS managers to consider updating their PDS with relevant wording before the end of January 2021.

1 Sept 2020 – Treasury advised that the Government has extended the Emergency Notification Regime in the Overseas Investment Act for another 90 days until 28 Nov 2020 to manage investment risks arising through Covid-19. https://treasury.govt.nz/publications/media-statement/ministers-retain-temporary-overseas-investment-screening-rules

1 Sept 2020 – The Ombudsman quarterly Review Winter 2020 was released. https://www.ombudsman.parliament.nz/resources/ombudsman-quarterly-review-winter-2020

2 Sept 2020 – FMA released an investor guide to bonds. https://www.fma.govt.nz/investors/resources/bonds-guide/

2 Sept 2020 – Following the earlier decision by Financial Services Council to postpone its Sept 2020 conference, Good Returns today reported that Financial Advice NZ is a recipient of funding via MBIE’s domestic event fund for its planned conference, with a decision due this weekend whether to go ahead with an in-person Auckland event. https://www.goodreturns.co.nz/article/976517427/financial-advice-nz-conference-gets-funding.html


Legal and regulatory update for the life and health insurance sector

31 Aug 2020 – Government released its response to the EQC inquiry. https://www.beehive.govt.nz/release/government-response-eqc-inquiry-released

31 Aug 2020 – MBIE advised that the Fair Trading Amendment Bill was discharged from the Economic Development, Science and Innovation Committee (the Committee) on 12 August without a report from the Committee. This means that the Bill as introduced will move onto the second reading stage. MBIE expect the second reading to take place after the election. Submissions and MBIE’s advice to the Committee are available at https://www.parliament.nz/en/pb/bills-and-laws/bills-proposed-laws/document/BILL_93552/tab/submissionsandadvice


Legal and regulatory update for the life and health insurance sector

27 Aug 2020 – MBIE issued a reminder that the “Covid-19” safe harbour for company directors from their insolvency related duties will expire on 30 Sept 2020 as planned.

28 Aug 2020 – Minister of Commerce and Consumer Affairs, Hon Faafoi, diary for July 2020 released, with the following potential financial services sector related meetings noted:

  • 1 July 2020 - Meeting with Christians Against Poverty (Aimee Mai and Michael Ward)
  • 1 July 2020 – Meeting with Vero (Marie Hosking, Adrian Tulloch and Helen McNeil)
  • 2 July 2020 – Meeting with AIG (Toni Ferrier and Bhairav Shah)
  • 22 July 2020 – Phone call with FMA (Mark Todd)
  • 30 July 2020 - Meeting with FSC (Richard Klipin and Rob Flannagan)
  • 30 July 2020 - Meeting with ‘Buy Now, Pay Later’ providers (Shaun Quincey, Neil Simons, Michael Saadat, John O'Sullivan, Julian Grennell)
  • 31 July 2020 – Meeting with Insurance Brokers Association of New Zealand (Melanie Gorham, Tony Bridgman and Barry Hellberg)

28 Aug 2020 – Good Returns reported that on 27 Aug 2020 MBIE released submissions made on the exposure draft of the disclosure regulations applicable to Regulated Financial Advice.


Legal and regulatory updates for the life and health sector

17 Aug 2020 – MBIE advised that the expiry date for the addendum to the Responsible Lending Code relevant to Covid-19 has been extended to 31 March 2020, to align with the extension to the term of the mortgage deferral scheme to the same date, with updated guidance released today on this extension by the Reserve Bank.

17 Aug 2020 – The FIU posted on its website information on the Basel AML Index, which ranks the risk of money laundering  and terrorism financing of countries around the world, a resource that may be useful when assessing risks of the countries that NZ AML/CFT regulated entities deal with. https://www.dia.govt.nz/AML-CFT-Independent-ML-TF-risk-country-rankings

17 Aug 2020 – Dissolution of Parliament postponed until 6 Sept 2020, with Treasury consequently announcing delay in the publication of the pre-election economic and fiscal update, to be completed between 7 & 21 Sept.


Planning for the new disclosure regime - what to do:

With the publication of new disclosure regulations, each transitionally licensed Financial Advice Provider must now develop a process for implementing these to take effect from 15 March 2020.

This change means engaging with systems people, reviewing websites, reviewing statements of services, and reviewing statements of advice. Outlined below is a more detailed process for designing and implementing a new disclosure procedure. It is significant.

The core work involves:

  • Identification, review and development of the disclosure content required:
    • To be publicly available on the Financial Advice Provider website, and
    • To be delivered to consumers
      • When the nature and scope of advice is known
      • When advice is given
      • When a complaint is received
    • Determining how the required disclosure is to be given to a consumer (verbally or in writing, while noting that a consumer can always request written disclosure)
  • Development of an implementation plan to ensure introduction of the disclosure changes as and when required (15 March 2020)
  • Development of a compliance and compliance assurance plan to provide comfort to the Financial Adviser Provider Governance Structure (e.g. Board) that the legal disclosure requirements are being met, or, in the event of a failure, any such instances of failure are identified and remedied.

The regulations also contain further information on other matters that should be considered, such as:

  • The requirement to consider materiality when considering what should be disclosed
  • When information must be given about a person as well as about the Financial Advice Provider
  • When reference to publicly available information will be sufficient to fulfill the disclosure requirement, rather than having to specifically provide a disclosure direct
  • When reliance can be given to past disclosures already completed until or unless a material change occurs

If you would like to discuss how Chatswood Consulting Ltd may be able to support you during this change, please call.


Legal and regulatory update: several big updates including the latest on conduct law changes

As parliament winds down this week, the last three days have seen a number of regulatory releases, many with potentially significant implications. A list follows, together with relevant links. Probably the most important is the conduct Bill update, which is the last item below. 

4 Aug 2020 – Following completion of the AMP Life sale in June, RBNZ released a document outlining the structure of the new operating model, key elements of the new structure, and exemptions and conditions applied to it. https://www.rbnz.govt.nz/regulation-and-supervision/insurers/regulation/amp-life-sale

4 Aug 2020 – Financial Markets Infrastructure Bill reported back from the Parliamentary Select Committee. https://www.parliament.nz/en/pb/sc/reports/document/SCR_99780/financial-market-infrastructures-bill

5 Aug 2020 – Commerce Commission released two reviews into an October 2019 security incident and accepts all findings and recommendations. The security incident arose from the theft of computer equipment belonging to one of the Commission’s external providers in a burglary and, as such, may contain lessons for commercial enterprises more generally on managing and mitigating such risks. https://comcom.govt.nz/about-us/strategic-planning-and-accountability-reporting/security-incident-october-2019

5 Aug 2020 – MBIE commenced consultation on the options for establishing a consumer data right in New Zealand. A consumer data right would give individuals and businesses greater choice and control over the data held about them by businesses such as banks or utility providers. It also allows individuals and businesses to securely share data held about them with a trusted third party. Submissions close on 5 Oct 2020. https://www.mbie.govt.nz/have-your-say/options-for-establishing-a-consumer-data-right-in-new-zealand/

6 Aug 2020 – MBIE released an update on development of the CCCFA regulations, advising that the regulations have now been split into two tranches with the first tranche to be made before the election and the second tranche to follow later this year. The first tranche of regulations relates to:

  • responsible advertising standards for lenders
  • the information to be disclosed at the start of debt collection
  • disclosure requirements when a contract has been varied
  • amendments to existing regulations relating to disclosure of information about dispute resolution services and financial mentoring services.

The remaining regulations relating to affordability and suitability assessments will be finalised over the coming months. The intention is for these to be made soon after a new government is formed. Both tranches of regulations, and most of the remaining provisions of the Credit Contracts Legislation Amendment Act will come into force on 1 October 2021. However, the provisions which enable the Commerce Commission to receive applications for certification will commence in June 2021.

6 Aug 2020 – The FMA released the results of a survey of KiwiSaver members relating to member recall of sighting the inclusion of projected retirement lump sum in annual statements for the first time and the proportion of members thereof taking some additional action. https://www.fma.govt.nz/news-and-resources/media-releases/kiwisaver-statements-members-take-action/

6 Aug 2020 – Parliament went into recess ahead of the election.

6 Aug 2020 – MBIE advised of a short consultation, closing on 12 Aug 2020, seeking views as to whether the Addendum to the Responsible Lending Code related to Covid-19 and due to expire on 30 Nov 2020, should be extended. The RBNZ is also considering whether its Covid-19 related guidance to facilitate banks offering loan deferrals, due to expire on 27 Sept 2020, should similarly be extended.

7 Aug 2020 – The Financial Markets (Conduct of Institutions) Amendment Bill was reported back from the Select Committee. The final report can be accessed at https://www.parliament.nz/en/pb/sc/reports/document/SCR_99944/financial-markets-conduct-of-institutions-amendment-bill

You can read the revised draft law and the explanatory notes from MBIE in the documents below. 

Download Final-report-Financial-Markets-Conduct-of-Institutions-Amendment-Bill-203-2

Download Explanatory note for industry - Changes made to FMCoIA Bill at Select Committee