Changes to dealer groups, and more daily news

With regulatory changes finalising, the industry is working to adjust. This has resulted in a number of changes being contemplated as well as being implemented. Dealer groups have had to reconsider may aspects of their business to ensure that they are prepared for the upcoming changes. One potential change is the acquisition of a group by another.

“In the past week rumours started swirling around the market that one of the bigger groups was about to takeover/merge/acquire one of the mid-size groups.”

The impending changes to the current law has meant changes to Newpark have had to be made. Newpark is expected to announce changes to their model towards the end of next month.

“Meanwhile, Newpark is regrouping its army, but how big it will be after Partners Life new FAPO model where override commission is paid to FAPs is unknown.

Good Returns understands that Newpark will be announcing its new model around August 23. If Covid-19 hadn't rolled its dice and pushed licensing back a year it's questionable if the group would still be on the board.”

Alongside making changes to align with new regulatory standards dealer group must work to ensure that they offer advisers attractive membership services.

“For advisers there is a growing imperative to ensure they find a group that fits with their own beliefs and business practices.

For dealer groups the pressure is coming on to deliver appropriate services to their members at the right price points.”  Click here to read more

In other news:

FSCL: Dispute service sees complaints rise by 40%

Southern Cross: Insurance companies among finalists for awards championing diversity

FANZ: Trusted Adviser mark attracts “strong and supportive” feedback

Commerce Commission: Commerce Commission release advising the Court of Appeal issued a ruling in the case regarding Harmoney’s lending model. In a judgment issued on 8 July the Court said that: Harmoney Limited is a creditor, its contracts are consumer credit contracts which are subject to the requirements of the CCCF Act, its platform fee is therefore a credit fee that is required by the CCCF Act to be reasonable. 


Daily news update: Newpark at a cross road, and more stories

Bernie McCrea has said that Newpark is looking into introducing shareholders as well as private capital investors to help Newpark achieve long-term goals. Bernie has said that gaining funding from investors is a better alternative than accumulating debt.

“Chairman Bernie McCrea said it was interested in institutional shareholders who might invest in the business to help it achieve its goals. It was also open to investments from private capital investors who might have money in the bank earning little interest.

“People who have an interest in financial services but are earning zero at the moment and want to diversify … we are an option for them.

In other news:

Newpark has given members a choice of four options for their ongoing relationship with the group.

Australia: Former celebrity financial adviser charged with dishonest conduct

Here are five ways to avoid looming 'retirement time-bomb'

Advisers urged to “get their cyber-security sorted”

IFSO: IFSO Scheme names two new commissioners

BNZ to put all staff through courses


Latest news including: AIA Vitality updates

AIA has been helping clients stay active during the lockdown. AIA has modified how customers can earn points.

"With AIA Vitality at home, members can:

  • Earn up to 50 Points per day with online workouts: led by AIA Vitality Ambassadors Ian Jones, Laura Henshaw, Chris & Bec Judd and Sarah Piotrowski
  • Enjoy a 30 day free trial, plus 10% subscription discount, with Les Mills On Demand: gaining access to 13 fitness programs and over 800 of the world's best workouts
  • Track their activity with a new device: with 25% off across the Fitbit online store, in addition to 25% off on selected Garmin devices
  • Refresh their workout wardrobe with 40% off New Balance footwear and apparel: with a unique, single-use code available on purchases until 30 May 2020"

In other news:

FSC: FSC Connect: A mission to healthier lives with NZ rugby legend, Ian Jones

AIA: Healthy Ad Break

nib Australia: Shareholder Announcements

OUT NOW: ASSET May issue

Newpark: NewPark_Demo_Overview

Now is not the time to shut up about suicide

Many covid deaths in care homes are unrecorded


Partners Life determined to closely monitor adviser performance

Partners Life is now working to better understand the performance of advisers. The insurer is evaluating the performance of advisers at this time by surveying clients and marking the reported performance of advisers against a set matrix.

“Partners Life has begun collecting data from clients about how advisers are performing against its Customer Outcomes Matrix.

This forms part of its new commission structure. Advisers who are shown to be delivering superior service for their clients will receive more remuneration.

The matrix covers six indicators of adviser performance: Customer advice complaints; the initial advice process; replacement advice process; cancellation advice; non-disclosure and misstatements at claim time; and service activity.

Under new rules, insurers will have to be able to show that they have clear monitoring of the conduct of all those involved in the product distribution process, from manufacture to after-sale follow-up.” Click here to read more

In other news:

Former Newpark boss 'working to support advisers'

Financial advice regime delay: what happens next?

How advisers are engaging with their clients in today's "new normal"

FMA: FMA Warns Adviser About Misleading Claims

Insurers pay out close to $20 million after Southland flooding