• Reminder: Guidelines for Financial Services businesses and staff under COVID Alert levels with relevant weblinks at https://www.fma.govt.nz/news-and-resources/covid-19/financial-services-operating-at-level-2/ and https://www.fma.govt.nz/news-and-resources/covid-19/financial-services-operating-at-level-2/
• Online investing platforms – resources https://www.fma.govt.nz/investors/online-investing-platforms/
• Don’t miss out: last chance to apply for a transitional licence before 15 March 2021 https://www.fma.govt.nz/compliance/role/fap-new-regime/how-to-apply-for-a-transitional-licence/
• Advertising financial products - consultation closing 16 Feb 2021 https://www.fma.govt.nz/compliance/consultation/proposed-guidance-on-advertising-offers
• Update on Regulatory Returns for MIS, DIMs, and DI Licensees (Managed Investment Schemes, Discretionary Investment Management Services, Derivatives Issuers) Licensees coming into effect shortly, with the first return period covering July 1 to June 30, 2022 https://www.fma.govt.nz/compliance/consultation/consultation-paper-content-of-regulatory-returns-for-licensed-di-mis-managers-and-dims-providers
• Financial product registers - new information sheet for how issuers can comply with the prohibition on the notice of trusts being entered on financial product registers https://www.fma.govt.nz/compliance/guidance-library/complying-prohibition-trusts-registers/
• Are you a FinTech business or do you know one? FMA survey to complete https://forms.office.com/Pages/ResponsePage.aspx?id=DBuDvYE37ECAHl37ombez-5pSNvk0C5KgHDbuQMWdh5UNTRENDZLMjczOURaM1dMRkE3STJYTzJYUi4u

With the move to alert level three travel plans for this week have been cancelled. I shall be in touch with each of you to reschedule meetings that were planned for in-person with either Zoom or a tentative alternative date.  Staff are all used to working from home now and are well set-up to do so. We will clear messages and divert the office phone but you may still require mobile numbers to quickly reach Jerusalem, Kelly, Fran, Melissa, Ed, or me - feel free to drop us an email and ask if you do not already have these. 

If you are at an insurer and would like us to help publicise any event changes due to the alert level change please let us know we are happy to blog those for you. 

The FMA is currently looking to fill a number of positions within the organisation. The FMA is seeking an experienced accountant to join the Auckland team as a permanent full-time employee.  There is a search for a new Wellington based Intermediate Solicitor, Enforcement. The FMA is in search for a permanent full-time Senior/Adviser Offer Disclosure in both Auckland and Wellington. A new Head of Investment Management in Auckland and Wellington is set to be recruited.

AIA has announced the introduction of AIA Cancer Care. AIA highlights that the Ministry of Health reported that 23,000 New Zealanders are diagnosed with cancer each year. AIA is offering customers the option of purchasing AIA Cancer Care. AIA Cancer Care will cover the medical expenses relating to diagnosis, treatment and recovery. Benefits of AIA Cancer Care include unlimited cancer surgical benefit, access to specialist consultations, diagnostic tests and Pharmac as well as non-Pharmac Medsafe indicated cancer chemotherapy drugs. Customers with eligible policies will be able to join AIA Vitality and earn Airpoints from premiums paid.

Key benefits include:

• $500,000 extensive cover for cancer treatment and recovery
• Access to Pharmac and non-Pharmac Medsafe indicated cancer chemotherapy drugs
• Options to have treatments overseas

“In New Zealand 23,000 people are diagnosed with cancer each year¹. While this is an alarming statistic, many cancers can be successfully treated if diagnosed early. In the unfortunate event that you’re diagnosed with cancer, having more choice and control over your treatment plan can make your journey to recovery much easier.

AIA Cancer Care will take care of medical expenses associated with the diagnosis, treatment and recovery of cancer. This includes access to an unlimited cancer surgical benefit, access to specialist consultations, diagnostic tests and Pharmac and non-Pharmac Medsafe indicated cancer chemotherapy drugs.​

With eligible policies you also get the added benefit of earning Airpoints Dollars™ for premiums paid, and have the opportunity to join AIA Vitality, a science-backed health and wellbeing program that rewards your healthy choices.” Click here to read more

In other news

Generate: From FMA to Generate

Kiwi Adviser Network: Make running your advice business effortless

nib environmental and waste report

12 Feb 2021 - FMA release advising that ANZ admits breaching FMC Act for misleading representations over credit card insurance charges. A hearing to determine the penalty was held today at the High Court at Auckland. https://www.fma.govt.nz/news-and-resources/media-releases/anz-admits-breaching-fmc-act/

12 Feb 2021 – ASIC announced that six of Australia's largest banking and financial services institutions (AMP, ANZ, CBA, Macquarie, NAB and Westpac) have paid or offered a total of $1.24 billion in compensation, as at 31 December 2020, to customers who suffered loss or detriment because of fees for no service misconduct or non-compliant advice. https://asic.gov.au/about-asic/news-centre/find-a-media-release/2021-releases/21-023mr-asic-update-compensation-for-financial-advice-related-misconduct-as-at-31-dec-2020/

11 Feb 2021 – MBIE published updated guidance to help lenders comply with their responsible lending obligations. Most of the updated Code will come into effect on 1 October 2021, at the same time as the law changes it references. The new Chapter 12, which contains guidance on missed payments and repayment difficulties, will come into force four months later. https://www.mbie.govt.nz/about/news/updated-responsible-lending-guidance-published/

11 Feb 2021 – FMA announced its General Counsel, Nick Kynoch, had resigned and would leave the regulator in late February. Director of Regulation Liam Mason would become the FMA’s Acting General Counsel. https://www.fma.govt.nz/news-and-resources/media-releases/fma-announces-senior-leadership-change/

11 Feb 2021 – RBNZ released a paper focused upon the extent to which economic researchers use improper methods to produce more “starry” results. For example, researchers often have to decide whether to delete suspicious-looking data points. If researchers use that freedom to favour “starry” results, their work will suffer from exaggeration. https://www.rbnz.govt.nz/research-and-publications/discussion-papers/2021/dp2021-01

AMP has revealed that the non-binding sale proposal made by Ares Management in October 2020 will not proceed. AMP has highlighted that it will continue to engage with Ares Management in regards to AMP Capital’s portfolio review. The AMP Board has confirmed that a transformation strategy for AMP Australia and AMP NZ wealth management is likely to be the best option for shareholders.

“In a portfolio review of FY20, AMP have revealed that Ares Management have withdrawn their non-binding indicative proposal to buy out AMP.

The report stated that, “Following detailed discussions, AMP has been advised last night by Ares that it does not intend to proceed with its non-binding indicative proposal for 100% of AMP [at] $1.85 per share.”

While acquisition of AMP is off the table, the report states that, “AMP continues to engage constructively with Ares in relation to AMP Capital as part of the portfolio review.”

While the U-turn from global asset management giant, Ares, may come as a surprise to some, AMP’s broader position is one of positivity according to the report.

“The review has confirmed AMP’s transformation strategy for the AMP Australia (Australian wealth management and AMP Bank) and New Zealand wealth management businesses is likely to be the optimal outcome for shareholders. The AMP Board has therefore concluded the review of these assets.”” Click here to read more

In other news

Partners Life: Module 6 of Adviser Support Programme, titled final checks, is set to be released March 2021

Russell’s piece on Goodreturns: Smug or Juggling?

Cigna: Cigna December COVID-19 global impact study

The FSC Get in Shape summit kicked off on Tuesday in Wellington. The two-part conference begun with the advice summit that was made up of different panels with industry experts. The advice summit included an address by Minister David Clark. The second part of the conference was the Masterclass that was focused on licensing, disclosure and advice. The next conference will be in Auckland, followed by conferences in Christchurch and Dunedin next week.

Trisha Edmonds, Head of Advisory Distribution Funds at ANZ is pictured leading a panel that includes chair of the Financial Advice Code Working Group Angus Dale-Jones, FMA Director of Market Engagement John Botica, FMA Principal Consultant - Market Engagement Derek Grantham, and MBIE Manager Financial Markets Sharon Corbett

In other news

Financial Advice: Financial Advice reports that there have been 1,467 transitional licences issued as of this week with 774 authorised bodies attached to licences. This covers 9,600 advisers. 

PAA: PAA Legacy Trust calling for 'innovation' from advisers

FSC: Out of retirement villages and into the FSC

10 Feb 2021 – Financial Services Council released a media statement detailing the results of research titled, “Unlocking the Potential of Professional Financial Advice”. https://www.scoop.co.nz/stories/BU2102/S00109/unlocking-the-potential-of-new-zealands-financial-front-line.htm

RBNZ Governor Adrian Orr has said that all stakeholders affected by the recent data breach are currently being notified. RBNZ is also supporting organisations who had sensitive files downloaded. Orr has noted that Accellion, a US cloud solution company, failed to notify RBNZ of a global data breach on its customers. Orr says that RBNZ could have avoided the breach if Accellion had issued a prompt warning. RBNZ has now ensured that external legal advisers are conducting assurance checks as well as having IDCARE, a specialist national identity and cyber support service, provide advice to those affected.

“Governor Adrian Orr says the Bank has completed its assessment of the files illegally downloaded during the breach and is notifying organisations involved. External legal advisers are also providing assurance checks and advice on any personal information which was included in the downloaded files.

“We had no warning to avoid the attack which began in mid-December. Accellion failed to notify the Bank for five days that an attack was occurring against its customers around the world, and that a patch was available that would have prevented this breach.”

“If we were notified at the appropriate time, we could have patched the system and avoided the breach. Our own analysis has identified shortcomings in our processes once the system was breached. The impact this had is part of the review underway.”

“For security reasons, we can’t provide specific details about the number of files downloaded, or information they contain. We have been in regular communication with all organisations who have had files illegally downloaded.

“As a priority, we have engaged with the organisations whose files contained sensitive information, to support them and assist in managing the impact on their customers and staff.

We are working directly with these organisations to determine how many people had sensitive personal information compromised and we will ensure they are well supported.”

The Bank has engaged a specialist national identity and cyber support service IDCARE, to provide advice and support to people affected by the breach at no cost to them. We continue to work closely with the Office of the Privacy Commissioner.” Click here to read more 

In other news

RBNZ: Financial stability strengthened by firmer LVR restrictions

Cigna: Cigna reports lower-than-expected profit for Q4